CLA-2 RR:CR:GC 959625 HMC
Port Director of Customs
2nd and Chestnut Streets
Philadelphia, PA 19106
RE: Protest 1101-96-100334; Crane Equipped Log Forwarder;
Motor Vehicle for the Transport of Goods; Tractors;
Chapter 87, Note 2; HQ 957397, HQ 086395; Explanatory
Note to Heading 8704; Heading 9817; Chapter 98,
Subchapter XVII, US Note 2 (w).
Dear Port Director:
This is our decision on Protest 1101-96-100334, filed
against your classification of certain crane equipped log
forwarders. The entries under protest were liquidated on April
19, 1996, and this protest timely filed on April 30, 1996. In
preparing this ruling, consideration was given to arguments
presented during a meeting with counsel for the protestant on May
12, 1997, and to protestant's supplemental submission, dated July
7, 1997.
FACTS:
The merchandise under protest are 6 and 8 wheel Rottne SMV
Rapid Forwarders also known as crane equipped log forwarders.
The log forwarders have an enclosed cab and a cranab grapple
crane mounted on the trailer portion. They are used to handle,
sort, collect, pile, load and unload timber on tree farms and in
forests, and to transport the timber to a landing or loading area
from where it is subsequently trucked to processing plants.
These vehicles are described as having a four-wheeled articulated
wagon with gates and bunks in its trailer area, designed to hold
up to 10 tons of lumber. The wagon features an outreach loader
for collecting lumber that is not self-propelled and attached to
the tractor hydraulics and power train via a power take-off
(PTO).
The log forwarders were originally entered under a provision
for agricultural tractors, duty-free in subheadings 8701.90.1070
and 9817.00.50 of the Harmonized Tariff Schedule of the United
States (HTSUS). However, the entries were liquidated in
subheadings 8704.21.00, 8704.22.50 and 8704.23.00, HTSUS, as
motor vehicles for the transport of goods.
The provisions under consideration are as follows:
8436 Other agricultural, horticultural, forestry,
poultry-keeping or bee-keeping machinery,
including germination plant fitted with
mechanical or thermal equipment; poultry
incubators and brooders; parts thereof:
8436.80.00 Other machinery...Free
* * * *
8701 Tractors (other than tractors of heading 8709):
8701.90 Other:
8701.90.10 Suitable for agricultural use...Free
* * * *
8704 Motor vehicles for the transport of goods:
Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel):
8704.21.00 G.V.W. not exceeding 5 metric tons...25 percent
8704.22 G.V.W. exceeding 5 metric tons but not exceeding 20 metric tons:
8704.22.50 Other...25 percent
8704.23.00 G.V.W. exceeding 20 metric tons...25 percent
* * * *
9817.00.50 Machinery, equipment and implements to be used for agricultural or horticultural purposes...free
ISSUE:
Whether the log forwarders are tractors or motor vehicles
for the transport of goods.
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.
Protestant claims that the articulated wagons and tractors
are properly classified separately. Alternatively, if considered
a single unit, protestant claims that the log forwarders are
properly classified under subheadings 8701.90.10 or
8436.80.00/9817.00.50, HTSUS. Protestant argues that based on
Chapter 87, Note 2, the Rottne Rapid Forwarders should be
considered tractors coupled with self-loading wagons.
Chapter 87, Note 2, HTSUS, states that
" tractors' means vehicles constructed
essentially for hauling or pushing another
vehicle, appliance or load, whether or not
they contain subsidiary provision for the
transport, in connection with the main use of
the tractor, of tools, seeds, fertilizers or
other goods."
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized system. While not legally binding on the
contracting parties, and therefore not dispositive, the ENs
provide a commentary on the scope of each heading of the
Harmonized System and are thus useful in ascertaining the
classification of merchandise. Customs believes the ENs should
always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128
(Aug. 23, 1989).
EN 87.04, at p. 1428, indicates that self-loading vehicles
equipped with winches, elevating devices, etc., but designed
essentially for transport purposes, are among the vehicles
covered. Thus, if the log forwarders are vehicles designed
essentially for the transport of lumber, they are described by
heading 8704.
It is well settled that merchandise must be classified with
reference to its condition when imported. As imported, the log
forwarders are the kind of vehicles contemplated by EN 87.04.
The Rottne Rapid Forwarders are vehicles equipped with a cranab
grapple crane mounted on the trailer portion or wagon. The log
forwarders are single, interdependent units designed essentially
to transport already harvested timber to a landing area from
where it is trucked to processing plants. This is sustained by
HQ 957397, dated February 15, 1994 and HQ 086395, dated February
22, 1990, where it is stated that the design features of the
vehicles in issue suggest a rugged, off-road vehicle designed to
transport logs over short distances in the forest to points where
they can be collected. The crane merely facilitates the
transportation function. The designation log forwarder supports
this conclusion. We therefore find that the log forwarders under
protest are motor vehicles for the transport of goods, covered by
heading 8704.
Protestant states that the Rottne Rapid log forwarders are
specifically designed for hauling a bogie (wagons) and other
implements used in the harvesting of lumber. We disagree. To
support its argument, Protestant cites a Revenue Ruling from
Canada and other Customs Headquarters rulings. These rulings are
distinguishable since they do not involve log forwarders. Also,
as to the Canadian ruling, Customs is not bound to abide by
another country's rulings. At best, the foreign ruling is merely
instructive of how others may classify like goods. See T.D.
89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
Having found that Rottne Rapid Forwarders fall under heading
8704, Chapter 98, Subchapter XVII, U.S. Note 2 (w), HTSUS,
precludes subheading 9817.00.50 from consideration.
HOLDING:
Under the authority of GRI 1, the crane-equipped log
forwarders are provided for in heading 8704. They are
classifiable in subheadings 8704.21.00, 8704.22.50 and
8704.23.00, HTSUS, as appropriate.
This protest should be DENIED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, you should mail this
decision, together with the Customs Form 19, to the Protestant no
later than 60 days from the date of this letter. Any
reliquidation of the entry or entries in accordance with the
decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and to the public via the Diskette Subscription Service, the
Freedom of Information Act and other public access channels.
Sincerely,
John Durant, Director
Tariff Classifications Appeals Division