HQ 087181
SEPT 7 1990
CLA-2:CO:R:C:G 087181 JAS
Ms. Jill Cuomo
Miller Technology, Inc.
1839 Seymour St.
Site 9, Comp.11, R.R. No. 3
North Bay, Ontario, Canada P1B8G4
RE: Mine Utility Vehicle
Dear Ms. Cuomo:
In a letter dated May 7, 1990, you ask that we reconsider
a previous ruling to your company on the tariff status of a
mine vehicle from Japan. No alternative classification is
proposed.
FACTS:
In a letter dated April 24, 1990 (851136), the Area
Director of Customs, New York Seaport, ruled that the Toyota
BJ75 Landcruiser, modified in Canada into an underground mining
utility conveyance for passengers and cargo, was classified as
a motor vehicle for the transport of goods, in subheading
8704.21.0000, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). The rate of duty has been temporarily
increased to 25 percent ad valorem under subheading 9903.87.00,
HTSUSA.
The vehicle entering Canada is a 3,000 lb. capacity, off-
road truck chassis with open 2-seat cab (no doors) and rear
heavy-duty bed 71 in. wide and either 6 ft. 6 in. or 8 ft.
long. The following are standard features: 4 x 4 Toyota 113
hp. diesel engine with 4 speed manual transmission, heavy duty
leaf spring suspension, power brakes and steering, and 4
storage boxes for tools and other gear mounted parallel on
either side of the rear bed. You adapt this vehicle in Canada
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by adding a rollover frame to the top and sides of the cab and
bed, reinforcing the front and rear bumpers, adding extra leafs
to the suspension and adapting the braking system to mine use.
In addition, you install a 2-speed transfer case which locks
the gear shift mechanism in the low range, thus restricting the
maximum speed of the vehicle to 30 kph. Finally, you install
cushioned seats and backs over the 12-inch wide rear storage
boxes. This creates seating capacity for 6 persons in the
rear, in addition to the driver and one passenger in the cab.
ISSUE:
Whether the mine vehicle is principally designed for the
transport of persons or is designed for the transport of goods.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUSA in accordance
with the General Rules of Interpretation (GRIs). GRI 1 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 and, provided the headings or
notes do not require otherwise, according to GRIs 2 through 6.
Heading 8703 provides for motor cars and other motor vehicles
principally designed for the transport of persons (emphasis
added). The rate of duty is 2.5 percent ad valorem. Heading
8704 provides for motor vehicles for the transport of goods.
It is the design features, rather than principal or sole
use, which determine whether a particular motor vehicle is
encompassed by heading 8703. The overall features of the
vehicle in issue here indicate to us that it was designed
principally to transport tools and gear. The frame and heavy-
duty suspension, for example, are cargo-carrying features, as
are the built-in tool boxes and rear bed. The fact that this
is an off-road vehicle only and not licensed for highway use is
a further indication that it was not designed to transport
persons. Even if it were, there is no evidence that it was
principally designed to transport persons.
HOLDING:
The Toyota BJ75 mine vehicle does not qualify for
classification in heading 8703. Under the authority of GRI 1
it is provided for in heading 8704 as a motor vehicle for the
transport of goods. Actual classification is in subheading
8704.21.0000, HTSUSA, other motor vehicles for the transport of
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goods, with compression-ignition internal combustion piston
engine and g.v.w. not exceeding 5 metric tons.
EFFECT ON OTHER RULINGS:
For the stated reasons, the ruling to you from the Area
Director of Customs, dated April 24, 1990 (851136), is
affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division