CLA-2-87:OT:RR:NC:N2:201
Dalton Flannery
74 Jesus Valley Road Alton Bay, NH 03810
RE: The tariff classification of a 1996 Toyota HiLux from Japan
Dear Mr. Flannery:
In your letter dated January 5, 2023, you requested a tariff classification ruling.
The item under consideration has been identified as a 1996 Toyota HiLux 4 full door pickup, frame number LN107-0024711. This vehicle is equipped with a 3-liter (2,779 cc) diesel engine, and interior seating for five (5) passengers with two (2) foldable rear facing jump seats in the open cargo area.
In your request, you suggest classification in 8703.32.0150, which provides for, “Motor cars and other motor vehicles principally designed for the transport of persons…: Other vehicles, with only compression-ignition internal combustion piston engine (diesel or semi-diesel): Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc: Used”. This office disagrees.
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 ... .” Heading 8704 provides for, “Motor vehicles for the transport of goods.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, 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 87.04 state:
The classification of certain motor vehicles in this heading is determined by certain features which indicate that the vehicles are designed for the transport of goods rather than for the transport of persons (heading 87.03). These features are especially helpful in determining the classification of motor vehicles, generally vehicles having a gross vehicle weight rating of less than 5 tonnes, which have either a separate closed rear area or an open rear platform normally used for the transport of goods, but may have rear bench-type seats that are without safety seat belts, anchor points or passenger amenities and that fold flat against the sides to permit full use of the rear platform for the transport of goods. Included in this category of motor vehicles are those commonly known as “multipurpose” vehicles (e.g., van-type vehicles, pick-up type vehicles and certain sports utility vehicles). The following features are indicative of the design characteristics generally applicable to the vehicles which fall in this heading:
(a) Presence of bench-type seats without safety equipment (e.g., safety seat belts or anchor points and fittings for installing safety seat belts) or passenger amenities in the rear area behind the area for the driver and front passengers. Such seats are normally fold-away or collapsible to allow full use of the rear floor (van-type vehicles) or a separate platform (pick-up vehicles) for the transport of goods;
(b) Presence of a separate cabin for the driver and passengers and a separate open platform with side panels and a drop-down tailgate (pick-up vehicles);
(c) Absence of rear windows along the two side panels; presence of sliding, swing-out or lift-up door or doors, without windows, on the side panels or in the rear for loading and unloading goods (van-type vehicles);
(d) Presence of a permanent panel or barrier between the area for the driver and front passengers and the rear area;
(e) Absence of comfort features and interior finish and fittings in the cargo bed area which are associated with the passenger areas of vehicles (e.g., floor carpeting, ventilation, interior lighting, ashtrays).
While this office does concur that the vehicle is equipped with small seats in the rear, they are not, in fact “bench seats”, as described in (a) above, they are foldable “jump seats” that allow full use of the rear area for cargo transport. In addition, according to Toyota, this HiLux was built and subsequently registered by you as a pickup truck.
The applicable subheading for the 1996 Toyota HiLux (Frame number LN107-0024711) will be 8704.21.0100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor vehicles for the transport of goods: Other, with only compression-ignition internal combustion piston engine…: G.V.W. not exceeding 5 metric tons”. The rate of duty will be 25% 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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division