CLA-2-87:S:N:N1:101-880737
Mr. John Medemblik
Walinga Inc.
R.R. # 5, Guelph, ON.
Canada N1H 6J2
RE: The tariff classification of a road tractor and a semi-
trailer imported from Canada
Dear Mr. Medemblik:
In your letter dated November 12, 1992 you requested a
tariff classification ruling. This letter is a supplement to
your request dated October 26, 1992, and contains additional
information. You have submitted descriptive literature and
specification sheets.
The merchandise to be imported from Canada is a road tractor
and a semi-trailer. The road tractor is manufactured in the
United States, and the semi-trailer is manufactured in Canada.
The semi-trailer is composed of at least 90 percent parts and
materials imported from the United States, or is composed of
parts and materials of Canadian origin.
In Canada various equipment such as a power-take-off (PTO),
hydraulic pump, hydraulic controls, hydraulic reservoirs, and a
blower is installed onto the road tractor by Walinga Inc. The
PTO, hydraulic pump and hydraulic controls are manufactured in
the United States; the reservoir and blower are manufactured in
Canada. It is stated that the nature of the installation is that
all the parts are permanently attached to the road tractor by
means of bolting the parts to the tractor. The fact that the
various components are bolted to the tractor makes the parts
removable, but in commercial reality, the parts are not easily
removed.
The semi-trailers are called bulk feed trailers and are used
to transport animal feed and feed products from feed mills to
farm operations. These semi-trailers used for feed
transportation are self-unloading by means of hydraulic equipment
which is mounted on the road tractor (and is used as a power
source for unloading the semi-trailer by means of the PTO unit
and the hydraulic pump with a reservoir). In some instances the
self-unloading process is accomplished by use of the pneumatic
blower which is attached to the tractor.
The road tractor (equipped with these additional components)
is then hooked up to the Canadian manufactured semi-trailer and
is imported into the United States.
Additional U.S. Note 1, Chapter 87, HTS, states that road
tractors, trailers and semi-trailers remain separately classified
in headings 8701 and 8716, respectively, even when entered
together.
The applicable subheading for the road tractor will be
8701.20.00, Harmonized Tariff Schedule of the United States
(HTS), which provides for road tractors for semi-trailers. The
rate of duty will be 4 percent ad valorem.
General Note 3(c)(iii)(A), HTS, states that motor
vehicles... which are Canadian articles and which fall in
provisions for which the rate of duty "Free (B)" appears in the
"Special" subcolumn may be entered free of duty under the
Automotive Products Trade Act (APTA). As used in this note, the
term "Canadian article" means an article which originates in
Canada, as defined in subdivision (c)(vii) of this Note. General
Note 3(c)(vii)(B) states that "goods originating in the territory
of Canada" means (1) they are goods wholly obtained or produced
in the territory of Canada and/or the United States....
Goods classifiable under subheading 8701.20.00, HTS, which
originated in the territory of Canada may be entitled to a free
rate of duty under APTA upon compliance with all applicable
regulations.
The applicable subheading for the semi-trailer will be
8716.20.0000, HTS, which provides for self-loading or self-
unloading trailers and semi-trailers for agricultural purposes.
The rate of duty will be 3.2 percent ad valorem.
Goods classifiable under subheading 8716.20.0000, HTS, which
originated in the territory of Canada, will be entitled to a 1.9
percent rate of duty under the United States-Canada Free Trade
Agreement upon compliance with all applicable regulations.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport