CLA-2-87:OT:RR:NC:N2:201
Eric Atherton
Lightfoot Electric, Inc
3101 20th Street San Francisco, CA 94110
RE: The tariff classification and country of origin of an e-scooter
Dear Mr. Atherton:
In your letter dated December 17, 2024, you requested a country of origin and classification ruling on an e-scooter assembled in Taiwan from a Chinese and Taiwanese frame and Chinese, Taiwanese and German components. You provided a video showing the manufacturing process and a Bill of Material (BOM) showing the country of origin of all components and materials.
The item under consideration has been identified as the “Lightfoot,” a solar and regenerative braking-powered seated e-scooter. You state that the Lightfoot is equipped with:
Two (2) 750-watt wheel hub motors (1000-watts peak power and regeneration function)
A throttle on the handlebars
Speeds up to 20 mph
Estimated range of 30 miles on a fully charged UL-rated battery, augmented by a variable limited number of miles from continuous solar charging and regenerative braking
A stem mounted display that provides e-system status indicators on battery level, speed, and other critical information
Maximum rider weight of 350lbs
Interior storage suitable for up to three (3) small bags
Maximum cargo weight of 50lbs
In your request you state that the Lightfoot weighs approximately 140lbs and measures 60” long by 35” tall by 20” wide. One or two individuals may ride the Lightfoot in the seated position. You claim that the Lightfoot will be primarily used as a personal conveyance by adults to commute to work or to other activities of up to a dozen miles a day, primarily in urban or other locations with bike lanes. Lightfoot will ship fully assembled from a factory located in Taiwan. You state that the:
Inner frame
Stem
Suspension
Brakes
Seating, and
Lights
are all sourced from vendors within Taiwan, while the:
Wheel hub motors
Tires
Tubes
Throttles
Grips
End caps
Display
Wiring harness
Horn
On-board charger
Solar panels (120-watt photovoltaic Solar Panels. Each side panel consists of 46 monocrystalline solar panels, measuring 52.7” x 20.8” x .12”), and
Maximum Power Point Tracking (MPPT) system
are manufactured in China. The battery is sourced from Germany.
The Lightfoot is shipped completely assembled and will arrive in the US ready to ride out of the box. In response to our email, you state that the Lightfoot, while solar powered, does not have the capability to charge other devices.
The applicable subheading for the Lightfoot will be 8711.60.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars: With electric motor for propulsion: Other.” The rate of duty will be Free.
In your request you question whether the frame in question would be considered the “essence” of the vehicle and thus impart the country of origin of the entire vehicle.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
It has been CBP’s position that the frame imparts the character of the scooter, which in this case is a product of BOTH China (Solar Panels) and Taiwan (Inner Frame). It is the opinion of this office that the solar panels, which provide not only power, but are integral parts of the frame body of the e-scooter, imparting the character of the product. Based on the information provided, the culmination of production processes performed in Taiwan to the Chinese solar panel and inner Taiwanese frame does not substantially transform the solar panels. Accordingly, the merchandise will be a product of China, and the Section 301 measures will apply.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8711.60.0090, HTSUS, unless specifically excluded, are subject to an 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 8711.60.0090, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
Additionally, please note that the photovoltaic panels may be subject to antidumping or countervailing duty (AD/CVD) on “crystalline silicon photovoltaic cells, whether or not assembled into modules” from the People’s Republic of China.
When there is a question as to whether merchandise is subject to an antidumping or countervailing duty order or considered to be defined by the scope of an order, such a determination is governed by the U.S. Department of Commerce’s International Trade Administration (“Commerce”). Commerce issues scope rulings to determine whether merchandise which is in commercial production is covered by the scope of an antidumping or countervailing duty order. Commerce’s scope rulings are separate and distinct from decisions issued by CBP regarding tariff classification and country of origin for purposes such as duty assessment and marking.
To seek a scope ruling, please visit the website of Commerce’s International Trade Administration. A guide to seeking a scope ruling can be found at https://access.trade.gov/help/Scope_Ruling_Guidance_(4.1.2022).pdf. A list of current AD/CVD investigations at the United States International Trade Commission can be viewed on its website at http://www.usitc.gov. Additionally, messages sent by Commerce to CBP regarding AD/CVD cash deposits and liquidation can be searched using ACE or CBP’s search tool at https://trade.cbp.dhs.gov/ace/adcvd/adcvd-public/#.
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 the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If 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 and Border Protection 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, please contact National Import Specialist Matthew Sullivan at [email protected]
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division