CLA-2 R:C:M 956003 DWS
Mr. Frank M. Murphy
Carr Consulting Group
P.O. Box 398
Farmington, MI 48332-0398
RE: Components of Off-Road Dump Trucks Contained in Separate
Shipments; U.S. v. Baldt Anchor; HQ 950034; NAFTA Certificate
of Origin; Article 501
Dear Mr. Murphy:
This is in response to your letter of February 3, 1994, to the Regional Commissioner of
Customs, New York, and your facsimile transmission of May 26, 1994, to this office, on behalf of
Euclid-Hitachi, concerning the applicability of the North American Free Trade Agreement
(NAFTA) and classification of components of off-road dump trucks under the Harmonized Tariff
Schedule of the United States (HTSUS). We regret the delay of our response.
FACTS:
The merchandise consists of disassembled off-road dump trucks (model nos. R35, R60, R85B,
R130, R170, and R190), entered into the U.S. in several shipments from Canada. The payload
range of the trucks is from 35 to 209.5 tons, they are equipped with diesel engines, and their
maximum gross machine weight (GMW) ranges from 146,000 pounds (lbs.) to 683,000 lbs. With
body installed, the R85B measures 33 feet 8 inches x 16 feet 9 inches x 17 feet 10 inches, the
chassis weighs 106,150 lbs., and the body weighs 25,850 lbs. for a GMW of 132,000 lbs.
Because these vehicles are so large and heavy, they cannot be accommodated on public roads.
Each vehicle is manufactured pursuant to customer specifications. After the vehicle is ready
for shipment, it is necessary for it to be disassembled and forwarded to the U.S. in multiple truck
or rail car loads. A single "knocked-down" dump truck, disassembled into separate shipments
will never cross the U.S. border at the same time. In fact, the components of a single dump truck
will be separated into multiple shipments, and may well arrive in the U.S. on different days.
You have provided invoices and purchase orders of one dump truck as an example of the
importation of dump trucks by Euclid-Hitachi into the U.S. from Canada. The subject invoices
demonstrate that one shipment contained the truck's chassis and attached transmission; another
shipment included the truck's front and rear axle assemblies, a parts box, and the fuel tank
assembly; and a third shipment included the tire and rim assembly. These shipments arrived in the
U.S. on different days. After all of the components are imported, they are delivered directly to
the customer's job site, where the truck is completely assembled. Not all of the components are
wholly produced in Canada; for instance, the truck's tires are from Spain.
ISSUE:
Whether the components of an off-road dump truck contained in separate shipments together
constitute a complete truck.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of
Interpretation (GRI's).
GRI 1 provides that classification is determined according to the terms of the headings and any
relative section or chapter notes.
In U.S. v. Baldt Anchor, 59 CCPA 122 (1972), the Court of Customs and Patent Appeals
(CCPA) addressed a similar issue. In that case, six machines designed to be used and operated
together were imported in two shipments on different days (one in the first shipment and five in
the second) and each classified separately. The importer claimed classification of the two
shipments as an entirety. The Court cited to the long-established principle that articles which are
not imported together are precluded from being classified as an entirety. Baldt Anchor at 126.
Therefore, the Court held that because one machine was imported in a shipment separate from the
five machines imported in the second shipment, it cannot be considered together with the second
shipment to form an entirety. Id.
With regard to the subject merchandise, different components of a truck are imported on
different days. Based upon the reasoning in Baldt Anchor, the components contained in the
separate shipments do not together constitute a complete truck, and each shipment must be
classified separately based upon the components contained therein. See HQ 950034, dated
February 3, 1992, for a classification ruling concerning an off-highway dump hauler shipped in
parts entered separately.
Because we conclude that separate entries of the truck components are required, it is our
position that a blanket NAFTA certificate of origin may not be issued for the dump truck.
Instead, a certificate of origin covering the components separately entered must be executed.
Because we recognize this requirement may be regarded as difficult, our policy in this area is
under study.
HOLDING:
The components of an off-road dump truck contained in the separate shipments do not
together constitute a complete truck, and each shipment must be classified separately based upon
the components contained therein.
A NAFTA blanket certificate of origin is not acceptable.
A separate certificate of origin must be presented for each component separately entered.
Sincerely,
John Durant, Director
Commercial Rulings Division