CLA-2 OT:RR:CTF:TCM H250681 PJG
Alyce K. Lyne
Harte & Lyne Limited
9 Brockley Drive Hamilton, Ontario Canada L8E 3C3
RE: Tariff classification of Hydrospade Vacuum Excavators
Dear Ms. Lyne:
This ruling is in response to your letter dated October 30, 2013, filed by Harte & Lyne Limited on behalf of Hazeland Manufacturing Inc. (“Hazeland”) requesting a binding ruling on the tariff classification of three models of the Hydrospade Vacuum Excavators under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your request has been forwarded by the National Commodity Specialist Division to this office for a reply.
FACTS:
The two models of the Hydrospade Vacuum Excavators at issue are as follows: 1) the skid-mounted Hydrospade Vacuum Excavator; and 2) the trailer-mounted Hydrospade Vacuum Excavator. The two models vary in debris capacity, water tank size, and method of transportation. The Hydrospade Vacuum Excavators include the following components: 1) debris tank; 2) water tank; 3) vacuum pump; 4) hose; 5) filter; 6) water pump; 7) hoist; 8) engine; and 9) water hose/reel.
You describe the purpose and function of the Hydrospade Vacuum Excavators as follows:
Hydrospade Vacuum Excavators utilize a pressurized water stream to dig and dislodge materials and a vacuum system to deposit dislodged materials (sludge) into the debris tank for transport to a disposal site. The primary function of the Hydrospade Vacuum Excavator is to excavate or expose utility lines and pipes in a manner that does not damage these utilities.
The unit’s water pressure system is comprised of a water holding tank and pressure pump which creates a pressurized stream of water to dislodge material at the work site. This unit’s vacuum system consists of a vacuum pump connected to an air filter which in turn is connected via a hose to the debris tank. It creates a vacuum in the debris tank allowing dislodged material to enter a hose that is connected to the tank through a manual shutoff valve in the debris tank. The water pump and vacuum pump are driven by a diesel engine via belts and direct couplers.
When the debris tank is filled, the unit is taken to a disposal site where the debris is unloaded by opening the rear door and raising the hoist of the debris tank.
You describe the operation of the Hydrospade Vacuum Excavators as follows:
Vacuum boom or hose from the rear intake valve is placed over area to be excavated.
Water pressure hose with lance is unreeled to excavation area.
Engine is started for operating the vacuum and water pump.
Water pressure lance is engaged to turn dry soils into a thin sloppy mud consistency (slurry), while vacuum boom removes slurry from excavation and into the debris tank.
For winter operations the boiler is used to thaw frozen ground.
As soon as the debris tank is full the float valve in the tank will activate and stop filling.
In order to prevent debris from damaging the pump, when the vacuum is created in the debris tank, the air is filtered between the tank and the pump.
The hoist is used to tip the debris tank and discharge the slurry, in order to unload the debris at a dump site.
You indicate that “[t]he excavator could not work alone without the combination of water pressure and vacuum, but the vacuum can work without the excavator.”
ISSUE:
What is the proper classification of the skid-mounted and trailer-mounted model Hydrospade Vacuum Excavators under the HTSUS?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with 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 may then be applied.
The 2017 HTSUS provisions under consideration are as follows:
8424 Mechanical appliances (whether or not hand operated) for
projecting, dispersing or spraying liquids or powders; fire
extinguishers, whether or not charged; spray guns and similar
appliances; steam or sand blasting machines and similar jet
projecting machines; parts thereof:
8430 Other moving, grading, leveling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; pile-drivers and pile-extractors; snowplows and snowblowers:
8508 Vacuum cleaners; parts thereof:
GRI 3(c) provides as follows:
3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
* * *
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
Note 3 to Section XVI, HTSUS, which includes Chapter 84, states the following:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
Note 5 to Section XVI, HTSUS, states the following:
For the purposes of these notes, the expression “machine” means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
General Note VI to Section XVI, HTSUS provides, in relevant part, the following:
(VI) MULTI FUNCTION MACHINES AND COMPOSITE MACHINES
(Section Note 3)
In general, multi-function machines are classified according to the principal function of the machine.
Multi-function machines are, for example, machine-tools for working metal using interchangeable tools, which enable them to carry out different machining operations (e.g., milling, boring, lapping).
Where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply General Interpretative Rule 3 (c); such is the case, for example, in respect of multi function machines potentially classifiable in several of the headings 84.25 to 84.30, in several of the headings 84.58 to 84.63 or in several of the headings 84.70 to 84.72.
Composite machines consisting of two or more machines or appliances of different kinds, fitted together to form a whole, consecutively or simultaneously performing separate functions which are generally complementary and are described in different headings of Section XVI, are also classified according to the principal function of the composite machine.
