us-cbp-cross-rulings-hq-083412•HQ 083412: Multipurpose vehicle (Range Rover)
HQ 083412: Multipurpose vehicle (Range Rover)
us-cbp-cross-rulings-hq-083412HQ 083412: Multipurpose vehicle (Range Rover)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 083412
May 19, 1989
CLA-2 CO:R:C:G 083412
CATEGORY: Classification
TARIFF NO.: 8703.24.00
James H. Lehmann, Jr.
Vice President & General Counsel
Range Rover of North America, Inc.
PO Box 1503
Lanham, Maryland 20706
RE: Multipurpose vehicle (Range Rover)
Dear Mr. Lehmann:
Your memorandum of January 19, 1989, requests a ruling
on behalf of Range Rover of North America, Inc., on the tariff
classification of the Range Rover under the Harmonized Tariff
Schedule (HTS). This ruling is our decision on that request.
FACTS:
The submission states that the Range Rover is a five
passenger luxury car designed for the transport of persons.
The vehicle has four doors, two permanent rows of seats, a
storage area, and windows in the rear of the vehicle. The
front row of seats consists of two separate arm chair type
seats, which are divided by a center console. The second row
is a permanently installed bench type seat with a fold-down
center and outboard arm rest. This seat is split 60/40, and
the back can be folded down on the seat bottom. The rear doors
are hinged passenger-type doors, which swing open.
The Range Rover has a tailgate, which allows easy access
to the rear storage area. This area is fully carpeted and is
divided by a removable cover which permits luggage or other
goods to be stored under it. If the cover is in place, the
storage area is fifteen cubic feet. Without the cover, it is
thirty-six cubic feet. The area increases to seventy cubic
feet when the rear seats fold forward, but is encumbered by the
- 2 -
the spare tire, rear stereo speakers, rear wheel arches, seat
belts and side storage areas located in the rear of the
vehicle.
The vehicle's dimensions are as follows. It is 175.0
inches long, 71.4 inches wide, 70.8 inches in height, and has a
gross vehicle weight of 5,997 pounds. It has a 3.9 liter,
fuel-injected, 8 cylinder engine, and a four speed automatic
transmission. It is built on a frame with a ground clearance
of 8 inches, has coil springs on all four wheels and four wheel
disc brakes. The vehicle can be used both on-road and off-
road
The importer states that the Range Rover should be
classified under heading 8703 of the HTS. The vehicle's
permanent folding rear seats, coil springs, carpeting and
luxury trim, leather upholstery, sunroof, rear windows, and
high speed capability indicate that it was designed to provide
luxury, enjoyment, comfort and safety to passengers, and is
thus a vehicle which is principally designed to transport
persons. Also, the Range Rover's design precludes it from
classification in heading 8704. It is not designed for easy
loading and unloading, or transporting, since it does not have
a flat floor and its luggage space is encumbered by the spare
tire, the rear stereo speakers, the rear seat belts and the
protruding side compartment.
ISSUE:
Whether the Range Rover is properly classifiable in
heading 8703 as "motor cars and other motor vehicles
principally designed for the transport of persons", or in
heading 8704 as a "motor vehicle designed for the transport of
goods" under the HTS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) govern
classification under the HTS. Under GRI 1, classification
- 3 -
shall be determined according to the terms of the heading and
any relative section or chapter notes.
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:
* * * * * * * *
There are no relevant legal notes in Section XVII or
chapter 87 which address the headings at issue in this case.
According to the language of heading 8703, in order to be
classified in that provision, a motor vehicle must be
principally designed for the transport of persons.
The vehicle at issue 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-road and off-road.
Although no single criterion determines whether a
- 4 -
multipurpose vehicle is principally designed for the transport
of persons or for the transport of goods, in our ruling letter
of May 4, 1989 (File 083081), classifying the Suzuki Samauri,
we identified two categories 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 designed for the transport of goods include:
flat floors in the rear portion of the interior; chassis;
suspension; and/or transmission that are more rugged than those
found on ordinary passenger vehicles, which permit a larger
cargo payload; accessible and useable cargo space; tailgates
that are large enough to facilitate the loading and unloading
of cargo; and the absence of rear side windows.
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 a rear side door allows persons to
access the rear of the vehicle and are evidence of its
suitability for primarily transporting persons. Auxiliary
design features suggesting that the vehicle was intended for
passenger use include folding and removable seating, interior
trim packages, and carpeting.
Although structural design features are primary,
auxiliary design features may also be considered in confirming
the proper classification of a sport-utility vehicle.
Applying these criteria, Headquarters ruled in a
decision dated May 4, 1989 (File 083589), that the China Tiger,
a four-door sport-utility vehicle, was properly classifiable as
a motor vehicle principally designed for the transport of
persons. In that decision, we noted that the vehicle's
structural design features (the presence of fixed hinged rear
side doors, rear side windows, the limited cargo area, and the
permanently installed seat in the rear of the vehicle that does
not fold down) indicate that the vehicle was primarily designed
to transport persons.
- 5 -
The Range Rover has some of the same structural design
features of the China Tiger. It has hinged rear side doors,
which open to a fixed position; rear side windows; and
permanently installed seats in the rear of the vehicle. The
hinged doors are evidence that the rear area was designed to
allow passengers occupying the rear seats easy entry and exit,
and are impractical for loading cargo.
The Range Rover also has many of the auxiliary design
features indicating primary use as a passenger vehicle. The
area behind the rear seats is fully carpeted and trimmed. The
rear doors are trimmed in polished walnut and cloth, and
contain built-in arm rests. These features add to the luxury
of the vehicle and are indicative of passenger use.
Although no single factor determines whether a vehicle
is principally designed for the transport of persons, the Range
Rover's structural and auxiliary design features indicate that
it was designed with the intent to primarily transport persons,
and not cargo.
HOLDING:
The Range Rover is properly classifiable in heading
8703, subheading 8703.24.00 of the HTS, as a motor car and
other motor vehicle principally designed for the transport of
persons.
Sincerely,
John Durant, Director
Commercial Rulings Division
Continue sua pesquisa no ChatGPT ou Claude
Conecte o Omnilex para pesquisar o corpus jurídico pelo seu assistente de IA.