CLA-2-89:OT:RR:NC:N2:206
Douglas Saker
LE Coppersmith Inc
525 S Douglas St, Suite 100 El Segundo, CA 90245
RE: The tariff classification of an inflatable kayak/stand up paddle board from China
Dear Mr. Saker:
In your letter dated February 5, 2024, you requested a tariff classification ruling on behalf of your client, Keeper Sports Products LLC.
The article under consideration is a Scott Burke Inflatable Kayak/Stand Up Paddle Board (Item Number 1654463). You state that this watercraft that can be used as a kayak and as a stand up paddle board. The watercraft is made of 22-gage drop stitch Polyvinyl Chloride (PVC) and constructed in the shape of a boat/kayak. The packaging also contains accessories, such as a two-sided paddle for kayaking, which can be converted into a one-sided paddle when using the craft as a paddleboard, an ankle leash, an electric pump, a kayak seat/beach chair, bungee storage, D hooks, grip pad, a repair kit, and a backpack. The net weight of the watercraft is approximately 40 pounds.
In your request, you suggest that the Scott Burke Inflatable Kayak/Stand Up Paddle Board should be classifiable as water-sport equipment under subheading 9506.29.0080, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Classification of merchandise under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's) 1 through 6. The systematic detail of the HTSUS is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant section or chapter notes. The watercraft under consideration has a hull of a boat akin to articles of Chapter 89. It has a deep enclosure, unlike the flat surfaces of watersports equipment of Chapter 95, such as stand up paddle boards. Therefore, it is excluded from Chapter 95 by application of Legal Note 1(q) to Chapter 95, which states that this chapter does not cover “Sports craft such as canoes and skiffs (chapter 89), or their means of propulsion (chapter 44 for such articles made of wood).” As a result, the watercraft will be classified in Chapter 89, HTSUS, pursuant to GRI 1.
GRI 3(b) is applicable when goods are, prima facie, classifiable under two or more headings, and have been put up in sets for retail sale. GRI 3(b) states that the goods “shall be classified as if they consisted of the material or component which gives them their essential character.” Therefore, the entire package with the accessories, when imported together with the watercraft will be classified in the same subheading as the watercraft.
The applicable subheading for the Scott Burke Inflatable Kayak/Stand Up Paddle Board (Item Number 1654463) and the accessories, when imported together in the same package will be 8903.12.0060, HTSUS, which provides for “Yachts and other vessels for pleasure or sports; row boats and canoes: Inflatable (including rigid hull inflatable) boats: Not designed for use with a motor and unladen (net) weight not exceeding 100 kg: Other.” The rate of duty will be 2.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8903.12.0060, 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 8903.12.0060, 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.
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