CLA-2-87:OT:RR:NC:N2:201
Mark Tallo
Sandler, Travis & Rosenberg, P.A.
1300 Pennsylvania Avenue
Washington, District of Columbia 20004
RE: The tariff classification of a Toyota Tacoma i-FORCE MAX hybrid pick-up truck from Mexico
Dear Mr. Tallo:
In your letter dated January 13, 2024, you requested a tariff classification ruling on behalf of your client, Toyota Motor Sales USA Inc.
The item under consideration has been identified as a Toyota Tacoma i-FORCE MAX hybrid pick-up truck. The hybrid pick-up truck incorporates a 2.4-liter turbocharged gasoline, spark-ignition internal combustion piston engine paired with a 48 horsepower (HP) electric motor. The four-door passenger cab has seating for up to 5 passengers and an open-air cargo area. The traditional 8-speed automatic transmission produces up to 326 horsepower and a 465 lb.-ft. of torque. The electric motor can supplement the gasoline engine’s output, adding more torque as the driver demands it. The main source of motive power is the gasoline engine.
In your request you state that the Gross Vehicle Weight (G.V.W.) rating will vary based on trim options, but the G.V.W. of all Tacoma i-FORCE MAX hybrid pick-up trucks will be below 5 metric tons.
For purposes of determining the applicable rule of origin under the U.S.-Mexico-Canada Trade Agreement (“USCMA”), importers must apply various Product-Specific Rules of Origin (“PSR”) that are based on the tariff classification of the product. You state in CSMS # 17-000270: [A] very limited number of tariff items in the Harmonized Tariff Schedule of the United States (HTSUS) do not have corresponding free trade agreement (FTA) tariff change rules (TCRs) (also known as “product specific rules of origin” or by the acronym “PSRs”) because they were negotiated using a Harmonized Tariff Schedule (HTS) that was subsequently modified in 2007, 2012, or 2017, and the corresponding TCRs have not been implemented.
The USMCA PSR applicable to the subject pick-up trucks were written using the HS 2012 product nomenclature. Therefore, the tariff classification requested is specific to the treatment of hybrid pick-up trucks under the HS 2012 because that is the version of the HTSUS that determines the product’s applicable rule of origin under the USMCA.
In your request, you suggest that the article submitted, the Tacoma i-FORCE MAX hybrid pick-up truck would be classified in subheading 8704.31.00, which describes “Motor vehicles for the transport of goods: Other, with spark-ignition internal combustion piston engine and electric motor as motors for propulsion: G.V.W. not exceeding 5 metric tons”. However, as noted above, the scope of this ruling request is exclusively focused on the classification of the vehicles based on the HS 2012. This office concurs.
The applicable subheading for the Tacoma i-FORCE MAX hybrid pick-up truck will be 8704.31.0040, HTSUS, which provides for “Motor vehicles for the transport of goods: Other, with spark-ignition internal combustion piston engine: G.V.W. not exceeding 5 metric tons: G.V.W. exceeding 2.5 metric tons but not exceeding 5 metric tons”. The general rate of duty will be 25% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at [email protected]
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division