CLA-2-87:OT:RR:NC:N2: 206
James Jeffries
Kuat Innovations LLC
2240 N. Alliance Ave
Springfield, MO 65803
RE: The tariff classification of an accessory panel kit with or without a cargo rack from China
Dear Mr. Jeffries:
In your letter, dated January 17, 2024, you requested a tariff classification ruling.
The product under consideration has been identified as an accessory Panel Kit that attaches to a truck cargo bed/luggage rack, also imported by Kuat Innovations LLC. You stated that the panel kit may be imported separately as a standalone kit for later attachment to the cargo rack, or as a single product with the cargo rack.
The panels from the panel kit attach to the cargo rack turning it into a cap for the bed of a pickup truck, but allowing the rack to still function as an exterior luggage carrier when the panel kit is installed on it. The function of the panel kit is to provide some security and weather protection for cargo carried in the bed of the pickup truck. The panel kit is comprised of a roof panel, a rear door panel, a front panel, and left-side and right-side panels. The rear panel and the two side panels include door panels that open outwardly to allow access to the truck bed. The doors on the side and rear panels are provided with latches, locks, and opening-assist springs. The front, rear, and side panels are made of steel, and the roof panel is aluminum.
You suggested classifying the panel kit, with or without the cargo rack, in subheading 8708.29.5160, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other parts and accessories of vehicle bodies. You cited ruling N337201, dated January 12, 2024, which was issued to you by this office, where the standalone cargo rack was classified in subheading 8708.29.5160, HTSUS. We disagree.
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. General Note 3 (h) (vi) to the HTSUS states, “... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8708.29.5125 of the HTSUS provides specifically for truck caps. It is stated in your submission, the panel kit and cargo rack are shipped unassembled. GRI 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The subject panel kit and cargo rack, have the essential character of a complete or finished truck cap because it performs the functions of a truck cap. As a result, the panel kit, with or without the cargo rack, is an unassembled truck cap.
The applicable subheading for the Panel Kit, with or without the truck cargo rack, will be 8708.29.5125, HTSUS, which provides for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories of bodies (including cabs): Other: Other: Truck caps.” The general 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 8708.29.5125, 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 8708.29.5125, 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 at https://hts.usitc.gov/current.
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 of 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 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