In ruling NY N315746 (Nov. 17, 2020), Customs and Border Protection (CBP) discussed the classification of an electric vehicle, identified as the Bugatti Baby II. The ruling states that the vehicle is a 3/4 scaled replica of a Bugatti Type 35, which is powered by an electric power plant that can be driven by an adult or child. There are three types of vehicle design: Base, Vitesse and Pur Sang. They only differ in body materials and the capabilities of the powertrain. As stated in the ruling, the “Base” model will be available with a two mode electric powertrain, either 1 kW (20kph) or 4kW (45kph), with an additional 10 kW (delimited mode) in the Vitesse & Pur Sang models that will allow it to achieve a speed of approximately 75kph
CBP determined that the applicable subheading for the all three models of the Bugatti Baby II is 8703.80.0000, 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 electric motors for propulsion”. The rate of duty is 2.5% ad valorem.