us-cbp-cross-rulings-hq-083589•HQ 083589: Classification of multipurpose vehicle (China Tiger) under the Harmonized Tariff Schedule
HQ 083589: Classification of multipurpose vehicle (China Tiger) under the Harmonized Tariff Schedule
us-cbp-cross-rulings-hq-083589HQ 083589: Classification of multipurpose vehicle (China Tiger) under the Harmonized Tariff ScheduleGuidance
Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.
HQ 083589
May 10, 1989
CLA-2 CO:R:CV:G 083589 VEA
CATEGORY: Classification
TARIFF NO.: 8703.23.00
Len Skoozen
Vice President
Western Overseas Corporation
2801 Temple Avenue
Long Beach, California 90806-2258
RE: Classification of multipurpose vehicle (China Tiger)
under the Harmonized Tariff Schedule
Dear Mr. Skoozen:
In a letter dated January 11, 1989, you requested a
ruling on behalf of your client, American International Vehicle
Importers, Inc., on the tariff classification of the China
Tiger under the Harmonized Tariff Schedule (HTS). This ruling
is our decision on that request.
FACTS:
The information submitted with the request for a ruling
states that the China Tiger is a utility type station wagon
designed for the transport of persons. It comes in two models.
Each model has four doors, a four-wheel drive, and a
permanently installed seat, which does not fold down, in the
rear area of the vehicle. The models are described as a
hardtop station wagon and a soft top touring car.
The China Tiger has a steel frame and body. It also has
a 4 cylinder in-line water cooled engine with a 2.45 liter
displacement and 4 wheel hydraulic brakes. The dimensions of
the vehicles are as follows. Both models are 3,860 mm in
length; 1,750 mm wide; and 1,870 mm in height. Each vehicle
can carry five passengers including the driver, and has a total
full-load capacity of 425 kilograms. They can be used both on-
the-road and off-the-road. The four door soft top model was
designed to transport Chinese military police and personnel.
You state that these vehicles should be classified under
heading 8703 of the HTS because they are designed for the
- 2 -
transport of persons. The rear doors on the China Tiger allow
for easy ingress of passengers seated in the rear of the
vehicle. Also, both units are manufactured with permanently
built seats capable of seating five people. Finally, you note
that the small load carrying space is comparable to a trunk in
an automobile, or the rear compartment of a station wagon and
does not detract from the vehicle's overall design as a
passenger vehicle. A tailgate provides access to the carrying
space in the rear of the vehicle, but is not designed to be
used as an entrance to the passenger compartment.
ISSUE:
Whether the China Tiger is properly classifiable in
heading 8703, subheading 8703.23.00, as "motor cars and other
motor vehicles principally designed for the transport of
persons", under the Harmonized Tariff Schedule, and dutiable at
2.5 percent ad valorem.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) govern
classification under the HTS of the United States. GRI 1
provides, "....for legal purposes, classification shall be
determined according to the terms of the heading and any
relative section or chapter notes, and provided such headings
or notes do not otherwise require, according to the following
provisions...."
The relevant headings at issue in this case include:
8703 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:
* * * * * * * *
8704 Motor vehicles for the
transport of goods:
- 3 -
There are no relevant chapter or section notes which
address the heading at issue in this case. Based on the
language of 8703, in order to be classified in that heading, a
motor vehicle must be principally designed for the transport of
persons.
The vehicle at issue in this case is described as a
multipurpose or sport-utility vehicle. Sport-utility vehicles
typically are designed to perform multiple functions.
Although these vehicles may vary in body style and utility,
they have certain characteristics which are unique to this type
of vehicle. For example, they are designed to carry
passengers, as well as cargo, and are usually constructed on a
truck chassis. This gives them a body design that is stronger
than that of ordinary passenger cars. They have a boxy body
structure which allows for considerable interior volume, and
flat cargo floors, which facilitate the loading and unloading
of cargo. Sport-utility vehicles also have a higher ground
clearance, which allows them to be used both on and off the
road.
