CLA-2-87:OT:RR:NC:N2:201
Donald Stein
Greenberg Traurig, LLP
2101 L Street, NW, Suite 1000 Washington, DC 20037
RE: The tariff classification of an Electric Go-Kart from China
Dear Mr. Stein:
In your letter dated September 5, 2023, you requested a tariff classification ruling on behalf of your client, Greenworks Tool, located in Mooresville, North Carolina.
The item under consideration is identified as an Electric Go-Kart model number CK600D. You state that the Go-Kart is not considered street legal, and is not equipped with a review mirror, turn signals, or windshield. The Go-Kart has seating for two people and is equipped with seat belts. It has two 750W brushless hub motors that you state allows the Go-Kart a maximum speed of up to 25 miles per hour with a maximum runtime range of up to 15 miles.
The Go-Kart has 16” x 7-8” tires, front hydraulic disc brakes and rear drum brake systems, plus dual front and rear suspension systems to provide comfort and control. A steering wheel, accelerator pedal, brush guard rack and a Bluetooth speaker are also included. The Go-Kart is equipped with LED headlights and weighs 243 lbs. A digital LED display shows battery status, current speed, and range.
In your ruling you suggest classification of the Go-Kart under 8703.10.5060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “golf carts and similar vehicles”. You state that the Go-Kart is “similar” to golf carts and thus should be classified there. We disagree. Under current NHTSA interpretations and regulations, golf cars and other similar vehicles are incapable of exceeding 20 miles per hour. You state that the Go-Kart is capable of speeds exceeding 20 miles per hour.
The applicable subheading for the Electric Go-Kart model number CK600D will be 8703.90.0100, HTSUS, which provides for 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: The rate of duty will be 2.5% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8703.90.0100, 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., 9903.88.01, in addition to subheading 8703.90.0100, 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.
Please note the holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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