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HQ 088971


May 23, 1991

CLA-2 CO:R:C:M 088971 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 8704.21.00, 8705.40.00, 9903.87.00

Mr. R.D. Rogers
Branch Manager
Milne & Craighead
235 Railroad Ave.
Portal, N.D. 58772

RE: Motor vehicles for the transport of goods; motor cars and other motor vehicles principally designed for the transport of persons; special purpose motor vehicles, other than those principally designed for the transport of person or goods; Explanatory Note 87.03; Explanatory Note 87.04; Explanatory 87.05; pick-up truck; hydraulic lift; hydraulic boom; United States-Canada Free Trade Agreement ("CFTA")

Dear Sir:

Your January 25, 1991,request for a classification ruling on behalf of Ens Toyota Ltd. of Saskatoon, Saskatchewan, regarding certain modified Toyota Landcruisers cab chassis has been referred to this office for a decision.

FACTS:

The articles in question are modified versions of the 1991 Toyota Landcruiser, model PJ75, one ton, 4 X 4 vehicle. The Landcruisers are considered to be "all terrain" vehicles. The 1991 Toyotas are imported to Canada from Japan as a cab chassis unit. The Landcruisers are powered by a 1PZ inline, 5 cylinder, OHC diesel engine (with a displacement of 3469 cc) and a type H4 1 standard transmission. The vehicles are also equipped with disc brakes, rear drum brakes, size 5.50 x 16 tires, and full floating rear axles. The gross vehicular weight (G.V.W.) for the 1991 Landcruiser is 6690 lbs (3035 kg). Once in Canada, the cab chassis are modified into three different vehicles. The importer states that all three vehicles are for use in the underground mining industry.

The first vehicle is a pick-up model which is designed for use as a supervisor's vehicle and/or a personnel carrier. The pick-up has a rear box that is manufactured and installed by Ens Toyota. The rear box is designed to transport material and
equipment in underground mines. Front and rear bumpers and side and rear body protection are manufactured and installed by Ens Toyota. The body protection panels protect the vehicle in the rugged mining environment. A roll bar and protective mesh are manufactured and installed, and a roll-over protection and falling rock protection can be added if required. Transmission high gears are locked out to limit maximum speed to 20 miles per hour ("mph"). An exhaust purifier is installed to reduce emissions. A fire suppression system is installed that engulfs the vehicle in the event of fire. All of these specifications, with the exception of the cargo box, are common to all three models.

The second vehicle is equipped with lifting docks which are manufactured and installed in Canada. Hydraulic stabilizers and hydraulic systems are also installed. The hydraulic lifting dock's brand name is Action Torklift. It is constructed of structural steel with hydraulic lifting capacities from 2500 to 30000 pounds. Lifting is performed with either a 3-horsepower ("hp") or 5-hp electric pump assembly. The lifting dock is of the type which is suited for truck loading at supermarkets, warehouses and other freight loading areas. Standard deck sizes are from 5 feet x 8 feet to 8 feet x 10 feet.

The third vehicle is equipped with a hydraulic boom (arm) lift LAT 24 which is manufactured in the United States and installed in Canada. The brand name of the boom is the LAT-24/28 Lift-All. The boom has a working height of 29 or 32 feet. the bucket has a 300 pound capacity and the boom is extended by a hydraulically operated pump. The turntable is a 360 degree non- continuous rotation type. Rotation is powered by a hydraulic motor through self-locking worm gear drive. The decks and attaching hardware are manufactured in Canada and the decks and mounting accessories are installed by welding and/or by bolting.

When imported in their completed state to the United States the importer states that the vehicles are complete and ready for use in an underground application. G.V.W. for the modified vehicles is approximately 7000 lbs. The vehicles have a two person (operator and passenger) capacity. There are no provisions on these vehicles for passengers. The payload of these vehicles is rated at 2700 lbs.

ISSUE:

What is the appropriate classification for the three vehicle models with the cargo box, lifting dock, and hydraulic boom lift?

LAW AND ANALYSIS:

The classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA") is governed by the General Rules of Interpretation ("GRIs"). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..." The pertinent headings in this instance are headings , 8703, 8704 and 8705, HTSUSA. These headings describe the following:

8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars...

