CLA-2-87:OT:RR:NC:N1:101
Carmen R. Morrow, Customs Compliance Sr. Analyst
Rolls-Royce North America
2001 S. Tibbs Avenue: Speed Code S36
Indianapolis, IN 46241-4812
RE: The tariff classification of a mobile stand from Great Britain
Dear Ms. Morrow,
In your letter dated December 9, 2011, you requested a tariff classification ruling.
The item concerned is the Obelix Engine Transportation Stand (Part No. RRT055070). It is a custom-built, four-castored, steel stand manufactured to hold and transport a Trent XWB gas turbine engine with its test pylon. The Stand contains a turnover frame which is powered by the included hydraulic power pack; the frame is needed to rotate the engine within the Stand to allow loading of the Stand onto an aircraft. The Stand also incorporates a tow bar to allow it to be hauled by a forklift, truck, etc. and is designed with rings that can be attached to the interior of an aircraft or flatbed truck.
In your request, you proposed classification of the Obelix Engine Transportation Stand in either subheading 8609.00.000 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Containers … specially designed and equipped for carriage by one or more modes of transport” or subheading 7326.90.8588 of the HTSUS which provides for “Other articles of … steel: Other: Other: Other: Other: Other.”
We do not dispute that the Obelix Engine Transportation Stand meets the terms of the 8609 heading. It is a container of robust construction intended for repeat use and is specifically designed to be transported by either aircraft or flatbed truck. However, the Obelix also provides a tow bar and wheels (castors), used to tow the stand and its contents by means of a forklift or truck. It is our opinion that these additions affect the classification, placing the Obelix stand in a heading more specific than 8609.
HQ 962927 discussed the classification of an aircraft engine stand which consisted of a cradle and a wheeled transportation base designed to work together. The cradle, which held and protected the engine, featured various equipment including forklift pockets while the base provided, among other components, wheels, a tow bar and additional fork lift pockets.
The ruling determined that the inclusion of forklift pockets on the engine stand were design features consistent with classification in heading 8609, HTSUS, as they not only facilitate use with forklift trucks, but can be used for tie-down purposes during transport. However, the ruling also noted that containers of 8609 “are stationary, designed to hold a variety of articles and to be secured to the transporting vehicle while those of heading 8716 are vehicles which actually transport one, specific kind of good.” The engine stand was equipped with a tow bar and wheels and so was designed to be towed and to transport goods, qualifying it for classification in heading 8716, HTSUS. The 8716 heading was found to be more specific than 8609 and the engine stand was ultimately classified as a trailer or semi-trailer for the transport of goods.
Like the engine stand of HQ 962927, the Obelix Engine Transportation Stand is made of steel and designed to contain an aircraft engine for transport. There are some differences in design between the two: rather than with forklift pockets, the Obelix is equipped with rings and support beams used to secure the stand on an aircraft or truck (rings and supports are specifically mentioned in EN 86.09 as features of containers of 8609). It also has hydraulic rams which rotate the stand 90 degrees to vertical prior to loading onto aircraft. However, like the engine stand of HQ 962927, the Obelix features a tow bar and castors designed to move the stand by means of a forklift or truck. It is thus designed to be towed by a motor vehicle and transport a specific type of good.
HQ 962927 does not specify whether or not the engine stand of that ruling was designed for road use or was DOT-certified; it only noted that the engine stand was towed by forklift or truck to a receiving area where the engine was removed and disassembled for repair. In addition, nothing in the Chapter Notes, heading terms or Explanatory Notes appear to indicate that only road-worthy, DOT-certified vehicles are permitted to be classified in 8716.
Per HQ 962927, goods are classified in the provision which most narrowly and specifically describes the goods or has the requirements which are the most difficult to satisfy.
Only if the Obelix Engine Transportation Stand were not classifiable in any other more specific provision would it be classifiable in the general heading of 7326, HTSUS, which provides for other articles of iron or steel.
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. EN 87.16 states that “The vehicles of this heading are designed to be towed by other vehicles … ” and EN 87.16 (A)(4)(f) states “The heading includes: Trailers … Other trailers for the transport of goods such as: Trailers adapted for the transport of certain goods.”
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... .” Heading 8716 provides for “Trailers … .”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8716.39.00 provides for “Trailers … : Other trailers … for the transport of goods: Other.”
The applicable classification subheading for the Obelix Engine Transportation Stand (Part No. RRT055070) will be 8716.39.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Trailers … : Other trailers … for the transport of goods: Other: Other: Other: 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://ww.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 Richard Laman at 646-733-3017.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division