Motor home produced on a cab chassis in an FTZ

HQ 084600 August 22, 1989 CLA-2 CO:R:C:G 084600 TLS CATEGORY: Classification TARIFF NO.: 8703.24.0030 Mr. Richard A. Mason Winnebago Industries P.O. Box 152 Highways 9 & 69 Forest City, Iowa 50436 RE: Motor home produced on a cab chassis in an FTZ Dear Mr. Mason: You request a ruling on the proper classification of a motor home under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) in a letter dated May 5, 1989. FACTS: The motor home will be built on a cab chassis which is a product of Japan. The cab chassis will be admitted directly into a foreign trade zone (FTZ). You provided descriptive photographs of the cab chassis which show what appears to be a pick-up truck without the cargo bed. You state that you intend to use this vehicle as a base on which to build the motor homes. The motor home unit itself will be built onto the chassis. It has a door on the right side of the body for entry and windows on all sides. There is a ladder on the rear of the unit which provides access to the top of the motor home. The interior is furnished with living space and sleeping quarters, with seats that convert into cots for sleeping, curtains over the windows, and sanitary facilities. It also has a storage area at the front of the unit which hangs over the roof of the cab. The motor home unit has no capacity to carry and transport cargo. The cab chassis will have nonprivileged status in the FTZ. ISSUE: What is the proper classification of the motor home at the time of transfer from the foreign trade zone if it is constructed in the FTZ on a cab chassis which has been admitted into the FTZ in nonprivileged status? -2- LAW AND ANALYSIS: The General Rules of Interpretation (GRI) govern the classification of articles under the HTS. The Explanatory Notes (EN) provide additional interpretation of the GRIs under the HTS at the international level. Nonprivileged foreign merchandise is subject to tariff classification in accordance with its character, condition, and quantity as constructively transferred to Customs territory at the time the entry or entry summary is filed with Customs. 19 C.F.R. 146.65(a)(2) (1986). It is understood that the cab chassis will be admitted into the foreign trade subzone in nonprivileged status. Heading 8703 of the HTSUSA covers motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702). The Explanatory Notes for heading 8703, which may be used for guidance in interpreting the heading, state that this heading includes "motor-homes (campers, etc.), vehicles for the transport of persons, specially equipped for habitation (with sleeping, cooking, toilet facilities, etc.)." We are satisfied from the facts submitted that the vehicle completed in the FTZ is a motor home properly classifiable under subheading 8703.24.0030. HOLDING: The motor home is classified under subheading 8703.24.0030, HTSUSA, covering motor homes as motor vehicles principally designed for the transport of persons (other than those of heading 8702) when constructively transferred to Customs territory. Sincerely, John Durant, Director