CLA-2 CO:R:C:M 951434 AJS
Mr. L. J. Stout
General Sales Manager
Massey-Ferguson Industrial Machinery Inc.
1700 Belle Meade Court
Lawrenceville, GA 30243
RE: Tractors; Suitable for agricultural use; U.S. v. F.W.
Myers & Co.; HQ 951506; HQ 054346; TC 434.1 c; H. Conf. Rep.
No. 576; CIE N-71/77.
Dear Mr. Stout:
This is in reply to your letter of March 26, 1992,
requesting the tariff classification of various Massey-
Ferguson (MF) tractor models under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The models of tractors at issue are the MF 60HX, 40E,
30E and 50HX, 50H, 50EX, 50E (50 series). These tractors are
being used to handle manure, move feed and grain, load
fertilizer, carry fruit and vegetables, install field
drainage systems and irrigation systems, handle silage, clean
feed lots, accomplish field and tillage work, mow and
maintain pastures and grasslands.
The MF 30, 40 and 50 series models are upgraded versions
of tractors which Customs previously determined are "suitable
for agricultural use." The improvements made to these models
involved commercial enhancements, intended to promote
salability and to stay current with technology, such as in
the area of engine and working tool performance. However,
the basic tractor base and overall capabilities, as well as
the scope of use, have remained the same.
The MF 30E, 40E, 50E and 50EX are power take-off (PTO)
tractors. PTOs provide the power for the various attachments
which are used with tractors. The MF 30E has a PTO of 30.8
kW, the 40E a PTO of 38 kW, and the 50E and 50EX possess a
PTO of 44.9 kW. The MF 50H, 50HX and 60HX are not PTO
tractors, but can accommodate an optional PTO.
It is our understanding that the additional letter(s)
added to the basic model number of the tractor indicate, for
example, the country of origin, four wheel drive capabilities
or that substantial updated specifications are involved. See
Master Tractor Classification Index, CIE N-71/77, Supplement
#2 (April 8, 1983).
ISSUE:
Whether the subject tractors are properly classifiable
within subheading 8701.90.10, HTSUS, which provides for
tractors suitable for agricultural use; or classifiable
within subheading 8701.90.50, HTSUS, which provides for
"other" tractors.
LAW AND ANALYSIS:
Subheading 8701.90.10, HTSUS, provides for tractors
suitable for agricultural use. The phrase "suitable for
agricultural use" has been interpreted by the courts as
requiring that a tractor be actually, practically, and
commercially fit for such use. Suitability does not require
that the tractor be chiefly used in agricultural pursuits,
but there must be evidence of more than a casual, incidental,
exceptional or possible use in this area. There must be
evidence of substantial actual use in a recognized
agricultural pursuit. U.S. v. F.W. Myers & Co., Inc., C.A.D
1097, 476 F.2d 1377 (1973); See also HQ 951506 (5/29/92).
It is claimed that the subject models are upgraded
versions of tractors which we have previously ruled are
"suitable for agricultural use." In HQ 054346 (1/10/78), we
ruled that models of the MF 50 series satisfy this
requirement. In TC 434.1 c (10/9/69), we ruled that models
of the MF 30 and 40 series also satisfy this requirement.
However, we have not ruled on the suitability for
agricultural use of the MF 60HX tractor.
Congress has indicated that earlier tariff decisions
must not be disregarded in applying the HTSUS. The
conference report to the 1988 Omnibus Trade Bill states that
"on a case-by-case basis prior decisions should be considered
instructive in interpreting the HTS[US], particularly where
the nomenclature previously interpreted in those decisions
remains unchanged and no dissimilar interpretation is
required by the text of the HTS[US]." H. Conf. Rep. No. 576,
100th Cong., 2d Sess., p. 550, reprinted in 1988 U.S. CODE
CONG. & ADMIN. NEWS p. 1582. In this case, the nomenclature
previously by the courts and Customs is identical and the
text HTSUS does not require a different result. Accordingly,
we find these previous tariff decisions instructive for
interpreting subheading 8701.90.10, HTSUS, and its
applicability to the MF 30, 40 and 50 series tractors.
A product end-use survey covering the period 1989 - 91
was submitted which indicates that approximately one third of
the 350 subject tractors sold were intended for use in the
various agricultural pursuits outlined previously. Based on
this survey and previous tariff decisions, we find that the
subject MF 30, 40 and 50 series models are "suitable for
agricultural use." Therefore, these tractors satisfy the
terms of subheading 8701.90.10, HTSUS, and are properly
classifiable therein.
The submitted survey, however, indicates that only 4 of
the MF 60HX sales were intended for agricultural use. In our
view, four sales does not establish substantial actual use in
a recognized agricultural pursuit. Evidence of additional
sales must be provided in order to establish that the MF 60HX
models are suitable for agricultural use. Until this time,
the model 60HX is classifiable within subheading 8701.90.50,
HTSUS, which provides for "other" tractors which are not
suitable for agricultural use.
HOLDING:
The tractors models MF 30E, 40E, 50HX, 50H, 50EX and
50E are classifiable within subheading 8701.90.10, HTSUS,
which provides for tractors suitable for agricultural use,
duty-free.
The tractor model MF 60HX is classifiable within
subheading 8701.90.50, HTSUS, which provides for "other"
tractors, dutiable at the General Column 1 rate of 2.2
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division