CLA-2 CO:R:C:M 088971 JMH
Mr. R.D. Rogers
Branch Manager
Milne & Craighead
235 Railroad Ave.
Portal, N.D. 58772
RE: Motor vehicles for the transport of goods; motor cars and
other motor vehicles principally designed for the transport
of persons; special purpose motor vehicles, other than those
principally designed for the transport of person or goods;
Explanatory Note 87.03; Explanatory Note 87.04; Explanatory
87.05; pick-up truck; hydraulic lift; hydraulic boom; United
States-Canada Free Trade Agreement ("CFTA")
Dear Sir:
Your January 25, 1991,request for a classification ruling on
behalf of Ens Toyota Ltd. of Saskatoon, Saskatchewan, regarding
certain modified Toyota Landcruisers cab chassis has been
referred to this office for a decision.
FACTS:
The articles in question are modified versions of the 1991
Toyota Landcruiser, model PJ75, one ton, 4 X 4 vehicle. The
Landcruisers are considered to be "all terrain" vehicles. The
1991 Toyotas are imported to Canada from Japan as a cab chassis
unit. The Landcruisers are powered by a 1PZ inline, 5 cylinder,
OHC diesel engine (with a displacement of 3469 cc) and a type H4
1 standard transmission. The vehicles are also equipped with
disc brakes, rear drum brakes, size 5.50 x 16 tires, and full
floating rear axles. The gross vehicular weight (G.V.W.) for the
1991 Landcruiser is 6690 lbs (3035 kg). Once in Canada, the cab
chassis are modified into three different vehicles. The
importer states that all three vehicles are for use in the
underground mining industry.
The first vehicle is a pick-up model which is designed for
use as a supervisor's vehicle and/or a personnel carrier. The
pick-up has a rear box that is manufactured and installed by Ens
Toyota. The rear box is designed to transport material and
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equipment in underground mines. Front and rear bumpers and side
and rear body protection are manufactured and installed by Ens
Toyota. The body protection panels protect the vehicle in the
rugged mining environment. A roll bar and protective mesh are
manufactured and installed, and a roll-over protection and
falling rock protection can be added if required. Transmission
high gears are locked out to limit maximum speed to 20 miles per
hour ("mph"). An exhaust purifier is installed to reduce
emissions. A fire suppression system is installed that engulfs
the vehicle in the event of fire. All of these specifications,
with the exception of the cargo box, are common to all three
models.
The second vehicle is equipped with lifting docks which are
manufactured and installed in Canada. Hydraulic stabilizers and
hydraulic systems are also installed. The hydraulic lifting
dock's brand name is Action Torklift. It is constructed of
structural steel with hydraulic lifting capacities from 2500 to
30000 pounds. Lifting is performed with either a 3-horsepower
("hp") or 5-hp electric pump assembly. The lifting dock is of
the type which is suited for truck loading at supermarkets,
warehouses and other freight loading areas. Standard deck sizes
are from 5 feet x 8 feet to 8 feet x 10 feet.
The third vehicle is equipped with a hydraulic boom (arm)
lift LAT 24 which is manufactured in the United States and
installed in Canada. The brand name of the boom is the LAT-24/28
Lift-All. The boom has a working height of 29 or 32 feet. the
bucket has a 300 pound capacity and the boom is extended by a
hydraulically operated pump. The turntable is a 360 degree non-
continuous rotation type. Rotation is powered by a hydraulic
motor through self-locking worm gear drive. The decks and
attaching hardware are manufactured in Canada and the decks and
mounting accessories are installed by welding and/or by bolting.
When imported in their completed state to the United States
the importer states that the vehicles are complete and ready for
use in an underground application. G.V.W. for the modified
vehicles is approximately 7000 lbs. The vehicles have a two
person (operator and passenger) capacity. There are no
provisions on these vehicles for passengers. The payload of
these vehicles is rated at 2700 lbs.
ISSUE:
What is the appropriate classification for the three
vehicle models with the cargo box, lifting dock, and hydraulic
boom lift?
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LAW AND ANALYSIS:
The classification of merchandise under the Harmonized
Tariff Schedule of the United States Annotated ("HTSUSA") is
governed by the General Rules of Interpretation ("GRIs"). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes..." The pertinent
headings in this instance are headings , 8703, 8704 and 8705,
HTSUSA. These headings describe the following:
8703 Motor cars and other motor vehicles
principally designed for the transport of
persons (other than those of heading 8702),
including station wagons and racing cars...
