Tariff classification of imported boats depends on their essential character, so recreational motorboats fall under heading 8903.

Classification of imported boats turned on their description and essential character as imported, not on intended ferry or excursion use or local permissions. The craft were described by the manufacturer as recreational craft and powerboats, and registration records treated them as motor boats. Heading 8901 applies to vessels for transport of persons or goods, while heading 8903 specifically covers yachts, pleasure craft and other vessels for sports, including motorboats other than outboard motorboats. Because the HSN Notes exclude heading 8903 goods from heading 8901, and the cited authorities and circular concerned different facts, the boats were correctly classified under heading 8903.

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Issues: Whether the imported boats were classifiable under heading 8901 as excursion boats or ferry-boats, or under heading 8903 as yachts and other vessels for pleasure or sports, and whether the claim for classification under heading 8901 could succeed on the basis of intended use and permissions obtained from local authorities.

Analysis: The classification depended on the description and essential character of the goods as imported, not merely on the proposed use in ferrying passengers or excursion operations. The manufacturer's declaration described the craft as recreational craft and powerboats, and the registration records treated them as motor boats. Heading 8901 covers vessels for transport of persons or goods, whereas heading 8903 specifically covers yachts and other vessels for pleasure or sports, including motorboats other than outboard motorboats. The HSN Explanatory Notes to heading 8901 exclude vessels falling under heading 8903. The cited authorities and the Board circular did not assist because they related to different factual situations and, in the case of the circular, to pontoon and barges rather than motorboats.

Conclusion: The imported boats were correctly classifiable under heading 8903, not heading 8901, and the assessee's challenge to the classification failed.

Ratio Decidendi: Where a tariff entry specifically covers the imported goods, classification must follow that specific entry, and a heading covering transport vessels cannot be used to include goods specifically excluded and separately named under another heading.

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