The tariff classification of new vehicles from South Korea

N239936 April 5, 2013 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8703.23.0052 Alan R. Davis, Tax Manager Kia Motors America, Inc. 111 Peters Canyon Road Irvine, CA 92606-1790 RE: The tariff classification of new vehicles from South Korea Dear Mr. Davis, In your letter dated March 20, 2013, you requested a tariff classification ruling. The items under consideration are two (2) versions of a vehicle identified as the Kia Forte5. The first version of the Kia Forte5 is a 2.0 liter, five-door hatchback automobile powered by an inline four-cylinder, 1999 cubic centimeter (cc) gasoline, spark ignition, internal combustion engine. The vehicle seats up to five passengers. The interior volume of the passenger compartment is 98.2 cubic feet (2.78 m³). It has a cargo volume of 23.2 cubic feet (0.65 m³) and the total combined interior volume is 121.4 cubic feet (3.43 m³). The second vehicle is a Turbo version. You state that it is a 1.6 liter, five-door hatchback automobile powered by an inline four-cylinder, 1591 (cc) gasoline, spark ignition, internal combustion engine. The vehicle seats up to five passengers. The interior volume of the passenger compartment is 98.2 cubic feet (2.78 m³). It has a cargo volume of 23.2 cubic feet (0.65 m³) and the total combined interior volume is 121.4 cubic feet (3.43 m³).
You suggested classifying both the Kia Forte5 and the Kia Forte5 Turbo in subheading 8703.23.0044, Harmonized Tariff Schedule of the United States (HTSUS). That classification is incorrect due to the fact that the total combined interior volume is 121.4 cubic feet (3.43 m³). Please note, 49 C.F.R. Part 523 states “for all station wagons and hatchbacks with more than one seat (e.g., with a second or third seat) equipped with seat belts as required by DOT safety regulations, interior volume index is the sum, rounded to the nearest 0.1 cubic feet, of the front seat volume, the rear seat volume, and the cargo volume index”. The applicable classification subheading for both the Kia Forte5 and the Kia Forte5 Turbo will be 8703.23.0052, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons …: Other vehicles, with spark-ignition internal combustion piston engine: of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc: Other: New: Having engines with not more than 4 cylinders: Other: Of an interior volume exceeding 3.4 m³.” The general rate of duty will be 2.5%. Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Matthew Sullivan at 646-733-3013. Sincerely, Thomas J. Russo Director National Commodity Specialist Division