CLA-2-87:OT:RR:NC:N2:206
Elizabeth Lowe
Venable LLP
600 Massachusetts Ave. NW
Washington, DC 20001
RE: The tariff classification of bus shells from Canada
Dear Ms. Lowe:
In your letter dated March 19, 2026, you requested a tariff classification ruling on behalf of New Flyer of
America Inc.
The items under consideration have been identified as bus shells, which you refer to as Configuration 1 (Part
Number: COACH BODY XDConfig1) and Configuration 2 (Part Number: COACH BODY XDConfig2).
The two configurations of transit bus shells are used in the assembly of transit buses. After arrival in the
United States, the transit bus shells undergo a final assembly process in which the remaining components
necessary to complete the finished transit buses are installed.
Configuration 1 includes the following components installed at the time of importation: the base structure or
“chassis” (the welded structural frame of the bus shell that forms the primary supporting framework of the
vehicle body), body (the exterior body panels), power steering system (including the power steering box and
steering column), fuel tank, fuel tank support structure, plywood flooring, vinyl flooring, rain gutters, rub
rails, partial bus shell paint, interior lighting tracks, air duct system, wiring harnesses, heating and cooling
lines, front windshield, and windows.
Configuration 2 includes the following components installed at the time of importation: the base structure or
“chassis,” body, plywood flooring, vinyl flooring, rain gutters, rub rails, partial bus shell paint, interior
lighting tracks, air duct system, wiring harnesses, heating and cooling lines, front windshield, and windows.
You state that components, such as axles, brake chambers, front and rear suspension systems, wheels, and
steering wheels are installed onto the shells in the United States after importation as part of the final assembly
of the transit buses. Additionally, the secure diagnostic systems (“SDS”) box, which serves as a barrier
separating the driver’s area from the passenger area, is also installed in the United States during the final
assembly process.
You suggest that both configurations of bus shells are classified in subheading 8707.90.5040, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for bodies (including cabs) for vehicles of
heading 8702. We partially agree.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI
1 provides that the classification of goods shall be determined according to the terms of the headings of the
tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely
on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2
through 6 may then be applied in order. General Rule of Interpretation 2(a) states that:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete
or unfinished, provided that, as entered, the incomplete or unfinished article has the essential
character of the complete or finished article. It shall also include a reference to that article complete or
finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled
or disassembled.
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 to Chapter
87 states:
An incomplete or unfinished vehicle, whether or not assembled, is classified as the corresponding
complete or finished vehicle provided it has the essential character of the latter (see General
Interpretative Rule 2 (a)), as for example:
(A) A motor vehicle, not yet fitted with the wheels or tyres and battery.
(B) A motor vehicle not equipped with its engine or with its interior fittings.
Upon review of the submission and pictorial diagrams, it is the opinion of this office that Configuration 1 is
more than just a body. Although some necessary components are missing in its condition as imported, it
contains enough to have the essential character of a complete bus.
The applicable subheading for the Configuration 1 bus shell will be 8702.20.3100, HTSUS, which provides
for “Motor vehicles for the transport of ten or more persons, including the driver: With both
compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors
for propulsion: Designed for the transport of 16 or more persons, including the driver.” The general rate of
duty will be 2 percent ad valorem.
The applicable subheading for the Configuration 2 bus shell will be 8707.90.5040, HTSUS, which provides
for “Bodies (including cabs), for the motor vehicles of headings 8701 to 8705: Other: Other: For vehicles of
heading 8702.” The general duty rate will be 4 percent ad valorem.
The 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/.
This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other
charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other
duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the
classification stated above, the merchandise covered by this ruling may also need to be reported with either
the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions
covering exceptions to such tariffs.
For further information to assist with the importation process, please refer to the frequently updated Cargo
Systems Messaging Service (CSMS) messages at
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at
https://www.cbp.gov/trade/programs-administration/trade-remedies.
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 Liana Alvarez at [email protected].
Sincerely,
(for)
James P. Forkan
Director
National Commodity Specialist Division