8704 Motor vehicles for the transport of goods...

8705 Special purpose motor vehicles, other than those principally designed for the transport of person or goods (for example, wreckers, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units)...

These headings are within Chapter 87, HTSUSA, and Section XVII, HTSUSA. There are no chapter or section notes which pertain to these headings. Thus, the terms of the headings will be determinative. To better understand the terms of the headings the Explanatory Notes to the HTSUSA may be utilized. The Explanatory Notes, although not dispositive, are to be looked to for the proper interpretation of the HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989).

Explanatory Note 87.03 states that heading 8703 covers motor vehicles designed for the transport of goods. These motor vehicles include motor cars, specialized transport vehicles such as ambulances, prison vans and hearses, motor homes and golf cars. Harmonized Commodity Description and Coding System ("HCDCS"), Vol. 4, pp. 1426-1427. Explanatory Note 87.04 states that heading 8704 covers ordinary lorries, delivery trucks and vans of all types, dumpers, shuttle cars used in mines, self- loading vehicles equipped with winches or elevating devices, and road-rail lorries. HCDCS, Vol. 4. pp. 1427-1428. Explanatory Note 87.05 states that heading 8705 covers "a range of motor
vehicles, specially constructed or adapted, equipped with various devices that enable them to perform certain non-transport functions. HCDCS, Vol. 4, p. 1429. Heading 8705 includes tow trucks, motor vehicles equipped with water pumps, cranes, and mobile drilling rigs.

It is the opinion of this office that the pick-up model is classified under heading 8704. The pick-up model only carries an operator and one passenger. It has been completed to carry materials and equipment. The pick-up models are designed for the carriage of goods. The proper classification of the pick-up model is subheading 8704.21.00, HTSUSA, as "Motor vehicles for the transport of goods...Other, with compression-ignition internal combustion piston engine (diesel or semi- diesel)...G.V.W. not exceeding 5 metric tons..." Subheading 9903.87.00, HTSUSA, has increased the duty of goods of this classification to 25% ad valorem.

The cab chassis which are completed to incorporate the hydraulic lift and the hydraulic boom are properly classified under heading 8705. These two variations are not designed for the transport of either persons or goods, nor are they designed for transport functions. The correct classification for the hydraulic lift and the hydraulic boom vehicles is subheading 8705.40.00, HTSUSA, as "Special purpose motor vehicles, other than those principally designed for the transport of person or goods (for example, wreckers, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units)...Other..." The applicable rate of duty is 3.7% ad valorem.

The vehicles may be eligible for duty preferences under the United States-Canada Free Trade Agreement ("CFTA"). Under General Note 3(c)(vii)(B)(II), HTSUSA, and General Note 3(c)(vii)(R)(17)(dd), HTSUSA, if the value of the materials which originate in the Canada and/or United States plus the direct cost of processing performed in Canada and/or the United States constitutes not less than 50% of the value of the goods when exported to the United States, then the goods are considered to "goods originating in the territory of Canada." Originating goods are entitled to duty preferences under the CFTA. Adequate information to make this determination has not been presented.

HOLDING:

The 1991 Toyota Landcruiser cab chassis which is completed into a supervisor's vehicle or personnel carrier is classified under heading 8704 in accordance with GRI 1. The proper classification for the pick-up model is subheading 8704.21.00, HTSUSA, as "Motor vehicles for the transport of goods...Other, with compression-ignition internal combustion piston engine

(diesel or semi-diesel)...G.V.W. not exceeding 5 metric tons..." Subheading 9903.87.00, HTSUSA, has increased the duty of goods of this classification to 25% ad valorem.

The Toyota Landcruiser cab chassis which are completed into vehicles with hydraulic lifts and hydraulic booms are described, in accordance with GRI 1, under heading 8705. The correct classification for the hydraulic lift and the hydraulic boom vehicles is subheading 8705.40.00, HTSUSA, as "Special purpose motor vehicles, other than those principally designed for the transport of person or goods (for example, wreckers, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units)...Other..." The applicable rate of duty is 3.7% ad valorem.

Sincerely,

John Durant, Director

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