The tariff classification of an electric vehicle from China

N307931 December 5, 2019 CLA-2-87:OT:RR:NC:N2:201 CATEGORY: Classification TARIFF NO.: 8711.60.0050; 9903.88.02 Ondy Ma Surfwheel Limited 704 N King Street, Suite 500 Wilmington, DE 19801 RE: The tariff classification of an electric vehicle from China Dear Ondy Ma: In your letter dated November 26, 2019, you requested a tariff classification ruling. The item under consideration has been identified as a one-wheeled electric vehicle, the Surfwheel SU. According to your website www.surfwheel.com, the Surfwheel SU is center mounted single wheeled cycle powered by a 250W brushless motor. The Surfwheel has a maximum speed of 12mph, a maximum carry weight of 220 lbs., and a range of 10 miles. The Surfwheel weighs 19 lbs.; dimensions are 26(l) x 7(w) x 5.3(d) and travels on a single 5 x 5.1” wheel. The applicable subheading for the Surfwheel SU will be 8711.60.0050, 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: Of an output not exceeding 250 W”. The rate of duty will be Free. In your submission, you request clarification as to whether this electric vehicle 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: (87) Skateboards with electric power for propulsion, of a power not exceeding 250W (described in statistical reporting number 8711.60.0050) The product description specifically described “skateboards” with electric power less than or equal to 1,000 Watts. Although the term “skateboard” is not defined in the HTSUS, the terms of heading 8711 includes a broad range of vehicles that include “motor-scooters”, “mopeds”, and other similar vehicles that are not “conventional” cycles (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 in the Oxford English Dictionary (OED), a “skateboard” is defined as, “a narrow platform mounted on roller-skate wheels, on which the rider coasts along, usually in a standing position”; while the Merriam-Webster dictionary defines a skateboard as, “a short board mounted on small wheels that is used for coasting and for performing athletic stunts”. These vehicles do not meet the definition of the term “skateboard” 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 8711.60.0050, 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 8711.60.0050, 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