CLA-2-87:OT:RR:NC:N1:101
David G. Forgue, Partner
Barnes, Richardson & Colburn, LLP
303 East Wacker Drive, Suite 1020
Chicago, IL 60601-5216
RE: The tariff classification of agricultural applicators from an unspecified country
Dear Mr. Forgue,
In your letter dated April, 19, 2013, you requested a tariff classification ruling on behalf of your client AGCO Corporation, located in Batavia, Illinois.
The items under consideration have been identified as TerraGator© agricultural applicators (Model #’s TG7300, TG8300, and TG8400); various models of agricultural liquid/powder spraying vehicles. These vehicles are used for the application of liquid and powder fertilizers, insecticides, chemicals, or nutrient. You state in your request that all TerraGator models come equipped with high-flotation tires.
In conjunction with the high-flotation tires, all models of the TerraGator have standard double reduction outboard planetary rear axles. In addition, the axles have a very high rated weight capacity, which allows farmers to carry more fertilizer, chemical, or nutrient to the field.
In addition to the specialized rear axles, all TerraGator models also have specialized front axles. Models T7300 and T8300 both have a single front tire, while model T8400 has two front tires. The T7300 and T8300 models have a freewheeling design with a rated capacity of 14,000 pounds. The front forks also have a three degree cant that allows them to turn relatively sharply while minimizing ground disturbance. The T8400 model has a heavy-duty non-drive axle designed for high-flotation tires and the benefits that come with them. The front axle in the T8400 also has a rated capacity of 14,000 pounds.
All of the TerraGator models also come equipped with high-torque engines which allow the vehicles to haul loads through fields at low engine revolutions per minute. The T7300 generates 1121 foot-pounds of torque at 1500 rpm, while both the T8300 and T8400 generate 1136 foot-pounds of torque at 1500 rpm.
The subject TerraGator models come equipped with control systems, plumbing, and capabilities for a variety of liquid and dry applications. The applicators are designed to accommodate large (at least 1800 gallon) liquid product tanks, as well as a variety of booms used to disperse the liquid product. The applicators are also designed to accommodate dispersal of a variety of dry products. The TerraGators can accommodate single bin, dual bin, and adjustable split bins, so that different combinations of dry product can be dispersed at the same time. Because these systems require substantial plumbing and air pressure control, all TerraGator models are also equipped with this equipment.
In your ruling request you suggest classification in either 8432.40.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Agricultural, horticultural or forestry machinery for soil preparation or cultivation; …: Manure spreaders and fertilizer distributors” or 8701.90.1070, HTSUS, which provides for “Tractors…: Other: Suitable for agricultural use: Other.”
Classification of goods in the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... .”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8705.90, HTSUS provides for “Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example…spraying vehicles…).
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs to 87.05 state, “This heading covers a range of motor vehicles, specifically constructed or adapted , equipped with various devices that enable them to perform certain non-transport functions, i.e., the primary purpose of a vehicle of this heading is not the transport of persons or goods. This heading includes:
(6) Spraying lorries (trucks) of all kinds, whether or not fitted with heating equipment, for spreading tar or gravel, for agricultural use, etc.
This vehicle is similar to another vehicle imported by AGCO, which was subject to NY ruling N137739.
The applicable classification subheading for the TerraGator agricultural applicators (Model #’s TG7300, TG8300, and TG8400) will be 8705.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Special purpose motor vehicles, other than those principally designed for the transport of persons or goods … : Other.” The rate of duty will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov /tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at 646-733-3013.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division