CLA-2 RR:CR:GC 962540 JAS
Jessica B. Woodhouse, Esq.
Parsons Behle & Latimer
P.O. Box 45898
Salt Lake City, UT 84145-0898
RE: Covered Personnel Carrier and Hydraulic Lift and Boom Vehicle for Use in Underground Mines
Dear Ms. Woodhouse:
In a letter, dated February 26, 1999, on behalf of Mac’s Mining Repair Service, you ask that we give immediate consideration to the classification under the Harmonized Tariff Schedule of the United States (HTSUS), of two customized Toyota Land Cruiser mine vehicles imported from Canada. Brochures and other descriptive information on these vehicles accompanied Mac’s letter of December 10, 1998, to the Customs National Commodity Specialist Division, New York. No issue is raised as to the status of the vehicles as originating goods under the North American Free Trade Agreement.
FACTS:
Two Toyota Land Cruiser cab chassis of Japanese origin are modified in Canada by Ens Industrial, as hereinafter described, into a customized Toyota Land Cruiser hydraulic lift or boom vehicle, and a customized Toyota Land Cruiser covered mine personnel carrier. The Japanese-origin vehicles entering Canada are Toyota Land Cruiser chassis with enclosed cabs; that is, they are fully operational vehicles without bodies.
The vehicles that arrive in Canada are one-ton 4x4 truck chassis with cabs, 66 inches wide and 76 inches tall, which Mac states are significantly smaller than vehicles in their weight class. Among other things, they have six cylinder 4164 cc diesel engines, front and rear wet disk braking system which Federal
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mining regulations deem suitable for steep grades said to be found in many mines, and 5-speed manual transmission with gears locked out to limit maximum forward speeds to 20 mph or less. The literature states the cab chassis conform to energy mines and resources certification #949. In Canada, the vehicles’ height will be reduced to 66 inches by cutting off and rebuilding the cab and rear compartments. Safety features will be added, to include master battery disconnect circuits, back-up alarms, underground wiring harnesses, a so-called Murphy safety sentinel system, exhaust purifier, heavy duty back-up lights and automatic fire suppression system, and rock fall protection over cab and personnel compartments in the form of raised steel frames, plus reinforced front and rear bumpers.
These modifications in Canada will be followed by the addition of hydraulic lift and boom mechanisms and heated personnel compartments, respectively. These modifications are said to result in a 30 percent increase in the value of the vehicles.
The hydraulic lift or boom vehicle, with the number
30-86-2005 stenciled on its side, front and rear, has an enclosed cab designed to seat the driver and one passenger and will have fitted to its rear bed a hydraulic scissor lift or hydraulic boom platform that moves in the vertical plane only. Mac states the vehicle is for loading and unloading heavy mining equipment. The boom platform, however, has a railing on three sides and a detachable chain on the fourth side, which suggests it may accommodate maintenance personnel. The platform covers the entire surface area of the rear bed, and the vehicle has no visual cargo-carrying capability.
The covered mine personnel carrier has an enclosed cab with individual seats, each with a headrest, to accommodate the driver and one passenger. It has a rear passenger compartment, enclosed and heated, with nonremoveable upholstered bench seats, parallel to each other, and double windows on each side. Mac states the bench seats accommodate from six to eight miners dressed in underground safety equipment. Entry is through the rear by means of double doors, each with a window, and a step-up bumper. The rear compartment has no lockers, tool boxes or other visible storage capability. Though open at the bottom, the bench seats are built low to the floor which makes storage of tools or other equipment impractical.
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Mac contends that the hydraulic lift or boom vehicle is provided for in heading 8705, HTSUS, as a special purpose motor vehicle, and that the covered mine personnel carrier is provided for in heading 8702, HTSUS, as a motor vehicle for the transport of ten or more persons, including the driver.
The provisions under consideration are as follows:
8702 Motor vehicles for the transport of ten or more persons, including the driver:
8702.10 With compression-ignition internal combustion piston engine (diesel or semi- diesel):
8702.10.60 Other...2 percent ad valorem, but free of duty under NAFTA if a product of Canada
* * * *
8703 ...other motor vehicles principally designed for the transport of persons (other than those of heading 8702)...:
Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel):
8703.33.00 Of a cylinder capacity exceeding 2,500 cc...2.5 percent ad valorem, but free of duty under NAFTA if a product of Canada
* * * *
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods...:
8705.90.00 Free
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ISSUE:
Whether the hydraulic lift or boom vehicle is provided for in heading 8705; whether the covered mine personnel carrier is a motor vehicle of heading 8702 or heading 8703.
LAW AND ANALYSIS:
Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), goods are to be classified 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.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. Though not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and Customs believes the ENs should always be consulted. See T.D. 89-80. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
As to the hydraulic lift and boom vehicle, relevant ENs at p. 1549 state that special purpose motor vehicles of heading 8705 are 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 heading 8705 is not the transport of persons or goods. Among the vehicles listed under paragraph (3) are lorries fitted with ladders or elevator platforms for the maintenance of overhead cables, street lighting, etc. Although the vehicle can accommodate the driver and one passenger, clearly it’s primary purpose is not the transport of persons. The hydraulic lift and boom vehicle conforms to this description.
As to the covered personnel carrier, headings 8702 and 8703 both provide for motor vehicles that transport persons. Relevant ENs on p. 1546 indicate that vehicles of heading 8702 be designed for the transport of ten persons or more, while heading 8703 requires that vehicles be principally designed to transport persons. Despite incorporating a truck chassis, there is no compelling evidence that the covered personnel carrier is designed for the carriage of goods. The structural and auxiliary design features of the vehicle, as previously discussed, warrant the conclusion that it is principally designed to transport persons. In our opinion, any cargo-carrying capability the vehicle possesses is incidental. However, beyond stating on p. 4
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of its December 10, 1998, submission that the personnel carrier “contains bench seats that accommodate six to eight miners,” Mac makes no argument that the vehicle is “designed” for the transport of ten or more persons. Neither submitted literature nor Federal mine safety and health regulations specify the vehicle’s seating capacity. There is no evidence from which we can conclude the personnel carrier is described by heading 8702.
HOLDING:
Under the authority of GRI 1, the customized Toyota Land Cruiser hydraulic lift or boom vehicle is provided for in heading 8705. It is classifiable in subheading 8705.90.00, HTSUS. The customized Toyota Land Cruiser covered mine personnel carrier, number 30-86-2005, is provided for in heading 8703. It is classifiable in subheading 8703.33.00, HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division