CLA-2-87:OT:RR:NC:N2:201
Mr. Patrick M. Hanley
Green Machine Equipment, Inc.
1001 E. Delavan Ave.
Buffalo, New York 14215
RE: The tariff classification of unfinished utility carts from Denmark
Dear Mr. Hanley:
In your letter dated November 25, 2020, you requested a tariff classification ruling.
The items under consideration has been identified as unfinished utility carts from Denmark. Green Machine Equipment, Inc. ("GME") intends to import electric utility carts without batteries, chargers, motors, motor controllers, drive systems, harnesses and related wiring or software. You state that you intend to source those items domestically.
The documentation provided states the assembly process is highly modularized and is performed at a number of stages at the main factory in Denmark. You state that the base vehicle which is assembled in Denmark must, at a minimum consist of the following parts: main chassis/frame including braking system, main cabin structure including floor, glued glass and exterior body parts.
The first item under consideration has been identified as the Garia Utility Park (Short Chassis) unfinished utility cart. Your documentation states it is a four-wheeled non-street legal vehicle for pedestrian areas and car free zones. It is designed for use in parks, schools, and industrial zones. The item is 3269 mm. in length, 1313 mm. in width, 641mm. in height and a max weight 1350 kg. The load bed length is 1258mm.
The second item under consideration has been identified as the Garia Utility Park (Extended Chassis) unfinished utility cart. Your documentation states it is a four-wheeled non-street legal vehicle for pedestrian areas and car free zones. It is designed for use in parks, schools, industrial zones and commercial compounds. It has an extended chassis to carry larger or heavier loads. The item is 3269 mm. in length, 1313 mm. in width, 641 mm. in height and a max weight 1500 kg. The load bed length is 1688mm.
The third item under consideration has been identified as the Garia Utility City (Short Chassis) unfinished utility cart. Your documentation states it is a four-wheeled non-street legal vehicle for pedestrian areas and car free zones, but that it is it is also EU type approved as a Low-Speed Vehicle (LSV) suitable for street use. The item is 3269 mm. in length, 1313 mm. in width, 641mm. in height and a max weight 1350 kg. The load bed length is 1258mm.
The fourth item under consideration has been identified as the Garia Utility City (Extended Chassis) unfinished utility cart. Your documentation states it is a four-wheeled non-street legal vehicle for pedestrian areas and car free zones, but that it is also EU type approved as a Low-Speed Vehicle (LSV) suitable for street use. The item is 3269 mm. in length, 1313 mm. in width, 641 mm. in height and a max weight 1500 kg. The load bed length is 1688mm.
In your request you suggest that the City model should be classified in subheading 8707.90.5060, HTSUS, Bodies (including cabs), for the motor vehicles of headings 8701 to 8705: Other: For other vehicles.”, and the “Park” model should be classified in heading 8709, as a “Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms”. In both cases we disagree.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs may then be applied. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
ENs to heading 8707 provide for “…not only bodies designed to be mounted on a chassis, but also bodies for vehicles without chassis (in which case the body itself supports the engine and axles); it further includes unit construction bodies in which certain elements of the chassis are incorporated in the body.”
The Carts under review are not merely motor vehicle bodies; they appear to have all necessary components in addition to its body, such as steering system, suspension system, axles, wheel hubs, differentials, and etc. The only missing element is their motive power. As a result, it is the opinion of this office that the Carts are precluded from classification in heading 8707, HTSUS.
ENs to 8709 provide for “…a group of self-propelled vehicles of the types used in factories, warehouses, dock areas or airports for the short distance transport of various loads (goods or containers) or, on railway station platforms, to haul small trailers. Such vehicles are of many types and sizes. They may be driven either by an electric motor with current supplied by accumulators or by an internal combustion piston engine or other engine.
The main features common to the vehicles of this heading which generally distinguish them from the vehicles of heading 87.01, 87.03 or 87.04 may be summarised as follows:
Their construction and, as a rule, their special design features, make them unsuitable for the transport of passengers or for the transport of goods by road or other public ways.
You state the Park model is designed to be used on campuses, in parks, and in other areas which are considered “public ways”, therefore classification in 8709 is precluded.
The applicable subheading for both utility carts models “City” and “Park” if imported with cab, chassis, and bed attached, or if disassembled but imported in a common shipment, will be 8704.90.0000, HTSUS, which provides for “Motor vehicles for the transport of goods: Other”. The rate of duty will be 25% ad valorem.
In addition, you requested consideration of a scenario where the cab, chassis sans electric motor (per original import scenario), and cargo bed will be imported separately on different vessels, using different entries.
The applicable subheading for the cab and the bed, if imported separately from the chassis, will be 8707.90.5060, HTSUS, which provides for “Bodies (including cabs) for the motor vehicles of heading 8701 to 8705: Other: Other: For vehicles of heading 8704.” The general duty rate will be 4% ad valorem.
The applicable subheading for the chassis, if imported separately from the cab and the bed, will be 8708.99.8180, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other: Other.” The general rate of duty will be 2.5% ad valorem.
Please note, this classification has no effect on the importability of any vehicle or vehicle parts/accessories deemed restricted; this includes motor vehicles not conforming to Federal Safety and Emission Standards. Any questions regarding the importation of these vehicles and/or parts may be directed to the National Highway Traffic Safety Administration (NHTSA) at 888-327-4236 and/or the Environmental Protection Agency (EPA) at 202-272-0167.
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