* * * *
8704 Motor vehicles for the transport of goods...
* * * *
8705 Special purpose motor vehicles, other than
those principally designed for the transport
of person or goods (for example, wreckers,
mobile cranes, fire fighting vehicles,
concrete mixers, road sweepers, spraying
vehicles, mobile workshops, mobile
radiological units)...
These headings are within Chapter 87, HTSUSA, and Section
XVII, HTSUSA. There are no chapter or section notes which
pertain to these headings. Thus, the terms of the headings will
be determinative. To better understand the terms of the
headings the Explanatory Notes to the HTSUSA may be utilized.
The Explanatory Notes, although not dispositive, are to be looked
to for the proper interpretation of the HTSUSA. 54 Fed. Reg.
35127, 35128 (August 23, 1989).
Explanatory Note 87.03 states that heading 8703 covers motor
vehicles designed for the transport of goods. These motor
vehicles include motor cars, specialized transport vehicles such
as ambulances, prison vans and hearses, motor homes and golf
cars. Harmonized Commodity Description and Coding System
("HCDCS"), Vol. 4, pp. 1426-1427. Explanatory Note 87.04 states
that heading 8704 covers ordinary lorries, delivery trucks and
vans of all types, dumpers, shuttle cars used in mines, self-
loading vehicles equipped with winches or elevating devices, and
road-rail lorries. HCDCS, Vol. 4. pp. 1427-1428. Explanatory
Note 87.05 states that heading 8705 covers "a range of motor
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vehicles, specially constructed or adapted, equipped with
various devices that enable them to perform certain non-transport
functions. HCDCS, Vol. 4, p. 1429. Heading 8705 includes tow
trucks, motor vehicles equipped with water pumps, cranes, and
mobile drilling rigs.
It is the opinion of this office that the pick-up model is
classified under heading 8704. The pick-up model only carries
an operator and one passenger. It has been completed to carry
materials and equipment. The pick-up models are designed for the
carriage of goods. The proper classification of the pick-up
model is subheading 8704.21.00, HTSUSA, as "Motor vehicles for
the transport of goods...Other, with compression-ignition
internal combustion piston engine (diesel or semi-
diesel)...G.V.W. not exceeding 5 metric tons..." Subheading
9903.87.00, HTSUSA, has increased the duty of goods of this
classification to 25% ad valorem.
The cab chassis which are completed to incorporate the
hydraulic lift and the hydraulic boom are properly classified
under heading 8705. These two variations are not designed for
the transport of either persons or goods, nor are they designed
for transport functions. The correct classification for the
hydraulic lift and the hydraulic boom vehicles is subheading
8705.40.00, HTSUSA, as "Special purpose motor vehicles, other
than those principally designed for the transport of person or
goods (for example, wreckers, mobile cranes, fire fighting
vehicles, concrete mixers, road sweepers, spraying vehicles,
mobile workshops, mobile radiological units)...Other..." The
applicable rate of duty is 3.7% ad valorem.
The vehicles may be eligible for duty preferences under the
United States-Canada Free Trade Agreement ("CFTA"). Under
General Note 3(c)(vii)(B)(II), HTSUSA, and General Note
3(c)(vii)(R)(17)(dd), HTSUSA, if the value of the materials which
originate in the Canada and/or United States plus the direct cost
of processing performed in Canada and/or the United States
constitutes not less than 50% of the value of the goods when
exported to the United States, then the goods are considered to
"goods originating in the territory of Canada." Originating
goods are entitled to duty preferences under the CFTA. Adequate
information to make this determination has not been presented.
HOLDING:
The 1991 Toyota Landcruiser cab chassis which is completed
into a supervisor's vehicle or personnel carrier is classified
under heading 8704 in accordance with GRI 1. The proper
classification for the pick-up model is subheading 8704.21.00,
HTSUSA, as "Motor vehicles for the transport of goods...Other,
with compression-ignition internal combustion piston engine
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(diesel or semi-diesel)...G.V.W. not exceeding 5 metric tons..."
Subheading 9903.87.00, HTSUSA, has increased the duty of goods of
this classification to 25% ad valorem.
The Toyota Landcruiser cab chassis which are completed into
vehicles with hydraulic lifts and hydraulic booms are described,
in accordance with GRI 1, under heading 8705. The correct
classification for the hydraulic lift and the hydraulic boom
vehicles is subheading 8705.40.00, HTSUSA, as "Special purpose
motor vehicles, other than those principally designed for the
transport of person or goods (for example, wreckers, mobile
cranes, fire fighting vehicles, concrete mixers, road sweepers,
spraying vehicles, mobile workshops, mobile radiological
units)...Other..." The applicable rate of duty is 3.7% ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division