Interpretation ID: 21723.ztv
Randy Thomas, Vice President, Marketing
Westward Industries Ltd.
P.O. Box 1288
Portage la Prairie
Manitoba
Canada
Dear Mr. Thomas:
This is in reply to your letter of May 18, 2000, responding to my letter of March 27, 2000, inviting you to submit further information needed for a decision that the Daewoo Labo that you would like to export to the United States is not a "motor vehicle."
You previously described the vehicle as "a small truck from Korea," which you would modify by installing a governor limiting its speed to 40 km/h (25 mph), "as well as installing turf tires and hydraulics for a dump box which we manufacture here." You stated that the truck is similar to the Metro Motors "Microtruck" and Cushman's "White" truck, and would be used "for the same utility purposes." You informed us that the truck "would be sold only for off road applications." We replied that your assurances that the modified Labo would be sold only for off- road applications were not dispositive of this issue. There appeared to be no reasons why a purchaser could not obtain a license for on-road use of the truck. Further, the planned modifications were also insufficient for us to conclude that the Labo was no longer a motor vehicle. In our opinion, neither the modified speed limit nor the addition of turf tires were inconsistent with a conclusion that this vehicle remains a "truck."
We also informed you that in cases that are not clear cut, we apply five factors in reaching a determination. I enclosed a copy of our letter of January 25, 1999, to William Sanford of Metro Motors which discussed these factors, and your letter of May 18, 2000, seeks to address them.
The first factor is whether the vehicle will be advertised for on-road as well as off-road use, or whether it will be advertised exclusively for off-road use.
You have stated that "The Daewoo Labo vehicle will be promoted as an 'off-road only vehicle' and all literature will include the information that these vehicles are for 'off-road use only.'"
Your response suggests that, applying this factor, the vehicles should not be considered motor vehicles.
The second factor is whether the vehicle's manufacturer or dealers will assist vehicle purchasers in obtaining certificates of origin or title documents to register the vehicle for on-road use.
You have stated that you will "supply documentation with the vehicle (Certificate of Origin) which will clearly state that these vehicles are for off-road use only. The wording of this statement will be 'THIS VEHICLE DOES NOT CONFORM TO ALL SAFETY AND EMISSIONS STANDARDS APPLICABLE TO ON-ROAD VEHICLES IN THE UNITED STATES.'" You have also stated that you will direct your dealers to include this statement on any invoice or bill of sale that they produce. Your response would indicate that, applying this factor, the vehicles should not be considered motor vehicles.
The third factor is whether the vehicle is or will be sold by dealers also selling vehicles that are classified as motor vehicles.
You have replied that your "target market for these vehicles is golf course equipment dealers and industrial dealers such as forklift dealers." The vehicles sold by these dealers are not motor vehicles. Your response suggests that, applying this factor, the vehicles should not be considered motor vehicles.
The fourth factor is whether the vehicle has or will have affixed to it a warning label stating that the vehicle is not intended for use on the public roads.
You have replied that you "will be attaching warning labels inside the vehicle, which state 'THIS VEHICLE IS FOR OFF-ROAD USE ONLY.' The same message will appear on placards on the exterior of the vehicle." Applying this factor would indicate also that the vehicles are not motor vehicles.
The fifth and final factor is whether states or foreign countries have permitted or are likely to permit the vehicle to be registered for on-road use.
You have replied that it is your "opinion that these vehicles, as modified, would not be considered for 'on-road use' in any country or state." You conclude by expressing your belief that the precautions you have previously discussed "will preclude anyone from registering this vehicle as an on-road vehicle." We assume that the trucks as originally manufactured are permitted on the public roads of Korea, its country of origin. We have no information whether reducing the speed of the truck to 25 mph would render it impermissible to be driven on Korea's roads. We cannot accept your "opinion" as dispositive of the issue. We have insufficient information to apply this factor to your situation.
Based on the representations in your letters and considering four of the five factors discussed above, we believe that your vehicles are not "motor vehicles." However, we will reexamine this conclusion if we learn that, for example, the vehicles are in fact used on the public roads by a substantial number of owners.
If you have any questions, you may contact Taylor Vinson of this Office (202-366-5263).
Sincerely,
Frank Seales, Jr.
Chief Counsel
ref:571
d.7/12/00