CLA-2 CO:R:C:M 950634 KCC
District Director
U.S. Customs Service
150 North Royal
Mobile, Alabama 36602
RE: Protest No. 1901-1-100026; unfinished forklift truck parts;
right hand load wheel bracket; valve lever; tension rod
clevis; load wheel; parking brake lever assembly; spindle
left hand; GRI 2(a); unfinished article; essential
character; Note 2(a) and (b), Section XVI
Dear Sir:
This is in response to the Application for Further Review of
Protest No. 1901-1-100026, dated June 19, 1991, which pertains to
the tariff classification of unfinished forklift truck parts
under the Harmonized Tariff Schedule of the United States
(HTSUS). Specification drawings and photographs of the forklift
truck parts were submitted for examination.
FACTS:
As described in a letter dated February 13, 1991, by the
protestant, Hyster Company, the articles under consideration are
rough castings:
1. right hand load wheel bracket;
2. valve lever welded to a rod lever;
3. tension rod clevis;
4. load wheel support;
5. parking brake lever assembly; and
6. spindle left hand.
In a letter dated March 4, 1991, the protestant stated that
the parking brake lever assembly was not a rough casting but is
stamped and rolled from plate steel.
Upon importation into the U.S., the valve lever was
liquidated under subheading 7325.99.10, HTSUS, as other cast
articles of iron or steel, of cast iron. The right hand load
wheel bracket, tension rod clevis, load wheel support and spindle
left hand under subheading 7325.99.50, HTSUS, as other cast
articles of iron or steel, other, and the parking brake lever
assembly under subheading 7326.90.90, HTSUS, as other articles of
iron or steel.
The protestant contends that all the articles are classified
under subheading 8431.20.00, HTSUS, which provides for "Parts
suitable for use solely or principally with the machinery of
headings 8425 to 8430...Of machinery of heading 8427." The
protestant states that all the articles have the essential
character of parts for forklift trucks into which they will be
machined in the U.S.
ISSUE:
Are the unfinished parts properly classified as parts of
forklift trucks under subheading 8431.20.00, HTSUS, which
provides for "Parts suitable for use solely or principally with
the machinery of headings 8425 to 8430...Of machinery of heading
8427"?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, 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...." GRI 2(a), HTSUS,
states that "any reference in a heading to an article shall be
taken to include a reference to that article incomplete or
unfinished, provided that, as presented, the incomplete or
unfinished article has the essential character of the complete or
finished article...."
The protestant contends that the articles have the essential
character of unfinished forklift truck parts and are classified
pursuant to GRI 2(a), HTSUS, under subheading 8431.20.00, HTSUS,
which provides for "Parts suitable for use solely or principally
with the machinery of headings 8425 to 8430...Of machinery of
heading 8427." Heading 8427, HTSUS, provides for forklift
trucks. According to Customs Form 6445A, Customs officials agree
that the imported articles have the essential character of the
finished articles into which they are made. Therefore, the
imported articles may be classified in subheading 8431.20.00,
HTSUS, as forklift truck parts, if they meet the dictates of Note
2, Section XVI.
Note 2, Section XVI states, that "parts of machines (not
being parts of the articles of heading 8484, 8544, 8545, 8546 or
8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of
chapters 84 and 85 (other than headings 8485 and 8548) are
in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with
a particular kind of machine, or with a number of machines
of the same heading (including a machine of heading 8479 or
8543) are to be classified with the machines of that kind.
However, parts which are equally suitable for use
principally with the goods of headings 8517 and 8525 to 8528
are to be classified in heading 8517;
(c) All other parts are to be classified in heading 8485 or
8548."
The protestant claims that the right hand load wheel
bracket, valve lever, tension rod clevis, load wheel support,
parking brake lever assembly, and spindle left hand, are parts of
forklift trucks classifiable under subheading 8431.20.00, HTSUS.
The protestant has submitted engineering specifications and
photographs of the forklift truck parts that confirm that the
unfinished parts are manufactured by their vendors according to
their specifications for use with a forklift truck. Furthermore,
upon importation, the unfinished parts will be machined in the
protestant's domestic plant to be utilized in forklift trucks.
There is no indication that the parts will have use in any other
application.
The forklift truck parts at issue are not parts included in
any of the headings in chapters 84 and 85. Therefore, they
cannot be classified pursuant to Note 2(a), Section XVI, HTSUS.
However, inasmuch as the forklift truck parts are parts suitable
for use solely or principally with a forklift, they are
classified pursuant to Note 2(b), Section XVI, HTSUS. Forklift
trucks are classified in heading 8427, HTSUS. Therefore, the
right hand load wheel bracket, valve lever welded to a rod lever,
tension rod clevis, load wheel support, parking brake lever
assembly and spindle left hand are properly classified under
subheading 8431.20.00, HTSUS, which provides for "Parts suitable
for use solely or principally with the machinery of headings 8425
to 8430...Of machinery of heading 8427."
HOLDING:
The right hand load wheel bracket, valve lever, tension rod
clevis, load wheel support, parking brake lever assembly, and
spindle left hand, are classified under subheading 8431.20.00,
HTSUS, which provides for "Parts suitable for use solely or
principally with the machinery of headings 8425 to 8430...Of
machinery of heading 8427."
This protest should be granted. A copy of this decision
should be attached to the Customs Form 19 and provided to the
protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director