CLA-2-87:OT:RR:NC:N2:206
Dave Kinney
Performance Coatings, LLC
1301 West Second Street Oconomowoc, WI 53066
RE: The tariff classification of a vehicle cab and chassis from South Africa
Dear Mr. Kinney:
In your letter dated April 24, 2024, you requested a tariff classification ruling. Descriptive literature and pictorial representations were submitted with your request.
The item under consideration has been identified as the Cape Advanced Vehicle (CAV), a one of a kind (custom) vehicle used to transport a person for special purposes such as for showings and exhibitions. You state in your request that the CAV will include a stainless steel structural chassis, steering rack and components, suspension to include A-arms, struts, a full brake system and hubs, fuel cell, A/C components, and electrical wiring. The fiberglass body will be attached and will include interior components: a dash with gauges and switches, carpet, seating, handles and other interior amenities. Exterior components will include a windshield, side glass, paint, forward and reverse lighting and indicators. The CAV will not include a motor, transmission, engine management electronics, axels, A/C compressor, or battery.
In your initial submission, you suggested classification of the CAV in 8703.23.0170, which provides for Motor cars and other motor vehicles principally designed for the transport of personsincluding station wagons and racing cars: Other vehicles, with only spark-ignition internal combustion piston engines: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines more than 6 cylinders. 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. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs to 87.03 state, in part,
An incomplete or unfinished vehicle, whether or not assembled,is classified as the corresponding complete or finished vehicleprovidedit has the essential character of the latter (see General Interpretative Rule 2 (a)), as for example:
(A) A motor vehicle, not yet fitted with the wheels or tyres and battery.
(B) A motor vehicle not equipped with its engine or with its interior fittings.
This article, as imported is as you state in your ruling, is a rolling chassis, with no engine, transmission, axels, or powertrain module. The vehicle will have the following items installed upon arrival, engine, trans, axels, wheels, tires, electronic module. It is the opinion of this office that there is not enough of the vehicle present to provide the essential character of the finished vehicle. As such, classification in 8703 is precluded.
Furthermore, the ENs to heading 8707 state:
This heading covers the bodies (including cabs) for the motor vehicles of headings 87.01 to 87.05and They may be completely equipped (e.g., with all their fittings and accessories such as dashboards, boots (trunks), seats and cushions, mats, luggage racks and electrical fittings).
The applicable subheading for the CAV will be 8707.10.0020, HTSUS, which provides for Bodies (including cabs), for the motor vehicles of headings 8701 to 8705: For vehicles of heading 8703: For passenger automobiles. The rate of duty will be 2.5% 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/.
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