CLA-2-98:RR:NC:N1:101
Ms. Mary C. Johnston
Import Manager
D.J. Powers Co., Inc.
4777 Aviation Parkway
Suite O
College Park, GA 30354
RE: The tariff classification of an electric vehicle from China and the duty allowance under HS 9802.00.8068 of certain US produced parts incorporated into the vehicle during assembly in China.
Dear Ms. Johnston:
In your letter dated December 10, 2006 you requested a tariff classification ruling on behalf of your client Powergroup International.
The vehicle being imported is a small electric Go-Car called the “Emerge.” Both a two seat model and a four seat model will be imported. The Emerge is an open golf cart.
Powergroup supplies four U.S. produced items for assembly into the Emerge:
A 48 Volt Battery Charger manufactured in Nebraska
Eight volt batteries manufactured in the US
A G.E. controller, 260 amp, 48V
A G.E./Peidmont Plastics Inc. Windshield
You have supplied documents and pictures describing the transactions and the assembly.
The applicable subheading for the “Emerge” will be 8703.10.5030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 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: Vehicles specially designed for traveling on snow; golf carts and similar vehicles: Other: Golf carts. The rate of duty will be 2.5 percent.
Subheading 9802.00.80, HTS, provides for a partial duty exemption for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.
All three requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).
Section 10.14(a), Customs Regulations [19 CFR 10.14(a)], requires that the components must be in condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly either before, during, or after their assembly with other components.
Section 10.16(a), Customs Regulations [19 CFR 10.16(a)], provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, lamination, sewing, or the use of fasteners. Operations incidental to the assembly process are not considered further fabrication operations, as they are of a minor nature and cannot always be provided for in advance of the assembly operations. See 19 CFR 10.16(a).
The assembly meets the three criteria listed above. Therefore, the US articles mentioned above are eligible for a partial duty exemption under subheading 9802.00.8068, HTS.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Robert DeSoucey at 646-733-3008.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division