CLA-2-87:OT:RR:NC:N1:101
Howard D. Esterman,
Import and Trade Supervisor
Kia Motors America, Inc.
111 Perters Canyon Road
Irvine, CA 92606-1790
RE: The tariff classification of new vehicles from South Korea
Dear Mr. Esterman,
In your letter dated May 2, 2011, you requested a tariff classification ruling.
The items under consideration are two (2) new vehicles identified as the “Kia Optima Hybrid” and the “Kia Forte 5 Door”.
The first vehicle is the Kia Optima Hybrid 2.4L; it is a four-door sedan automobile powered by an inline four-cylinder, 2359 cc gasoline direct injection, turbo, spark ignition, internal combustion engine, and a 40.2 hp, 30 kWh electric motor. The electric motor is powered by a 270-VDC, 1.4 kW lithium-ion polymer battery. The vehicle seats up to five passengers. The interior volume of the passenger compartment is 102.2 cubic feet (2.89 m³). It has a cargo volume of 9.9 cubic feet (0.28 m³) and the total combined interior volume is 112.1 cubic feet (3.17 m³).
The second vehicle is the Kia Forte 5-Door 2.0L; it is a five-door hatchback automobile powered by an inline four-cylinder 1998 cc gasoline, spark ignition internal combustion 156 hp engine that seats up to five passengers. The interior volume of the passenger compartment is 97.5 cubic feet (2.76 m³), measured with the rear seat backs in the upright position. It has a cargo volume of 19.4 cubic
feet (0.55 m³). The total combined interior volume is 116.9 cubic feet (3.31 m³).
The applicable classification subheading for both the Kia Optima Hybrid and the Kia Forte 5 Door will be 8703.23.0048, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons …: Other vehicles, with spark-ignition internal combustion piston engine: of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines with not more than 4 cylinders: Other: Of an interior volume exceeding 3.1 m³ but not exceeding 3.4 m³.” The rate of duty will be 2.5%.
You suggested classifying the Kia Optima Hybrid in subheading 8703.23.0046, HTSUS. That classification is incorrect due to the fact that the interior volume exceeds 3.1 m³ but does not exceed 3.4 m³. Please note, 49 C.F.R. Part 523 states “for all body types except station wagons and hatchbacks with more than one seat (e.g., with a second or third seat) equipped with seatbelts as required by DOT safety regulations, interior volume index is the sum, rounded to the nearest 0.1 cubic feet, of the front seat volume, the rear seat volume, if applicable, and the luggage capacity”.
You suggested classifying the Kia Forte 5 Door in subheading 8703.23.0044, HTSUS because as you stated “It is our understanding that the interior volume for a hatchback is made from within the passenger area only. The cargo volume should not be included in the calculation”. That is incorrect due to the fact that the interior volume exceeds 3.1 m³ but does not exceed 3.4 m³.
Please note, 49 C.F.R. Part 523 states “for all station wagons and hatchbacks with more than one seat (e.g., with a second or third seat) equipped with seat belts as required by DOT safety regulations, interior volume index is the sum, rounded to the nearest 0.1 cubic feet, of the front seat volume, the rear seat volume, and the cargo volume index”.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division