The tariff classification of the UCR/S Sport Utility Vehiclefrom a foreign trade zone operation

NY 849524 February 16, 1990 CLA-2-87:S:N:N1:101-849524 CATEGORY: Classification TARIFF NO.: 8703.23.0044; 8703.24.0068 Mr. Brian S. Goldstein Siegel, Mandell & Davidson, P.C. Counselors at Law One Whitehall Street New York, NY 10004 RE: The tariff classification of the UCR/S Sport Utility Vehicle from a foreign trade zone operation Dear Mr. Goldstein: In your letter dated February 9, 1990 you requested a tariff classification ruling. This letter is a supplement to your January 17, 1990 request and contains additional information. You have enclosed specification sheets and descriptive literature. The UCR/S sport utility vehicle will be produced in a United States foreign trade subzone and then be entered into the Customs territory of the United States. Production in the subzone will be carried out by Subaru-Isuzu Automotive Inc. from parts, components and subassemblies imported from Japan, France and possibly third countries in addition to U.S. origin components. Some components will be manufactured in the subzone itself. The UCR/S sport utility vehicle is a four door vehicle that has hinged rear side doors, full windows and contains permanent, foldable rear seats, seat belts, windows, ash trays and other amenities. The full complement of doors provide easy entrance and exit from the vehicle and the rear door windows allow a view for rear passengers. The seats and amenities provide for the safety and comfort of the passengers and reduce cargo volume. The UCR/S comes in a 4X2 model and a 4X4 model. The utility vehicle is powered by either an Isuzu L4- 2.6L engine and manual transmission (4X2 model) or a CPC V6- 31L engine and either a manual or an automatic transmission. With rear seats in the normal upright position the internal volume of the UCR/S, including passenger and cargo areas is 131 cubic feet or 3.71 cubic meters. With the rear section in a folded position the internal volume totals 127.1 cubic feet or 3.6 cubic meters. Specifications are as follows: UCR/S 4X2 UCR/S 4X4 Overall length (mm) 4480 4480 Overall width (mm) 1690 1690 Overall height (mm) 1660 1690 Wheel base (mm) 2760 2760 Tread front (mm) 1440 1455 Tread rear (mm) 1445 1460 Curb weight (kg) 1535 1655 Gross Vehicle Weight (kg) 2065 2175 The vehicle will be produced from thousands of component parts and assemblies. Parts and assemblies imported into the United States will not be entered for consumption, but will be moved in-bond to the subzone where they will be put into inventory to be assembled with other parts. Subaru-Isuzu Automotive Inc. will apply for non-privileged foreign status for imported components and domestic status for components of U.S. origin. Engines will be purchased in part from Isuzu Motors Limited and in part from General Motors (through Isuzu Motors America) after assembly in Mexico. The transmissions will be purchased in part from Isuzu Motors Limited, Borg-Warner (U.S., through Isuzu Motors America) and General Motors (France, through Isuzu Motors America). You estimate that aside from U.S. origin components contained in the engines and transmissions, the U.S. material, production costs and other expenses will make up 64 percent of the value of the vehicle. It is your contention that the UCR/S is properly classifiable under heading 8703. The chief criterion for classification of a motor vehicle in heading 8703 is that it be principally designed for the transport of persons. Any motor vehicle meeting this criterion (except for public transport type passenger vehicles classifiable in heading 8702, which are specifically excluded) is classifiable in heading 8703, without further inquiry. Sport- utility vehicles typically are designed to perform multiple functions. They are designed to carry passengers as well as carry cargo, but they are often designed to perform other functions as well (such as towing or winching). A boxy body structure is also typical, although the UCR/S has a rounded body style. Based on the general characteristics of the UCR/S, notably its 4-doors, full windows, and other passenger amenities, it appears this vehicle is principally designed for the transport of persons. The applicable heading for the UCR/S sport utility vehicle will be 8703, Harmonized Tariff Schedule of the United States (HTS), which provides for motor cars and other motor vehicles principally designed for the transport of persons. The applicable subheading for the UCR/S 4X2 model with 4- cylinder engine will be 8703.23.0044, HTS, which provides for other motor vehicles principally designed for the transport of persons, of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc, having engines with not more than 4-cylinders, of an interior volume exceeding 3.4 cubic meters. The applicable subheading for the UCR/S 4X2 or 4X4 model with 6-cylinder engine will be 8703.24.0068, HTS, which provides for other motor vehicles principally designed for the transport of persons, of a cylinder capacity exceeding 3,000 cc, having engines with more than 4 cylinders but not more than 6 cylinders, of an interior volume exceeding 3.4 cubic meters. The rate of duty will be 2.5 percent ad valorem. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport