The tariff classification of new vehicles from Germany

N259513 December 16, 2014 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8703.23.0068; 8703.24.0068 Karen Aulback, Customer Compliance & Planning Manager BMW of North America, LLC 300 Chestnut Ridge Road Woodcliff Lake, NJ 07677-7739 RE: The tariff classification of new vehicles from Germany Dear Ms. Aulback, In your letter dated November 21, 2014, you requested a tariff classification ruling. The items under consideration are two (2) new vehicles identified as the 2015 BMW 535i Gran Turismo (GT) and the 2015 BMW 550i Gran Turismo (GT). The first vehicle is the 2015 BMW 535i Gran Turismo (GT). You state that it is designed for the transportation of persons. The 2015 BMW 535i Gran Turismo has a six (6) cylinder, spark ignition, internal combustion reciprocating piston engine with a cylinder capacity of 2979 cubic centimeters (cc). The interior cabin and the rear storage/cargo area are separated by a removable plastic panel. The interior volume of the passenger compartment is 109.3 cubic feet (3.09 m³). The hatchback has a cargo volume of 31.5 cubic feet (0.89 m³) with a total combined interior volume of 140.8 cubic feet (3.98 m³). The second vehicle is the 2015 BMW 550i Gran Turismo (GT). You state that it is designed for the transport of persons. The 2015 BMW 550i Gran Turismo has an eight (8) cylinder, spark ignition internal combustion reciprocating piston engine with a cylinder capacity of 4395 (cc). The interior cabin and the rear storage/cargo area are separated by a removable plastic panel. The interior volume of the passenger compartment is 109.3 cubic feet (3.09 m³). The hatchback has a cargo volume of 31.5 cubic feet (0.89 m³) with a total combined interior volume of 140.8 cubic feet (3.98 m³). The applicable classification subheading for the 2015 BMW 535i Gran Turismo (GT) will be 8703.23.0068, 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 than those of heading 8702), including station wagons and racing cars: 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 more than 4 cylinders but not more than 6 cylinders: Of an interior volume exceeding 3.4 m³.” The general rate of duty will be 2.5%. The applicable classification subheading for the 2015 BMW 550i Gran Turismo (GT) will be 8703.24.0068, 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 than station wagons and racing cars: Other vehicles, with spark-ignition internal combustion piston engine: Of a cylinder capacity exceeding 3,000 cc: Other: New: Having engines with more than 6 cylinders: Other: Of an interior volume exceeding 3.4 m³.” The general rate of duty will be 2.5%. In your ruling request, you state the presence of a removal panel changes the “appearance” of the interior of the vehicle from a hatchback to a sedan. The vehicle’s body type is classified as a hatchback. Please note, 40 C.F.R. 600.315-08 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”. 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 matthew.sullivan.cbp.dhs.gov. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division