OT:RR:CTF:EMAIN H307394 JRG
Mr. Matthew Clark
SEKO Customs Brokerage
1100 Arlington Heights Road, Suite 600
Itasca, Illinois 60143
RE: Revocation of NY N114998 (August 5, 2010), NY 807222 (March 23, 1995), and NY 801876 (September 19, 1994), and modification of NY N297986 (July 17, 2018) and NY 897172 (May 2, 1994); Tariff classification of Wood Chipping/Shredding Machines
Dear Mr. Clark:
This is regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of wood chipping/shredding machines (WCSMs) in New York Ruling Letter (NY) N114998, issued to you on behalf of your client on August 5, 2010. Upon review, we have concluded that NY N114998 is incorrect regarding the ten-digit statistical reporting number referenced in the ruling. We also found that NY 807222, NY 801876, NY N297986 and NY 897172 are erroneous in the same respect.
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. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on October 30, 2024, in Volume 58, Number 43, of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
The facts of NY N114998 are as follows:
The two articles in question are electrically powered machines designed to chip and shred small pieces of garden debris and cuttings. Model GS70014 and QS70020 are both corded devices which are designed for use in home gardens. The primary difference between the two machines is that model QS70020 uses a quieter induction motor.
The facts of NY 807222 are as follows:
The merchandise under consideration is the 300K Posch Professional Shredder, model numbers B6, B7 and Z, along with an optional towing hitch. The B6 and B7 models are driven by gasoline motors while the Z model operates off the PTO shaft of a tractor. The LandTek correspondence states that the shredders are used for grinding garden clippings, leaves, small branch prunings, plant prunings, end of season plantings, and the like. These materials are placed in the top of the machine where they are drawn in by conveyor and are fed into the shredding compartment which consists of a 27 mallet hammer mill. The mulched material is processed and deposited on the ground, to be ultimately used for composting material. LandTek states that these machines are used widely by farmers, nurseries, vineyards, home gardeners and the like.
The facts of NY 801876 are as follows:
The wood chippers in question are the Industrial Wood Chipper Model 4 and the Model 6. The Model 4 can accommodate wood pieces up to 4 inches in diameter while the Model 6 can handle pieces up to 6 inches in diameter. The chippers are designed to operate through the PTO of a tractor and are intended for use in such areas as parks, orchards, vineyards, farms, and large estates. Wood is placed into an infeed chute where a flywheel blade cuts the material in to one-quarter inch pieces. The chips are discharged by the fins on the back of the flywheel due to the blower effect of the design. The chips are frequently used as a bedding material or as cover material.
The relevant facts of NY N297986 are as follows:
The third tractor implement is referred to as a Mulcher, Shredder and Chipper Attachment. The implement is not self-powered but rather derives its power from a tractor through a Power Take Off (PTO). It is used to reduce organic debris such as wood, plant clippings and leaves into small pieces in order to create mulch for composting. Vegetation is fed into the machine's hopper where it is pulled into a spinning grinding head. Knives then cut and reduce the vegetation into small pieces which are ejected out through a discharge chute. The resulting compost is used to enrich soil for crop production.
The relevant facts of NY 897172 are as follows:
The imported product is the Patu model DC65 woodchipper. The wood-chipper has a 3-point hook, and is powered by the power-take-off of a farm tractor. The woodchipper features four knives that will efficiently chip limbs, slabs or whole trees. The knife setting ranges from 1/4 inch to 1/2 inch. The maximum infeed diameter is 6-1/2 inches (170 mm). The feed chute is on the right side of the chipper which enables the operator to work away from the road traffic. The feed chute can be folded up and latched, thus ensuring a safe road transport. The model DC65 also features an adjustable chip length that enables the production of the correct chip size for different purposes. The discharge chute rotates 360 degrees, allowing the chips to be blown in the desired direction. The DC65 woodchipper weighs 650 pounds.
