CLA-2 CO:R:C:M 951865 DWS
District Director
U.S. Customs Service
55 Erieview Plaza
Cleveland, OH 44114
RE: Protest No. 4101-92-100022; Parts for Trenching Machines;
Trenching Machines; HQ 046455; HQ 040129; Section XVI,
Note 2(b); 8429.59.50; 8432.90.00
Dear Sir:
This is our response on Application for Further Review of
Protest No. 4101-92-100022, dated April 9, 1992, concerning your
action in classifying and assessing duty on parts for trenching
machines under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The subject merchandise consists of parts for trenching
machines. The parts are comprised of a K.H. cutter, a R.H.
cutter, a 25 mm chain, a top split sprocket, a throttle valve, an
oil seal, a seal, a seal for a valve block, bearings, a track
drive sprocket, and a hoe top sprocket. It is stated that the
machines are used to excavate drainage ditches in agricultural
fields, among other applications.
ISSUE:
What is the proper classification of the subject parts for
trenching machines under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
The merchandise was entered under subheading 8432.90.00,
HTSUS, which provides for: "[a]gricultural, horticultural or
forestry machinery for soil preparation or cultivation; lawn or
sports ground rollers; parts thereof: [p]arts." However, the
merchandise was liquidated under subheading 8431.49.90, HTSUS,
which provides for: "[p]arts suitable for use solely or
principally with the machinery of headings 8425 to 8430: [o]f
machinery of heading 8426, 8429 or 8430: [o]ther: [o]ther."
Before we can determine the proper classification of the
subject parts, we must determine the proper classification of the
trenching machine under the HTSUS. HQ 046455, dated August 10,
1978, dealt with the classification of trenching machines under
the Tariff Schedules of the United States (TSUS). In that ruling
we stated that:
. . . . the issue is whether or not trenching is an
agricultural pursuit. We are persuaded that it itself is an
industrial, and not an agricultural, pursuit. As your
submission suggests the use of these trenching machines to
construct a drainage system on agricultural lands is a one-
time operation performed by land contractors. Land
contracting is manifestly an industrial pursuit. Moreover,
the Encyclopedia Britannica lists self-propelled trenching
machines as excavation machinery in a class with power
shovels, backhoes, bulldozers, scrapers, graders, and the
like. (Vol.8, p.940, 1963 ed.). This class of machinery
is normally considered to be employed in industrial, rather
than agricultural, pursuits.
Decisions under the TSUS are not dispositive in interpreting
the HTSUS. However, on a case-by-case basis they should be
considered instructive in interpreting the HTSUS, particularly
where the nomenclature previously interpreted in those decisions
remains unchanged and no dissimilar interpretation is required by
the text of the HTSUS. Based upon the finding in HQ 046455, it
is our position that trenching machines are classifiable under
subheading 8429.59.50, HTSUS, which provides for: "[m]echanical
shovels, excavators and shovel loaders: [o]ther: [o]ther." See
also HQ 040129, dated May 23, 1975.
In part, section XVI, note 2(b), HTSUS, states that:
[o]ther 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. . . .
Because the subject parts are parts suitable for use solely
or principally with trenching machines, then, under section XVI,
note 2(b), HTSUS, the merchandise is classifiable under
subheading 8431.49.90, HTSUS. We reach this conclusion under the
assumption that none of the parts qualify for classification
elsewhere by reason of any legal note in the HTSUS.
HOLDING:
The merchandise is classifiable under subheading 8431.49.90,
HTSUS, which provides for: "[p]arts suitable for use solely or
principally with the machinery of headings 8425 to 8430: [o]f
machinery of heading 8426, 8429 or 8430: [o]ther: [o]ther."
The protest should be denied in full. 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
Commercial Rulings Division