us-cbp-cross-rulings-hq-083628•HQ 083628: Classification of multipurpose vehicle (Volkswagen Vanagon)
HQ 083628: Classification of multipurpose vehicle (Volkswagen Vanagon)
us-cbp-cross-rulings-hq-083628HQ 083628: Classification of multipurpose vehicle (Volkswagen Vanagon)Guidance
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 083628
June 6, 1989
CLA-2 CO:R:CV:G 083628 VEA
CATEGORY: Classification
TARIFF NO.: 8703.23.0030
Frederick L. Ikenson, Attorney
Law Offices of
Frederick L. Ikenson, P.C.
1621 New Hampshire Ave., N.W.
Washington, D.C. 20009
RE: Classification of multipurpose vehicle (Volkswagen
Vanagon)
Dear Mr. Ikenson:
Your submission of February 8, 1989, requests a ruling on
behalf of your client, Volkswagen of America, Inc., on the
tariff classification of the Volkswagen Vanagon under the
Harmonized Tariff Schedule (HTS). This ruling is our decision
on that request.
FACTS:
The submission states that the Volkswagen Vanagon is a
van-type motor vehicle manufactured in West Germany and
imported for sale in the United States. The Vanagon is
available in three models (Vanagon GL, Vanagon Carat and
Vanagon Camper). The GL and Camper are also available in a
four-wheel drive version, the Synchro.
The Vanagon is powered by a 2.1 liter fuel-injected
engine, and has a four-speed manual transmission, or an
automatic transmission. These vehicles have a sliding side
door and sliding rear windows, two seats in the front of the
vehicle, a center seat that can accommodate up to two people,
and a non-removable bench-type seat in the rear of the vehicle.
These vehicles are designed to carry seven passengers, and have
approximately 200 cubic feet of interior space, of which
approximately 50 cubic feet is useable as cargo space when the
vehicle is also used by passengers.
- 2 -
Although the models have the same basic design, some of
them have additional features. For example, the Carat has two
rearward-facing center seats, a rear folding bench, and a side
panel-mounted folding table. Finally, the Vanagon GL Camper is
a five passenger model with curtained side windows, a
kitchenette (LP gas stove and refrigerator, sink, countertop,
swing-out dining table, fold-out side table, and food
cupboard), a clothes closet, and a roof-top storage rack.
The importer argues that the Vanagon should be classified
under heading 8703 as a motor vehicle principally designed for
the transport of persons, instead of in heading 8704 as a motor
vehicle designed for the transport of goods. The importer's
submission states that the Vanagon has been marketed at all
times as a passenger van and is the third generation of a van-
type vehicle which Volkswagen developed in the late 1940's as a
derivative of the Beetle passenger car. The abundance of
passenger amenities rearward of the driver's seat and the
presence of chassis suspension elements also found in passenger
vehicles are evidence that the vehicle was primarily designed
for passenger use. Finally, the cargo-to-passenger volume and
weight ratios are comparable to those found in a conventional
station wagon, and although the cargo area in these vehicles
can be expanded by removing the center seat, this is
impractical since this seat is not easily removed.
ISSUE:
Whether the Volkswagon Vanagan is properly classifiable in
heading 8703, subheading 8703.23.0030, as a "motor vehicle
principally designed for the transport of persons," under the
HTS and dutiable at 2.5 percent ad valorem, or in heading 8704
as a "motor vehicle designed for the transport of persons."
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 headings
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:
- 3 -
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:
There are no relevant legal notes which address the
headings at issue in this case. Based on the language of 8703,
in order to be classified in that heading, a vehicle must be
principally designed for the transport of persons.
The Vanagon has the features of a motor vehicle described
as a small multipurpose van capable of transporting both
passengers and cargo. In general, these vehicles have a
single, box-like body structure which includes space for the
driver and front-seat passenger, and rear space, which can be
used to carry both passengers and cargo. Also, they usually
have rear sliding doors, side windows and seating which can
accommodate up to 7 passengers. The location of the engine
varies in these vehicles and may be placed in the front,
middle, or rear. They are usually placed partly beneath the
level of the floor in order to provide substantial interior
space. The vehicles also vary in drive configuration and may
be front, rear, or 4-wheel drive.
No single criterion is dispositive of whether these
vehicles are principally designed to transport persons or
goods, however, there are two types of identifiable features
which are unique to the design of these vehicles, and thus
relevant in making this determination. These include integral
design features and auxiliary design features. Integral design
features include: (1) a body structure and design that can
accommodate large volumes of cargo, and that can be adapted to
transport a large number of persons; and (2) a rear side
passenger access door. The box-like design of these vehicles
provides a roominess which makes them well-suited for
transporting both passengers and cargo. Auxiliary design
features include: (1) windows on the rear side passenger access
door and on the side panels of both sides of the vehicle; and
(2) rear seating for two or more persons.
Both the integral and auxiliary design features are
significant in determining whether multipurpose vans are
principally designed for the transport of persons, or for the
transport of goods.
- 4 -
An examination of the Vanagon's integral and auxiliary
design features indicate that it is principally designed to
transport persons. These vehicles have three side doors. The
center side door is a sliding side door, which allows
passengers easy access to the rear seats. In addition, the
Vanagon has windows on the rear side passenger door and on the
rear side panels. Both of these features indicate that the
rear section of the Vanagon was designed primarily for
passenger use. Finally, a center seat and a non-removable
bench type seat are in the rear-most section of the vehicle.
These can easily accommodate up to five, or seven persons and
are further evidence of the vehicle's design to transport
persons instead of cargo.
Although no single factor determines whether a vehicle is
principally designed for the transport of persons, the
Vanagon's auxiliary design features (windows in the rear side
panels, and rear seating for two or more persons) and integral
design features (three or more side-doors, one of which offers
access to the rear of the compartment) suggest that it is
principally designed to transport persons.
HOLDING:
The Volkswagon Vanagon GL, Camper, Carat, in two-wheel
drive and four-wheel drive (Synchro versions) are properly
classifiable in heading 8703, subheading 8703.23.0030, as a
"motor vehicle principally designed for the transport of
persons," under the HTS, and dutiable at 2.5 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
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