ISSUE:
Whether the subject wood chipping/shredding machines are "forestry machinery" described by statistical reporting number 8436.80.0020, HTSUS Annotated (HTSUSA).
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARIs). GRI 1 provides that the classification of goods shall be "determined according to the terms of the headings and any relative section or chapter notes." If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order.
The following 2024 HTSUSA provisions are under consideration:
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:
8436.80.0020 Forestry machinery. . .
* * *
8436.80.0090 Other. . .
* * *
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System also support this conclusion. The ENs represent the official interpretation of the tariff 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). The ENs to heading 8436, in relevant part, provide:
The heading covers machinery, not falling in headings 84.32 to 84.35, which is of the type used on farms (including agricultural schools, co-operatives or testing stations), in forestry, market gardens, or poultry-keeping or bee-keeping farms or the like. However, it excludes machines clearly of a kind designed for industrial use. . . .
These [articles of heading 8436] include: . . .
(H) Forestry machines, such as: . . .
(5) Machines for chipping branches, twigs, etc., following pruning, delimbing, etc., using chipping blades. The chips are discharged by a blower unit...
Neither the HTSUS nor the Explanatory Notes (ENs) define the term "forestry." When a tariff term is not defined by the HTSUS or its legislative history, "the term's correct meaning is its common meaning." Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed. Cir. 1994). The common meaning of a term used in commerce is presumed to be the same as its commercial meaning. See Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989). To ascertain the common meaning of a term, U.S. Customs and Border Protection (CBP) may consult "dictionaries, scientific authorities, and other reliable information sources" and "lexicographic and other materials." C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271 (C.C.P.A. 1982); Simod, 872 F.2d at 1576.
In its Dictionary of Forestry, the Society of American Foresters defines the term "forestry" as follows:
...the profession embracing the science, art, and practice of creating, managing, using, and conserving forests and associated resources for human benefit and in a sustainable manner to meet desired goals, needs, and values -note the broad field of forestry consists of those biological, quantitative, managerial, and social sciences that are applied to forest management and conservation; it includes specialized fields such as agroforestry, urban forestry, industrial forestry, nonindustrial forestry, and wilderness and recreation forestry...
See Society of American Foresters, Dictionary of Forestry 74 (Robert Deal, ed., 2d ed. 2018). Furthermore, the U.S. Dept of Agriculture states that the "forestry profession encompasses the science and practice of establishing, managing, using, and conserving forests, trees and associated resources in a sustainable manner to meet desired goals, needs, and values." See Forestry, U.S. Dep't of Agriculture, https://www.usda.gov/topics/forestry#:~:text=The%20forestry%20pro -fession%20encompasses%20the,goals%2C%20needs%2C%20and%20values (last accessed Sept. 18, 2024).
The subject WCSMs mechanically convert wood logs and branches into wood chips or strips. Wood chips have a variety of uses, including being placed in planting areas and around trees to inhibit weed growth, regulate soil temperatures, and retain water within the soil. See Top 10 Reasons to Choose Wood Chips Over Other Types of Mulch, leaf&limb.com, https://www.leaflimb.com/Top-Ten-Reasons-to-Choose-Wood-Chips/ (last accessed Sept. 18, 2024). Wood chips also allow for cleared trees to be disposed of more easily, boost soil health by absorbing pollutants, reduce soil compaction, and combat soil erosion. See Ben Raskin, The Woodchip Handbook: A Complete Guide for Farmers, Gardeners and Landscapers (2021), https://www.resilience.org/stories/2021-10-29/the-woodchip-handbook-a complete-guide-for-farmers-gardeners-and-landscapers-excerpt/ (last accessed Sept. 29, 2023). Thus, the WCSMs use and manage forest resources and, in turn, are forestry machines.
