CLA-2 CO:R:C:M 956345 LTO
Mr. James H. Lehmann, Jr.
Land Rover North America, Inc.
4930 Parliament Place
P.O. Box 1503
Lanham, Maryland 20706
RE: Two-door Land Rover Defender 90; sports-utility vehicle;
heading 8704; HQ 957352; Marubeni America Corp. v. U.S.
Dear Mr. Lehmann:
This is in response to your letter of December 28, 1994,
requesting the classification of the 1994 two-door Land Rover
Defender 90 under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The 1994 Land Rover Defender 90 is a 92-inch wheel based,
four-wheel drive, four-passenger, two-door, sports-utility
vehicle. It has two permanent rows of seats and a third door,
hinged on the side, at the rear of the vehicle. The front row of
seats consist of two separate arm-chair seats which are divided
by a center console. The second row is a permanently installed
bench seat with a fold-down back rest.
The rear area of the vehicle is fully carpeted and equipped
with rear speakers. The rear area is restricted by two platforms
which serve as the wheel wells and which run the entire length of
the rear area from behind the front seats to the rear door. The
platforms are approximately 6.5 inches high when measured from
the floor, and they take up over half of the rear area. The
vehicle's spare tire is located on the outside rear of the
vehicle. The vehicle has an open roll cage that is used to
anchor the rear shoulder belts, provide rear support for various
soft top roof and rack accessories and serve as some passenger
protection in the event of a low speed, off-road rollover.
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The 1994 Land Rover Defender 90 is 160.5 inches long, 70.5
inches wide, 80.3 inches in height, and has a gross vehicle
weight of 6,001 pounds. The vehicle has a 3.9. liter fuel-
injected, eight-cylinder engine with a five-speed manual
transmission. It is built on a frame with a ground clearance of
9.0 inches. It has coil springs and disc brakes on all four
wheels and is equipped with front and rear sway bars.
ISSUE:
Whether the 1994 two-door Land Rover Defender 90 is
classifiable as a motor vehicle principally designed for the
transport of persons under heading 8703, HTSUS, or as a motor
vehicle for transport of goods under heading 8704, HTSUS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ."
The headings at issue are as follows:
8703 Motor cars and other motor vehicles
principally designed for the transport of
persons . . ., including station wagons
and racing cars
* * * * * * * * * * * * *
8704 Motor vehicles for the transport of goods
In Marubeni America Corp. v. U.S., Appeal No. 93-1467
(September 7, 1994), the CAFC affirmed the determination of the
Court of International Trade that the Nissan Pathfinder was
classifiable as a motor vehicle principally designed for the
transport of persons under heading 8703, HTSUS, dutiable at 2.5
percent, rather than as a motor vehicle for the transport of
goods under heading 8704, HTSUS, dutiable at 25 percent (pursuant
to subheading 9903.87.00, HTSUS). See Marubeni America Corp. v.
U.S., 821 F.Supp. 1521 (1993).
The CAFC stated that for a vehicle to be classified under
heading 8703, HTSUS, the "vehicle's intended purpose of
transporting persons must outweigh an intended purpose of
transporting goods." In making this determination, the Court
stated that it is necessary to consider both the structural and
auxiliary design features. Additionally, the Court found that
the number of doors on the vehicle was not determinative.
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Structural features that would lead to the classification of
a vehicle under heading 8703, HTSUS, include: a rear passenger
seat; side and rear windows (in an enclosed vehicle); a rear
suspension suitable for rear passengers; and any other intrusions
into the vehicle's cargo-carrying capability, such as, the
inclusion of a spare tire in the rear of the vehicle.
Relevant auxiliary features include: rear seat stereo
outlets, ashtrays, cubbyholes, arm rests, handholds, footwells,
seat belts and child seat tie down hooks; carpeted cargo area;
and any other passenger amenities.
The 1994 two-door Land Rover Defender 90 has a permanently
installed, 2 passenger bench seat with a fold-down back rest.
The vehicle lacks either a traditional roof or sidewalls, as it
is totally open with only the bottom half of the two front doors
installed and a side-wall that is 20 inches high. The rear door
is also only 20 inches high. While materials can be stacked
higher than the rear door's 20 inches, there is no surrounding
structure to hold these items in place. Moreover, the rear door
does not allow full access to the cargo area, as it is hinged on
the side and opens only approximately 120 degrees from its closed
position.
Further, while the spare tire is located on the outside rear
of the vehicle, the cargo-carrying capability of Land Rover's
rear has been otherwise limited by the existence of two platforms
which serve as the vehicle's wheel wells. The platforms are
approximately 6.5 inches high when measured from the floor, and
they take up over half of the rear area. The vehicle also has an
open roll cage that limits its rear cargo area and is used to
anchor the rear shoulder belts, provide rear support for various
soft top roof and rack accessories and serve as some passenger
protection in the event of a low speed, off-road rollover.
Finally, the rear of the vehicle includes many passenger
amenities, including seat belts, carpeting and speakers.
It is our opinion that the structural and auxiliary design
features of the 1994 two-door Land Rover Defender 90, like the
Nissan Pathfinder, demonstrate that the vehicle's intended
purpose of transporting persons outweighs an intended purpose of
transporting goods. See HQ 957352, dated December 27, 1994 (Ford
Explorer). Accordingly, the vehicle is classifiable under
heading 8703, HTSUS.
HOLDING:
The 1994 two-door Land Rover Defender 90 is classifiable
under subheading 8703.24.00, HTSUS, which provides for motor
vehicles principally designed for the transport of persons, with - 4 -
spark-ignition internal combustion reciprocating piston engine,
of a cylinder capacity exceeding 3,000 cc. The corresponding
rate of duty for articles of this subheading is 2.5% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division