CLA-2 RR:CTF:TCM H147081 CKG
TARIFF NO: 8709.19.00
Lynn Wendt
Wendt & Temples, LLC
401 Westpark Court
Peachtree City, Georgia
RE: Revocation of NY N129146; classification of WorkMax 800 utility vehicle
Dear Ms. Wendt,
This is in reference to New York Ruling Letter (NY) N129146, which U.S. Customs and Border Protection (CBP) issued to JCB, Inc. on November 18, 2010, classifying the WorkMax 800 utility vehicle in heading 8704, HTSUS, as a motor vehicle for the transport of goods. For the reasons set forth below, we have determined that the classification of the WorkMax 800 in heading 8704, HTSUS was incorrect.
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, notice proposing to revoke NY N129146 was published on August 24, 2011, in Volume 45, Number 35, of the Customs Bulletin. CBP received no comments in response to the notice.
FACTS:
The Workmax 800 is a four-wheeled, self-propelled vehicle that is used to haul materials in factories, warehouses, golf courses and sports fields. The WorkMax 800 features an open cab with a protective roll bar frame—no doors, windows or roof. It has a rear cargo tilt bed. It is powered by a 3-cylinder, 20-horsepower diesel engine with a top speed of 25 mph. The vehicle weighs 1565 lbs unladen, and has a load capacity of 1323 lbs/400kg. It measures 111.7 inches in length, and has a turning radius of 169 inches. The WorkMax has a 3-gear belt-drive, CVT transmission, rack and pinion steering and front and rear disc brakes. It also features design elements indicating substantial off-road use, including a “[h]eavy-duty dual element air filter standard, protecting the engine in all environments.” The filter intake is also mounted high to allow wading through water with no risk to the engine. The Workmax is fitted with either off-road tires or turf tires.
ISSUE:
Whether the WorkMax 800 utility vehicle is classified as works truck in heading 8709, HTSUS, based on prior CBP rulings classifying similar merchandise therein, or whether it is classified in heading 8704, as a vehicle for the transport of goods.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8704: Motor vehicles for the transport of goods:
Other vehicles, with spark-ignition internal combustion reciprocating piston engine:
8704.31.00 G.V.W. not exceeding 5 metric tons
* * * * *
8709: Works trucks, self-propelled, not fitted with lifting or handling equipment, of the
type used in factories, warehouses, dock areas or airports for short distance transport of goods; …; parts of the foregoing vehicles…:
Vehicles:
8709.19.00: Other…
* * * * *
The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (“ENs”) constitute the official interpretation of the HS. While not legally binding or
dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The EN for heading 8709 states, in pertinent part, as follows:
This heading covers a group of self propelled vehicles of the types used in factories, warehouses, dock areas or airports for the short distance transport of various loads (goods or containers) or, on railway station platforms, to haul small trailers.
Such vehicles are of many types and sizes. They may be driven either by an electric motor with current supplied by accumulators or by an internal combustion piston engine or other engine.
The main features common to the vehicles of this heading which generally distinguish them from the vehicles of heading 87.01, 87.03 or 87.04 may be summarised as follows :
(1) Their construction and, as a rule, their special design features, make them
unsuitable for the transport of passengers or for the transport of goods by road or other public ways.
(2) Their top speed when laden is generally not more than 30 to 35 km/h.
Their turning radius is approximately equal to the length of the vehicle itself.
Vehicles of this heading do not usually have a closed driving cab, the accommodation for the driver often being no more than a platform on which he stands to steer the vehicle. Certain types may be equipped with a protective frame, metal screen, etc., over the driver’s seat.
The vehicles of this heading may be pedestrian controlled.
Works trucks are self propelled trucks for the transport of goods which are fitted with, for example, a platform or container on which the goods are loaded.
…
The heading excludes :
…
(c) Dumpers (heading 87.04).
* * * * *
You request classification of the instant merchandise as a works truck of heading 8709, HTSUS, based on prior rulings issued by CBP classifying similar merchandise in heading 8709. The rulings claimed to be inconsistent include Headquarters Ruling Letter (HQ) 954173, dated September 22, 1993; HQ 960303, May 13, 1997; HQ 965246 November 6, 2001; HQ 966332, August 5, 2003; NY N024041, March 10, 2008; NY G87244, February 27, 2001; and NY C83109, January 29, 1998. In particular, CBP determined in HQ 966332, HQ 954173, HQ 960303, NY G87244, and NY C83109 that highly similar vehicles featuring an open cab, no doors, windows or windshield, small size, rear cargo bed, and low speed, were classified as works trucks of heading 8709, HTSUS.
Like the WorkMax 800, the above vehicles were designed for use in multiple environments, including significant off-road use (e.g., turf care, golf courses, agricultural work, landscaping, construction), while remaining unsuitable for on-road use due to the lack of safety features required by national regulations (e.g., doors, windows, roof, seat belts, turn signals, turn signals, hazard lights…). In particular, the WorkMan 3000 (HQ 966332), the Mules (HQ 954173), the Carryall VI XL (HQ 960303) and the Works Trucks of NY N011554 and NY N024041 share certain physical characteristics with the WorkMax 800 which are more typical of vehicles of heading 8704; the WorkMan 3000 and the Mules feature tilt/dump cargo beds, and the Carryall and the two Works Trucks have a turning radius substantially longer than the length of the vehicle (25.5 inches for the Carryall, 52.4 inches for the Works Trucks). Like the WorkMax 800, the WorkMan 3000, the Works Truck and Works Truck Model MUV700, and the Juli dump carts (NY I86040 and NY H87062) also have a maximum speed higher than the 30-35 kilometers per hour range specified in the EN.
Given the similarities between the WorkMax 800 and other vehicles classified in 8709 by the rulings discussed above, the WorkMax 800 is also classified as a works truck of heading 8709, HTSUS.
HOLDING:
By application of GRI 1, the WorkMax 800 is classified in heading 8709, HTSUS, specifically subheading 8709.19.00, HTSUS, which provides for “Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles: Vehicles: Other.” The 2011 column one, general rate of duty is Free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N129146, dated November 18, 2010, is hereby revoked.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division