CLA-2:CO:R:C:M 957033 JAS
Mr. Gary Gilstorf
AGCO Manufacturing Group
627 South Cottage
Independence, MO 64050-4339
RE: Tractors Other Than Track-Laying; Suitability for
Agricultural Use, U.S. v. F.W. Myers & Co., Inc.,
Subheading 8701.90.10; Other Tractors; HQ 951434 Modified
Dear Mr. Gilstorf:
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057), notice of
the proposed modification of HQ 951434 was published on February
15, 1995, in the Customs Bulletin, Volume 29, Number 7. As
successor to Massey-Ferguson Industrial Machinery, Inc., AGCO
Manufacturing Group was notified of this fact by letter dated
March 2, 1995.
In HQ 951434, issued to Massey-Ferguson Industrial
Machinery, Inc., on June 23, 1992, we held that certain MF
tractor models were classifiable free of duty in subheading
8701.90.10, Harmonized Tariff Schedule of the United States
(HTSUS), as tractors suitable for agricultural use.
In a later ruling, HQ 955502, issued to Massey-Ferguson on
March 31, 1994, we held that the MF vehicle models 750, 860 and
965 were excavating machines classifiable in subheading
8429.59.10, HTSUS. The models 750 and 860 were said to directly
replace the MF models 50H and 50HX, which were among the models
addressed in HQ 951434. We indicated that HQ 951434 would be
modified accordingly. This modification does not affect the
status of the MF 50H and 50HX as "tractors." The issue is the
sufficiency of evidence of their suitability for agricultural
use.
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FACTS:
HQ 951434, dated June 23, 1992, addressed the tariff status
of a certain line of Massey-Ferguson wheeled tractor. We held
that the MF 30E, 40E, 50E, 50EX, 50H, and 50HX were classifiable
in subheading 8701.90.10, Harmonized Tariff Schedule of the
United States (HTSUS), as tractors suitable for agricultural use.
We held the MF 60HX to be classifiable in subheading 8701.90.50,
HTSUS, a provision for other tractors, because of a lack of
evidence of suitability for agricultural use.
The provisions under consideration are as follows:
8701 Tractors (other than tractors of heading
(8709):
8701.90 Other:
8701.90.10 Suitable for agricultural use...Free
8701.90.50 Other...1.8 percent
ISSUE:
Whether the MF models 50H and 50HX are tractors suitable for
agricultural use.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 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, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6. GRI 6 states
in part that for legal purposes, the classification of goods in
the subheadings of a heading shall be determined according to the
terms of those subheadings and any related subheading notes and,
by appropriate substitution of terms, to GRIs 1 through 5, on the
understanding that only subheadings at the same level are
comparable. For the purposes of Rule 6, the relative section,
chapter and subchapter notes also apply, unless the context
requires otherwise.
To be "suitable for agricultural use" it must be established
that a tractor is actually, practically and commercially fit for
such use. Evidence of sole use or even principal use is not
required. However, there must be evidence of substantial actual
use in a recognized agricultural pursuit. U.S. v. F.W. Myers &
Co., Inc., C.D. 4256, C.A.D. 1097, 476 F. 2d 1377 (1973).
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In previous rulings on earlier generations of Massey-
Ferguson tractors, the models either had power take-off and
hydraulic hitch or were imported with attachments and implements
dedicated to agricultural applications. In addition, sales
statistics and end user statements supported suitability for
agricultural use. However, in HQ 951434 it was stated, among
other things, that the MF 50H, MF 50HX and MF 60HX are not PTO
tractors, but can accommodate an optional PTO. As you know,
power take-off is a feature that permits a tractor to utilize a
variety of attachments and implements, many of which relate
directly to agricultural pursuits. In addition, a more thorough
review of the end user survey submitted in connection with the
ruling request that resulted in HQ 951434 indicates that of the
181 reported tractor sales during the period in question only 5
MF 50Hs and 3 MF 50HXs were sold to agricultural end users. For
these reasons, we conclude that the evidence of record does not
support a finding that the MF 50H and the MF 50HX are suitable
for agricultural use.
HOLDING:
Under the authority of GRI 1, the Massey-Ferguson (MF)
tractor models 50H and 50HX are provided for in heading 8701.
They are classifiable in subheading 8701.90.50, HTSUS, as other
tractors. The MF 60HX remains classifiable in subheading
8701.90.50 as indicated in HQ 951434.
HQ 951434, dated June 23, 1992, is hereby modified as
indicated. In accordance with 19 U.S.C. 1625(c)(1) this ruling
will become effective 60 days after its publication in the
Customs Bulletin. Publication of rulings or decisions pursuant
to 19 U.S.C. 1625(c)(1) does not constitute a change of practice
or position in accordance with section 177.10(c)(1), Customs
Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division