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HQ 951440


July 17, 1992

CLA-2 CO:R:C:M 951440 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8465.96.00

District Director
U.S. Customs Service
40 South Gay Street
Baltimore, MD 21202

RE: Protest 1303-92-100013; Mobile processing plant; Subheading 8436.80.00; EN 84.65 (A)(9)(c); H. Conf. Rep. No. 576; EN 84.36

Dear District Director:

This is our decision on protest for further review number 1303-92-100013, dated January 22, 1992, filed against the tariff classification of the "MZA 2500S Mobile Processing Plant" (MPP) within subheading 8465.96.00, Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject MPP is designed to grind up and break down large amounts of organic material (e.g., logs, branches, vegetation, etc.,) in specific preparation for large scale composting. This material is then made into compost, a substance used to fertilize gardens, farmland, etc. The submitted video presents the MPP processing tree limbs, stumps and wooden pallets in addition to other waste material.

ISSUE:

Whether the subject MPP is properly classifiable within subheading 8465.96.00, HTSUS, which provides for machine tools for splitting, slicing or paring wood or similar hard materials; or within subheading 8436.80.00, HTSUS, which provides for other agricultural, horticultural, forestry, etc., machinery.

LAW AND ANALYSIS:

Heading 8465, HTSUS, provides for machine tools for working wood or similar hard materials. The subject MPP satisfies this description. The protestant states that the MPP is used to grind
up and breakdown waste wood and other organic materials. In addition, the submitted video principally shows the MPP processing tree limbs, stumps and wooden pallets. While the MPP is capable of processing other waste material, it appears to be principally used to process wood and similar hard materials. Accordingly, the MPP satisfies the terms of heading 8465, HTSUS, and is properly classifiable therein.

Subheading 8465.96.00, HTSUS, provides for splitting, stamping, fragmenting, paring and slicing machines. The Harmonized Description and Commodity Coding System Explanatory Notes (ENs) state that fragmenting machines produce small pieces of wood of similar size and shape. EN 84.65 (A)(9)(c), p. 1286 (1992). The MPP satisfies this description. It fragments wood into small pieces of a similar size. While the ENs are not dispositive, they provide a commentary on the scope of each heading and offer guidance for interpretation of the HTSUS. H. Conf. Rep. No. 576, 100th Cong., 2d Sess., p. 550, reprinted in 1988 U.S. CODE CONG. & ADMIN. NEWS p. 1582. Thus, we find the above EN instructive for determining that the subject MPP satisfies the terms of this subheading.

Heading 8436, HTSUS, provides for other agricultural, horticultural or forestry machinery. This heading covers machinery which is of the type used on farms, in forestry, in market gardens, or poultry-keeping or bee-keeping farms or the like. ENs 84.36, p. 1217 (1992). The submitted literature, video and protestant's own statement indicate that the MPP is used for the large scale production of compost material. The protestant states that the MPP is intended to break down material in preparation for "large scale composting." In addition, the video shows the MPP processing tree limbs, stumps, wooden pallets and other materials in industrial settings. Furthermore, the literature stresses that the MPP is "powerful" and provides "optimum" shredding without any problems. Based on this information, the MPP does not appear to be of the type used on farms but of a type used for the large scale break down of wood and other similar materials. Accordingly, we find the above EN instructive for determining that the MPP does not satisfy the terms of heading 8436, HTSUS.

This conclusion is also supported by other portions of the ENs to heading 8436, HTSUS. They state that machines clearly of a kind designed for industrial use are excluded from this heading. ENs 84.36, p. 1217. As discussed above, the MPP is of a kind designed for industrial use. The ENs additionally state that this heading does not cover machine tools for working wood (heading 84.65). EN 84.36 (I)(ij), p. 1218. As discussed previously, the MPP satisfies the description of a machine tool
for working wood which is provided for within heading 8465, HTSUS. Therefore, we also find these ENs instructive for determining that the subject MPP does not satisfy the terms of heading 8436, HTSUS.

The protestant argues that because the material processed by the MPP may or is used to produce compost, then the MPP is intended for agricultural use. We do not find this argument persuasive. The MPP does not itself produce compost. It merely breaks down wood and similar hard materials, which is a function specifically provided for within heading 8465, HTSUS. This wood may subsequently be made into compost, but as the submitted video indicates, other steps (e.g., using a different machine to aerate the material) are required before this material becomes compost. Furthermore, the MPP could be used at any industrial site for the processing of waste materials purely for disposal purposes and not for compost production.

HOLDING:

The subject Mobile Processing Plant is classifiable within subheading 8465.96.00, HTSUS, which provides for machine tools for splitting, slicing or paring wood or similar hard materials. You should deny the protest in full. A copy of this decision should be attached to the Customs Form 19 and mailed to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director
Commercial Rulings Division ?

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