CLA-2-87:OT:RR:NC:N2:201
Andrea Stacey
Hyundai Motor America
10550 Talbert Ave
Fountain Valley, CA 92708
RE: The tariff classification of a new motor vehicle from South Korea
Dear Ms. Stacey:
In your letter dated July 24, 2018, you requested a tariff classification ruling.
The item under consideration has been identified as the Hyundai Nexo Fuel Cell model. The Nexo is a five door Sports Utility Vehicle (SUV) powered by a fuel cell system with seating for five passengers. The Nexo is powered by a 161 horsepower electric motor, which provides 291 foot-pounds of torque. You state that the Nexo has a maximum driving range of approximately 370 miles.
In your request you suggest that the Hyundai Nexo be classified in 8703.90.0100, 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: Other”. This office disagrees.
While fuel cell technology is not a new technology it is becoming a more common source of motive power for modern motor vehicles.
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 HTSUS 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 to 87.03 states that “Vehicles propelled by one or more electric motors powered by electric accumulator packs are known as “Electric Vehicles (EVs)”. In your email, dated July 27, 2018, you state that the Hyundai Nexo is equipped with a battery. It is CBP’s opinion that storage or secondary batteries are electric accumulators and accumulators containing one or more cells and the circuitry to interconnect the cells amongst themselves are referred to as battery packs.
The applicable subheading for the Hyundai Nexo will be 8703.80.0000, 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: Other vehicles, with only electric motors for propulsion”. The rate of duty will be 2.5% ad valorem.
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 the World Wide Web at https://hts.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, contact National Import Specialist Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division