CLA-2 CO:R:C:M 955262 KCC
Mr. William J. LeClair
Trans-Border Customs Services, Inc.
One Trans-Border Drive
P.O. Box 800
Champlain, New York 12919
RE: Hay Bale Trailer; NY 852004 revoked; farm wagons and carts;
8716.20.00; 8716.39.00; trailers and semi-trailers;
principal use; Additional U.S. Rule of Interpretation 1(a);
EN 87.16; Jones v. U.S.; HRL 070245; HRL 072237
Dear Mr. LeClair:
This is in reference to New York Ruling (NY) 852004 dated
May 25, 1990, which concerned the tariff classification of a hay
bale trailer under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
NY 852004 held that model F-40 Flexi-Bale round bale
handling trailer ("trailer") was classified under subheading
8716.39.00, HTSUS, which provides for agricultural trailers and
semi-trailers for the transport of goods.
The trailer is described as a four wheel, rubber tired,
metal "wagon" that is used to carry round hay bales. The trailer
has a single axle located toward the rear of the vehicle. The
flat cargo bed has two metal uprights on the back side that
prevent bales from rolling off the back of the trailer.
Additionally, the trailer has a hydraulic arm on the side that
"spears" the rolled bale from the ground and loads it on the
"wagon." The trailer is hitched to a farm tractor and is used to
transport merchandise from the hay field to the hay storage area
on a farm. The design of the trailer is such that its use is
limited to agricultural pursuits. From the submitted information
it appears that the trailer is attached to the farm tractor with
a simple drawbar hitch connection and there does not appear to be
brake lights or any suspension system.
ISSUE:
Is the hay bale trailer classified as agricultural trailers
and semi-trailers for the transport of goods under subheading
8716.39.00, HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, 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...." The competing
subheadings are:
8716 Trailers and semi-trailers; other vehicles, not
mechanically propelled; and parts thereof...
8716.20.00 Self-loading or self-unloading trailers and semi-trailers for agricultural purposes.
8716.39.00 Other trailers and semi-trailers for the transport
of goods...Other....
8716.80.10 Other vehicles...Farm wagons and carts.
Classification under subheading 8716.39.00, HTSUS, is
incorrect, because the trailers at issue have a self-loading and
self-unloading mechanism; the hydraulic arm that loads and
unloads the hay bales. Therefore, we must determine whether the
trailers at issue meet the definition of "trailers and semi-trailers" or that of "farm wagons and carts." The competing
subheadings in this case are controlled by use. "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." Additional U.S. Rule of
Interpretation 1(a), HTSUS.
Explanatory Note (EN) 87.16 of the Harmonized Commodity
Description and Coding System (pg. 1439) states that for the
purposes of heading 8716, HTSUS:
...the terms "trailers" and "semi-trailers" means vehicles
(other than side-cars) of a kind designed solely to be
coupled to another vehicle by means of a special coupling
device (whether or not automatic).
The most important types of trailers and semi-trailers
falling in this group are those designed for use with motor
vehicles. Trailers usually have two or more sets of wheels,
and a coupling system mounted on the swivelling front wheels
which steer the vehicles. Semi-trailers are fitted with
rear wheels only, the forward end resting on the platform of
the towing vehicle to which it is coupled by a special
device.
The ENs, although not dispositive, are to be looked to for the
proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128
(Aug. 23, 1989).
No distinctions between "trailers and semi-trailers" and
"farm wagons and carts" has been drawn for classification
purposes under the HTSUS. However, this issue as to whether an
article is a farm wagon or a trailer has been considered numerous
times under the Tariff Schedules of the United States (TSUS).
In Richard L. Jones v. United States, 58 Cust. Ct. 165, C.D.
2920 (1967), the court held that certain cotton wagons, used to
transport cotton from a field to a gin were classified as farm
wagons and carts in item 666.00, TSUS, which provided for
agricultural implements, not specifically provided for. Although
the court's conclusion appears to classify the cotton wagons
under two distinct provisions of item 666.00, TSUS (i.e., "farm
wagons" and "agricultural implements not specially provided
for"), we note that the court went to great lengths to
distinguish between a wagon and a trailer. A trailer, according
to the definitions cited by the court, appears to be designed for
highway travel or for use in an industrial plant. A farm wagon
or cart is not so designed. Further, the court noted that the
terms "wagon' and "cart" are not synonymous with "trailer."
Headquarters Ruling Letter (HRL) 070245 dated February 10,
1993, classified hay bale handlers, which are similar to the
trailers at issue, in item 666.00, TSUS. HRL 070245 stated:
[w]agons which are designed for and chiefly used in
agricultural pursuits are characterized by their off-highway
utilitarian nature. These wagons usually do not have
lights, brakes, or shock-absorbing suspensions. They are
capable of bearing heavy loads over rough terrain, and they
are incapable of safe speed over 20 miles per hour. Some of
these wagons have self-unloading features designed to enable
a person to pick up agricultural products from the field for
transport to market or to a storage site.
See also, HRL 072237 dated August 23, 1983, which classified
other hay bale trailers in item 666.00, TSUS.
Congress has indicated that earlier tariff decisions must
not be disregarded in applying the HTSUS. The conference report
to the Omnibus Trade Bill states that "on a case-by-case basis
prior decisions should be considered instructive in interpreting
the HTS[US], particularly where the nomenclature in those
decisions remains unchanged and no dissimilar interpretation is
required by the text of the HTS[US]." H. Rep. No. 100-576, 100th
Congr., 2D Sess., 548, 550 (1988). We find the earlier
decisions to be both instructive and applicable. Although
changes in the nomenclature from the TSUS to the HTSUS have
occurred, no dissimilar interpretation is required. HRL 072237
and HRL 070245 dealt with the meaning of terms "trailers" in item
692.60, TSUS, and "wagons or cart" in item 666.00, TSUS. These
terms are still used in subheadings 8716.20.00 and 8716.80.10,
HTSUS.
The trailers at issue are specifically designed to pick up,
stack and transport hay bales from the field to a storage area.
There does not appear to be any other designed use for these
trailers. Their design is such that they have limited safe use
on a highway because they do not have lights, brakes or shock
absorption systems. Based on the information submitted and prior
rulings, we are of the opinion that the model F-40 Flexi-Bale
round bale handling trailers are classified as farm wagons and
carts under subheading 8716.80.10, HTSUS.
HOLDING:
The subject hay bale trailers are classified under
subheading 8716.80.10, HTSUS, which provides for "Trailers and
semi-trailers; other vehicles, not mechanically propelled; and
parts thereof...Other vehicles...Farm wagons and carts", which is
a duty-free tariff provision.
To insure uniformity in Customs classification of
merchandise of this type and to eliminate uncertainty, we are
revoking NY 852004. This letter is notice to you of the
revocation of NY 852004 under section 177.9(d)(1), Customs
Regulations (19 CFR 177.9(d)(1)).
Additionally, it should be noted that the version of NY
852004 which is available to Customs personnel via the Customs
Rulings Module in ACS and the public via the Diskette
Subscription Service, Lexis, etc. was an earlier draft version
which was incorrectly forwarded as public information. That
version classified the hay bale trailer under subheading
8716.80.10, HTSUS. Although the incorrect classification was set
forth in NY 852004 and the correct classification was set forth
in the Rulings Module, as of the date of this ruling the Rulings
Module version now presents the correct classification of the
subject hay bale trailers.
Sincerely,
John Durant, Director
Commercial Rulings Division