CLA-2-87:OT:RR:NC:N2:201
Andrea Stacey
Hyundai Motor America
10550 Talbert Ave.
Fountain Valley, California 92708
RE: The tariff classification of new Hyundai motor vehicles from South Korea
Dear Ms. Stacey:
In your letter dated July 19, 2021, you requested a tariff classification ruling.
The items under consideration have been identified as two (2) new Hyundai sports utility vehicles.
The first vehicle has been identified as the Santa Fe HEV. The Santa Fe HEV is a five (5) door sport utility vehicle powered by a four-cylinder 1.6-liter gas, spark-ignition, internal combustion engine combined with an electric motor, rated at 44.2kW, and has a total volt maximum of 270V. The Santa Fe HEV is equipped with a 1.49kW battery. You state that once the battery is depleted, the vehicle operates like a regular hybrid using the gasoline engine. There is seating for 5 persons. You suggest classification of the Santa Fe HEV under 8703.40.0020, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The second vehicle has been identified as the Santa Fe PHEV. The Santa Fe PHEV is a five (5) door sport utility vehicle powered by a four-cylinder 1.6-liter gas, spark-ignition, internal combustion engine combined with an electric motor, rated at 66.9kW. The Santa Fe PHEV is equipped with a 13.8kW battery, which is capable of being charged by an external electric power source and has a total volt maximum of 360V. You state that once the battery is depleted, the vehicle operates like a regular hybrid using the gasoline engine. There is seating for five (5) persons. You suggest classification of the Tucson PHEV model under 8703.60.0020, HTSUS. We agree.
In correspondence with this office, dated June 22, 2021, you stated that both the HEV and PHEV use, as is common of most hybrid vehicles, a regenerative braking function, as well as the gasoline engine to recharge the hybrid’s traction battery. In the case of the PHEV, because of the larger battery pack and larger electric motors that provide more output as well as greater regenerative braking to capture more energy, the ability to “plug-in” from an electric charging station allows the battery to refill faster.
The applicable subheading for the Santa Fe HEV will be 8703.40.0020, HTSUS, 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 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines with not more than 4 cylinders”. The rate of duty will be 2.5%
The applicable subheading for the Santa Fe PHEV will be 8703.60.0020, HTSUS, 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, capable of being charged by plugging to external source of electric power; Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines with not more than 4 cylinders”. The rate of duty will be 2.5%.
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