Although no single criterion is dispositive of whether a
multipurpose vehicle is principally designed for the transport
of persons or designed for the transport of goods, Customs
outlined the pertinent criteria to be considered in a ruling
dated May 4, 1989 (File # 083081). The Suzuki ruling
identified two types of design features relevant to determining
whether a sport-utility vehicle should be classified in heading
8703 or 8704, structural or integral design features, and
auxiliary design features. The two types of structural design
features include: first, those which indicate that a sport-
utility vehicle is principally designed for the transport of
persons, and second, features which indicate that a sport-
utility vehicle is designed for the transport of goods.
Structural design features indicating that a sport-
utility vehicle is principally designed for the transport of
persons, include the presence of hinged rear side doors and
rear side windows. The hinges prevent the doors from opening
fully. The presence of these rear side doors allows persons to
access the rear of the vehicle and are evidence of its
suitability for primarily transporting persons.
- 4 -
Structural design features illustrating that a sport-utility
vehicle is designed for the transport of goods include: flat
floors in the rear portion of the interior, chassis and
suspension designs that are more rugged than those found on
ordinary passenger vehicles, which permit a larger cargo
payload, accessible and usable cargo space, and tailgates that
are large enough to facilitate the loading and unloading of
cargo. Auxiliary design features include folding and removable
seating, interior trim packages, and carpeting. Both
structural and auxiliary design features are relevant in
determining the proper classification of a motor vehicle.
Based on the above reasoning, we ruled in the Suzuki
decision that the two-door Suzuki Samurai and YOE, Y2R, and
YOR, if imported with or without rear seats and rear trim,
should be classified as motor vehicles for the transport of
goods in heading 8704. In the Suzuki case, the structural
design features play a greater role in the overall design of
the vehicle and suggest that it was designed with the clear
intention of transporting goods. The Suzuki comes equipped
with a swing out rear door, a flat floor, a rear loading deck,
and a relatively high roof for a vehicle of its size. These
features when combined with a chassis and suspension that
allows a cargo payload that is approximately 20% of the gross
vehicle weight rating, indicate that the vehicle is principally
designed to transport goods. The auxiliary features did not
alter the basic structural design of the vehicle and thus were
not determinative of the issue.
According to the criteria for classification of sport-
utility vehicles, outlined in the Suzuki ruling, the China
Tiger's structural design features indicate that it is a
vehicle principally designed for the transport of persons.
Both the soft and hardtop models are designed with rear
passenger doors and rear side windows. The presence of
passenger doors, rear side windows, permanently installed seats
in the rear of the vehicle, and the relatively small cargo
area, are all evidence that the China Tiger was principally
designed for passenger use. The rear doors allow the passenger
sitting in the rear area easy access in and out of the vehicle.
Although the China Tiger has a tailgate, which folds down from
the top, it is comparable to the tailgate on a station wagon.
It only allows access to the small cargo area in the rear of
vehicle and cannot be used as an entrance into the passenger
compartment.
- 5 -
Finally, the total load capacity of the China Tiger is
only 425 kilograms. This includes the five passengers and
fifty kilograms of luggage, and is a much smaller cargo payload
than that of the Suzuki. The China Tiger is clearly
distinguishable from the vehicle in the Suzuki case. The
Suzuki models have two doors, a swing out rear door, a flat
floor, and a rear loading deck in addition to the box-like body
construction, which indicate that it was principally designed
to transport goods.
Although no single factor determines whether a vehicle
is principally designed for the transport of persons, the China
Tiger's structural design features (the presence of fixed
hinged rear side doors and rear side windows, the smaller cargo
area, and the permanently installed seat in the rear of the
vehicle that does not fold down) support our conclusion that it
is a multipurpose vehicle principally designed to transport
persons, classifiable in heading 8703.
HOLDING:
The China Tiger is properly classifiable in heading
8703, subheading 8703.23.00, "as motor cars and other vehicles
principally designed for the transport of persons", under the
HTS and dutiable at a rate of 2.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
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