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 New Zealand
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, Pacific Hovercraft, New Zealand Ltd., at http://www.hovercraft.co.nz and from literature you provided.
The first hovercraft under consideration is the “XLS”. The XLS is a four-passenger hovercraft. The hovercraft is described as having a fiberglass 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 variety of hovercraft is the “Discovery”. Similar in operation to the “XLS”, the Discovery appears to be designed as a means of transportation of people on water. The Discovery is a 7 passenger hovercraft with the following specifications: 5.9 meters in length by 2.3 meters in width, maximum load of 600kg, and a 174hp Hyundai Sorrento VGT diesel engine.
The third variety of hovercraft is the “Odyssey”. Similar in operation to the “Discovery”, the Odyssey appears to be designed as a means of transportation of people on water. The Odyssey is a 20-35 passenger hovercraft with the following specifications: 14 meters in length by 5.5 meters in width, maximum load of 2700kg..
The applicable subheading for both the “XLS” and “Discovery” hovercrafts 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 the “Odyssey” 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.
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