CLA-2 RR:CR:GC 966332 AML
Mr. John Mattson
Norman G. Jensen, Inc.
3050 Metro Drive, Suite #300
Minneapolis, Minnesota 55425
RE: Transaxle; Workman 3000 Series Vehicles; HQs 954982 and 953670
revoked
Dear Mr. Mattson:
This is in regard to Headquarters Ruling Letters (“HQs”) 954982 and 953670, dated November 17 and July 16, 1993, respectively, issued to you on behalf of the Toro Company, regarding the tariff classification of a transaxle for the Workman 3000 Series Vehicles (hereinafter “Workman 3000”) under the Harmonized Tariff Schedule of the United States (HTSUS). We have reconsidered the classification determinations made in those rulings and determined that they are incorrect. This letter sets forth the correct classification of both the Workman 3000 and the transaxles therefor.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), notice of the proposed revocation of HQs 954982 and 953670 was published on May 28, 2003, in Vol. 37, No. 22 of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
We described the transaxles in HQ 953670 as follows:
The article under consideration is a transaxle for the Workman 3000 Series Vehicles. The Workman 3000 is a relatively small 4-wheel work vehicle that features two front seats and an open cargo area for the transport of merchandise. The vehicle can be used in a variety of settings (park and sports grounds, worksites, factories, agricultural fields, etc.) and it comes in a variety of models which are portrayed in the submitted brochure.
The Workman 3000 Series utilizes the Toro transaxle which is incorporated into one die cast aluminum housing. The unit has a 3-speed synchromesh transmission for smooth, easy shifting and quiet operation, a high-low range that delivers six distinct work ratios, a manual difflock to kick in extra traction when required, high efficiency spiral bevel differential gears, and an integrated hydraulic strainer and pump. This component is directly coupled to an engine with an automotive type bell housing, and a clutch to complete an all-enclosed power train.
We issued HQ 954982 to modify HQ 953670. Thus, both rulings were issued based on the same operative facts.
ISSUE:
What is the classification of the transaxle designed for use in the Workman 3000 Series Vehicles under the HTSUS?
LAW AND ANALYSIS:
Central to the classification of the transaxles is the classification of the Workman 3000 itself. We stated in HQ 953670 that:
Before we can determine the classification of the transaxle, we must determine the classification of the Workman 3000 Series vehicles. The Workman 3000 Series vehicles are classified under heading 8704, HTSUS, which provides for "Motor vehicles for the transport of goods...." See, Headquarters Ruling Letter (HRL) 082797 dated July 14, 1989, which classified a Mitsubishi lightweight vehicle under heading 8704, HTSUS.
It is this determination that we have reconsidered and now find to be erroneous. The correct analysis and classification are set forth below.
Classification of imported merchandise is accomplished pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Classification under the HTSUS is guided by the General Rules of Interpretation of the Harmonized System (GRIs). 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[.]”
The HTSUS provisions under consideration are as follows:
8704 Motor vehicles for the transport of goods:
Other, with spark-ignition internal combustion piston
engine:
8704.31.00 G.V.W. not exceeding 5 metric tons
* * *
8709 Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in
factories, warehouses, dock areas or airports for short distance transport of goods; tractors
of the type used on railway station platforms; parts of the foregoing vehicles:
8709.90.00 Parts.
The classification of the transaxle must be determined with due consideration of the classification of the Workman 3000 Series vehicles. As detailed in the “facts” section above, the Workman 3000 Series vehicles are subject of ruling HQ 954982 which, in reference to HQ 953670, dated July 16, 1993, classified the Workman 3000 under heading 8704, HTSUS, which provides for "motor vehicles for the transport of goods[.]" However, in a recent request for reconsideration, several rulings concerning the classification of articles that are substantially similar to the Workman 3000 and classify those articles as works trucks under heading 8709, HTSUS were identified.
The rulings cited are as follows:
In HQ 965246, dated November 6, 2001, after considering and distinguishing the characteristics of articles classifiable under heading 8704 and 8709, HTSUS, we classified a “Micro Truk” under heading 8709, HTSUS as a works truck. In so doing, we emphasized “certain design features” that are common to such articles:
Among these are their construction and special design features which make them unsuitable for the transport of goods by road or other public ways; their top speed when laden is generally not more than 30 to 35 km/h; their turning radius is approximately equal to the length of the vehicle itself; vehicles of heading 8709 do not usually have a closed driving cab, the accommodation for the driver often being no more than a platform on which to stand. HQ 965246 at page 3.
