CLA-2-87:OT:RR:NC:N2:201
Frank Bua
EV Sport Rides
62 Great Hill Road Ridgefield, CT 06877
RE: The tariff classification and country of origin of an electric all-terrain vehicle (ATV) from China
Dear Mr. Bua:
In your letter dated November 18, 2024, you requested a tariff classification and country of origin determination ruling.
The item under consideration has been identified as a 4-wheel single rider ATV from China.
The vehicle is powered by Lithium-Ion batteries. The Vehicle is 82" long x 43" wide x 44" high, with a seat height of 33". The Vehicle weighs 550 lbs. with a maximum speed of 31 miles per hour. In your request you state that the charge time is between 4-8 hours and will run for approximately 3-5 hours depending on use. The state that the intended use for this vehicle is for farm/off road use by adults only.
The vehicle is compliant with the ANSI/VAIS codes. The product is manufactured by China Clover Industrial & Trading Co. Limited.
The applicable subheading for the electric ATV will be 8703.90.0100, Harmonized Tariff Schedule of the United States (HTSUS), 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: Other vehicles, with only electric motors for propulsion: Other. 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 "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
In your request you state that the ATV is manufactured by China Clover Industrial & Trading Co. Limited. The Country-of-Origin will be China.
Pursuant to U.S. Note 31(b) to Subchapter III, Chapter 99, HTSUS, effectiveSeptember 27, 2024, products of China classified under subheading 8703.90.0100, HTSUS, unless specifically excluded, are subject to an additional 100% ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.91.03, in addition to subheading 8703.90.0100, HTSUS, listed above.
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 Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division