HQ 086888
AUG 2 1990
CLA-2:CO:R:C:G 086888 JAS
Mr. Terence Derry
Valmet Materials Handling Equipment, Inc.
1520 Randolph Avenue
Avenel, N.J. 07001
RE: Container Stacker Straddle Carrier
Dear Mr. Derry:
In your letter of April 2, 1990, you inquire as to the
tariff classification of container handling straddle carriers
from Finland. Our ruling follows.
FACTS:
Descriptive literature you submitted depicts self-
propelled machines used in container terminals to load, unload,
stack and transport containers over short distances. They
consist of a large steel superstructure/chassis mounted on two
parallel sets of wheels. The wheels turn independently for
maximum maneuverability. The superstructure is open at both
ends to permit the straddle carrier to be driven over and
straddle the container to be lifted. Lifting is accomplished
by means of two horizontal, heavy duty cylinders mounted on the
top frame, lift chains, and a T-shaped telescopic top lift
spreader designed to handle all sizes of containers. The
operator's cabin is located at the top of the superstructure
for clear visibility.
ISSUE:
Whether the straddle carrier in issue is a works truck
fitted with lifting or handling equipment.
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LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) in accordance
with the General Rules of Interpretation (GRIs). GRI 1 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 and, provided the headings or
notes do not require otherwise, according to GRIs 2 through 6.
You maintain that under the HTSUSA predecessor tariff
code, the Tariff Schedules of the United States (TSUS), these
straddle carriers were free of duty. The HTS equivalent,
heading 8427, is a duty-free provision for fork-lift trucks and
other works trucks fitted with lifting or handling equipment.
Heading 8426, on the other hand, provides for derricks, cranes,
including cable cranes, mobile lifting frames, straddle
carriers and works trucks fitted with a crane.
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized System.
Though not binding, they provide a commentary on the scope of
the Harmonized System, and are thus useful in ascertaining the
classification of merchandise under the System. Customs
believes they should always be consulted. Relevant ENs
describe the straddle carriers of heading 84.26 as consist[ing]
of a chassis of the "straddle" type, generally with vertical
telescopic members for adjusting the height. This chassis is
normally mounted on four or more tyred wheels which usually
serve both as driving and steering wheels so as to permit
maneuvering within a very small radius. Straddle carriers are
used in factories, warehouses, dock areas, airports etc., for
handling long loads or for stacking containers. These notes
describe the machines in issue here. In addition, ENs
describing the trucks and equipment of heading 84.27
specifically exclude straddle carriers and works trucks fitted
with a crane of heading 84.26.
While the underlying intent in converting the TSUS to the
HTSUSA was to be revenue neutral to the greatest extent
possible, it was recorgnized that in some cases the conversion
would result in changes in duty rates. Regrettably, this is
such a case.
HOLDING:
Under the authority of GRI 1, the Valmet container stacker
straddle carrier is provided for by name in heading 8426.
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Actual classification is in subheading 8426.12.0000, HTSUSA,
mobile lifting frames on tires and straddle carriers. The rate
of duty is 2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division