CLA-2-87:OT:RR:NC:N2:201
Michael Mogan
E Beach Wagon LLC
403 Virginia Drive
Middletown, DE 19709
RE: The tariff classification of an electric cargo wagon from China
Dear Mr. Mogan:
In your letter dated March 26, 2025, you requested a tariff classification ruling.
The item under consideration has been identified as the “e-Beach Wagon”. The e-Beach Wagon is an
electric, motorized, 2’x4’ wagon that carries up to 300 pounds. You state that this second-generation wagon
is operated by walking next to the wagon, holding the handle to steer, and pressing the thumb throttle to
power the wagon. In response to received requests from your customers, you indicate that this generation
includes a seat accessory that converts the wagon into an electric beach wheelchair, except that it is operated
by someone else.
The e-Beach Wagon has the following features:
Smart controller
Five speeds
Max speed on the lowest setting is 1.2 mph
Automatically regulates the speed going downhill
48V, 800W motor
48V, 30AH LiFePO4 battery
All aluminum chassis
Mobility seat
In your request, you suggest classifying the wagon under subheading 8709.11.0060, Harmonized Tariff
Schedule of the United States (HTSUS). We disagree.
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 Explanatory
Notes to 87.09, states in part that heading 8709, HTSUS, covers:
a group of self-propelled vehicles of the types used in factories, warehouses, dock areas or airports
for the short distance transport of various loads (goods or containers) or, on railway station
platforms, to haul small trailers.
Such vehicles are of many types and sizes. They may be driven either by an electric motor with
current supplied by accumulators or by an internal combustion piston engine or other engine.
The main features common to the vehicles of this heading which generally distinguish them from the
vehicles of heading 87.01, 87.03 or 87.04 may be summarized as follows:
1. Their construction and, as rule, their special design features, make them unsuitable for the
transport of passengers or for the transport of goods by road or other public ways.
2. Their top speed when laden is generally not more than 30 to 35 km/h.
3. Their turning radius is approximately equal to the length of the vehicle itself.
Vehicles of 8709 are “vehicles of the types used in factories, warehouses, dock areas or airports for the
short distance transport of various loads (goods or containers) or, on railway station platforms, to haul small
trailers.” You state that the e-Beach Wagon at issue is suitable solely for off-the-road uses and principally
used on sand, beaches, etc. The beach is not akin to the locations stated in EN 87.09.
The applicable subheading for the e-Beach Wagon will be 8704.60.0000, HTSUS, which provides for “Motor
vehicles for the transport of goods: Other, with only electric motor for propulsion”. The rate of duty will be
25 percent ad valorem.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 8704.60.0000 HTSUS, listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other
countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must
report the Chapter 99 heading applicable to your product classification, 9903.01.63, in addition to subheading
8704.60.0000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 8704.60.0000, 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 8704.60.0000, 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/programs-administration/trade-remedies, respectively.
Additionally, in your submission you requested consideration of a secondary classification under 9817.00.96,
HTSUS, which applies to articles and parts of articles specifically designed or adapted for the use or benefit
of the permanently or chronically physically or mentally handicapped.
Subheading 9817.00.96, HTSUS, covers: “Articles specially designed or adapted for the use or benefit of the
blind or other physically or mentally handicapped persons; parts and accessories (except parts and
accessories of braces and artificial limb prosthetics) that are specially designed or adapted for use in the
foregoing articles . . . Other.” The term “blind or other physically or mentally handicapped persons”
includes “any person suffering from a permanent or chronic physical or mental impairment which
substantially limits one or more major life activities, such as caring for oneself, performing manual tasks,
walking, seeing, hearing, speaking, breathing, learning, or working.” U.S. Note 4(a), Subchapter XVII,
Chapter 98, HTSUS. Subheading 9817.00.96, HTSUS, excludes “(i) articles for acute or transient disability;
(ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; (iii) therapeutic and
diagnostic articles; or, (iv) medicine or drugs.” U.S. Note 4(b), Subchapter XVII, Chapter 98, HTSUS.
In Sigvaris, Inc. v. United States, 227 F. Supp 3d 1327, 1336 (Ct. Int’l Trade 2017), aff’d, 899 F.3d 1308
(Fed. Cir. 2018), the U.S. Court of International Trade (CIT) explained that “specially” means “to an extent
greater than in other cases or towards others” and “designed” means something that is “done, performed, or
made with purpose and intent often despite an appearance of being accidental, spontaneous, or natural.” We
must first evaluate “for whose, if anyone’s, use and benefit is the article specially designed,” and then,
whether “those persons [are] physically handicapped.
The Court of Appeals for the Federal Circuit CAFC) clarified in Sigvaris, (899 F.3d at 1314-15) that to be
“specially designed,” the merchandise “must be intended for the use or benefit of a specific class of persons
to an extent greater than for the use or benefit of others” and adopted the five factors used by U.S. Customs
and Border Protection (CBP):
1. The physical properties of the article itself (i.e., whether the article is easily distinguishable by
properties of the design, form, and the corresponding use specific to this unique design, from articles
useful to non-handicapped persons);
2. Whether any characteristics are present that create a substantial probability of use by the chronically
handicapped so that the article is easily distinguishable from articles useful to the general public and
any use thereof by the general public is so improbable that it would be fugitive;
3. Whether articles are imported by manufacturers or distributors recognized or proven to be involved in
this class or kind of articles for the handicapped;
4. Whether the articles are sold in specialty stores which serve handicapped individuals; and,
5. Whether the condition of the articles at the time of importation indicates that these articles are for the
handicapped.
Based on the information supplied, the e-Beach Wagon does not satisfy the 5 factors set out by CBP.
Subheading 9817.00.96 does not cover “articles for acute or transient disability”. As a result, it is the
opinion of this office that a secondary classification in subheading 9817.00.96, HTSUS will not apply.
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 at https://hts.usitc.gov/.
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. 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 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