Par. 17. Section 48.4072-1 is amended by: 1. Revising paragraphs (b), (c), and (d). 2. Amending paragraph (e) by removing the second, third, and fourth sentences. 3. Revising paragraphs (f), (g), and (h). 4. Removing the undesignated authority citation at the end of the section. The revisions and addition read as follows:
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(b) Taxable tire —(1) In general. The term taxable tire means a tire—
(i) Of the type used on highway vehicles;
(ii) That is wholly or in part made of rubber; and
(iii) That is marked pursuant to federal regulations for for highway use.
(2) Recapped and retreaded tires. The term taxable tire includes a used tire that is recapped or retreaded (whether from shoulder-to-shoulder or bead-to-bead) only if—
(i) The used tire had not previously been sold in the United States;
(ii) The used tire is recapped or retreaded outside the United States; and
(iii) When imported into the United States, the recapped or retreaded tire meets the requirements of section (b)(1) of this section.
(c) Tires of the type used on highway vehicles. The term tires of the type used on highway vehicles means tires (other than tires of a type used exclusively on mobile machinery (within the meaning of § 48.0-5(c))) of the type used on—
(1) Highway vehicles; or
(2) Vehicles of the type used in connection with highway vehicles.
(d) Rated load capacity. The term rated load capacity means the maximum load a tire is rated to carry at a specified inflation pressure.
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(f) Super single tire. The term super single tire means a single tire greater than 13 inches in cross section width designed to replace two tires in a dual fitment. The term does not include any tire designed for steering or an all position tire.
(g) Examples. The following examples illustrate the application of this section.
Example 1.
(1) Facts. (i) A foreign tire manufacturer manufactures a tire that meets the Federal Motor Vehicle Safety Standard for truck tires prescribed by the DOT. The tire is not of a type used exclusively on mobile machinery (within the meaning of § 48.0-5(c)). This tire is partially made of rubber. The foreign manufacturer marks this tire for highway use pursuant to DOT regulations. The foreign manufacturer sells the tire for use in the foreign country.
(ii) After use in the foreign country, a tire importer buys the tire and imports it into the United States. At the time of importation, the tread on this tire's casing meets the criteria for minimal tread on trucks used in interstate commerce as prescribed by the DOT.
(2) Analysis. The imported tire is a taxable tire because the tire is of the type used on a highway vehicle and is not of a type used exclusively on mobile machinery, the tire is wholly or in part made of rubber, and the tire is marked pursuant to federal regulations for highway use.
Example 2.
(1) Facts. A tire manufacturer pays the tax imposed by section 4071(a) when it sells a tire that is (1) of the type used on highway vehicles; (2) wholly or in part made of rubber; and (3) marked pursuant to federal regulations for highway use. The tire does not have any design features to indicate that it is a tire of a type used exclusively on mobile machinery (within the meaning of § 48.0-5(b)(3)(iii)). The purchaser of this tire puts the tire on mobile machinery described in § 48.0-5(b)(3)(iii).
(2) Analysis. A tire that is “of the type used on highway vehicles” and “not of a type used exclusively on mobile machinery” retains those characteristics regardless of how the tire is actually used. Therefore, the characterization of a tire as a taxable tire is not changed because the tire is actually used on a vehicle that is mobile machinery.
(h) Effective/applicability date. This section applies on and after the date of publication of these regulations in the Federal Register as final regulations.