CLA-2-84:OT:RR:NC:N1:118
Mr. Michael G. Hodes
Hodes, Keating & Pilon
Attorneys at Law
134 North Lasalle Street, Suite 1300
Chicago, IL 60602
RE: The tariff classification of tree harvesters and harvester heads from Finland.
Dear Mr. Hodes:
In your letter dated May 2, 2017, on behalf of your client Logset Oy, you requested a tariff classification ruling.
The subject merchandise consists of four models of self-propelled tree harvesters imported with a harvesting head and five separately imported harvesting heads. These items are used by loggers in the forest to harvest trees and prepare them for transport to lumber mills. The tree harvesters (models 6 HP GT, 6 HP GTE, 8 H GTE and 12 H Hybrid) consist of a wheeled tractive base and front mounted crane to which has been mounted a harvesting head. The operations of the harvester are controlled by an operator sitting in the enclosed cab of the harvester. Each model is capable of felling a tree, delimbing it and cutting it into predetermined lengths of logs. All of the models are of the same basic design, function and use. They differ only in size, weight, power, lifting capacity, crane reach and the size of the harvester head. Each tree harvester will be imported and sold with a single harvesting head. You have stated that the tree harvesters are only functional with a harvester head attached.
The separately imported harvesting heads (models SH 38, TH 65, TH 75, TH 85 and TH 95) can be mounted on any track based machine, provided that the machine can accommodate the size and weight of each individual head. Each model, with the exception of model SH 38, employs hydraulically powered saw chains that grasp and fell trees. They also incorporate delimbing knives which can cut logs to length on site in the forest. The SH 38 model lacks the ability to delimb logs and has a different cutting mechanism than the other harvester heads. Instead of a saw chain, it employs hydraulically operated guillotine-type knives which are used to fell trees.
You suggested classifying the separately imported harvesting heads as parts of forestry machinery within subheading 8436.99.0020, HTSUS. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 2(a) provides, in pertinent part, 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 entered, the incomplete or unfinished article has the essential character of the complete or finished article.” The Explanatory Notes (ENs) to GRI 2(a) direct us to the General ENs to Section XVI, HTSUS, which provide, in pertinent part, as follows:
(IV) INCOMPLETE MACHINES (See General Interpretative Rule 2 (a)) Throughout the Section any reference to a machine or apparatus covers not only the complete machine, but also an incomplete machine (i.e., an assembly of parts so far advanced that it already has the main essential features of the complete machine). Thus a machine lacking only a flywheel, a bed plate, calendar rolls, tool holders, etc., is classified in the same heading as the machine, and not in any separate heading providing for parts. Similarly a machine or apparatus normally incorporating an electric motor (e.g., electro-mechanical hand tools of heading 84.67) is classified in the same heading as the corresponding complete machine even if presented without that motor.
Accordingly, merchandise classifiable under heading 8436, HTSUS, includes not only complete, fully-assembled forestry machinery, but also "incomplete" machinery used for forestry (provided that, as entered, any such "incomplete" machinery has the essential character of a complete machine). It is therefore our opinion that each harvesting head constitutes an “incomplete” machine, and as such, is not classified as a part of forestry machinery within subheading 8436.99.0020, HTSUS.
The applicable subheading for the tree harvesters (models 6 HP GT, 6 HP GTE, 8 H GTE and 12 H Hybrid) and the harvesting heads (models SH 38, TH 65, TH 75, TH 85 and TH 95) will be 8436.80.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders; parts thereof: Other machinery: Forestry machinery. 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 HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
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 Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division