CLA-2 CO:R:C:M 088585 CMS
Mr. Stephen J. Leahy, Esq.
Leahy & Ward
63 Commercial Wharf
Boston, MA 02110
RE: Thomas Skid Steer Loader; Works Trucks Fitted With Lifting
And Handling Equipment; Loading; Unloading; Self Propelled
Shovel Loaders
Dear Mr. Leahy:
Your request on behalf of A.N. Deringer, Inc., dated
December 28, 1990, for a classification ruling on the Thomas Skid
Steer Loader has been referred by the Regional Commissioner of
Customs, New York to Customs Headquarters for a reply.
FACTS:
The merchandise consists of various models of self propelled
vehicles described as Thomas Skid Steer Loaders. Product
literature was provided for Models T83, T103, T133, T173, T233
and T233HD.
The vehicles are designed for use with interchangeable
attachments including utility and pallet forks, augers, pick up
sweepers and angle brooms. The vehicles are also designed for
use with many types of buckets including grapple buckets and
front mounted buckets designed for dirt, produce, landscaping,
snow, fertilizer, foundry, cement, grain and demolition
applications.
The Loaders have lifting capacities ranging from 800 to
2,300 pounds. The vehicles feature forward and reverse drive,
steering controlled by two hand levers, hydrostatic transmission
and a high tensile structural tubing main frame. The Loaders
have speeds ranging from 4.6 MPH to 7.2 MPH.
-2-
ISSUE:
Is the merchandise classified in Heading 8427 as fork lift
trucks and other works trucks fitted with lifting or handling
equipment, or in Heading 8429 as self propelled shovel loaders?
LAW AND ANALYSIS:
The Harmonized Tariff Schedules of the United States
Annotated (HTSUSA) superseded the TSUS effective January 1, 1989.
The HTSUSA provides that the classification of articles is
governed by the General Rules of Interpretation (GRI's). GRI 1
states in pertinent part that "...classification shall be
determined according to the terms of the headings and any
relative section or chapter notes...".
Heading 8427 describes fork lift trucks and other works
trucks fitted with lifting or handling equipment. Heading 8429
in part describes self propelled shovel loaders.
The Explanatory Notes to Heading 8429, p. 1202, state that
self propelled shovel loaders "...are wheeled or crawler
machines with a front mounted bucket which pick up material
through motion of the machine, transport and discharge it." The
Explanatory Notes constitute the Customs Cooperation Council's
official interpretation of the Harmonized System and provide a
commentary on the scope of each heading. H. Conf. R. No. 576,
100th Cong., 2d Sess. 549, reprinted in 1988 U.S. CODE CONG. &
ADMIN. NEWS 1582.
The vehicles under consideration perform functions described
by Headings 8427 and 8429 (e.g., they perform the function of
Heading 8427 fork lift trucks with the pallet fork attachments,
and perform the function of Heading 8429 shovel loaders with the
front mounted bucket attachments).
Headings 8427 and 8429 are Section XVI headings. Section
XVI Note 3 provides in part that "...machines adapted for the
purpose of performing two or more complementary or alternative
functions are to be classified as if consisting only of that
component or as being that machine which performs the principal
function."
The importer states on p. 1 of the ruling request attachment
that "[t]he loaders have a variety of applications including use
on farms, in feed lots, in nurseries, in foundries, factories,
and warehouses for loading and stacking lumber, use as a fork
lift truck, handling bagged and bulk commodities, loading trucks,
pallet handling and scrap removal." This description does not
appear to emphasize the vehicles' Heading 8427 functions over the
Heading 8429 functions, or the Heading 8429 functions over the
Heading 8427 functions.
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In the descriptive literature provided with the ruling
request, however, the function of the merchandise as a front
mounted loader clearly predominates. The descriptive literature
identifies 42 different catalogue numbers for Loaders equipped
with buckets. Eleven different types of buckets are available.
