CLA-2 OT:RR:CTF:TCM H156538 CkG
TARIFF NO: 4011.99.85
Attn: Aineda Hanxard
U.S. Customs and Border Protection
Port of Atlanta
4341 International Parkway Suite 600 Atlanta, GA 30354
RE: Application for Further Review of Protest No. 1704-10-100242;
classification of tires for lawn mowers
Dear Port Director,
This is in response to the Application for Further Review of Protest No. 1704-10-100242 filed on behalf of Monitor Manufacturing Corp. (‘Protestant”), contesting Customs and Border Protection’s (CBP) classification and liquidation of 97 entries of tires for lawn mowers in subheading 4011.99.85, Harmonized Tariff Schedule of the United States (HTSUS), as “other” pneumatic tires, of rubber.
FACTS:
At issue are 31 models of tires for use on lawn mowers, of the following styles: Kenda K358 Turf Rider, Kenda K401, Kenda K404, and the Kenda Super Turf K500. The tires are designed for low speed (normally 10 mph or less) turf application, and range in size from 13 to 24 inches in diameter, with a maximum load limit of 1340 lbs.
The subject merchandise was entered between April 3, 2009 and January 10, 2010, at the Port of Atlanta. CBP liquidated the entries on March 26, 2010, in subheading 4011.99.85, HTSUS. Protestant claims classification in subheading 4011.92.00, HTSUS, as “other” tires of a kind used on agricultural or forestry vehicles and machines, or in the alternative, in subheading 9817.00.60, as parts of a machine of heading 8433, HTSUS.
ISSUE:
Whether the subject tire styles are classified in subheading 4011.92.00, HTSUS, as tires of a kind used on agricultural or forestry vehicles and machines, or in subheading 4011.99.85, HTSUS, as other tires.
Whether the subject tires are subject to the special duty provision of subheading 9817.00.60, as parts of a machine of heading 8433, HTSUS.
LAW AND ANALYSIS:
Initially, we note that the matter protested is protestable under 19 U.S.C. §1514(a) (2) as a decision on classification. The protest was timely filed, within 180 days of liquidation of the first entry for entries made on or after December 18, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)).
Further Review of Protest No. 1704-10-100242 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24 because the decision against which the protest was filed Is alleged to involve questions of law or fact which have not been ruled upon by the Commissioner of Customs or his designee or by the Customs courts; specifically, whether tires for lawn and garden vehicles are classifiable as tires of a kind used on agricultural vehicles, and whether such tires are parts of agricultural machinery pursuant to subheading 9817.00.60.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
4011: New pneumatic tires, of rubber:
Other:
4011.92.00: Of a kind used on agricultural or forestry vehicles and machines . . .
4011.99: Other:
4011.99.85: Other . . .
* * * *
9817.00.60: Parts to be used in articles provided for in headings 8432, 8433, 8434 and 8436, whether or not such parts are principally used as parts of such articles and whether or not covered by a specific provision within the meaning of additional U.S. rule of interpretation 1(c) .
* * * * *
Additional U.S. Rule of Interpretation 1(b) states:
A tariff classification controlled by the actual use to which the imported goods are put in the United States is satisfied only if such use is intended at the time of importation, the goods are so used and proof thereof is furnished within 3 years after the date the goods are entered;
Note 1 to Section XVI provides, in pertinent part, as follows:
This section does not cover:
(a) Transmission, conveyor or elevator belts or belting, of plastics of chapter 39, or of vulcanized rubber (heading 4010); or other articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses, of vulcanized rubber other than hard rubber (heading 4016);
* * * * *
The Harmonized Commodity Description and Coding System Explanatory
Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General Explanatory Note to Section XVI provides, in pertinent part, as follows:
The Section does not, however, cover :
(a) Transmission or conveyor belts or belting, of plastics (Chapter 39); articles of unhardened vulcanised rubber (e.g., transmission or conveyor belts or belting) (heading 40.10), rubber tyres, tubes, etc. (headings 40.11 to 40.13) and washers, etc. (heading 40.16).
The EN to heading 8432, HTSUS, provides, in pertinent part:
This heading covers machines, whatever their mode of traction, used in place of hand tools, for one or more of the following classes of agricultural, horticultural or forestry work, viz.:
(I) Preparing the soil for cultivation (clearing, breaking, tilling, ploughing, loosening, etc.).
