OT:RR:CTF:EMAIN H340949 JRG
Emile Mimran
Quadmia 4, LLC
20201 East Country Dr. 2709
Aventura, FL 33180
RE: Affirmation of NY N340984 (July 11, 2024); Tariff classification of a certain Stand-Up All-Terrain Vehicle
Dear Mr. Mimran:
This is regarding your reconsideration request for New York Ruling Letter (NY) N340984, dated July 11, 2024, in which U.S. Customs and Border Protection (CBP) classified a certain Stand-Up All-Terrain Vehicle (ATV) under heading 8703 of the Harmonized Tariff Schedule of the United States (HTSUS). Upon reconsideration, we find the classification of the subject merchandise in NY N340984 to be correct. For the reasons set forth below, we hereby affirm NY N340984.
FACTS:
The facts of NY N340984 are as follows:
The item under consideration has been identified as the “Mia Four”, a four (4) wheeled standup electric vehicle equipped with a handle for stability and ease of steering.
You state that the Mia Four possesses the following technical specifications:
Motor: 3600W peak BLDC dual hub motor
Climbing Grade: 20 degrees, subject to rider weight and state of charge
Top Speed: 25 mph (40+ km/h), depending on rider weight, road conditions, battery charge, and ambient temperature
Braking System: Specialized front and rear dual hydraulic disc brakes with 5.5-inch (140 mm) discs
Dimensions: Width - 27.48 inches, Length - 49 inches, Height - 46.85 inches, Folded Height - 17.7 inches
Lighting: Dual LED headlight with integrated taillight and brake light
Wheels: 15-inch indoor/outdoor tires
Max Distance: 50 miles (80 km), varying with rider weight and road conditions
Battery: 100% electric, removable, 60V - 25Ah, swappable, with optional 35Ah battery
Optional Accessories: Seat post and saddle, rear carrier, golf bag carrier, trailer hitch, utility box mount, mobility chair, bike chair
ISSUE:
Whether the subject Stand-Up ATV is appropriately classified under heading 8703, HTSUS, or heading 8711, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” If the goods cannot be classified solely using GRI 1, and the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order.
The HTSUS headings and subheadings at issue are the following:
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars:
* * *
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars:
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The ENs to heading 8711, HTSUS, in relevant part, provide:
This heading covers a group of two wheeled motorised vehicles which are essentially designed for carrying persons.
In addition to motorcycles of the conventional type, the heading includes motor scooters, characterised by their small wheels and by a horizontal platform which joins the front and rear portions of the vehicle; mopeds, equipped with both a built in engine and a pedal system; and cycles fitted with an auxiliary motor.
This heading also covers two-wheeled, electrically-powered transportation devices, designed for carrying a single person, for use within low speed areas such as pavements (sidewalks), paths, and bicycle lanes. Their technology allows the rider to stand upright while a system composed of gyroscope sensors and multiple onboard microprocessors maintains both the device’s and rider’s balance on two independent, non-tandem wheels. Motorcycles of this heading, which are propelled by one or more electric motors, are known as “Electric Motorcycles”. These motorcycles incorporate an electric accumulator pack supplying power to the electric motors. The electric accumulators of these “plug-in” type motorcycles can be recharged by plugging them into an electrical power grid outlet or charging station.
. . .
Three-wheeled vehicles (e.g., the “delivery tricycle” type) are also classified here provided they do not have the characteristics of motor vehicles of heading 87.03 or heading 87.04 (see the Explanatory Notes to headings 87.03 and 87.04).
. . .
The heading excludes:
(a) Four-wheeled motor vehicles, for the transport of persons, with tube chassis, having a motor-car type steering system (e.g., a steering system based on the Ackerman principle) (heading 87.03).
The term “cycles” in heading 8711, HTSUS, is not defined in the HTSUS or the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System. When a tariff term is not defined by the HTSUS or the legislative history, its correct meaning is its common, or commercial, meaning. See Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001) (“To ascertain the common meaning of a term, a court may consult ‘dictionaries, scientific authorities, and other reliable information sources’ and ‘lexicographic and other materials.’” (quoting C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271, 69 C.C.P.A. 128 (C.C.P.A. 1982))); see also Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989)).
The common definition of the term “cycles,” as used in heading 8711, HTSUS, is simply “a bicycle.” See Cycle, Oxford Eng. Dictionary, https://www.oed.com/diction ary/cycle_n2?tab=meaning_and_use#249219614 (last accessed August 28, 2024); Cycle, Cambridge Dictionary, https://dictionary.cambridge.org/dictionary/english/cycle (last accessed August 28, 2024). Regardless, CBP consistently expanded the interpretation of the term “cycles fitted with an auxiliary motor” in heading 8711, HTSUS, to include two-wheeled electric scooters and Segways, in accordance with the ENs. See NY N327114 (August 11, 2022); NY N325922 (May 12, 2022); NY N323660 (February 7, 2022); NY N309326 (February 4, 2020). Furthermore, CBP classifies three-wheeled electric scooters as “cycles” of heading 8711, HTSUS, when they do not possess the characteristics of motor vehicles of headings 8703, HTSUS, and 8704, HTSUS, also in accordance with the ENs. Compare NY N297093 (June 5, 2018) and NY R00882 with HQ H010587 (November 24, 2009). Four-wheeled electric scooters, however, are generally not classified in heading 8711, HTSUS, because they are structurally akin to the types of motor vehicles classified in heading 8703, HTSUS. See NY N333267 (June 22, 2023); NY N281354 (December 8, 2016); NY N015977 (August 27, 2007). Moreover, the ENs to heading 8711, HTSUS, explicitly exclude “[f]our-wheeled motor vehicles, for the transport of persons, with tube chassis, having a motor-car type steering system (e.g., a steering system based on the Ackerman principle).”
Based on the previously detailed analysis of the scope of heading 8711, the subject Stand-Up ATV is properly classified under heading 8703, HTSUS, pursuant to GRI 1. The Stand-Up ATV is four-wheeled; principally designed for the transportation of persons; comprised of a chassis connecting the two sets of wheels, with the platform where the rider stands mounted on top; and steered via a handlebar, which directs the two forward wheels in one direction maintaining proper steering during cornering, while keeping the back wheels fixed, similar to a car. It should be noted that the Stand-Up ATV also uses a “controlled tilt mechanism,” where riders tilt slightly in the direction they are turning, like a conventional scooter or bicycle, and the Stand-Up ATV automatically adjusts the tilt during the turns to provide for smooth and stable cornering. The Stand-Up ATV’s front wheels, however, still turn using a motor-car type steering system. As such, the Stand-Up ATV possesses multiple characteristics of a motor vehicle of heading 8703, HTSUS. The classification of the Stand-Up ATV in heading 8703, HTSUS, is also supported by the ENs to heading 8711, HTSUS, which exclude four-wheeled vehicles with similar characteristics to the subject Stand-Up ATV. Therefore, the subject Stand-Up ATV is classified as an “other motor vehicle[] principally designed for the transport of persons” under heading 8703, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the subject Stand-Up ATVs are properly classified under heading 8703, HTSUS, and specifically under subheading 8703.80.20, HTSUS, which provides “Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars: Other vehicles, with only electric motors for propulsion.” The general column one rate of duty, for merchandise classified under this subheading is 2.5%.
Pursuant to U.S. Notes 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8703.80.00, HTSUS, unless specifically excluded, are subject to an additional 25% ad valorem rate of duty. At the time of importation, an importer must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8703.80.00, HTSUS, noted above, for products of China.
EFFECT ON OTHER RULINGS:
NY N340984, dated July 11, 2024, is hereby AFFIRMED.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division