CLA-2-89:OT:RR:NC:N2:206
Eric Zhang
Fujian Skywalker Yacht Co., Ltd
No.189-1, Baikeng Village, Longjiao Township, Longhai District Zhangzhou City, Fujian Province 36310 China
RE: The tariff classification of a catamaran from China
Dear Mr. Zhang:
In your letter dated August 9, 2023, you requested a tariff classification ruling. Detailed pictures were provided with your request.
The article under consideration is a 60-Foot Power Catamaran (Item Number TXZ60Ft Cat), which is made of Fiber Reinforced Plastic (FRP). Each hull of the catamaran is 18.26 meters long, which is approximately 60 feet. The catamaran does not contain an outboard motor.
The applicable subheading for the 60-Foot Power Catamaran (Item Number TXZ60ft Cat) will be 8903.32.0015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Yachts and other vessels for pleasure or sports; row boats and canoes: Motorboats, other than inflatable, not including outboard motorboats: Inboard/outdrive: Cabin cruisers.” The rate of duty will be 1.5 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8903.32.0015, 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 8903.32.0015, 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, including information on exclusions and their effective dates, 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 at https://hts.usitc.gov/current.
In addition to the classification request, you also requested that this office to make a determination on the country of origin, marking, and application of trade program or trade agreement.
However, you did not provide any information on how you will be marking the catamaran or the countries involved in the making of the product. As a result, this office is unable to make a determination on the marking or the country of origin of the catamaran.
Your letter indicates that the country of origin is China. Currently, the United States has no trade agreements or trade programs for reduced duty rates with China. Therefore, the catamaran under consideration does not qualify for any trade agreements or trade programs.
If you still would like this office to determine the country of origin of the product and its proper marking, please submit a new ruling request and include all pertinent information. Please include a detailed step-by-step explanation of the manufacturing process with the country location of where all steps are completed and pictorial diagrams of the assembly process from raw materials to the finished product. In addition, provide the bill of material (BOM) of the components and/or subassemblies that make up the catamaran. This BOM must include the item name/description, quantity, cost and country of origin. Furthermore, explain in detail how you will be marking the product and provide the location of the marking on the catamaran.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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 Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division