CLA-2-87:OT:RR:NC:N2:206
Allison Straub
Burley Design
1500 Westec Dr
Eugene, OR 97402
RE: The tariff classification of a stroller/bicycle trailer from China
Dear Ms. Straub,
In your letter, August 30, 2021, you requested a tariff classification ruling. Pictures and other descriptive literature were provided with your request.
The items under consideration are a D'Lite X, Double, Aqua (Model Number 938101), a D'Lite X, Single, Aqua, (Model Number 938102), an Encore X, Turquoise (Model Number 937101), a Honey Bee, Red (Model Number 949209), and a Cub X, Atomic Red (Model Number 943307), which are five models of strollers that can be converted into bicycle trailers. Once purchased by the consumer, the product requires several assembly steps to become operable as a stroller with seating for one or two children, depending on the model. Each model can be converted from a stroller to a bicycle trailer with an additional accessory, a steel hitch, which is included in the box.
You state that the primary function of the product is a stroller, and as such, it should be classified in subheading 8715.00.0020, Harmonized Tariff Schedule of the United States (HTSUS), as a baby carriage (including strollers). However, in the advertisement materials provided with your request, the product appears to be marketed equally as a stroller and a bicycle trailer. In fact, each model is described as “kids bike trailer and stroller.”
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes.
Bicycle trailers are classified in heading 8716, HTSUS, which provides for trailers, and other non-mechanically propelled vehicles, and, as stated above, strollers are classified in heading 8715, HTSUS. Because classification in a single heading cannot be determined by applying GRI 1, we must apply the other GRI's. GRI 2(b) states that if a product is a mixture or combination of materials or substances that are, prima facie, classifiable in
two or more headings, then GRI 3 applies. GRI 3(b) provides that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential
character.
The product is essentially a composite good that can be used as a baby carriage and a bicycle trailer. Since it is used equally as a stroller and as a bicycle trailer, no essential character can be determined. GRI 3(c) states “When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.” The heading that occurs last in numerical order is heading 8716, HTSUS. Therefore, the submitted merchandise is classified in this heading.
The applicable subheading for the D'Lite X, Double, Aqua (Model Number 938101), the D'Lite X, Single, Aqua, (Model Number 938102), the Encore X, Turquoise (Model Number 937101), the Honey Bee, Red (Model Number 949209), and the Cub X, Atomic Red (Model Number 943307) will be 8716.40.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Other trailers and semi-trailers.” The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8716.40.0000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8716.40.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division