CLA-2 CO:R:C:M 088524 CMS
8431.49.90
Mr. Martin W. Dooley, President
Multimodal International, Ltd.
2258 Landmeier Road
Elk Grove, IL 60007
RE: Backhoe Excavators; Disassembled; Incomplete;
Knocked Down
Dear Mr. Dooley:
This is in response to your request dated January 8, 1991,
for a classification ruling on certain disassembled, incomplete
backhoe excavators.
FACTS:
The merchandise consists of six models of disassembled and
incomplete Kobelco backhoe excavators (Models SK 120, SK 200, SK
220, MD 140, MD 200 and MD 240). The disassembled excavators
are missing the link-buckets, arms, booms, arm and boom
cylinders, lower frames and upper frames. The lower frames
connect the two tracks and support the slewing ring. The upper
frames consist of a center section and two side decks. The
missing components comprise 20.99% to 23.19% of the total value
of the complete excavators, depending on the model.
ISSUE:
Is the merchandise classified as excavators in Heading 8429,
or as parts of excavators in Heading 8431?
LAW AND ANALYSIS:
The Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) provides that the classification of articles
is governed by the General Rules of Interpretation (GRI's). GRI
1 states in pertinent part that "...classification shall be
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determined according to the terms of the headings and any
relative section or chapter notes and, provided such headings or
notes do not otherwise require, according to the following
provisions:".
GRI 2(a) in pertinent part provides that a reference in a
heading includes a reference to that article incomplete, provided
that as entered the article has the essential character of the
complete article. GRI 2(a) also provides that a reference to an
article includes that article entered disassembled.
Heading 8429 in pertinent part describes excavators. The
merchandise as entered does not have the essential character of
complete excavators. Not only is the merchandise missing the
components which connect the bucket to the propelling base, the
merchandise is missing key structural components of both the
lower track portion of the propelling base and the upper
cab/power plant portion of the propelling base. Without the
lower and upper frames, the tracks could not be connected, the
slewing ring would have no support and the cab/power plant
portion would have no frame onto which other components could be
mounted and supported.
In HQ Ruling 086555 (April 16, 1990), we held that
excavators which were missing the link-bucket, arm, boom,
counterweight and cab assembly were classified as excavators in
Heading 8429. The components missing from the merchandise under
consideration, however, have a substantially greater value and
more integral functions than the components missing from the
merchandise in Ruling 086555. In addition to the link-bucket,
arm and boom, the merchandise under consideration is missing the
arm and boom cylinders which actuate the arm and boom and thus
aid in moving the excavating bucket. Without the lower frames,
the tracks cannot be connected and slewing ring supported.
Without the upper frames, the components of the cab/power plant
portion do not have the structural frame onto which they can be
mounted and supported. Without the missing components, the
merchandise under consideration does not even consist of a base
which can be self-propelled.
The merchandise under consideration does not have the
essential character of complete excavators, and cannot be
classified in Heading 8429. The excavating buckets are
classified as parts of the machinery of Heading 8429, buckets, in
subheading 8431.41.00, HTSUSA. The remaining components are
classified as parts of the machinery of Heading 8429, other,
other, in subheading 8431.49.90, HTSUSA.
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HOLDING:
The excavating buckets are classified as parts of the
machinery of Heading 8429, buckets, in subheading 8431.41.00,
HTSUSA, currently subject to a General Column 1 rate of duty of
2.5%. The remaining components are classified as parts of the
machinery of Heading 8429, other, other, in subheading
8431.49.90, currently subject to a General Column 1 rate of duty
of 2.5%.
Sincerely,
John Durant, Director
Commercial Rulings Division