HQ 083081

May 4, 1989

CLA-2 CO:R:CV:G: 083081 JLV

CATEGORY: Classification

TARIFF NO.: 8704.31.00

John B. Rehm, Esq.

Dorsey & Whitney

1330 Connecticut Avenue, N.W.

Suite 200

Washington, D.C. 20036

RE: Classification of multipurpose motor vehicles; revocation

of decision issued on January 4, 1989 (file 083081)

Dear Mr. Rehm:

In a letter of November 21, 1988, on behalf of your

client American Suzuki Motor Corporation (Suzuki), you

requested a ruling on the tariff classification of the Suzuki

Samurai (Samurai) and Suzuki YOE, Y2R, and YOR (collectively

YOE) motor vehicles under the Harmonized Tariff Schedule of

the United States (HTSUS). On January 4, 1989 (file 083081),

we ruled that these multipurpose vehicles were classified in

subheading 8704.31.00, Harmonized Tariff Schedule of the

United States (HTSUS).

This decision revokes and supersedes our earlier

decision. The facts are repeated and rationale follow.

FACTS:

The Samurai was the subject of several rulings issued

under the Tariff Schedules of the United States (TSUS), the

most recent ruling of which was dated March 24, 1988 (file

081443); the YOE was classified under the TSUS in a ruling

dated May 27, 1988 (file 082254). The facts presented in both

those cases have not changed.

These vehicles were classified as automobile trucks in

item 692.02, TSUS, or as other motor vehicles for the

transport of persons or articles in item 692.10, TSUS,

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depending on whether or not, in their condition as imported,

they contained rear seats or passenger \"amenities\" in the rear

area which impaired the cargo-carrying nature of the rear

area. These criteria were traditional criteria used by

Customs in classifying such vehicles under the TSUS.

The YOE was described in our ruling of May 27, 1988 (file

082254), as either a hardtop or a softtop. Either version was

to be capable of two-wheel or four-wheel drive in either a low

or high range manually selected by engaging a multi-range

transfer case.

You identified the following features as relevant to

classification of the vehicle as an automobile truck in item

692.02, Tariff Schedules of the United States (TSUS):

1\. Truck-type chassis: separate frame

2\. Rear door (hardtop) or rear gate (softtop) that is

hinged on one side and swings wide open for cargo

3\. Ridged floor design to support cargo weight

4\. Drainage holes in floor for cargo spills

5\. Rear floor approximately flush with rear bumper to

permit easy loading and unloading

6\. Height of rear floor for ease of loading

7\. Spare tire mounted on rear door and away from cargo

area

8\. Side-opening windows in rear to vent odors from

noxious cargo

Other features on the vehicle as imported consisted of

the following:

9\. Vents under front seats for heat or air

conditioning, but no controls in rear

10\. Threaded and recessed fasteners at specific

locations in the rear deck area and side panels for

installation of optional equipment, such as rear

bench seat, seatbelts, and rear assist grips.

The dimensions and cargo capacity of the vehicle, in this

condition as imported, were stated to be as follows: the

hardtop and softtop measure approximately 3,620 mm in length,

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1,630 mm in width, and 1,685 mm in height; the hardtop has a

cargo volume capacity of approximately 38.5 to 39.1 cubic

feet; the softtop has a cargo capacity of approximately 39.1

to 39.2 cubic feet; the payload weight capacity of the hardtop

and softtop ranges from 860 to 1003 and 893 to 1069,

respectively (slightly higher than the Samurai).

The same vehicle, however, could also be imported with

rear seating and with accessories described as \"passenger

amenities\" consisting of side trim, carpeting, ashtrays,

headliner, and other items for the comfort and use of

passengers seated behind the driver\'s area.

The dimensions of the rear cargo area were said to be

similar to that of the Suzuki Samurai, as were the other

features. Therefore, we will not repeat the description of

various features of the Samurai which was set forth in our

rulings of March 24, 1988, (file 081443) and July 22, 1984

(file 809545).

Both vehicles are \"two-door\" vehicles with a rear door

that swings out. Access to the rear seat, in those models

having a rear seat, is through one of the two front doors and

by folding a front seat forward.

You state that the Samurai and the YOE should be

classified as a motor vehicle for the transport of goods in

heading 8704, HTSUS, if imported without rear seats and other

accessories or items in the rear area. However, you also

state that, if imported with rear seats or other options in

the rear area that impede the loading, transport, and

unloading of goods, the Samurai and the YOE should be

classified as a motor vehicle principally designed for the

transport of persons in heading 8703, HTSUS.

