CLA-2 CO:R:C:G 083121 JMH
Ned. H. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C.
Eighty Broad Street
New York, New York 10004
RE: Inflatable Boats
Dear Mr. Marshak:
This is in response to your November 16, 1988, request for a
classification ruling under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) for certain inflatable boats on
behalf of Intex Recreation.
FACTS:
The articles in question are three lines of inflatable
boats, the Seahawk series, the Pacesetter series, and the
Challenger series. All of the boats carry hull identification
numbers in accordance with the U.S. Coast Guard standards, and
are equipped with ropes, repair kits, oar locks and double
valves.
The Seahawk Series
The Seahawk 100, 200, 200 set and 300 each have three air
chambers. The Seahawk 100 is 62" x 40", is made of 15 gauge
polyvinyl chloride (PVC), and has the capacity for one 120 lb.
person. The Seahawk 200 and the 200 set are 78" x 46", are made
of 18 gauge PVC, and have the capacity to carry 210 lbs. The 200
set includes a mini pump, and two three-piece oars. The Seahawk
300 is 88" x 56", is made of 21 gauge PVC, is able to carry 410
lbs.
The Seahawk 340, 340 set and 440 models each have four air
chambers. The Seahawk 340 and 340 set are 92" x 53", are made of
22 gauge PVC, and have the capacity to carry 460 lbs. The 340
set also includes an air pump and two three-piece oars. The
Seahawk 440 is 102" x 60", is made of 24 gauge PVC, and can carry
595 lbs. of people and 935 lbs. of people with gear.
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The Pacesetter Series
The Pacesetter 100, 200, and 200 set each have three air
chambers. The Pacesetter 100 is 62" x 40", is made of 15 gauge
PVC, and is able to carry 110 lbs. The Pacesetter 200 and 200
set are 78" x 46", are made of 18 gauge PVC and have the capacity
to carry 270 lbs. of persons and 285 lbs. of persons plus gear.
The 200 set also includes a mini pump and two three-piece oars.
The Pacesetter 300, 300 set, and 400 each have four air
chambers. The Pacesetter 300 and 300 set are 92" x 53", are made
of 22 gauge PVC, and can carry 460 lbs. The 300 set also
includes an air pump and two three-piece oars. The Pacesetter
400 is 102" x 60", is made of 24 gauge PVC, and has the capacity
to carry 595 lbs. of people and 935 lbs. of people with gear.
The Challenger Series
The Challenger 200, 200 set, 300, 400, 400 set, 500 and 600
models each have three air chambers. The Challenger 200 and 200
set are 78" x 48", are made of 22 gauge PVC, and are able to
carry 305 lbs. of people and 385 lbs. of people with gear. The
200 set includes a mini pump and two three-piece oars. The
Challenger 300 is 91" x 51", is made of 24 gauge PVC, and can
carry 405 lbs. of people or 570 lbs. of people with gear. The
Challenger 400 and 400 set are 107" x 60", are made of 26 gauge
PVC, and can carry 585 lbs. of people or 1125 lbs. of people with
gear. The 400 set includes two cushions, an air pump, and two
three-piece oars. The Challenger 500 is 130" x 60", is made of
34 gauge PVC, and has the capacity for 685 lbs. of people or 1605
lbs. of people with gear. The Challenger 600 is 145" x 60", is
made of 42 gauge PVC, and has the capacity for 830 lbs. of people
or 2715 lbs. of people with gear.
The Challenger models 300, 400, 400 set, 500 and 600 each
carry motor mounts for an small outboard motor and oar clasps.
ISSUE:
Whether the inflatable boats are "vessels" within the
meaning of heading 8903, HTSUSA.
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes..." You contend that the
appropriate heading for all of the inflatables is heading 8903,
HTSUSA. This heading describes:
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8903 Yachts and other vessels for pleasure or
sports; row boats and canoes...
8903.10.00 Inflatable...
The Explanatory Notes of the Harmonized Commodity
Description and Coding Service (HCDCS) state that Chapter 89,
HTSUSA, "covers ships, boats and other vessels of all kinds..."