In New York Ruling Letter (“NY”) G87244, dated February 27, 2001, we classified a John Deere 1800 Utility vehicle under heading 8709, HTSUS, as a works truck. In so classifying the article we emphasized its design features and characteristics as follows:
It is a four-wheel, self- propelled utility vehicle and is used to haul materials in factories and warehouses and on golf courses, sports fields and nurseries. It has a 4-cycle, gasoline, 18 horsepower engine that can attain a maximum speed of 11.5 mph. The vehicle has a two-speed transaxle and large-diameter tires for traction. The vehicle has an open operator’s platform and comes with a cargo box capable of hauling materials up to 1500 lbs. The tailgate can be removed and the sides lowered to provide a flatbed surface. The vehicle’s turning radius (120.5 inches) is approximately equal to its length (102 inches). You state that the vehicle does have attachments. It has a sun canopy kit to shield the operator from inclement weather. It also has an auxiliary hydraulics kit to power attachments and a Cushman TD1500 Top Dresser. The Cushman Core Harvester and a cradle attachment can also be adapted to the John Deere 1800 Utility Vehicle. NY G87244 at 1.
We reached similar conclusions, i.e., we classified vehicles similar to the Workman 3000 under heading 8709, HTSUS, in several other rulings: NY C83109, dated January 29, 1998, in which the John Deere Gator Utility vehicle was so classified; HQ 960303, dated May 13, 1997, in which the Club Car utility vehicle was so classified; HQ 954173, dated September 22, 1993, in which the Mule utility vehicle was so classified.
We also considered the determinations made in HQs 082797, dated July 14, 1989, and 086305, dated January 24, 1990, both of which concerned the classification of the Mighty Mits line of lightweight work vehicles under heading 8704, HTSUS. HQ 086305 modified HQ 082797 as it pertained to the Mighty Mit model equipped with a dumper. We have examined those files, the images and literature contained therein and conclude that the articles therein in question were, given the evidence presented, properly classified. That is, the Mighty Mits, because of several design features that do not comport with those described in the ENs to heading 8709, HTSUS, set forth below, are readily distinguishable from the Workman 3000 articles before us.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. Customs believes the ENs should always be consulted. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to heading 8709, HTSUS, provide, in pertinent part, as follows:
This heading covers a group of self-propelled vehicles of the types used in factories, warehouses, dock areas or airports for the short distance transport of various loads (goods or containers) or, on railway station platforms, to haul small trailers.
Such vehicles are of many types and sizes. They may be driven either by an electric motor with current supplied by accumulators or by an internal combustion piston engine or other engine.
The main features common to the vehicles of this heading which generally distinguish them from the vehicles of heading 87.01, 87.03 or 87.04 may be summarised as follows:
(1) Their construction and, as a rule, their special design features, make them unsuitable for the transport of passengers or for the transport of goods by road or other public ways.
(2) Their top speed when laden is generally not more than 30 to 35 km/h.
(3) Their turning radius is approximately equal to the length of the vehicle itself.
Vehicles of this heading do not usually have a closed driving cab[.]
* * *
Works trucks are self-propelled trucks for the transport of goods which are fitted with, for example, a platform or container (sometimes designed for elevating) on which the goods are loaded.
* * *
The evidence provided establishes that the Workman 3000 is a small, 4-wheeled, self-propelled work vehicle with two front seats and an open cargo area in the rear designed for the short distance transport of merchandise. The turning radius is less than the length of the vehicle, its top speed without load is less than 25 miles per hour, and none of the models are equipped with lifting or handling equipment. The vehicles are marketed to be used for landscaping, facility maintenance, agricultural and warehouse use. Given the apparent descriptive similarity of the Workman 3000 to other works trucks classified under heading 8704, HTSUS (which were subject of the prior rulings discussed at length above), we compared the image of the Workman 3000 with the images of those vehicles provided on their respective websites. We conclude following this visual comparison that the Workman 3000 is substantially similar in form and intended use to those vehicles.
Based upon the holdings of the rulings cited above and the satisfaction of the criteria set forth in the ENs, we conclude that the Workman 3000 is properly classified under heading 8709, HTSUS, as a works truck. Accordingly, those rulings that classify the Workman 3000 under headings other than 8709, HTSUS, are being revoked.
The ENs to heading 8709, HTSUS, provide, pertaining to the classification of parts, the following:
This heading also covers parts of the vehicles specified in the heading, provided the parts fulfil both the following conditions:
(i) They must be identifiable as being suitable for use solely or principally with such vehicles;
and (ii)They must not be excluded from this heading by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note).
Parts of this heading include:
(6) Axles.
The evidence presented is that the transaxles at issue are designed and manufactured solely for use in the Workman 3000. Thus, they are classifiable as parts of a works truck under heading 8709, HTSUS.
HOLDING:
The transaxle for the Workman 3000 Series Vehicles is classified under subheading 8709.90.00, HTSUS, which provides for, inter alia, parts of works trucks.
EFFECT ON OTHER RULINGS:
HQs 954982 and 953670 are REVOKED. In accordance with 19 U.S.C. §1625 (c), this ruling will become effective sixty (60) days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial Rulings Division