The tariff classification of new vehicles from Korea

N277015 July 14, 2016 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8703.23.0052; 8703.23.0048; 8703.90.0000 Andrea Stacey Asst. Manager Customs Administration Hyundai Motor America 10550 Talbert Ave. Fountain Valley, CA 92708 RE: The tariff classification of new vehicles from Korea Dear Ms. Stacey: In your letter dated June 28, 2016 you requested a tariff classification ruling. The item under consideration have been identified as three (3) versions of the new Hyundai Ioniq vehicle. The first vehicle has been identified as the “Ioniq Hybrid”. This vehicle is a 4 door hatchback powered by a four-cylinder 1.6 liter gas, spark-ignition internal combustion engine combined with a small 32kW electric motor. You state that this gives the Ioniq hybrid a combined 139 horsepower. There is an internal 1.56kW battery that is charged by the gasoline engine. The main source of motive power is the gasoline engine. The vehicle is equipped with seating for five persons with an interior volume of 122.7 cubic feet or 3.47 m3. The applicable classification subheading for the Ioniq hybrid will be 8703.23.0052, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Motor cars and other motor vehicles principally designed for the transport of persons…, including station wagons and racing cars: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc.: Other: New: Having engines with not more than 4 cylinders: Of an interior volume exceeding 3.1 m3 but not exceeding 3.4 m3” The rate of duty will be 2.5%. The second vehicle has been identified as the “Ioniq Hybrid Plug-In”. This vehicle is a four door hatchback powered by a four-cylinder 1.6 liter gas, spark-ignition internal combustion engine combined with a small 45kw electric motor. You state that this gives the Ioniq hybrid plug-in a combined 148 horsepower. There is an internal 8.9 kW battery which is charged by an external electric power source. Once the battery is depleted, you state that the vehicle will operate like a regular hybrid using the gasoline engine to charge the battery. The vehicle is equipped with seating for five persons and has an interior volume of 119.2 cubic feet or 3.38 m3. The applicable classification subheading for the Ioniq hybrid plug-in will be 8703.23.0048, HTSUS, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons…, including station wagons and racing cars: Other vehicles, with spark-ignition internal combustion reciprocating piston engine: Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc.: Other: New: Having engines with not more than 4 cylinders: Of an interior volume exceeding 3.4 m3” The rate of duty will be 2.5%. The third vehicle has been identified as the “Ioniq Electric”. This vehicle is a 4 door hatchback powered by an 88 kW all-electric engine. You state that this gives the Ioniq electric a total of 120 horsepower. The vehicle is equipped with seating for five persons and has an interior volume of 119.2 cubic feet or 3.38 m3. The applicable classification subheading for the Ioniq electric will be 8703.90.0000, HTSUS, which provides for “Motor cars and other motor vehicles principally designed for the transport of persons…, including station wagons and racing cars: Other.” The rate of duty will be 2.5%. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division