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HQ 087514


October 23, 1990

CLA-2 CO:R:C:G 087514 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 8703.23.00

Ms. Martha L. Brown
Customs Administrator
Volkswagen of America, Inc.
888 West Big Beaver Road
P.O. Box 3951
Troy, Michigan 48007-3951

RE: Volkswagen T-4 vehicle, multipurpose vehicle, vehicle for the transport of persons, designed for the transport of wheelchair users

Dear Ms. Brown:

This is in response to your July 10, 1990 request for a classification ruling under the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA") for the modified version of the Volkswagen T-4 vehicle.

FACTS:

The article in question is a modified version of the Volkswagen T-4 multipurpose vehicle. This modified T-4 is designed for passengers and drivers who use wheelchairs.

The design and dimensions of the modified T-4 are similar to those of the long wheelbase version of the T-4 vehicle, including an extended roof, side and rear doors, and windows all around. The standard version of the T-4 is powered by a 2.5 liter, five cylinder fuel injected engine, and is available with a 5-speed manual or 4-speed automatic transmission. The modified T-4 will include the following exceptions to the standard T-4:

1. All modified models have at least one side sliding door. Some models have two side sliding doors.

2. The overall height and resulting interior dimensions are increased to accommodate the special needs of the wheelchair dependent persons.

3. The standard single hatch rear doors will be replaced by double rear doors opening outward, commonly known as barn doors.

4. Various rear seating configurations will be available, but two rear seats will be the minimum equipment level.

5. The two rear passenger configured vehicle may be imported without the usual passenger amenities in the rear area (eg., no headliner, carpet, or other comfort feature). You state that this is in preparation for finishing in the United States that will include trim and comfort features as well as wheelchair lifts and tie-downs, additional seating, and other apparatus necessary to accommodate wheelchair users and ambulatory passengers.

ISSUE:

Whether the modified Volkswagen T-4 is classified in heading 8703, HTSUSA, as a vehicle principally designed for the transport of persons, or in heading 8704, HTSUSA, as a vehicle principally designed for the transport of goods.

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, 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..." The competing headings in this instance are heading 8703 and 8704, which describe the following:

8703 Motor cars and other motor vehicles principally designed for the transport of persons...

8704 Motor vehicles for the transport of goods...

There are no relevant legal notes which address these headings.

The standard versions of the T-4 were previously determined to be principally used for the transport of persons and classified under heading 8703. Headquarters Ruling Letter 086170

("HQ 086170"), dated March 22, 1990. The predecessor of the T- 4, the Volkswagen Vanogon, was also classified under heading 8703. Headquarters Ruling Letter 083628 ("HQ 083628"), dated June 6, 1989.

Both HQ 086170 and HQ 083628 turned on the analysis of the integral and the auxiliary design features of the vehicles in question. Integral design features include: (1) a body structure and design that may accommodate large volumes of cargo, and that may be adapted to transport a large number of persons; and (2) a rear side passenger access door. Auxiliary design features include: (1) windows on the rear side passenger access door and on the side panels of both sides of the vehicle; and (2) rear seating for two or more persons.

HQ 083628 determined that several features of the Vanogon were significant to the ruling's conclusion. The three side doors, one of which slid to give passengers easy access to the rear seats; windows on the rear side passenger door and rear side panels; and a center seat and bench-type seat which when combined with the front seat provided seating capacity for five to seven persons indicated that the Vanogon was to be principally used for persons, not cargo. The T-4, the subject of HQ 086170, had these same features.

The modified versions of the T-4 in question have at least one side sliding door which allows easy passenger access to the rear seats. In some instances, the modified T-4 will have side sliding doors on each side. Windows will be included in the rear side panels. Modification features such as an extended roof and door height (designed to accommodate wheelchair users) demonstrate that the vehicles are designed for the transport of wheelchair users.

It is the opinion of this office that the integral and auxiliary design features of the modified T-4 indicate that these models are to be principally used for the transportation of persons. The modified Volkswagen T-4 is properly classified under heading 8703. The classification for the modified T-4 is in subheading 8703.23.00, HTSUSA, as "Motor cars and other motor vehicles principally designed for the transport of persons...Other vehicles, with spark-ignition internal combustion reciprocating piston engine...Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc..."

HOLDING:

The modified Volkswagen T-4 is principally designed for the transport of persons. It is properly classified under heading 8703, in accordance with GRI 1. The classification for the modified T-4 is in subheading 8703.23.00, HTSUSA, as "Motor cars
and other motor vehicles principally designed for the transport of persons...Other vehicles, with spark-ignition internal combustion reciprocating piston engine...Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc..."

Sincerely,

John Durant, Director
Commercial Rulings Division

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