(II) Spreading or distributing fertilisers, including manure, or other products to improve the soil.
(III) Planting or sowing.
(IV) The working or maintenance of the soil during the growing period (hoeing, weeding, cleaning etc.).
* * * * *
At GRI 1, there is no dispute that the instant merchandise is classifiable in heading 4011, HTSUS, as new pneumatic tires of rubber. At issue is the proper eight-digit classification, which requires the application of GRI 6. GRI 6 requires that the GRI's be applied at the subheading level on the understanding that only subheadings at the same level are comparable.
Protestant claims classification of the instant tires in subheading 4011.92.00, HTSUS, as tires of a kind used on agricultural machines. Protestant argues that horticulture is a subcategory of agriculture, and therefore that mowers, as horticultural machinery, should also be considered agricultural machinery.
The term “agriculture” is not defined in the HTSUS or the Explanatory Notes. When a tariff term is not defined by the HTSUS or the legislative history, its correct meaning is its common, or commercial, meaning. See Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001). The court has stated on many occasions that "[t]o ascertain the common meaning of a term, a court may consult 'dictionaries, scientific authorities, and other reliable information sources' and 'lexicographic and other materials.'" Id. The Merriam Webster Dictionary Online defines “agriculture” as “the science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products : farming.” See http://www.merriam-webster.com/dictionary/agriculture .
In addition, in United States v. Boker & Co., 6 Ct. Cust. 243 (1915), the Court of Customs Appeals (the predecessor to the Court of Appeals for the Federal Circuit) construed the word "agriculture" to include only that which provides the substantial requirements of life and comfort:
While, therefore, "agriculture" in its broad application may extend into and include elements of horticulture, viticulture, arbor culture, and other allied industries and pursuits, in its primary significance it extends to and embraces only those parts of all such as pertain to human and incidental animal subsistence--the substantial requirements of life (food) and possibly man's comfort (raiment), and not the merely pleasurable pursuits; the necessities and not the essentially pleasurable or ornamental., and not the purely pleasurable pursuits.
United States v. Boker & Co., 6 Ct. Cust. 243 at 244-245.
Pursuant to the above definition, CBP has consistently held that the uses to which the instant tires are put, namely grooming and caring for lawns, are not considered agricultural pursuits because they do not provide for the substantial requirements of life and comfort but rather lead to the production of that which is essentially pleasurable or ornamental. See e.g., HQ 557232, dated September 28, 1993. CBP has thus declined to classify vehicles such as lawn mowers and tractors with multiple attachments for mowers, snow cleaners, harvesting, etc., as agricultural machinery. See HQ 956372, dated March 14, 1995; HQ 957627, dated July 25, 1995.
Furthermore, we note that “agricultural” and “horticultural” are specifically and separately referenced in the HTSUS, indicating that horticulture is not, for tariff purposes, simply a subset of agriculture. Heading 8432, HTSUS, for example, provides for “Agricultural, horticultural or forestry machinery.” Subheading 8424.81, HTSUS, similarly provides for, in pertinent part, other agricultural or horticultural appliances. While horticulture and agriculture may overlap, they are considered to constitute distinct activities in the HTSUS.
We also note that agricultural machinery is specifically provided for in heading 8432, HTSUS, as “agricultural…machinery for soil preparation or cultivation…,” while grass mowers and mowers for lawns, parks and sports grounds are specifically provided for in a separate heading, 8433, HTSUS, as “grass or hay mowers.” The existence of a separate and specific provision for lawn mowers is clear evidence that they are not considered agricultural machinery. Similarly, the U.S. Tire and Rim Association (TRA), the standardizing body for the tire, rim, valve and allied parts industry for the United States, groups agricultural and lawn and garden tires into separate categories; in the Tire and Rim Association Yearbook, specifications and standards for agricultural tires are located in the Agricultural section, while standards for Lawn and Garden tires are placed in the Industrial section. See U.S. Tire and Rim Association 2009 Yearbook.
Lawn or garden care and agricultural work thus constitute separate, distinct activities under the HTSUS. We now examine the use to which the instant tires are put.
