CLA-2-87:OT:RR:NC:N2:201
Andrea Stacey
Hyundai Motor America
10550 Talbert Ave
Fountain Valley, CA 92708
RE: The tariff classification of new model of Hybrid Electric Vehicle (HEV) from South Korea
Dear Ms. Stacey:
In your letter dated June 11, 2025, you requested a tariff classification ruling.
The Palisade HEV is a five-door sport utility vehicle powered by a six-cylinder 2.5-liter gas, spark-ignition,
internal combustion engine combined with an electric motor, 64kw., for a combined 329 horsepower. You
state that the Palisade HEV is equipped with a 1.65kW battery, and that once the battery is depleted the
vehicle operates like a regular hybrid using the gasoline engine. There is seating for 5 persons.
The applicable subheading for the Palisade HEV will be 8703.40.0020, 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 both spark-ignition internal combustion piston engine and
electric motor as motors for propulsion, other than those capable of being charged by plugging to external
source of electric power: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New:
Having engines with not more than 4 cylinders”. The general rate of duty will be 2.5% ad valorem.
Effective April 3, 2025, Presidential proclamation 10908 imposed additional tariffs on certain automobiles.
Additional duties on passenger vehicles (sedans, sport utility vehicles, crossover vehicles, minivans or cargo
vans) and light trucks of 25 percent, as provided in subdivision (b) of U.S. note 33 to this subchapter are
reflected in Chapter 99, heading 9903.94.01. At the time of entry, you must report the Chapter 99 heading
applicable to your product classification, i.e. 9903.94.01, in addition to subheading 8703.40.0020, 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. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted
subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.01.33, in addition to subheading 8703.40.0020, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 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 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,
(for)
Steven A. Mack
Director
National Commodity Specialist Division