CLA-2 CO:R:C:G 085917 MBR
Mr. Jonathan M. Fee
Grunfeld, Desiderio,
Lebowitz & Silverman
1201 West Peachtree Street, N.E.
Suite 4660
Atlanta, Georgia 30309
RE: Reconsideration of New York ruling letter 843319, regarding
classification of the "Powakaddy" golf club carrying vehicle
Dear Mr. Fee:
This is in reply to your letter of October 30, 1989, on behalf
of Powakaddy U.S.A., Inc., requesting reconsideration of the
classification of the "Powakaddy," under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).
FACTS:
The promotional literature describes the Powakaddy as a three-
wheeled, motorized golf bag used to transport a bagged set of
golf clubs around a golf course while the user participates in a
game of golf. The main body of the vehicle is a gravity die
casting manufactured from a lightweight aluminum alloy. The
power source is a Dryfit battery. Other features include
variable speed control on the handlebar, golf bag retainer,
puncture-proof tires, stress relieved tubular frame and
electronic controls. The Powakaddy cannot transport people.
ISSUE:
What is the classification of the Powakaddy under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
LAW AND ANALYSIS:
You argue that the Powakaddy is classifiable under heading
8709, HTSUSA, which provides for:
Works trucks, self-propelled, not fitted with lifting or
handling equipment, of the type used in factories,
warehouses, dock areas or airports for short distance
transport of goods
The Harmonized Commodity Description and Coding System
Explanatory Notes to heading 8709, HTSUSA, page 1433, state:
This heading covers a group of self-propelled vehicles
of the types used in factories, warehouses, dock areas
or airports for the short distance transport of various
loads (goods or containers) or, on railway station
platforms, to haul small trailers. Such vehicles are
of many types and sizes....
The Explanatory Notes, although not dispositive, should be
looked to for the proper interpretation of the HTSUSA. See 54
Fed. Reg. 35128 (August 23, 1989).
This Explanatory Note provides for a variety of vehicles.
However, the definition of "works" is "a place where industrial
labor is carried on: PLANT, FACTORY
." This vehicle is not
of the types used in factories, warehouses, dock areas or
airports. It is designed exclusively to transport golf clubs on
a golf course. Thus, although it could be said that, in a broad
sense, the Powakaddy possesses some of the performance features
of "works trucks" (such as low top speed, tight turning radius
and lack of ability to travel on public ways), it clearly is not
intended for any industrial or even "work" type of application.
Therefore, the Powakaddy is not appropriately classifiable in
heading 8709. The rulings you submitted in support of your
argument (069589, 094222 and 807368) all were classifications of
vehicles used for "work." Golfing, although a difficult sport,
is yet to be considered "work."
You argue alternatively that the Powakaddy is classifiable
under subheading 9506.39.00, HTSUSA, which provides for: "[g]olf
clubs and other golf equipment; parts and accessories thereof:
[o]ther."
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Legal Note 1.(n) states: "[t]his chapter does not cover:
[s]ports vehicles (other than sleds, bobsleds, toboggans and the
like) of section XVII." The Powakaddy is not a sled, bobsled,
toboggan or the like. Therefore, if the Powakaddy is
classifiable in section XVII, then it is not classifiable in
chapter 95.
Section XVII, heading 8704, HTSUSA, provides for motor vehicles
for the transport of goods. The definition of "vehicle" is: "any
device or contrivance for carrying or conveying persons or
objects, esp. over land or in space, as automobiles, bicycles,
sleds, spacecraft, etc." SEE Webster's New World Dictionary,
Third College Edition, page 1479. Clearly, the Powakaddy is a
device for carrying objects over land, i.e. carrying golf clubs
over a golf course.
The definition of "goods" is: "1. movable personal property, 2.
merchandise, wares." SEE Webster's New World Dictionary, Third
College Edition, page 581. Thus, golf clubs are "goods" since
they are movable personal property.
The Powakaddy is clearly a motor vehicle for the transport of
goods, and as such, is classifiable in subheading 8704.90.00,
HTSUSA, which provides for: "[m]otor vehicles for the transport
of goods: [o]ther." SEE ruling HQ 082742 (dated August 4, 1989)
and ruling NY 826074 (dated November 27, 1987), which held a
similar motorized golf bag to be classifiable in this provision.
HOLDING:
The Powakaddy is classifiable under heading 8704.90.00, HTSUSA,
which provides for: "[m]otor vehicles for the transport of goods:
[o]ther." The rate of duty is 8.5% ad valorem, and if valued
over $1,000 at 25% ad valorem (pursuant to 9903.87.00, HTSUSA).
Sincerely,
John Durant, Director
Commercial Rulings Division