August 9, 2006 CBP Bulletin Notice on Motorized Utility Vehicles
In the August 9, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 40, No. 33), CBP issued a notice proposing to revoke three classification rulings on motorized utility vehicles. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by September 8, 2006, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
In addition, CBP states that this notice covers any rulings on the subject merchandise that may exist but has not been specifically identified.
Proposed Revocation of Three Classification Rulings
Motorized utility vehicles. CBP states that the vehicles at issue-the Micro Truk and the Multicab Original Pick-Up 4WD-are small pickup-type trucks used off-road to transport materials and tools. (See CBP's notice for further descriptions of the vehicles at issue.)
CBP is proposing to issue HQ 968312 and HQ 968313 in order to revoke HQ 965246 and HQ 964598, and NY H87834, respectively, and reclassify the subject vehicles under HTS 8704.31.00 as motor vehicles for the transport of goods, with spark-ignition internal combustion piston engine, of a G.V.W. not exceeding 5 metric tons, rather than under 8709.19.00 as other self-propelled works trucks of the type used in factories, warehouses, dock areas or airports for short distance transport of goods, etc.
CBP has stated its intent to rely on the 8709 Explanatory Notes (ENs) which list design features that distinguish works trucks of HTS 8709 from vehicles of heading 8704 (motor vehicles for the transport of goods).
Among the design features the 8709 ENs list are the vehicle's construction and special design features which make them unsuitable for the transport of goods by road or other public ways; a top speed when laden generally being not more than 30 to 35km/h; a turning radius that is approximately equal to the length of the vehicle itself; vehicles of 8709 do not usually have a closed driving cab, the accommodation for the driver often being no more than a platform on which to stand. Certain types may be equipped with a protective frame or metal screen; such works trucks are normally fitted with a platform or container on which the goods are loaded.
According to CBP, on balance, the Micro Truk and the Multicab Original Pick-Up 4WD lack most of the design features listed in the 8709 ENs as common to vehicles of that heading. For this reason, CBP concludes that the Micro Truk and the Multicab Original Pick-Up 4WD do not belong to the class or kind of vehicles principally used as works trucks of heading 8709.
For example, CBP states that the Micro Truk has an enclosed cargo bed with drop-down sides and tailgate capable of handling loads up to 1,500 lbs. The Multicab Original Pick-Up 4WD has an enclosed cargo bed with drop-down tailgate and a maximum payload capability of 650 kg, which is indicative of the vehicle's cargo-carrying capacity. As a result, CBP contends that that the subject vehicles are motor vehicles for the transport of goods, of the type provided for in heading 8704.
In HQ 968312, CBP is proposing to classify the Micro Truk more under 8704.31.0020, as motor vehicles for the transport of goods, with spark-ignition internal combustion piston engine, of a G.V.W. not exceeding 2.5 metric tons.
CBP notes that the Multicab Original Pick-Up 4WD is currently classified by NY H87834 more specifically under 8709.19.0030, which provides for other self-propelled works trucks of the type used in factories, warehouses, dock areas or airports for short distance transport of goods, etc.: operator riding.
proposed: HTS 8704.31.00 and 8704.31.0020, 25%; current: 8709.19.00 and 8709.19.0030, duty-free.
August 9, 2006 CBP Bulletin (Vol. 40, No. 33) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_08092006_no33/