Personal Hydrofoil Classified as 'Vessel,' Not Exercise Equipment, CBP Says
A personal hydrofoil is properly classified in the tariff schedule as a vessel for pleasure or sports, rather than as exercise equipment, CBP said in a recently released ruling. Though the importer of the hydrofoil had argued it can only float if moving forward, CBP interpreted the definition of vessel broadly to include all structures meant to carry people or things across water.
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The item at issue was a Hydrofoiler SL3 e-Bike made with the intention of building a new sport, according to the manufacturer, Manta5. The hydrofoil bike was equipped with an electric only launch, 10 levels of motor assistance, throttle override, up to 4 hours of ride time, a composite monocoque chassis, carbon fiber or composite foils, and was capable of 19.4 km/h with lithium-ion 58-volt Hydro pack battery.
Manta5 had argued for classification under subheading 9506.29 as an "article/equipment for general exercise." But CBP, affirming a previously issued New York ruling on the personal hydrofoils, found them classifiable in Harmonized Tariff Schedule subheading 8903.99.91 as “Yachts and other vessels for pleasure or sports ... ."
"While heading 89.03 does provide for yachts, rowboats, and canoes, it also provides for other vessels for pleasure or sports," CBP said. The agency turned to the Oxford English Dictionary definition of "vessel" as "Any structure designed to float upon and traverse the water for the carriage of persons or goods ... ."
The Oxford definition of water vessel "is not intended to be restrictive," CBP said, "nor could it anticipate all possible forms of vessels." The Hydrofoiler SL3 is an article that is designed to float upon, and allow a person to traverse, water, and so meets the definition required by heading 8903, CBP ruled.
Manta5 had argued in its reconsideration request that the hydrofoil could not be classified under HTS heading 8903 because it lacked the required floatation to support the rider’s body weight while not propelling forward. It said that the hydrofoil had no water-worthy characteristics similar to a skiff or a canoe, which are excluded from the company's preferred classification under subheading 9506.29. The item has none of the characteristics of yachts, rowboats, canoes, sailboats and motorboats and classifying it under the same subheading did not make sense, Manta5 argued.