The EN to 84.30 states, in pertinent part:
This heading covers machinery, other than the self propelled machines of heading 84.29 and agricultural, horticultural or forestry machinery (heading 84.32), for “ attacking ” the earth’s crust (e.g., for cutting and breaking down rock, earth, coal, etc.; earth excavation, digging, drilling, etc.), or for preparing or compacting the terrain (e.g., scraping, levelling, grading, tamping or rolling). It also includes pile drivers, pile extractors, snow ploughs, and snow blowers.
* * *
MULTI FUNCTION MACHINES
Many machines, in addition to carrying out the functions described in heading 84.29 or 84.30 (excavating, levelling, boring, etc.), can also perform the functions described in heading 84.25, 84.26, 84.27 or 84.28 (lifting, loading, etc.). These machines are classified in accordance with Note 3 to Section XVI or by application of Interpretative Rule 3 (c). Examples are combined coal cutting and loading machines, combined trenching and pipe lifting and lowering machines, etc.
* * *
The heading includes :
* * *
(V) EARTH EXCAVATING, SCRAPING OR LEVELLING MACHINERY
This group includes:
Digging or excavating machines described in Explanatory Note to heading 84.29, not self propelled.
* * *
The heading also excludes :
(a) Hydraulic guns designed for dislodging minerals (e.g., gold bearing sands) from hill sides, etc., by projecting powerful water jets (heading 84.24).
* * *
The EN to 85.08 provides, in relevant part, as follows:
Subject to Note 1 (d) to Chapter 85, this heading covers vacuum cleaners of all kinds, whether or not hand-held, including dry and wet vacuum cleaners, whether or not presented with accessories such as rotary brushes, carpet beating devices, multiple-function suction heads, etc.
Vacuum cleaners perform two functions : the suction of material, including dust, and the filtering of the air stream. Suction is effected by means of a turbine fixed directly onto the shaft of the motor, turning at high velocity. The dust and other material are collected in an internal or external dust bag or other receptacle, whereas the air sucked in and filtered is also used to cool the motor.
Both models of the Hydrospade Vacuum Excavator are machines designed to perform multiple functions. We are of the view that the two primary functions are excavating dirt using pressurized water, and vacuuming up the dislodged debris. We note that the dumping function of the subject merchandise is a subsidiary function compared to its excavating and vacuuming capabilities. The machine used to perform the excavation is a water jet of heading 8424, HTSUS. The machine used to suck up the debris is a vacuum of heading 8508, HTSUS. Pursuant to Note 3 to Section XVI, HTSUS, the subject merchandise is a composite machine because it is a machine that is designed for the purpose of performing two or more complementary or alternative functions.
Hazeland argues that the skid-mounted and trailer-mounted Hydrospade Vacuum Excavator are classifiable in heading 8430, HTSUS, which provides for “Other moving, grading, leveling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; pile-drivers and pile extractors; snowplows and snowblowers.” However, the EN to 84.30 states that it excludes “[h]ydraulic guns designed for dislodging minerals (e.g., gold bearing sands) from hill sides, etc., by projecting powerful water jets (heading 84.24).” Like the hydraulic guns described in the EN to 84.30, both Hydrospade Vacuum Excavators use “a pressurized water stream to dig and dislodge materials” from a work site. Therefore, the excavating portion of these machines is classified under heading 8424, HTSUS, which provides for “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof.”
We are of the view that the excavation and vacuum functions are equally important. Both functions unearth utility lines and pipes. The ENs to section XVI, instruct that where it is not possible to determine the principal function, we may apply GRI 3(c). GRI 3(c), provides that goods “shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.” The heading which occurs last in numerical order among those which equally merit consideration is heading 8508, HTSUS, which provides for “Vacuum cleaners; parts thereof.” Therefore, we find that the skid-mounted and trailer-mounted models of the Hydrospade Vacuum Excavators are classified under heading 8508, HTSUS, and specifically under subheading 8508.60.00, HTSUS, which provides for “Vacuum cleaners; parts thereof: Other vacuum cleaners.”
Our conclusion is consistent with New York Ruling Letter (“NY”) N235425, dated December 11, 2012, wherein CBP classified the trailer-mounted and skid-mounted VecLoader, which utilizes suction and filtration to vacuum flowable bulk materials and liquids and initially deposits the material in bags in merchandise in subheading 8508.60.00, HTSUS.
HOLDING:
Under the authority of GRIs 1 (Note 3 to Section XVI) and 3(c), the skid-mounted and trailer-mounted Hydrospade are classified in heading 8508, HTSUS, specifically in subheading 8508.60.00, HTSUS, which provides for “Vacuum cleaners; parts thereof: Other vacuum cleaners.” The 2017 column one, general rate of duty is free.
Duty rates are provided for convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch