HQ 0950634 - Protest No. 1901-1-100026; unfinished forklift truck parts; right hand load wheel bracket; valve lever; tension rod clevis; load wheel; parking brake lever assembly; spindle left hand; GRI 2(a); unfinished article; essential character; Note 2(a) and (b), Section XVI - United States International Trade Commision Rulings

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HQ 950634

March 18, 1993

CLA-2 CO:R:C:M 950634 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8431.20.00

District Director
U.S. Customs Service
150 North Royal
Mobile, Alabama 36602

RE: Protest No. 1901-1-100026; unfinished forklift truck parts; right hand load wheel bracket; valve lever; tension rod clevis; load wheel; parking brake lever assembly; spindle left hand; GRI 2(a); unfinished article; essential character; Note 2(a) and (b), Section XVI

Dear Sir:

This is in response to the Application for Further Review of Protest No. 1901-1-100026, dated June 19, 1991, which pertains to the tariff classification of unfinished forklift truck parts under the Harmonized Tariff Schedule of the United States (HTSUS). Specification drawings and photographs of the forklift truck parts were submitted for examination.

FACTS:

As described in a letter dated February 13, 1991, by the protestant, Hyster Company, the articles under consideration are rough castings:

1. right hand load wheel bracket;
2. valve lever welded to a rod lever;
3. tension rod clevis;
4. load wheel support;
5. parking brake lever assembly; and
6. spindle left hand.

In a letter dated March 4, 1991, the protestant stated that the parking brake lever assembly was not a rough casting but is stamped and rolled from plate steel.

Upon importation into the U.S., the valve lever was liquidated under subheading 7325.99.10, HTSUS, as other cast articles of iron or steel, of cast iron. The right hand load wheel bracket, tension rod clevis, load wheel support and spindle left hand under subheading 7325.99.50, HTSUS, as other cast articles of iron or steel, other, and the parking brake lever assembly under subheading 7326.90.90, HTSUS, as other articles of iron or steel.

The protestant contends that all the articles are classified under subheading 8431.20.00, 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 protestant states that all the articles have the essential character of parts for forklift trucks into which they will be machined in the U.S.

ISSUE:

Are the unfinished parts properly classified as parts of forklift trucks under subheading 8431.20.00, HTSUS, which provides for "Parts suitable for use solely or principally with the machinery of headings 8425 to 8430...Of machinery of heading

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, 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...." GRI 2(a), HTSUS, states that "any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article...."

The protestant contends that the articles have the essential character of unfinished forklift truck parts and are classified pursuant to GRI 2(a), HTSUS, under subheading 8431.20.00, HTSUS, which provides for "Parts suitable for use solely or principally with the machinery of headings 8425 to 8430...Of machinery of heading 8427." Heading 8427, HTSUS, provides for forklift trucks. According to Customs Form 6445A, Customs officials agree that the imported articles have the essential character of the finished articles into which they are made. Therefore, the imported articles may be classified in subheading 8431.20.00, HTSUS, as forklift truck parts, if they meet the dictates of Note 2, Section XVI.

Note 2, Section XVI states, that "parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;

(c) All other parts are to be classified in heading 8485 or 8548."

The protestant claims that the right hand load wheel bracket, valve lever, tension rod clevis, load wheel support, parking brake lever assembly, and spindle left hand, are parts of forklift trucks classifiable under subheading 8431.20.00, HTSUS. The protestant has submitted engineering specifications and photographs of the forklift truck parts that confirm that the unfinished parts are manufactured by their vendors according to their specifications for use with a forklift truck. Furthermore, upon importation, the unfinished parts will be machined in the protestant's domestic plant to be utilized in forklift trucks. There is no indication that the parts will have use in any other application.

The forklift truck parts at issue are not parts included in any of the headings in chapters 84 and 85. Therefore, they cannot be classified pursuant to Note 2(a), Section XVI, HTSUS. However, inasmuch as the forklift truck parts are parts suitable for use solely or principally with a forklift, they are classified pursuant to Note 2(b), Section XVI, HTSUS. Forklift trucks are classified in heading 8427, HTSUS. Therefore, the right hand load wheel bracket, valve lever welded to a rod lever, tension rod clevis, load wheel support, parking brake lever assembly and spindle left hand are properly classified under subheading 8431.20.00, HTSUS, which provides for "Parts suitable for use solely or principally with the machinery of headings 8425 to 8430...Of machinery of heading 8427."

HOLDING:

The right hand load wheel bracket, valve lever, tension rod clevis, load wheel support, parking brake lever assembly, and spindle left hand, are classified under subheading 8431.20.00, HTSUS, which provides for "Parts suitable for use solely or principally with the machinery of headings 8425 to 8430...Of machinery of heading 8427."

This protest should be granted. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director

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