Motor Vehicle; HQRLs 083081, 083589, 083412, 082591, 088971,088664, 950714
Active· CBP ruling HQ 954926· Issued 1994-02-02
Ruling text
HQ 954926
February 2, 1994
CLA-2 CO:R:C:M 954926 MMC
CATEGORY: Classification
TARIFF NO.: 8703.23.00
Mr. Bruce Aitken
Aitken & Irvin
1101 15th Street, N.W.
Suite 450
Washington D.C. 20015
RE: Motor Vehicle; HQRLs 083081, 083589, 083412, 082591, 088971,
088664, 950714
Dear Mr. Aitken:
This is in response to your August 9, 1993, letter to the
Customs office in New York requesting the classification of a
newly designed motor vehicle under the Harmonized Tariff Schedule
of the United States (HTSUS). Your letter has been forwarded to
this office for reply.
FACTS:
According to the information provided, the motor vehicle
will have a three and five door version. Both versions will have
the option of either two or four-wheel drive. The vehicle's body
structure will be smooth rather than boxy and substantially
similar to a station wagon. It will have limited off-road
capabilities and a body that will mount to a separate frame.
This new frame will cause the vehicle to have a higher ground
clearance than most passenger cars, and lower than most sports
utility vehicles. The tires, wheels, and suspension will be
optimized for passenger comfort rather than cargo payload. The
vehicle is designed to hold no more than 900 lbs. payload, of
which 750 lbs. will be allocated for passengers.
You state that the vehicle will contain a 4 cylinder engine,
with 1998 cylinder capacity (cc), and transport up to 5 people
and their occasional effects. It will have several amenities
designed for passenger comfort including interior carpeting,
cloth-type door trim, a full display panel, passenger assist
handles, full cloth seats and a carpeted cargo area. The
passenger area will also include two front bucket seats and a
platform seat in the rear designed to seat three passengers. The
platform seat will not be capable of folding down flat. In
addition to the passenger space, the vehicle will contain a small
flat cargo floor, however it will not have a tailgate. Finally,
some of the cargo space available will be occupied by a spare
tire.
The total enclosed volume of the three door version will be
approximately 128 cubic feet, and 158.4 cubic feet for the five
door version. The three door version will consume 117.5 cubic
feet in passenger room leaving approximately 9.4 cubic feet for
cargo space. The five door version will consume 129 cubic feet
in passenger space with the remaining 29.4 cubic feet for cargo
space. Should a spare tire be installed on the floor, cargo
space decreases to 26.8 cubic feet.
ISSUE:
Whether the motor vehicle is classifiable as a motor vehicle
principally designed for the transport of people, or as a motor
vehicle principally designed for the transport of goods?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1, HTSUS, states in part that for legal
purposes, classification shall be determined according to the
terms of the headings and any relative section or chapter notes.
The headings under consideration are as follows:
8703 [m]otor cars and other motor vehicles principally
designed for the transport of persons (other than that
of heading 8702), including station wagons and racing
cars...................................2.5% ad valorem
8704 [m]otor vehicles for the transport of goods.....duties
vary according to subheading classification.
There are no relevant chapter or section notes which address
the headings at issue. By express language of heading 8703,
motor vehicles which are principally designed for the transport
of persons are described by heading 8703, HTSUS. Therefore, a
vehicle which is equally designed for the transport of persons
and goods cannot be classified in heading 8703, HTSUS. See HQRL
083081 dated January 4, 1989, where Customs ruled that a
multipurpose or sports-utility vehicle, which has a dual design
for the transport of people and goods was not "principally
designed for the transportation of persons", and therefore not
classifiable in heading 8703, HTSUS.
The present vehicle has the ability to transport both
persons and a limited amount of cargo. Therefore, there is a
possibility that it could be described as a multipurpose or
sports-utility vehicle, if it has certain characteristics.
HQRL 083589, dated May 11, 1989, stated that sports-utility
vehicles 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. They have a boxy body structure which allows for
considerable interior volume, and flat cargo floors, which
facilitate the loading and unloading of cargo. Finally, sports-
utility vehicles also have a higher ground clearance which allows
them to be used both on and off the road. (See also: HQRLs
083412 dated May 19, 1989, 082591 dated October 31, 1991, 088971
dated May 23, 1991, 088664 dated June 3, 1991, and 950714 dated
May 12, 1992).
While the subject vehicle is capable of carrying both
persons and cargo, we think the features of the vehicle indicate
that they it is principally designed for the transport of
persons. The cargo applications are extremely limited by the
presence of the spare tire and the ground clearance is not as
high as most sports-utility vehicles. In addition, the vehicle
uses a new chassis design not a truck design. Finally, it has a
smooth not boxy body structure.
For the foregoing reasons, we find that this vehicle is
classifiable in heading 8703, HTSUS, as a motor vehicle
principally designed for the transportation of persons.
Classification to the eight digit subheading level is dependant
upon the vehicle's cylinder capacity. The vehicle has a 4
cylinder engine with a cylinder capacity of 1998 cc and is
therefore classifiable in subheading 8703.23.00, HTSUS.
HOLDING:
The vehicle is classifiable in subheading 8703.23.00, HTSUS,
which provides for [m]otor cars and other motor vehicles
principally designed for the transport of persons (other than
those of heading 8702), including station wagons and racing cars:
[o]ther vehicles, with spark-ignition internal combustion
reciprocating piston engine: [o]f a cylinder capacity exceeding
1,500 cc but not exceeding 3,000 cc: [o]ther: [n]ew: [h]aving
engines with not more than 4 cylinders. The general column one
rate of duty for this subheading is 2.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
Source: rulings.cbp.gov — ruling 954926, retrieved 2026-10-12T05:28:21Z, republished verbatim. This digest is informational; only CBP issues binding rulings.