CLA-2-87:OT:RR:NC:N1:101
Lindsey B. Meyer, Attorney
Venable, LLP
575 7th Street, NW
Washington, DC 20004-1607
RE: The tariff classification of motor vehicles from India
Dear Ms. Meyer,
In your letter dated February 15, 2008, you requested a tariff classification ruling on behalf of your client, Global Vehicles, Inc. of Alpharetta, Georgia.
The item under consideration is a four-door sport utility motor vehicle which you have identified in your Ruling Request as a “Project 408” vehicle. You state in your Ruling Request that the Project 408 vehicle if imported into the United States in a finished state would be classified at time of importation under 8704.21.0000, Harmonized Tariff Schedule of the United States (HTSUS). You are requesting classification of two (2) importation scenarios in which you claim the vehicles will be imported in such a state as to not impart the “essential characteristics” of the finished vehicle. In addition you are requesting a Country of Origin ruling on the vehicle once final assembly is done in the United States.
In the first scenario, you state that the Project 408 vehicle will be separated into three (3) separate assemblies, broken up into two (2) shipments which will be imported and subsequently finished in the United States. The first shipment will contain a drive away chassis (without engine or transmission) and a trimmed cabin with trimmed cargo bay. The engine and transmission will be imported on a separate vessel and are not subject to this Ruling Request.
In the second scenario the Project 408 vehicle will be separated into two (2) assemblies, broken up into two (2) shipments which will be imported and subsequently finished in the United States. The first shipment will contain a drive away chassis (without engine or transmission) with the trimmed cab and cargo bay dropped onto the chassis. The engine and transmission will be imported on a separate vessel and are not subject to this Ruling Request.
You state in your Ruling Request that you believe that, in both importation scenarios, because the Project 408 vehicle’s chassis and cab/cargo bay is separate from the engine and transmission, yet in a common shipment, that the two assemblies do not possess the essential characteristics of a motor vehicle of Chapter 8704. You further suggest that the chassis be classified in 8708.99.8180, which provides for “Parts…of…motor vehicles…: Other parts…: Other: Other: Other: Other: Other: Other” and the cab/cargo bay in 8707.90.5060, which provides for “Bodies…for the motor vehicles of headings 8701 to 8705: Other: Other:…vehicles of…8704”. We disagree.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 states, “ ... classification shall be determined according to the terms of the headings ... ".
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs for Chapter 87 say “An incomplete or unfinished vehicle is classified as the corresponding complete or finished vehicle provided it has the essential character of the latter…for…example:…(b) A motor vehicle not equipped with its engine or with its interior fittings.”
General Note 3. (h) (vi) to the HTSUS states, “ ... a reference to “headings” encompasses subheadings indented thereunder.” 8704.21 of the HTSUS provides for “Motor vehicles for the transport of goods: G.V.W. not exceeding 5 metric tons”.
The applicable classification subheading for the Project 408 vehicle imported as a separate finished chassis and separate trimmed cab/cargo bay in a common shipment (Scenario 1) will be 8704.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor vehicles for the transport of goods: G.V.W. not exceeding 5 metric tons”. The rate of duty will be 25%.
The applicable classification subheading for the Project 408 vehicle imported as a finished chassis with a dropped on trimmed cab/cargo bay in a common shipment (Scenario 2) will be 8704.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor vehicles for the transport of goods: G.V.W. not exceeding 5 metric tons”. The rate of duty will be 25%.
Additionally, you requested a ruling on Country of Origin Marking.
From the information provided it appears as if most, if not all of the parts are of Indian origin. The assemblies are constructed in India and imported into the United States for final assembling and testing. You claim that enough assembling and finishing is done in the United States that you feel that the Country of Origin for the completed vehicle should be the United States.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the Project 408 vehicle is the consumer who purchases the product at retail. From the information provided it appears that the only work done in the United States is simple assembling and finishing, and does not constitute a substantial change from the imported assemblies into the finished product. Therefore the Country of Origin is India.
This ruling is being issued under the provisions of Parts 134, 177 of the Customs Regulations (19 C.F.R. 134, 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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division