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HQ 083412


May 19, 1989

CLA-2 CO:R:C:G 083412

CATEGORY: CLASSIFICATION

TARIFF NO.: 8703.24.00

James H. Lehmann, Jr.
Vice President & General Counsel
Range Rover of North America, Inc.
PO Box 1503
Lanham, Maryland 20706

RE: Multipurpose vehicle (Range Rover)

Dear Mr. Lehmann:

Your memorandum of January 19, 1989, requests a ruling on behalf of Range Rover of North America, Inc., on the tariff classification of the Range Rover under the Harmonized Tariff Schedule (HTS). This ruling is our decision on that request.

FACTS:

The submission states that the Range Rover is a five passenger luxury car designed for the transport of persons. The vehicle has four doors, two permanent rows of seats, a storage area, and windows in the rear of the vehicle. The front row of seats consists of two separate arm chair type seats, which are divided by a center console. The second row is a permanently installed bench type seat with a fold-down center and outboard arm rest. This seat is split 60/40, and the back can be folded down on the seat bottom. The rear doors are hinged passenger-type doors, which swing open.

The Range Rover has a tailgate, which allows easy access to the rear storage area. This area is fully carpeted and is divided by a removable cover which permits luggage or other goods to be stored under it. If the cover is in place, the storage area is fifteen cubic feet. Without the cover, it is thirty-six cubic feet. The area increases to seventy cubic feet when the rear seats fold forward, but is encumbered by the
the spare tire, rear stereo speakers, rear wheel arches, seat belts and side storage areas located in the rear of the vehicle.

The vehicle's dimensions are as follows. It is 175.0 inches long, 71.4 inches wide, 70.8 inches in height, and has a gross vehicle weight of 5,997 pounds. It has a 3.9 liter, fuel-injected, 8 cylinder engine, and a four speed automatic transmission. It is built on a frame with a ground clearance of 8 inches, has coil springs on all four wheels and four wheel disc brakes. The vehicle can be used both on-road and off- road

The importer states that the Range Rover should be classified under heading 8703 of the HTS. The vehicle's permanent folding rear seats, coil springs, carpeting and luxury trim, leather upholstery, sunroof, rear windows, and high speed capability indicate that it was designed to provide luxury, enjoyment, comfort and safety to passengers, and is thus a vehicle which is principally designed to transport persons. Also, the Range Rover's design precludes it from classification in heading 8704. It is not designed for easy loading and unloading, or transporting, since it does not have a flat floor and its luggage space is encumbered by the spare tire, the rear stereo speakers, the rear seat belts and the protruding side compartment.

ISSUE:

Whether the Range Rover is properly classifiable in heading 8703 as "motor cars and other motor vehicles principally designed for the transport of persons", or in heading 8704 as a "motor vehicle designed for the transport of goods" under the HTS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) govern classification under the HTS. Under GRI 1, classification
shall be determined according to the terms of the heading and any relative section or chapter notes.

The relevant headings at issue in this case include:

8703 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:

8704 Motor vehicles for the transport of goods:

There are no relevant legal notes in Section XVII or chapter 87 which address the headings at issue in this case. According to the language of heading 8703, in order to be classified in that provision, a motor vehicle must be principally designed for the transport of persons.

The vehicle at issue is described as a multipurpose or sport-utility vehicle. Sport-utility vehicles typically are designed to perform multiple functions. Although these vehicles may vary in body style and utility, they have certain characteristics which are unique to this type of vehicle. For example, they are designed to carry passengers, as well as cargo, and are usually constructed on a truck chassis. This gives them a body design that is stronger than that of ordinary passenger cars. They have a boxy body structure which allows for considerable interior volume, and flat cargo floors, which facilitate the loading and unloading of cargo. Sport-utility vehicles also have a higher ground clearance, which allows them to be used both on-road and off-road.

Although no single criterion determines whether a
multipurpose vehicle is principally designed for the transport of persons or for the transport of goods, in our ruling letter of May 4, 1989 (File 083081), classifying the Suzuki Samauri, we identified two categories of design features relevant to determining whether a sport-utility vehicle should be classified in heading 8703 or 8704, structural or integral design features, and auxiliary design features. The two types of structural design features include: first, those which indicate that a sport-utility vehicle is principally designed for the transport of persons, and second, features which indicate that a sport-utility vehicle is designed for the transport of goods.

Structural design features indicating that a sport- utility vehicle is designed for the transport of goods include: flat floors in the rear portion of the interior; chassis; suspension; and/or transmission that are more rugged than those found on ordinary passenger vehicles, which permit a larger cargo payload; accessible and useable cargo space; tailgates that are large enough to facilitate the loading and unloading of cargo; and the absence of rear side windows.

Structural design features indicating that a sport- utility vehicle is principally designed for the transport of persons, include the presence of hinged rear side doors and rear side windows. The hinges prevent the doors from opening fully. The presence of a rear side door allows persons to access the rear of the vehicle and are evidence of its suitability for primarily transporting persons. Auxiliary design features suggesting that the vehicle was intended for passenger use include folding and removable seating, interior trim packages, and carpeting.

Although structural design features are primary, auxiliary design features may also be considered in confirming the proper classification of a sport-utility vehicle.

Applying these criteria, Headquarters ruled in a decision dated May 4, 1989 (File 083589), that the China Tiger, a four-door sport-utility vehicle, was properly classifiable as a motor vehicle principally designed for the transport of persons. In that decision, we noted that the vehicle's structural design features (the presence of fixed hinged rear side doors, rear side windows, the limited cargo area, and the permanently installed seat in the rear of the vehicle that does not fold down) indicate that the vehicle was primarily designed to transport persons.

The Range Rover has some of the same structural design features of the China Tiger. It has hinged rear side doors, which open to a fixed position; rear side windows; and permanently installed seats in the rear of the vehicle. The hinged doors are evidence that the rear area was designed to allow passengers occupying the rear seats easy entry and exit, and are impractical for loading cargo.

The Range Rover also has many of the auxiliary design features indicating primary use as a passenger vehicle. The area behind the rear seats is fully carpeted and trimmed. The rear doors are trimmed in polished walnut and cloth, and contain built-in arm rests. These features add to the luxury of the vehicle and are indicative of passenger use.

Although no single factor determines whether a vehicle is principally designed for the transport of persons, the Range Rover's structural and auxiliary design features indicate that it was designed with the intent to primarily transport persons, and not cargo.

HOLDING:

The Range Rover is properly classifiable in heading 8703, subheading 8703.24.00 of the HTS, as a motor car and other motor vehicle principally designed for the transport of persons.

Sincerely,

John Durant, Director

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