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.

-2-

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: -3-

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. -4-

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