Among the 42 catalogue types, 13 relate to Loaders equipped
with buckets for moving materials in foundries, 8 with dirt
buckets, 6 with fertilizer buckets, 5 with produce buckets and
the remainder with buckets for snow, utility, demolition, cement
and landscaping uses. Special buckets, and teeth kits for dirt
buckets are also available.
The principal use of the Loaders as fork lift trucks or
other works trucks fitted with lifting or handling equipment has
not been established. To the contrary, considering the numerous
types of front mounted buckets with which the vehicles operate,
the wide variety of the vehicles' applications with the buckets,
and the product literature, the appropriate finding is that the
principal function of the vehicles is as self propelled shovel
loaders. The vehicles are even described by the importer as
"Loaders".
The importer argues that Heading 8429 is not the proper
heading because (1) the vehicles do not "attack" the earth's
crust, prepare or compact the terrain, (2) are not within the
field of industry encompassed by Heading 8429, and (3) certain
TSUS cases require a different result.
The importer refers to the Explanatory Notes to Heading
8429, p. 1201, which provide that "[t]he provisions of
Explanatory Note 84.30 relating to self-propelled and multi-
function machines apply, mutatis mutandis, to the self-
propelled machinery of this heading...". The Explanatory Notes
to Heading 8430, p. 1203, state in part that "[t]his heading
covers machinery...for "attacking" the earth's crust...or for
preparing or compacting the terrain...". The reference to the
Explanatory Notes to Heading 8430 in the Explanatory Notes to
Heading 8429, however, is to the provisions relating to self-
propelled and multi-function machines; the Explanatory Note
language to Heading 8430 referred to by the importer is not
contained in the provisions relating to self-propelled and multi-
function machines.
The Explanatory Notes to Heading 8429 describe machines that
do not necessarily "attack", prepare or compact the terrain
(e.g., the Explanatory Notes describe loader-transporters which
merely pick up bulk materials and discharge them). Furthermore,
the Thomas Loaders are used for working the earth, including
dirt, snow and landscaping operations, and can be equipped with
-4-
teeth kits for more effective dirt working operations. The
Loaders are also used for demolition operations.
The importer argues that Heading 8429 is inapplicable
because the Loaders do not fall within the field of "..heavy
construction, for instance, road building, mining and earth
moving." Attachment to ruling request, p. 5. The importer has
not established that there is a requirement that a vehicle must
be used in "heavy construction" to be classified in Heading 8429.
(In the importers list of Heading 8429 articles, the Explanatory
Note exemplar for "loader-transporters", which merely pick up
bulk materials and discharge them, is deleted).
Nevertheless, the Loaders do perform many of the functions
which the importer states are within the field of "heavy
industry", and perform functions of Heading 8429 articles
described by the Explanatory Notes to Heading 8429 (i.e., earth
digging, excavating or compacting). The product brochures for
the Loaders at issue in NY Ruling 801720 (January 13, 1981),
which the importer states is identical merchandise to that under
consideration, state that the vehicles can be used in mines,
construction sites, excavating, digging post holes and
maintaining roadways.
The holding in NY Ruling 801720 or in other TSUS rulings
that the merchandise was classified in Item 692.40 under the
TSUS, would not require that they be classified in Heading 8427,
or be precluded from Heading 8429 under the HTSUSA. The language
of TSUS Item 692.40 and the terms of HTSUSA Heading 8427 are not
identical. The Explanatory Notes to Heading 8429 provide
guidance on the meaning of the term "shovel loader" under the
HTSUSA, and the principle function of the Loaders under
consideration is described by Heading 8429.
The Thomas Skid Steer Loaders, Models T83, T103, T133, T173,
T233 and T233HD, are classified as shovel loaders, front-end
shovel loaders, wheel type, in 8429.51.10, HTSUSA.
HOLDING:
The Thomas Skid Steer Loaders, Models T83, T103, T133,
T173, T233 and T233HD, are classified as shovel loaders, front-
end shovel loaders, wheel type, in 8429.51.10, HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division