Explanatory Note 89.03, HCDCS, Vol. 4, p. 1449. Explanatory
Note 89.03, HCDCS, states "[t]his heading covers all vessels for
pleasure or sports...[t]his heading includes...inflatable craft
and boats which can be folded or disassembled." HCDCS, Vol. 4, .
1451. The Explanatory Notes, although not dispositive, are to be
looked to for the proper interpretation of the HTSUSA. 54 Fed.
Reg. 35127, 35128 (August 23, 1989).
It is clear from the language of the tariff and the
Explanatory Notes that all vessels for pleasure or sport, be they
boats, crafts or ships, are to be classified within heading
8903. However, not everything that floats is a vessel. Under
the former Tariff Schedules of the United States (TSUS) it was
determined that for an inflatable to be a vessel, the inflatable
must be of "significant construction." Significant construction
was defined as anything above 20-gauge PVC.
It is the opinion of this office that the 20-gauge rule
under the TSUS should remain the standard by which inflatables
are judged under the HTSUSA. This conclusion is reached from the
relevant definitions of "vessel" found within Customs case law.
A vessel "must be capable of some substantial use as a means of
transportation on water...", and must provide more than "[a]
temporary, fugitive, impractical, although possible, use of
transportation of articles or things of trifling weight in smooth
water only and for short distances..." Thayer v. United States,
2 CCA 526, T.D. 32252 (1912). A "vessel" must have the
"capability of practical and substantial use..." Tregoning Boat
Co. v. United States, 15 Cust. Ct. 197, C.D. 971 (1945). In
order to allow substantial use, it logically follows that the
vessel must be substantially constructed. The 20-gauge rule,
although an arbitrary test, has proven to be a practical and
realistic test from which Customs may determine which inflatable
items are capable of substantial use.
You contend that the U.S. Coast Guard requirement of hull
numbers on the Intex inflatables establishes the inflatables to
be vessels. The hull number requirement is based upon state
requirements and manufacturer registration with the Coast Guard.
Hull numbers are not based upon federally mandated safety
requirements for size or design of the craft. Furthermore, what
constitutes a vessel, boat or ship for purposes of one act may
not be a vessel, boat or ship for purposes of another act.
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United States v. Moran Towing and Transportation Co. 235 F. Supp.
569 (D.C. Md. 1964; reversed, 374 F.2d 659 (4th Cir. 1967);
vacated and remanded, 389 U.S. 575 (1968); vacated and remanded
to Dist. Ct., 409 F.2d 961 (4th Cir. 1969; 302 F. Supp. 600 (D.C.
Md. 1969).
Therefore, this office continues to adhere to the 20-gauge
rule for the determination of whether an inflatable article is
substantially constructed so to be a vessel. The inflatable
articles of greater than 20-gauge PVC are vessels and are
properly classifiable within subheading 8903.10.00, HTSUSA, as
"Yachts and other vessels for pleasure or sports...Inflatable..."
The Seahawk 100, 200 and 200 set, and the Pacesetter 100, 200,
and 200 set are made of less that 20-gauge PVC. Therefore, they
are not vessels and are classified within subheading 3926.90.75,
HTSUSA, as "Other articles of plastics...Pneumatic mattresses and
other inflatable articles, not elsewhere specified or
included..."
HOLDING:
The inflatable articles of greater than 20-gauge PVC are
properly classifiable within subheading 8903.10.00, HTSUSA, as
"Yachts and other vessels for pleasure or sports...Inflatable..."
The inflatable articles of less than 20-gauge PVC, the Seahawk
100, 200 and 200 set, and the Pacesetter 100, 200, and 200 set
are not vessels and are classified within subheading 3926.90.75,
HTSUSA, as "Other articles of plastics...Pneumatic mattresses and
other inflatable articles, not elsewhere specified or
included..."
Sincerely,
John Durant, Director
Commercial Rulings Division