CLA-2 OT:RR:CTF:EMAIN H321275 PF
Janel L. Huether, Global Import/Export Compliance Analyst Doosan Bobcat Company 210 1st Avenue NE Gwinner, ND 58040-4209
RE: Revocation of NY N239500, dated March 26, 2013; Tariff classification of an engine muffler for compact track loader or skid steer loader
Dear Janel L. Huether:
On March 26, 2013, U.S. Customs and Border Protection (“CBP”) issued to you New York Ruling Letter (“NY”) N239500. It concerned the tariff classification of an engine muffler under the Harmonized Tariff Schedule of the United States (“HTSUS”). We have reviewed NY N239500 and determined that it is incorrect. For the reasons set forth below, we are revoking that ruling.
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. 103-182, 107 Stat. 2057), a notice of the proposed action was published in the Customs Bulletin, Vol. 55, No. 50, on December 22, 2021. No comments were received in response to this notice.
FACTS:
In NY N239500, the subject engine muffler was described as follows:
The item under consideration has been identified as “Mufflers”. You state that the “Mufflers” (1) are attached directly to the engine, (2) designed solely to reduce noise produced by the engine, (3) do not control emissions and (4) are constructed of steel. . . . You indicate that the subject mufflers are designed specifically for use with the Bobcat “Skid Steer” and the Bobcat “Compact Track Loaders” equipment.
In NY N239500, CBP classified the engine muffler in 8431.49.90, HTSUS, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8426, 8429 or 8430: Other: Other.”
ISSUE:
Whether the engine mufflers are classified as parts of works trucks fitted with lifting or handling equipment of heading 8427, HTSUS, or as parts of self-propelled bulldozers, angledozers, graders, levelers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers of heading 8429, HTSUS.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (“AUSR”). The GRIs and the AUSR are part of the HTSUS, and are considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS headings under consideration are as follows:
8427 Fork-lift trucks; other works trucks fitted with lifting or handling equipment
8429 Self-propelled bulldozers, angledozers, graders, levelers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers
8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430
8431.20 Of machinery of heading 8427
8431.49 Of machinery of heading 8426, 8429 or 8430
The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System 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).
EN 84.27 states in pertinent part:
[T]his heading covers works trucks fitted with lifting or handling equipment.
Works trucks of this description include, for example:
FORK LIFT AND OTHER ELEVATING OR STACKING TRUCKS
* * *
The lifting device of the above trucks is normally powered by the motive power unit of the vehicle, and is usually designed to be fitted with various special attachments (forks, jibs, buckets, grabs, etc.) according to the type of load to be handled.
* * *
(B) OTHER WORKS TRUCKS FITTED WITH LIFTING OR HANDLING EQUIPMENT
This group includes:
* * *
(2) Other trucks fitted with lifting or handling equipment including those specialised for use in particular industries (e.g., in the textile or ceramic industries, in dairies, etc.).
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the trucks of this heading are classified in heading 84.31.
EN 84.29 provides in relevant part:
The heading covers a number of earth digging, excavating or compacting machines which are explicitly cited in the heading and which have in common the fact that they are all self propelled.
* * *
In NY N239500, CBP correctly identified that the engine mufflers were parts of compact track and skid steer loaders and properly classified them under heading 8431, HTSUS. However, CBP has classified skid steer loaders and compact track loaders in heading 8427, HTSUS versus heading 8429, HTSUS. For example, in Headquarters Ruling (“HQ”) H296917, dated August 27, 2018, CBP held that Michelin Tweels, which were parts of skid steer loaders, were classified under the parts provision for machines of heading 8427, HTSUS (i.e., subheading 8431.20, HTSUS). In HQ H296917, CBP discussed the Court of International Trade (“CIT”) decision Thomas Equipment Limited v. United States, where the CIT determined that skid steer loaders were “work trucks” with lifting and handling equipment of heading 8427, HTSUS. See 881 F. Supp. 611, Slip Op. 95-29 (Ct. Int’l Trade 1995). The CIT rejected the classification of skid steer loaders in heading 8429, HTSUS, and noted that heading 8429, HTSUS, covered more specialized kinds of machines that manipulated the earth. The CIT noted that [s]ubheading 8427.20.00 of the HTSUS . . . refers to work trucks fitted with lifting or handling equipment, without limitation.” The CIT determined that skid steer loaders remained classified in heading 8427, HTSUS, based on a finding of a uniform and established classification practice. Moreover, in NY J81427, dated March 7, 2003, CBP classified an all-surface loader that was designed for working in compact areas and used attachments such as buckets, pallet forks, power augers, snow blowers, among other attachments, was classified in heading 8427, HTSUS. Like the all-surface loader in NY J81427, compact track loaders have lifting, pushing, pulling and handling capabilities that are consistent with the term “works truck” of heading 8427, HTSUS. For example, compact track loaders have lift arms and a wide variety of attachments can be added to these arms, including pallet forks, augers, buckets, backhoes, snowblowers, landscape rakes, landplanes that can be used for lifting, pushing, and pulling. EN 84.27, HTSUS, also supports the classification of a compact track loader in heading 8427, HTSUS, because it is a work truck “designed to be fitted with various special attachments (forks, jibs, buckets, grabs, etc.) according to the type of load to be handled.” See EN 84.27(A)(1).
Because both skid steer loaders and compact track loaders are classified in heading 8427, HTSUS, their corresponding parts are classified in subheading 8431.20, HTSUS, as part of an “other truck fitted with lifting or handling equipment” of heading 8427, HTSUS. Therefore, the engine mufflers in NY N239500, are classified in 8431.20, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the engine mufflers are classified in heading 8431, HTSUS, specifically subheading 8431.20, HTSUS, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8427.” The 2021 column one, general rate of duty is free.
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, 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
Duty rates are subject to change. The text of the most recent HTSUS and the accompany duty rates are provided at www.usitc.gov. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
EFFECT ON OTHER RULINGS:
NY N239500, dated March 26, 2013, is hereby REVOKED.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division