CLA-2 CO:R:C:M 951440 AJS
District Director
U.S. Customs Service
40 South Gay Street
Baltimore, MD 21202
RE: Protest 1303-92-100013; Mobile processing plant; Subheading
8436.80.00; EN 84.65 (A)(9)(c); H. Conf. Rep. No. 576; EN 84.36
(I)(ij).
Dear District Director:
This is our decision on protest for further review number
1303-92-100013, dated January 22, 1992, filed against the tariff
classification of the "MZA 2500S Mobile Processing Plant" (MPP)
within subheading 8465.96.00, Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The subject MPP is designed to grind up and break down large
amounts of organic material (e.g., logs, branches, vegetation,
etc.,) in specific preparation for large scale composting. This
material is then made into compost, a substance used to fertilize
gardens, farmland, etc. The submitted video presents the MPP
processing tree limbs, stumps and wooden pallets in addition to
other waste material.
ISSUE:
Whether the subject MPP is properly classifiable within
subheading 8465.96.00, HTSUS, which provides for machine tools
for splitting, slicing or paring wood or similar hard materials;
or within subheading 8436.80.00, HTSUS, which provides for other
agricultural, horticultural, forestry, etc., machinery.
LAW AND ANALYSIS:
Heading 8465, HTSUS, provides for machine tools for working
wood or similar hard materials. The subject MPP satisfies this
description. The protestant states that the MPP is used to grind
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up and breakdown waste wood and other organic materials. In
addition, the submitted video principally shows the MPP
processing tree limbs, stumps and wooden pallets. While the MPP
is capable of processing other waste material, it appears to be
principally used to process wood and similar hard materials.
Accordingly, the MPP satisfies the terms of heading 8465, HTSUS,
and is properly classifiable therein.
Subheading 8465.96.00, HTSUS, provides for splitting,
stamping, fragmenting, paring and slicing machines. The
Harmonized Description and Commodity Coding System Explanatory
Notes (ENs) state that fragmenting machines produce small pieces
of wood of similar size and shape. EN 84.65 (A)(9)(c), p. 1286
(1992). The MPP satisfies this description. It fragments wood
into small pieces of a similar size. While the ENs are not
dispositive, they provide a commentary on the scope of each
heading and offer guidance for interpretation of the HTSUS. H.
Conf. Rep. No. 576, 100th Cong., 2d Sess., p. 550, reprinted in
1988 U.S. CODE CONG. & ADMIN. NEWS p. 1582. Thus, we find the
above EN instructive for determining that the subject MPP
satisfies the terms of this subheading.
Heading 8436, HTSUS, provides for other agricultural,
horticultural or forestry machinery. This heading covers
machinery which is of the type used on farms, in forestry, in
market gardens, or poultry-keeping or bee-keeping farms or the
like. ENs 84.36, p. 1217 (1992). The submitted literature,
video and protestant's own statement indicate that the MPP is
used for the large scale production of compost material. The
protestant states that the MPP is intended to break down material
in preparation for "large scale composting." In addition, the
video shows the MPP processing tree limbs, stumps, wooden pallets
and other materials in industrial settings. Furthermore, the
literature stresses that the MPP is "powerful" and provides
"optimum" shredding without any problems. Based on this
information, the MPP does not appear to be of the type used on
farms but of a type used for the large scale break down of wood
and other similar materials. Accordingly, we find the above EN
instructive for determining that the MPP does not satisfy the
terms of heading 8436, HTSUS.
This conclusion is also supported by other portions of the
ENs to heading 8436, HTSUS. They state that machines clearly of
a kind designed for industrial use are excluded from this
heading. ENs 84.36, p. 1217. As discussed above, the MPP is of
a kind designed for industrial use. The ENs additionally state
that this heading does not cover machine tools for working wood
(heading 84.65). EN 84.36 (I)(ij), p. 1218. As discussed
previously, the MPP satisfies the description of a machine tool
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for working wood which is provided for within heading 8465,
HTSUS. Therefore, we also find these ENs instructive for
determining that the subject MPP does not satisfy the terms of
heading 8436, HTSUS.
The protestant argues that because the material processed by
the MPP may or is used to produce compost, then the MPP is
intended for agricultural use. We do not find this argument
persuasive. The MPP does not itself produce compost. It merely
breaks down wood and similar hard materials, which is a function
specifically provided for within heading 8465, HTSUS. This wood
may subsequently be made into compost, but as the submitted video
indicates, other steps (e.g., using a different machine to aerate
the material) are required before this material becomes compost.
Furthermore, the MPP could be used at any industrial site for the
processing of waste materials purely for disposal purposes and
not for compost production.
HOLDING:
The subject Mobile Processing Plant is classifiable within
subheading 8465.96.00, HTSUS, which provides for machine tools
for splitting, slicing or paring wood or similar hard materials.
You should deny the protest in full. A copy of this decision
should be attached to the Customs Form 19 and mailed to the
protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division