Thus, the above described WCSMs are properly classified under heading 8436, HTSUS, as forestry machines. Moreover, the ENs to heading 8436, HTSUS, support this classification by explicitly stating "[m]achines for chipping branches, twigs, etc.," are classified therein. While the subject rulings all properly classify WCSMs under subheading 8436.80.00, HTSUS, each ruling incorrectly classified WCSMs under statistical reporting number 8436.80.0090, HTSUSA, which is for "Other." Given our finding that WCSMs are forestry machines, the correct statistical reporting number is 8436.80.0020, HTSUSA, which is for "Forestry machinery." Classification of the subject WCSMs in statistical reporting number 8436.80.0020, HTSUSA, is also consistent with prior CBP rulings. Both NY N299893[1], dated September 4, 2018, and NY N108595[2], dated July 1, 2010, classified similar WCSMs under statistical reporting number 8436.80.0020, HTSUSA. Based on the foregoing, NY N114998 (August 5, 2010), NY 807222 (March 23, 1995), and NY 801876 (September 19, 1994) are hereby revoked, and NY N297986 (July 17, 2018) and NY 897172 (May 2, 1994) are hereby modified only with respect to the articles classified under subheading 8436.80.00, HTSUS.
HOLDING:
By application of GRIs 1 and 6, Wood Chipping/Shredding Machines are properly classified under heading 8436, HTSUS, and specifically described by subheading 8436.80.00, HTSUS, which provides for "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: Other machinery." The general column one rate of duty for merchandise classified under this subheading is Free. The subject merchandise is described by statistical reporting number 8436.80.0020, HTSUSA, as "forestry machinery."
Pursuant to U.S. Note 20(b) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8436.80.00, HTSUS, unless specifically excluded, were subject to an additional 25 percent ad valorem rate of duty. At the time of importation, an importer was required to report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8436.80.00, HTSUS, noted above, for products of China.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N114998, dated August 5, 2010, is hereby REVOKED.
NY 807222, dated March 23, 1995, is hereby REVOKED.
NY 801876, dated September 19, 1994, is hereby REVOKED.
NY N297986, dated July 17, 2018, is hereby MODIFIED only with respect to the articles classified under subheading 8436.80.00, HTSUS.
NY 897172, dated May 2, 1994, is hereby MODIFIED only with respect to the articles classified under subheading 8436.80.00, HTSUS.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
cc: Mr. John J. Marshall
"K" Line Air Service (USA) Inc.
40-A Broderick Road
Burlingame, CA 94010
Mr. Richard J. Housman
James J. Boyle & Co.
371 Allerton Avenue
South San Francisco, CA 94080
Mr. Kurt M. Schie
WoodMaxx Power Equipment Ltd.
42 Jackson Street
Akron, NY 14001
Mr. Richard L. Jones
John S. James, Co.
P.O. Box 1017
Charleston, SC 29402-1017
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[1] In NY N299893, the "Wood Chipping Machine" was described as follows:
The merchandise under consideration, WoodMaxx DC-1260, is identified as a wood chipping machine. It is designed to chip branches and cuttings from trees and shrubs. The wood chipper is powered by a 13.5 horsepower gasoline engine and it weighs approximately 408 pounds. The machine incorporates a 12 inch x 6 inch infeed opening that can handle material up to 4 inches in diameter. Material is inserted into the slopped infeed bin which feeds into the 10 inch diameter, 53 pound, chipper drum. The drum acts as a power feed assist system which pulls the branches in at up to 50 feet per minute. Knives incorporated inside the drum cut the material into small chips, which are then expelled through a discharge chute. The wood chipping machine is balanced on two wheels and includes a trailer hitch for attaching it to an ATV or utility vehicle for transport.
[2] In NY N108595, the "wood chipper" is described as follows:
The machine in question is the Eliet gas powered chipper. The machine is designed to chip branches and cuttings from trees and shrubs in such a way that it is useable as compost. The rotating blade design is intended to cut with the grain of the wood as it is inserted by the user in the machine. Holes in the base of the cylinder containing the blades only allow the chips to exit when they have reached a small enough size to pass through these holes.