CLA-2 CO:R:C:M 955482 KCC
Mr. Ed Baker
A.N. Deringer, Inc.
173 West Service Road
Champlain, New York 12919
RE: Round bale handler; NY 889791 revoked; farm wagons and
carts; 8716.20.00; 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. Baker:
This is in reference to New York Ruling (NY) 889791 issued
to you on September 15, 1993, which concerned the tariff
classification of a round bale handler under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
NY 889791 held that model P-6800 auto load round bale
handler ("handler") was classified under subheading 8716.20.00,
HTSUS, which provides for self-loading or self-unloading trailers
and semi-trailers for agricultural purposes.
The handler at issue is used to self-load and transport
round bales of hay or straw on farms. It is a wheeled trailer
that is towed behind a tractor. The four rear-mounted wheels
operate off one axle. The submitted literature states that the
handler has a double action hydraulic system for the loading and
unloading of hay bales and operates using the hydraulic system of
the tractor to which it is connected. We understand that the
handler is designed to be hitched to the tractor's drawbar using
a standard hitch pin connection. There are no special coupling
devices involved in this connection. The handler is not designed
for highway use and can only travel safely at speeds from 20 to
25 miles per hour. The handler uses farm-type tires, has no
brakes, brake lights or suspension system, and is intended for
farm use only.
ISSUE:
Is the round bale handler classified under subheading
8716.20.00, HTSUS, as self-loading or self-unloading trailers and
semi-trailers for agricultural purposes?
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.
8716.80.10 Other vehicles...Farm wagons and carts.
We must determine whether the handlers 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 handlers 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
handlers. 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 round bale handlers are
classified as farm wagons and carts under subheading 8716.80.10,
HTSUS.
HOLDING:
The round bale handlers 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 889791. This letter is notice to you of the
revocation of NY 889791 under section 177.9(d)(1), Customs
Regulations (19 CFR 177.9(d)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division