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HQ 955607


April 15, 1994

CLA-2 CO:R:C:M 955607 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8703.23.00

Ms. Martha L. Brown
Volkswagen of America, Inc.
3800 Hamlin Road
Auburn Hills, Michigan 48326

RE: Volkswagen EuroVan Campers; HQ 083628; HQ 086170; HQ 087514

Dear Ms. Brown:

This is in response to your letter of December 22, 1993, requesting the classification of Volkswagen EuroVan Campers under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise at issue is a Volkswagen EuroVan Camper motor vehicle. The EuroVan Camper seats five to seven passengers, depending on its configuration (i.e., a rear bed, toilet, refrigerator, etc., may be added). The vehicle has three side doors, one of which is sliding so as to allow passengers easy access to the rear seats. The vehicle has windows on the rear side passenger door and rear side panels.

Volkswagen EuroVan panel vans will be imported by the parent company, Volkswagen AG, and shipped in bond to the foreign trade zone (FTZ) operated by Winnebago Industries, Inc. Winnebago will convert the vans into "pop-top" campers. The campers will be removed from the FTZ and shipped to authorized Volkswagen dealers for sale under the trade name "EuroVan Camper." The vehicle is planned as an alternative to the EuroVan RV, which was temporarily called the T-4.

ISSUE:

Whether the Volkswagen EuroVan Camper is classifiable as a motor vehicle principally designed for the transport of persons under heading 8703, HTSUS. - 2 -

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The headings at issue are as follows:

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

In HQ 083628, dated June 6, 1989, Customs held that the Volkswagen Vanagon was a vehicle principally designed for the transport of persons and was classifiable under subheading 8703.23.00, HTSUS. The Vanagon ruling acknowledged that no single feature is dispositive in determining whether a vehicle is principally designed for the transport of persons and that one should consider (1) the integral, and (2) the auxiliary features of vehicles when determining whether they are principally designed for the transport of persons or goods. The particular features of the Vanagon that were considered significant in determining that the vehicle was principally designed for the transport of persons were as follows: three side doors, one of which was sliding so as to allow 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 seats provided seating capacity for five to seven persons.

In HQ 086170, dated March 22, 1990, Customs held that the Volkswagen T-4 (now referred to as "EuroVan RV"), the successor to the Volkswagen Vanagon, was also classifiable under subheading 8703.23.00, HTSUS. In this ruling, it was determined that the vehicle had all of the features found to be significant in determining that the Vanagon was principally designed for the transport of persons. Further, the T-4 was found to be very similar to the Vanagon in other respects (e.g., suspension, dimensions, ratio of passenger to cargo interior space). See also HQ 087514, dated October 23, 1990 (wherein Customs held that a Volkswagen T-4, specially designed for the transport of wheelchair users, was classifiable under subheading 8703.23.00, HTSUS).

The Volkswagen EuroVan Camper, as removed from the FTZ, has similar features to the Vanagon and T-4. The EuroVan Camper seats - 3 -
five to seven passengers depending on its configuration (i.e., a rear bed, toilet, refrigerator, etc., may be added). The vehicle has three side doors, one of which is sliding, and windows on the rear side passenger door and rear side panels. Based on determinations in HQ 083628, HQ 086170 and HQ 087514, the EuroVan Camper is classifiable as a motor vehicle principally designed for the transport of persons under heading 8703, HTSUS, specifically under subheading 8703.23.00, HTSUS.

HOLDING:

The Volkswagen EuroVan Camper is classifiable under subheading 8703.23.00, HTSUS, which provides for motor vehicles principally designed for the transport of persons, with spark-ignition internal combustion reciprocating piston engines of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc. The corresponding rate of duty for articles of this subheading is 2.5% ad valorem.

Sincerely,

John Durant, Director

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