CLA-2-87:OT:RR:NC:N:206
Todd Hanson
Compass Carts LLC
5032 51st St NW Rochester, MN 55901
RE: The tariff classification of a hand cart and hitch rack from China
Dear Mr. Hanson:
In your letter dated October 25, 2024, you requested a tariff classification, country of origin, and application of any trade or programs ruling.
The items under consideration are a Compass Cart and Compass Cart Vehicle Hitch Rack. The Compass Cart is a hand cart, which is made primarily of aluminum, with steel components for the pivoting and locking mechanisms. The Vehicle Hitch Rack is designed as a cargo or bicycle carrier that attaches to the back of a vehicle. It is composed mainly of steel tube and sheeting, with some plastic parts and standard fasteners.
You suggested classifying the Compass Cart and Hitch Rack in subheading 8716.80.5010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for industrial hand trucks. We disagree.
CBP views industrial hand trucks as carts that can easily accommodate a heavy load by either using a toe plate that can be slid under the load or having a flat cargo bed low to the ground. Based on the pictures of the Compass Cart, it does not appear to be an industrial hand truck, as it does not have any features to accommodate a heavy load.
The Hitch Rack attaches to the vehicle and enhances the vehicle rather than the cart by enabling it to carry cargo, such as bicycles or carts. As such, it cannot be classified as a cart or a part of a cart.
The applicable subheading for the Compass Cart will be 8716.80.5090, HTSUS, which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Other vehicles: Other: Other: Other.” The general rate of duty will be 3.2% ad valorem.
The applicable subheading for the Compass Cart Vehicle Hitch Rack will be 8708.99.8180, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other: Other.” The rate of duty will be 2.5 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8716.80.5090, HTSUS, and 8708.99.8180, 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 subheadings 8716.80.5090, HTSUS, and 8708.99.8180, 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/.
Regarding the country of origin and any applicable trade agreements or programs, you state that the Compass Cart and Compass Cart Vehicle Hitch Rack are made in China. Currently, the United States does not have any trade agreements or programs with China.
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