Subheading 4011.69.00, HTSUS, is a “principal use” provision governed by Additional U.S. Rule of Interpretation 1(a), HTSUS, which provides that:
In the absence of special language or context which otherwise requires--a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use.
The Court of International Trade in Group Italglass, U.S.A., Inc. v. United States, 839 F. Supp. 866 (Ct. Int’l Trade 1993) stressed “that it is the principal use of the class or kind of good to which the imports belong and not the principal use of the specific imports that is controlling under the Rules of Interpretation.” Group Italglass, 839 F. Supp. at 867.
The courts have provided factors, which are indicative, but not conclusive, to apply when determining whether merchandise falls within a particular class or kind. These include: general physical characteristics, the expectation of the ultimate purchaser, channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), use in the same manner as merchandise which defines the class, economic practicality of so using the import, and recognition in the trade of this use. See United States v. Carborundum Company, 63 CCPA 98, C.A.D. 1172, 536 F. 2d 373 (1976), cert. denied, 429 U.S. 979 (1976). See also Lennox Collections v. United States, 20 C.I.T. 194, 196 (1996).
It is not in dispute that the instant tires are principally used with lawn mowers. Protestant notes that the tires are manufactured to the specifications of original equipment manufacturers for lawn mowers, such as John Deere, and that these specifications (size, shape and tread type) dedicate their use only on lawn mowers. Protestant further asserts that the tires it imports are assembled into lawn mower wheel assemblies and are sold only to lawn mower manufacturers or distributors or retailers of lawn mowers, as replacement tires for lawn mowers. The lawn mower tires imported by the Protestant are described only as lawn mower tires on the marketing material, including, Protestant asserts, in communications with buyers. Furthermore, Protestant asserts that the instant tires are suitable solely for lawn mowing, and not for any other pursuit. This is supported by the separate categorization of the two types of tires by the TRA, and also by the vastly different average specifications for agricultural and lawn and garden tires. The 2009 TRA Yearbook reveals vast differences in tire size and load ratings for lawn and garden tires versus agricultural tires. For example, the maximum load limit listed for lawn and garden tires in the yearbook is 2680 lbs. @10mph at the highest inflation pressure; for agricultural tires, e.g., tires for use on agricultural harvesting equipment, the maximum load limit is over 25,000 lbs. @10mph. The maximum load limit of the instant tires is 1340 lbs. While some overlap with lawn and garden tires in terms of size and load ratings exists at the lower end of the range for agricultural tires, on average agricultural tires are larger and designed to carry higher loads.
The tires at issue are thus of a kind principally used on lawn and garden tractors. Lawn and garden vehicles are not used for raising livestock, cultivating the soil, or raising crops. They are used to groom and care for lawns, which is an ornamental purpose. As such, tires for lawn and garden vehicles are not of a kind used on agricultural vehicles or machinery and are thus not classified in subheading 4011.92.00, HTSUS. As the tires at issue do not have a herring-bone tread they are classified in subheading 4011.99.85, HTSUS, as “other” pneumatic tires.
Protestant presents an alternative claim for duty free treatment under the special
classification provision of subheading 9817.00.60, HTSUS, an actual use provision provided for in Additional U.S. Rule of Interpretation 1(b). Subheading 9817.00.60, HTSUS, provides for parts to be used in articles provided for in heading 8433, HTSUS. However, tires are not classifiable as parts of any machine of Section XVI, regardless of use, pursuant to Note 1(a) to that Section, which excludes articles of vulcanized rubber used in machinery or mechanical appliances from classification in that Section. The General EN to Section XVI further clarifies that this exclusion applies to rubber tires classified in heading 4011, HTSUS. While subheading 9817.00.60 notes that articles normally excluded from classification as parts by AUSRI 1(c) may still be covered by this subheading if actually used as parts, this exception does not extend to Section XVI Note 1(a).
Because classification in subheading 9817.00.60 is not met, Additional U.S. Rule of Interpretation 1(b) is not implicated.
HOLDING:
By application of GRI 1, the lawn and garden tires imported by Monitor Manufacturing Corp. are classified in heading 4011, HTSUS, specifically subheading 4011.99.85, HTSUS, which provides for “New pneumatic tires, of rubber: Other: Other: Other.” The 2010 column one, general rate of duty is 3.4% ad valorem duty.
You are instructed to deny the protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division