CLA-2-87:OT:RR:NC:N2:201
Chuck Pinnow
1509 Dutch Lane
Penngrove, CA 94951
RE: The tariff classification of a replica 1965 Volkswagen van from China
Dear Mr. Pinnow:
In your letter dated June 13, 2018 you requested a tariff classification ruling.
The item under consideration has been identified as a replica 1965 Volkswagen van converted into an electric powered food vending trailer. You state that the vehicle will be transported to and from venues either on a flatbed trailer, or towed. Additionally, you state that the vehicle is equipped with a battery and a small electric motor to allow it to maneuver off the trailer. The vehicle is not capable of being driven on the road.
In your ruling you have suggested that this item should be classified in subheading 8716, HTSUS, as a trailer or semi-trailer. We disagree. Heading 8716 covers trailers, semi-trailers, and other vehicles, non-mechanically propelled.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 states, in relevant part, that classification shall be determined according to the terms of the headings and any relative section or chapter notes and according to the provisions that follow, such as GRI 2(a), provided that the headings or notes do not otherwise require. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs for Chapter 87 say “An incomplete or unfinished vehicle is classified as the corresponding complete or finished vehicle provided it has the essential character of the latter…for…example:…(b) A motor vehicle not equipped with its engine or with its interior fittings.” In order to be classified as the complete article, i.e., a motor vehicle…, rather than as a body, chassis, or part of a motor vehicle, the imported incomplete article must have the essential character of the complete article. For example, a "motor vehicle not equipped with its engine, tires, or interior fittings”. In this case, the imported article consists of a chassis frame, body, axles, wheels, and tires, suspension, brakes, steering assembly, and interior cooking furnishings. Therefore, the imported VW van has the essential characteristics of a complete motor vehicle.
The applicable subheading for the replica 1965 Volkswagen van will be 8705.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, wreckers, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units): Other”. The rate of duty will be Free.
Please note that effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8705.90.0000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8705.90.0000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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.
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