The tariff classification of five electric vehicles from China

N307830 December 5, 2019 CLA-2-87:OT:RR:NC:N2:201 CATEGORY: Classification TARIFF NO.: 8711.60.0090; 9903.88.02 Kayla Owens Stein Shostak Shostak Pollack & O’Hara 865 S. Figueroa Street, Suite 1388 Los Angeles, CA 90017 RE: The tariff classification of five electric vehicles from China Dear Ms. Owens: In your letter dated November 20, 2019, you requested a tariff classification ruling on behalf of your client, CycleBoard Inc., located in Newport Beach, California. The items under consideration have been identified as five (5) styles of 3-wheeled electric vehicles. The first item has been identified as the CycleBoard Sport. The Sport is a fold and go electric vehicle with 3 wheels (2 front and 1 rear). It can fold in a single step with a collapsible handle. The ultra-portable lightweight Sport combines a 48v/350 watts. You state that the Sport can travel up to 12 miles and a top speed of 17 mph. The Sport has 8” tires, measures 40” long and 20” wide at the front wheels and weighs 39lbs. The second item has been identified as the CycleBoard Elite Gen2. The Elite Gen2 is an electric vehicle with 3 wheels (2 front and 1 rear) powered by a 48v/450 watts motor. You state that the Elite Gen2 uses custom designed pneumatic street tires, which provides maximum grip and stability on paved surfaces. You state that it can travel up to 20 miles with a top speed of 22 mph. The Elite Gen2 has 8.5” tires, measures 41” long and 20” wide at the front wheels and weighs 53lbs. The third item has been identified as the CycleBoard Elite Pro. The Elite Pro is an electric vehicle with 3 wheels (2 front and 1 rear) powered by a 48v/600 watts silent rear hub motor. It can travel up to 25 miles with a top speed of 25mph. The chassis is made of aircraft grade aluminum with a reinforced stainless-steel handle. The Elite Pro has 8.5” tires, measures 41” long and 20” wide at the front wheels and weighs 59lbs. The fourth item has been identified as the CycleBoard Rover. The Rover is an all-terrain electric vehicle with 3 wheels (2 front and 1 rear), which is powered by a 60v/720 watts silent rear hub motor. The Rover can travel up to 40 miles and a top speed of 27 mph. The chassis is made of aircraft grade aluminum with a reinforced stainless-steel handle. The Rover has 10” all-terrain tires, measures 44.5” long and 25” wide at the front wheels and weighs 83lbs. The final item has been identified as the CycleBoard Golf. The Golf is an electric vehicle with 3 wheels (2 front and 1 rear) powered by a 60v/500 watt electric motor. You state this article allows golfers and their clubs (which are secured to an integrated caddy system) to quickly move directly to their own ball and reduce the time it takes to play a round. You state that the Golf is designed with specific features such as full suspension, larger 10” pneumatic tires, and a high torque geared hub motor with 4.3:1 gear ratio; this allows the vehicle to withstand the rigors of daily use in mixed terrain environments. The Golf can travel up to 40 miles and a top speed of 13 mph. The chassis is made of aircraft grade aluminum with a reinforced stainless-steel handle. The Golf is 44.5” long and 25” wide at the front wheels and weighs 83lbs. The applicable subheading for the CycleBoard Sport, Elite Gen2, Elite Pro, Rover and Golf will be 8711.60.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars: With electric motor for propulsion: Other”. The rate of duty will be Free. In your submission, you request clarification as to whether these electric vehicles would be exempt from additional duties under Section 301. Products of China that are classified in 8711.60.00 are subject to an additional ad valorem rate of duty. On Sept. 27, 2019 the Office of US Trade Representative (USTR), announced the Section 301 Tariffs exemption list. A new HTSUS note 20(v) to subchapter III of chapter 99, 9903.88.17 was implemented. As set out in the Annex to the Federal Register (FR) notice, product exclusions were reflected in the specially prepared product descriptions, which included: (86) Motorcycles with electric power for propulsion, each of a power not exceeding 1,000 W (described in statistical reporting numbers 8711.60.0050 or 8711.60.0090) The product description specifically described “motorcycles” with electric power less than or equal to 1,000 Watts. Although the term “motorcycles” is not defined in the HTSUS, the terms of heading 8711 suggest a broad range of vehicles that include “motor-scooters”, “mopeds”, and other similar vehicles that are not “conventional” motorcycles (i.e. vehicles where the driver is seated). When tariff terms are not defined by the HTSUS or the Explanatory Notes (ENs), they are construed with their common and commercial meaning. According to common definitions available at Automotivedictionary.org and Motorera.com, a “motorcycle” is “a two wheeled motorized vehicle where the two wheels are not side-by-side but in line.” Additionally, the ENs to heading 8711 suggest there is no need to further differentiate between conventional and non-conventional types of “motorcycles.” They state: This heading also covers two-wheeled, electrically powered transportation devices, designed for carrying a single person, for use within low speed areas such as pavements (sidewalks), paths, and bicycle lanes. Their technology allows the rider to stand upright while a system composed of gyroscope sensors and multiple onboard microprocessors maintains both the device’s and rider’s balance on two independent, non-tandem wheels. Motorcycles of this heading, which are propelled by one or more electric motors, are known as “Electric Motorcycles”. These motorcycles incorporate an electric accumulator pack supplying power to the electric motors. The electric accumulators of these “plug-in” type motorcycles can be recharged by plugging them into an electrical power grid outlet or charging station.” These vehicles do not meet the definition of the term “motorcycle”, and would therefore not be excluded from the increased duties imposed by subheading 9903.88.02. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8711.60.0090, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8711.60.0090, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 the 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, contact National Import Specialist Matthew Sullivan at matthew.sullivan@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division