In ruling NY N319331 (June 3, 2021), Customs and Border Protection (CBP) discussed the classification of the electrically powered self-balancing hoverboard “Ninebot S-Max” and “Ninebot Gokart Pro” from China. The Gokart Pro is powered by 2 x 500 electric motors, can travel up to 15.5 miles on a single charge, and has various modes for speed—ranging from its “ECO mode” with a max speed of 5 mph to its “CORSA mode” with a max speed of 23 mph. The S-Max is a two-wheeled hoverboard, which serves as the go-cart’s rear drive motor.
The hoverboard may be detached and used independently from the go-cart body as a self-balancing hoverboard. The hoverboard can reach a maximum speed of 12.4 mph with an estimated range of 23.6 mph on a single charge. As noted in the ruling, “the Ninebot is powered by a lithium rechargeable battery. These two (2) items, designed to be connected and used together, form a composite good,” with the hoverboard establishing the essential character of the whole good.
CBP determined that the applicable subheading for both the Ninebot Gokart Pro and the Ninebot S-Max is 8711.60.0090, HTSUS, which provides for “Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars: With electric motor for propulsion: Other.” The rate of duty is free.
Lastly, CBP also determined that “as the subject merchandise is equipped with side-by-side rather than inline wheels,” the Ninebot S-Max does not qualify for exclusion from additional Section 301 duties imposed by subheading 9903.88.02 per Note 20 (v) to Subchapter III, Chapter 99, HTSUS. The additional duty rate is 25% ad valorem. As such, the chapter subheading 9903.88.02 must be reported in addition to subheading 8711.60.0090.