H339953

H339953 April 3, 2025 OT:RR:CTF:EMAIN H339953 MFT CATEGORY: Classification TARIFF NO.: 8703.21.01 Ms. Marilyn-Joy Cerny Sandler, Travis & Rosenberg, P.A. 5835 Waterford District Drive, Suite 200 Miami, FL 33126 Re: Modification of NY N309547; Classification of the Cub Cadet Utility Vehicles Dear Ms. Cerny: This letter is in response to your request, dated June 18, 2024, and filed on behalf of your client MTD Consumer Group, Inc. (MTD), for the modification of New York Ruling Letter (NY) N309547, issued on March 3, 2020, in which U.S. Customs and Border Protection (CBP) classified a certain four-wheeled utility vehicle under heading 8704 of the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed NY N309547 and determined that its reasoning is in error considering additional information you provided on the subject merchandise. Accordingly, for the reasons set forth below, CBP is modifying NY N309547. Pursuant to Section 625(c)(1) of the Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by Section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on November 27, 2024, in Volume 58, Number 47, of the Customs Bulletin. No comments were received in response to this notice. FACTS: The pertinent facts of NY N309547 are as follows: The item under consideration has been identified as the MTD Cub Cadet, a 4- wheeled, utility vehicle powered by a 546cc spark-ignition internal combustion engine. The vehicle is equipped with two (2) bucket seats and an open rear cargo bed with a 500lb payload capacity. The vehicle measures 118 inches by 61.75 inches by 76.75 inches, and weighs approximately 1,456lbs. You clarify that MTD’s underlying application for a binding ruling on the Cub Cadet referenced four models not mentioned in NY N309547. These models are the M 550, MX 550, M 750, and MX 750. The “M” and “MX” designations signify different packages for standard features. You indicate that the “M” models have fewer features that come standard than the “MX” models. Additionally, the “550” and “750” designations reflect the models’ approximate engine displacement. The M 550 and MX 550 have 546cc engines, while the M 750 and MX 750 have 735cc engines. You indicate that each model at issue was designed and equipped with certain structural and auxiliary features that come standard. The standard structural features include: (1) a rollover protection structure, including bars designed for driver and passenger safety; (2) three-way adjustable suspension systems to enhance traction and driver and passenger comfort on trails; (3) steel skid plates to prevent sticks or other debris from puncturing the floor of the passenger compartment and allow the vehicles to slide over rocks or other debris; (4) partial or full doors for driver and passenger hip and shoulder retention while riding on rough terrain; (5) front, or front and rear, lockable differentials for increased traction in offroad conditions; (6) three-way adjustable shocks for better traction and comfort on off-road terrain; (7) front and rear sway bars to keep the vehicles from pitching and rolling while driving at speed over rough terrain; (8) paint, wiring, fuse boxes, seat fabric, and seat stitching designed to withstand pressure washing after muddy trail rides; (9) low-pressure 26-inch tires with offroad and trail tread patterns to help grip uneven terrain; (10) on-demand four-wheel drive for enhanced offroad traction; (11) front suspension with nine inches of travel and a rear suspension with eight inches of travel to maintain ground contact while traveling at speed over uneven ground; (12) multi-ply tires to prevent punctures on rough terrain; (13) seventy-six-inch wheelbase for stability on uneven terrain and slopes; 2 (14) between 11.6 and 13 inches of ground clearance to traverse debris-strewn trails; and (15) specially positioned air intakes to prevent drawing dust and dirt into the engine and enhance fording capabilities. The standard auxiliary features include: (1) an ergonomic foam seating specifically designed to provide a comfortable ride and lumbar support for the driver and passenger; (2) specially located and designed permanent, three-point safety belts for the driver and passenger; (3) sensors which limit vehicle speed to 15 mph if the driver’s safety belt is not buckled; (4) cupholders for the driver and passenger’s convenience; (5) glove box and front storage to store personal effects; (6) twelve-volt power outlet for charging passenger electronics such as smartphones; (7) noise dampening ducts and engine isolation for a quieter and more comfortable ride; and (8) compatibility with optional passenger-oriented add-ons, including soundbars, cabin heaters, full doors, windshields, lighting, and grab bars. Additionally, the MX models of the Cub Cadet include power steering, head restraints, a front- mounted winch, finished lower doors, and a roof. You further indicate that the Cub Cadet was designed primarily “for offroad recreational riding, transporting passengers for outdoor activities such as camping, hunting, and fishing, and for occasional outdoor work.” CBP classified the Cub Cadet utility vehicles under heading 8704, HTSUS, specifically subheading 8704.31.00, HTSUS, which provides for, “Motor vehicles for the transport of goods: Other, with spark-ignition internal combustion piston engine: G.V.W. not exceeding 5 metric tons: G.V.W. not exceeding 2.5 metric tons.” You argue that the subject merchandise is properly classified under heading 8703, HTSUS, specifically subheading 8703.21.01, HTSUS, which provides for “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: Other vehicles, with only spark-ignition internal combustion piston engines: Of a cylinder capacity not exceeding 1,000 cc.” ISSUE: Whether the subject Cub Cadet utility vehicles are classified under heading 8703, HTSUS, as “other motor vehicles principally designed for the transport of persons,” or under heading 8704, HTSUS, as “motor vehicles for the transport of goods.” 3 LAW AND ANALYSIS: Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. The 2025 HTSUS headings under consideration 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: The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings.1 Whether a motor vehicle is principally designed for the transport of persons, goods, or equally designed for transport of both persons and goods, is a fact-intensive inquiry decided on a case-by-case basis. The Court of Appeals for the Federal Circuit explored this inquiry in Marubeni America Corp. v. United States: By the express language of 8703, “motor vehicle principally designed for the transport of persons,” it is clear that the vehicle must be designed "more" for the transport of persons than goods. Webster’s Third New International Dictionary of the English Lan

Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. The 2025 HTSUS headings under consideration 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: The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings.1 Whether a motor vehicle is principally designed for the transport of persons, goods, or equally designed for transport of both persons and goods, is a fact-intensive inquiry decided on a case-by-case basis. The Court of Appeals for the Federal Circuit explored this inquiry in Marubeni America Corp. v. United States: By the express language of 8703, “motor vehicle principally designed for the transport of persons,” it is clear that the vehicle must be designed "more" for the transport of persons than goods. Webster’s Third New International Dictionary of the English Language, Unabridged (1986) defines “principally” as “in the chief place, chiefly;” and defines “designed” as “done by design or purposefully opposed to accidental or inadvertent; intended, planned.” Thus, if the vehicle is equally designed for the transport of goods and persons, it would not be properly c