CLA-2-87:OT:RR:NC:N2:201
Jason R. Ricketts, Senior Manager
Nissan North America, Inc.
One Nissan Way
Franklin, Tennessee 37067
RE: The tariff classification of an electric vehicle from Japan
Dear Mr. Ricketts:
In your letter dated May 3, 2021, you requested a tariff classification ruling.
The item under consideration has been identified as the Nissan “Kicks E-Power” (Kicks). The Kicks is a new model electric vehicle which is powered by Nissan’s “E-Power” technology. You state that during normal driving, high power from the battery is supplied to a traction motor, through an inverter, to the drive wheels which propel the vehicle.
During deceleration, the traction motor acts as generator to charge the battery through regenerative braking. When the vehicle is set to “cruise” mode, the internal-combustion engine (ICE) charges the battery via a generator based on battery charge condition.
During rapid acceleration, both the ICE and the battery supply the power to the inverter that drives the electric motor to achieve the high-power output and acceleration. In all these modes only the electric motor propels the vehicle. The ICE is used to boost the electric motor and charge the internal battery, but per your email dated May 5, 2021, you declare the ICE cannot provide any direct propulsion to the vehicle’s wheels.
You state that the Kicks is completely dependent on the ICE energy source to charge the battery and boost the electric motor used for vehicle propulsion. Since the Kicks is not equipped with an external charging port, the drive battery is completely charged via the 3-Cylinder In-Line, DOHC 1,198 CC gasoline engine.
You request that because there will be considerable exhaust emission, the Kicks cannot be considered a “zero emission vehicle,” a “compete electric driven vehicle,” or an “electric vehicle” and that the appropriate classification for the Nissan Kicks should be 8703.40.0010, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons…:Other vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, other than those capable of being charged by plugging to external source of electric power: Of a cylinder capacity exceeding 1,000 cc but not exceeding 1.500”. This office disagrees.
It has been the practice of CBP, when it comes to “hybrid” vehicles, to classify by the mode of propulsion. For example, in mild hybrids that use a “stop and go” system, which only uses the electric motor to spin the flywheel to restart the ICE while not provide any propulsion, CBP has classified such vehicles as if the vehicle was only equipped with an ICE and not as a “hybrid”. In the case of the Nissan Kicks, you state that the ICE does not provide any propulsion but is only used to boost the electric motor, and to charge the internal battery because the Nissan Kicks is not equipped with an external charging port.
General Note 3. (h) (vi) to the HTSUS states “... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8703.40 states, “Other vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion….” The Nissan Kicks does not use the ICE for propulsion, so classification in that subheading is excluded.
The applicable subheading for the Nissan Kicks E-Power will be 8703.80.0000, 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