CLA-2-87:S:N:N1:101-872622

Walinga Inc.
Mr. J. John Medemblik
R.R. #5, Guelph, ON
Canada N1H 6J2

RE: The tariff classification of recycling trucks from Canada

Dear Mr. Medemblik:

In your letter dated March 16, 1992 you requested a tariff classification ruling. This request is a follow-up to your letter dated March 3, 1992, and contains additional information. You have submitted descriptive literature, a specification sheet, and photographs of the vehicle. The specific model in question is the model R31.

Your letter indicates that United States manufactured recycling trucks (chassis and body) will be exported to Canada for modification. In Canada Walinga Inc. will remove and scrap the existing U.S. manufactured lifting mechanism and will install the Walinga designed and Canadian manufactured lifting mechanism. This bucket is lifted by means of a trolley assembly which is mounted at each end of the bucket. The trolley assembly has chain sprockets that climb up on a heavy roller chain mounted at each end of the truck body. The power for the trolleys is supplied by means of a hydraulic motor which is manually controlled by a valve. Both the loading bucket and the lifting hoist are powered by a hydraulic pump which is mounted on the truck chassis. After modification the vehicles will be returned to the United States.

The vehicles are loaded at the curbside and they transport the payload to a central recycling depot. At the central depot the vehicle is emptied by means of a hydraulic hoist which lifts the cargo body at the front so the cargo will slide out of the body at the rear of the truck. The truck is powered by a diesel engine and has a gross vehicle weight of 30,000 pounds. The specification sheet for the R31 indicates the vehicle body is made of steel. It measures 20 feet long, 8 feet 6 inches wide, 11 feet 8 inches high, and has a capacity of 31 cubic yards. Features of the truck chassis include an operator's cab with full instrumentation, an automatic transmission, power steering, an air operated hydraulic dual brake system, and a spring suspension. The applicable subheading for the model R31 vehicle (modified and then imported into the United States) will be 8704.22.5060, Harmonized Tariff Schedule of the United States (HTS), which provides for motor vehicles for the transport of goods, other, with compression-ignition internal combustion piston engine (diesel or semi-diesel, other, G.V.W. exceeding 12 metric tons but not exceeding 15 metric tons. The rate of duty on motor vehicles (valued $1,000 or more) for the transportation of goods is temporarily increased to 25 percent ad valorem in subheading 9903.87.00, HTS.

General Note 3(c)(iii)(A), HTS, states that motor vehicles ... which are Canadian articles and which fall in provisions for which the rate of duty "Free (B)" appears in the "Special" subcolumn may be entered free of duty under the Automotive Products Trade Act (APTA). As used in this note, the term "Canadian article" means an article which originates in Canada, as defined in subdivision (c)(vii) of this note. General Note 3(c)(vii)(B) states that "goods originating in the territory of Canada" means (1) they are goods wholly obtained or produced in the territory of Canada and/or the United States....

A copy of General Note 3(c)(vii) is enclosed for your review.

Goods classifiable under subheading 8704.22.5060, HTS, which originated in the territory of Canada may be entitled to a free rate of duty under APTA upon compliance with all applicable regulations.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport

Enclosure: