The tariff classification of new Porsche vehicles from Germany imported with additional racing battery

N274991 May 18, 2016 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8703.24.0052 Mr. Chuck Cammarata Law Offices of George R. Tuttle, A P.C. 1100 Larkspur Landing Circle Suite 385 Larkspur, CA 94939 RE: The tariff classification of new Porsche vehicles from Germany imported with additional racing battery Dear Mr. Cammarata: In your letter dated May 03, 2016 you requested a tariff classification ruling on behalf of your client, Porsche Cars North America, Inc. The items under consideration have been identified as four (4) new 2016 Porsche Passenger Vehicles: Models identified as Cayman GTS, Cayman GT4, 911R, and 911GT3 RS The first vehicle is the 2016 Porsche Cayman GTS. The 2016 Porsche Cayman GTS is equipped with a six (6) cylinder, spark ignition, internal combustion reciprocating piston engine with a cylinder capacity of 3400 cubic centimeters (cc). The interior volume of the passenger compartment is 1.47m³. The vehicle produces 340 horsepower, has a weight of 3031 pounds, and measures 173" L x 71" W x 51" H. The second vehicle is the 2016 Porsche Cayman GT4. The 2016 Porsche Cayman GTS is equipped with a six (6) cylinder, spark ignition, internal combustion reciprocating piston engine with a cylinder capacity of 3800 cubic centimeters (cc). The interior volume of the passenger compartment is 1.47m³. The vehicle produces 385 horsepower, has a weight of 2955 pounds, and measures 175" L x 72" W x 50" H. The third vehicle is the 2016 Porsche 991 R. The 2016 Porsche Cayman GTS is equipped with a six (6) cylinder, spark ignition, internal combustion reciprocating piston engine with a cylinder capacity of 4000 cubic centimeters (cc). The interior volume of the passenger compartment is 2.12m³. The vehicle produces 500 horsepower, has a weight of 3021 pounds, and measures 178" L x 74" W x 50" H. The fourth vehicle is the 2016 Porsche 991 GT3 RS. The 2016 Porsche Cayman GTS is equipped with a six (6) cylinder, spark ignition, internal combustion reciprocating piston engine with a cylinder capacity of 4000 cubic centimeters (cc). The interior volume of the passenger compartment is 2.12m³. The vehicle produces 500 horsepower, has a weight of 3130 pounds, and measures 179" L x 74" W x 51" H. You state in your letter that all the motor vehicles listed above are principally designed for both street and racing applications as desired. The vehicles have the appropriate EPA and DOT approvals. When the vehicle is customized during the ordering process, the owner will be given the option to order the vehicle with an additional lithium-ion starter battery, which will be packaged in the vehicle’s trunk. This battery is specially designed to be used in lieu of the “normal” street battery during race venues. This specialty lithium-ion race battery is lighter weight and, as you state, this lighter weight creates limitations for daily operation, and is only intended for temporary race use. You suggested classification in subheading 8703, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons … including … racing cars”. General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (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. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good. Since the vehicle and the lithium-ion starter battery are classifiable under two separate headings (8703 and 8507, HTSUS), GRI 3 would apply. The lithium-ion starter battery option can be classified under 8507 (HTSUS) subheading, which provides for “Electric storage batteries….” The lithium-ion battery is put up in a manner suitable for sale directly to the owner upon purchase without repacking. Therefore the goods in question, the vehicle with additional battery, falls within the term "goods put up in sets for retail sale” as defined in GRI 3(b). The applicable subheading for the 2016 Porsche Cayman GTS motor vehicle will be 8703.24.0052, 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 than those of heading 8702), including station wagons and racing cars: Other vehicles with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 3,000 cc: Other: New: Having engines with more than 4 cylinders but not more than 6 cylinders: Of an interior volume not exceeding 2.8 m3”. The rate of duty will be 2.5% ad valorem.  The applicable subheading for the 2016 Porsche Cayman GT4 motor vehicle will be 8703.24.0052, 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 reciprocating piston engine: Of a cylinder capacity exceeding 3,000 cc: Other: New: Having engines with more than 4 cylinders but not more than 6 cylinders: Of an interior volume not exceeding 2.8 m3”. The rate of duty will be 2.5% ad valorem. The applicable subheading for the 2016 Porsche 911R motor vehicle will be 8703.24.0052, 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 reciprocating piston engine: Of a cylinder capacity exceeding 3,000 cc…Other: New: Having engines with more than 4 cylinders but not more than 6 cylinders: Of an interior volume not exceeding 2.8 m³”. The rate of duty will be 2.5% ad valorem. The applicable subheading for the 2016 Porsche 911GT3 RS motor vehicle will be 8703.24.0052, 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 reciprocating piston engine: Of a cylinder capacity exceeding 3,000 cc…Other: New: Having engines with more than 4 cylinders but not more than 6 cylinders: Of an interior volume not exceeding 2.8 m³”. The rate of duty will be 2.5% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current. 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, Deborah C. Marinucci Acting Director National Commodity Specialist Division