CLA-2-89:OT:RR:NC:N1:106
Mr. Robert English
Shadow System
P.O. Box 286
New Kensington, PA 15068
RE: The tariff classification of various hovercrafts from Canada
Dear Mr. English:
In your letter dated July 6, 2009 you requested a tariff classification ruling. The information describing the merchandise for which you wish a classification was obtained from both the internet website of the manufacturer of those goods, Vanair Hovercraft, Canada, at http://www.vanairhovercraft.com and from literature you provided.
The first hovercraft under consideration is the “Vixen”. The Vixen is a nine-passenger hovercraft. The hovercraft is described as having an aluminum hull, loop & segment skirt, 2 lift fans and a thrust fan. In operation, the lift fans generate air pressure under the boat’s hull which is “trapped” by the loop skirt and which in turn “lifts” the vessel. The trust fan provides forward motion. The website shows the vessel as being principally used in recreation and sporting activities. The hovercraft in question appear to be designed to travel over water and are able to land on beaches or landing stages and also able to travel over ice and snow. This design will result in the classification of these craft in chapter 89 of the Tariff Schedule.
The second and third variety of hovercraft is the “Vanguard 18 and Vanguard 21”. Similar in operation to the “Vixen”, both Vanguard type hovercrafts appears to be designed as a means of transportation of people on water. The Vanguard 18 is an 18 passenger hovercraft with the following specifications: length 36’4”, width 14’5”, maximum load of 6,000lbs, a 60 gallon fuel capacity, and 350hp diesel engine. The Vanguard 21 is a 21 passenger hovercraft with the following specifications: length 38’5”, width 18’6”, maximum load of 6,000lbs, a 60 gallon fuel capacity, and Cummins diesel engine, with a maximum speed on water of 35 knots.
The applicable subheading for the “Vixen” hovercraft will be 8903.99.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other vessels for pleasure or sports. The rate of duty will be 1 percent ad valorem.
The applicable subheading for both models of the “Vanguard” hovercraft will be 8901.10.0000, HTSUS, which provides for cruise ships, excursion boats and similar vessels designed for the transport of persons; ferry boats of all kinds. The rate of duty will be Free.
Products of Canada classifiable under subheading 8903.99.9000, HTSUS, are currently entitled to duty-free treatment under the North American Free Trade Agreement (NAFTA) upon compliance with all applicable regulations. NAFTA, however, is subject to modification and periodic suspension which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on NAFTA, check our Web site at www.cbp.gov and search for the term "NAFTA".
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 Mark Palasek at 646-733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division