The advertising literature describes the Samurai as

follows: \"think of it as the handy small delivery truck\[;\]\"

\"sturdy truck chassis and frame\[;\]\" \"\[y\]ou can fill the

Samurai with friends, or load it with cargo\[;\]\" \"\[f\]or more

room, the back seat folds forward, or is easily removed\[;\]\" or

\"and we even have a Samurai in a truck version, which has no

back seat and over 18 cubic feet of rear cargo space.\" This

language identifies the Samurai (and the YOE) as a multi-

purpose vehicle, even when a rear seat has been installed.

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ISSUE:

If imported without rear seats, are the Suzuki vehicles

\"motor vehicles for the transport of goods\" within heading

8704, HTSUS? If so, and if seats and other appointments have

been installed behind the driver and front passenger seats

prior to importation, then are these same vehicles more

properly within heading 8703, HTSUS, as \"motor vehicles

principally designed for the transport of persons?\"

LAW AND ANALYSIS:

Classification under the HTSUS is governed by the General

Rules of Interpretation (GRI). GRI 1 is as follows:

1\. \* \* \* for legal purposes, classification shall be

determined according to the terms of the headings

and any relative section or chapter notes and,

provided such headings or notes do not otherwise

require, according to the following provisions \* \*

\*

The relevant headings in this case 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: \* \* \*

There are no relevant legal notes in section XVII or chapter

87 which address these headings for our purposes in this

ruling.

By the express language of heading 8703, motor vehicles

must be \"principally designed\" for the transport of persons in

order to be classified within that heading. Certain types of

motor vehicles which are capable of off-the-road uses, such as

the Suzuki 4x4 utility vehicles, are usually constructed on a

truck chassis. These vehicles have been described as

\"multipurpose\" or \"sport utility\" vehicles. The bodies of

these vehicles may vary in style and utility, and, for

purposes of this ruling, may have design features which permit

both the transport of goods and people.

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The design of the body on the Suzuki 4x4 vehicles is

utilitarian and allows the easy loading, transportation, and

unloading of goods: swing out rear door; flat floor and rear

loading deck; and relatively high roof for the size and weight

rating of the vehicle. These structural design features are

consistent with a vehicle designed for the transport of goods

because they provide a readily accessible and usable cargo

space, together with a chassis and suspension that permits a

cargo payload which is approximately 20 percent of the gross

vehicle weight rating. The percentage of payload gross for

small pickup trucks, for example, is normally from 15 percent

to 25 percent of the gross vehicle weight.

The addition of auxiliary design features which adapt the

vehicle to additional uses are evidence only of the fact that

the vehicle, at this point, is a multipurpose vehicle. To the

extent that a change does not significantly alter the basic

structural design, there is insufficient evidence that the

changes result in a vehicle \"principally\" designed for another

purpose, such as the transport of persons. In this light, we

view the addition of interior trim packages, carpeting, and

removable or folding rear seats in the two-door Suzuki

vehicles as insufficient to establish that transporting

persons was the principal design criterion. These auxiliary

design features do not, of themselves, effect an alteration of

the fundamental structural design of a vehicle as a vehicle

for the transport of goods.

Motor vehicles classified in heading 8703 are vehicles

\"principally designed for the transport of persons.\" In this

case, the two-door Suzuki vehicles have all the structural

features of a vehicle designed for the transport of goods.

The addition of auxiliary features, such as the type of

seating and the additional trim packages, are not a

significant alteration to the goods-carrying structure so as

to require a conclusion that they are principally designed for

the transport of persons.

No single factor dictates whether a vehicle is

principally designed for the transport of persons. In this

case, the chassis and suspension, the body style, the payload

capacity (by weight) in relation to the gross vehicle weight,

and the relatively minor effect of the rear seating on the

basic goods-carrying structural design of the Suzuki vehicles

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indicate that these are multipurpose vehicles for the

transport of goods and persons, and that the transport of

persons is not the \"principal design\" of the vehicle.

HOLDING:

If imported with spark-ignition internal combustion

piston engines, the two-door Suzuki Samurai and YOE, Y2R, and

YOR, described above and imported with or without rear seats

and rear trim, are classified as motor vehicles for the

transport of goods, other, G.V.W. not exceeding 5 metric tons,

in subheading 8704.31.00, HTSUS, dutiable at 25 percent ad

valorem pursuant to subheading 9903.87.00.

This decision supersedes our decision of January 4, 1989,

as modified by letters of January 17, 1989, and February 10,

1989 (file 083081).

This decision applies to all such vehicles imported on or

after January 1, 1989.

Sincerely,

John Durant, Director

Commercial Rulings Division

6cc: AD, NY Seaport

2cc: Chief, CIE

1cc: Each Regional Commissioner

1cc: Director, Trade Operations

1cc: NIS 101: Mr. Sheldon Hantman, New York Seaport

1cc: Reading File

1cc: AC, Commercial Operations