CLA-2 CO:R:C:M 953559 DWS
Mr. Bill Jerome
H.A. & J.L. Wood, Inc.
231 N. 3rd Street
Pembina, ND 58271
RE: Trail Grooming Vehicle; Special Purpose Motor Vehicle;
Explanatory Note 84.29(B); 8429.59.50
Dear Mr. Jerome:
This is in response to your letter of February 4, 1993, to the
Regional Commissioner of Customs, New York, on behalf of Tri-Track
International, concerning the classification of trail grooming
vehicles under the Harmonized Tariff Schedule of the United States
(HTSUS). Your letter has been transferred to Customs Headquarters
for a reply.
FACTS:
The trail grooming vehicles, imported from Canada, are self
propelled, diesel powered, and 3-tracked vehicles which are
designed for maintaining and grooming snowmobile and cross country
ski trails. The vehicle is built on a formed welded steel chassis.
The vehicle has a tricycle configuration with two tracks at the
rear and one track at the center front. Track width and spacing
is such to ensure complete snow compaction across the full width
of the vehicle, leaving no loose snow in the tracks. Features
include a 155 - 190 h.p. engine (class A) or a 70 - 90 h.p. engine
(class B), a triple walking beam style or rubber mounted axle type
track suspension, a hydraulic steering system, a closed loop
hydrostatic drive system, hydraulic foot operated brakes which are
attached to each of the rear tracks, and a separate parking brake.
Other features include an accelerator/decelerator rocker pedal, a
floor mounted dimmer switch, headlights, working lights and signal
lights mounted at the front and rear of the cab, rear view mirrors,
and a back up horn.
The cab is a fully enclosed all-weather structure which holds
two people. The cab has an entry door on each side, one opening
window on each side, and a roof escape hatch. The cab is rubber
mounted and is separate from the engine compartment to reduce noise
and vibrations. All windows are equipped with safety glass, and
the windshield is made of laminated safety glass. Wipers are
attached to the front and rear windshields to maintain front and
rear visibility at all times. All main controls and
instrumentation are mounted in a full length center console located
between the operator seat and the passenger seat.
The tracked vehicle has a cutter blade centered between the
front and rear tracks. The front track compacts snow in the center
of a trail preventing deep snow from being caught in the vehicle
frame. The rear tracks travel on smooth ground resulting in less
disturbance to the cutter blade. The tracks cover the full vehicle
width and there is little chance of the vehicle becoming stuck in
deep snow. The groomer is located in front of the vehicle's cab
between the front and rear tracks. It possesses hydraulic side
tilt, giving the vehicle the ability to cut high spots on either
side of a trail. A packing plate is located behind the rear track.
ISSUE:
Whether the trail grooming vehicle is classifiable under
heading 8429, HTSUS, as a grader or leveler, or under heading 8705,
HTSUS, as a special purpose motor vehicle?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
It is claimed that the merchandise is a grader or leveler
classifiable under subheading 8429.59.50, HTSUS, which provides
for: "[s]elf-propelled bulldozers, angledozers, graders, levelers,
scrapers, mechanical shovels, excavators, shovel loaders, tamping
machines and road rollers: [m]echanical shovels, excavators and
shovel loaders: [o]ther: [o]ther."
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). Explanatory Note
84.29(B) (p. 1201) states that:
. . . this heading . . . includes the following:
(B) Graders and levellers. These are machines designed for
earth levelling or smoothing (on flat surfaces or banks)
by means of an adjustable grading blade, usually mounted
within the wheel base.
Explanatory Note 84.29(B), for classification purposes, is
very specific as to the definition of a grader and a leveler. To
be classifiable as a grader or a leveler under heading 8429, HTSUS,
a machine or vehicle must be designed for earth leveling or
smoothing. Therefore, it is our position that the trail grooming
vehicle is precluded from classification under heading 8429, HTSUS,
because it grooms snow, not earth.
Heading 8705, HTSUS, provides for: "[s]pecial purpose motor
vehicles, other than those principally designed for the transport
of persons or goods (for example, wreckers, mobile cranes, fire
fighting vehicles, concrete mixers, road sweepers, spraying
vehicles, mobile workshops, mobile radiological units)."
In part, Explanatory Note 87.05 (p. 1429) states that:
[t]his heading covers a range of motor vehicles, specially
constructed or adapted, equipped with various devices that
enable them to perform certain non-transport functions, i.e.,
the primary purpose of a vehicle of this heading is not the
transport of persons or goods.
We find that, based upon the above definition of a special
purpose motor vehicle under Explanatory Note 87.05, the trail
grooming vehicle is classifiable under heading 8705, HTSUS.
Specifically, the merchandise is classifiable under subheading
8705.90.00, HTSUS, which provides for: "[s]pecial purpose motor
vehicles, other than those principally designed for the transport
of persons or goods (for example, wreckers, mobile cranes, fire
fighting vehicles, concrete mixers, road sweepers, spraying
vehicles, mobile workshops, mobile radiological units): [o]ther."
HOLDING:
The trail grooming vehicle is classifiable under subheading
8705.90.00, HTSUS. The general, column one rate of duty is 3.7
percent ad valorem.
Because the merchandise is manufactured in Canada, upon the
meeting of certain regulations, it will be dutiable at 1.8 percent
ad valorem under the U.S.-Canada Free-Trade Agreement.
Sincerely,
John Durant, Director
Commercial Rulings Division