CLA-2-89:OT:RR:NC:N1:106
Malcolm Garrett
Pacific Logistics Corporation
280 SW 33rd Street
Ft. Lauderdale, FL 33315
RE: The tariff classification of a sport watercraft from Germany
Dear Mr. Garrett,
In your letter dated October 23, 2016, you requested a tariff classification ruling on behalf of Cayago Americas Inc., of Ft. Lauderdale, Florida. Several brochures were submitted with your request.
The items under consideration has been identified as a SEABOB F5, and a SEABOB F5S, which are devices used to pull a swimmer, either at the surface or below, through the water. They are both powered by a Lithium Ion battery which enables the SEABOB to utilize the patented E-Jet Power System for water displacement and eventual propulsion. SEABOB F5 and the SEABOB F5S are both lightweight, measuring 29 kilograms and 35 kilograms, respectively, and do not require a driving license to operate.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI’s). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) represent the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. The EN’s, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings.
In your request, you suggest that the SEABOB F5 and SEABOB F5S are classifiable as water-sport equipment under subheading 9506.29.0080, HTSUS. However, Legal Note 1(p) to Chapter 95 states that this chapter does not cover “Sports craft such as canoes and skiffs (chapter 89), or their means of propulsion (chapter 44 for such articles made of wood).” Similarly, Legal Note 1(n) states that this chapter does not cover “Sports vehicles (other than bobsleighs, toboggans and the like) of Section XVII.” Furthermore, there are no similar exemplars in the Explanatory Notes for heading 9506 that would indicate that the SEABOB, a self-propelled vehicle, is properly classified within this provision. Being that the SEABOB is similar to both the sport crafts and vehicles of Chapter 89, they are precluded from classification in heading 9506 by application of Note 1(p).
When merchandise cannot be classified using GRI's 1 through 3, GRI 4 becomes operative.
GRI 4 provides that goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin.
The EN to GRI 4 state as follows: (I) This Rule relates to goods which cannot be classified in accordance with Rules 1 to 3. It provides that such goods shall be classified under the heading appropriate to the goods to which they are most akin. (II) In classifying in accordance with Rule 4, it is necessary to compare the presented goods with similar goods in order to determine the goods to which the presented goods are most akin. The presented goods are classified in the same heading as the similar goods to which they are most akin. (III) Kinship can, of course, depend on many factors, such as description, character, purpose.
Taking into consideration that the SEABOB F5 and the SEABOB F5S are both vehicles designed to travel on water, and akin to the watercraft of heading 8903 of the HTSUS, it is the opinion of this office that both devices are classifiable in heading 8903, HTSUS.
The applicable subheading for the SEABOB F5 and the SEABOB F5S will be 8903.99.9000, HTSUS, which provides for “Yachts and other vessels for pleasure or sports; row boats and canoes: Other: Other; Other.” The general rate of duty will be 1%.
The duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/current.
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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division