Passenger vs Cargo Vehicle

How CBP Differentiates Between Cargo and Passenger Vehicles

Criteria for Classification

CBP uses several criteria to classify vehicles under heading 8703 (motor vehicles principally designed for the transport of persons) or heading 8704 (motor vehicles for the transport of goods) of the HTSUS. The classification hinges on the vehicle’s design features and intended use.

Features Indicating Passenger Vehicles (Heading 8703)

Permanent Seats with Safety Equipment: Vehicles designed for transporting persons typically have permanent seats equipped with safety features such as seatbelts or anchor points for installing safety equipment. These seats may be fixed, fold-away, or removable but are designed primarily for passenger use.
Rear Windows: The presence of rear windows along the side panels is a common feature in passenger vehicles. These windows provide ventilation and visibility for passengers.
Passenger Amenities: Passenger vehicles often include comfort features such as carpeting, ventilation systems, interior lighting, and other amenities that enhance passenger comfort.
Interior Layout: An absence of permanent barriers between the driver's area and the rear passenger area is typical in vehicles designed to carry passengers, allowing for an open and accessible interior space.

Features Indicating Cargo Vehicles (Heading 8704)

Bench-Type Seats Without Safety Equipment: In cargo vehicles, rear seating, if present, typically lacks safety equipment like seatbelts and may be foldable or collapsible to maximize cargo space. These seats are designed to be secondary and not for primary passenger transport.
Separate Cargo Areas: Cargo vehicles often feature separate compartments for cargo, which may include open platforms or enclosed areas without windows. These designs prioritize cargo over passenger comfort.
Absence of Passenger Amenities: The rear areas of cargo vehicles usually lack passenger amenities such as carpeting and interior fittings. This absence underscores the primary function of transporting goods.
Dedicated Loading Doors: Cargo vehicles often have large rear doors or other mechanisms designed to facilitate the loading and unloading of goods, which are not intended for passenger entry or exit.

Definitive Indicator: Export Certificate

CBP has unequivocally classified certain vehicles, such as Kei trucks and Kei vans, as cargo vehicles. A key indicator of this classification is the designation on the Japanese export certificate, which specifies the vehicle’s purpose as a cargo vehicle. There is no ambiguity in this classification—CBP consistently views these vehicles as intended for the transport of goods.

Importance of Correct Classification

Ensuring correct vehicle classification is critical, as misclassification can lead to significant liabilities. Vehicles that slip through without paying the correct tariff rate pose a substantial risk to importers. These risks include penalties, forfeitures, and other major problems, including potential exposure to criminal liability.