CLA-2-87:OT:RR:NC:N1:101
Charles Wesley Alexander V
2611 SW Brae Mar Court
Portland, OR 97201-2202
RE: The tariff classification of a Unimog from Germany
Dear Mr. Alexander:
In your letter dated April 7, 2015, you requested a tariff classification ruling.
The item under consideration has been identified as a Unimog U406 Pickup Truck. As per our telephone conversation on April 10, 2015, this office has reviewed the information which you provided concerning the Unimog U406. As we stated to you, a Unimog is a range of multi-purpose auto four-wheel drive medium trucks which are configurable to suit various role, for example carrying passengers, transporting goods, or being used as a tractor with the ability to power various attachments by way of either a front, rear, or dual Power Take Off (PTO). The vehicle which you requested HTS classification on is designed, not only with the ability to power implements through a dual PTO system, but carry and unload cargo by way of a hydraulic dumping body.
In your request, you suggested classification of the Unimog U406 in heading 8701.90.5015, and refer to an advance ruling issued by Canada Border Services classifying a similar Unimog as a tractor of 8701. Treasury Decision (T.D.) 89-80, "Guidance for Interpretation of Harmonized System" (54 FR 35127), states that Customs is not bound to abide by another country's rulings and that they are merely instructive of how other countries may classify like goods. While the Harmonized Tariff Schedule seeks uniformity among the participating member nations, participating nations are, nonetheless, not bound by other nations' classifications and are free to decide the ultimate classification of goods entering their boundaries.
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 ... .”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8704.21 provides for, “Motor vehicles for the transport of goods: Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel).”
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 87.04 state:
“This heading covers in particular:
Ordinary lorries (trucks) and vans (flat, tarpaulin covered, closed, etc.); delivery trucks and vans of all kinds, removal vans; lorries (trucks) with automatic discharging devices (tipping lorries (trucks), etc.)….
The classification of certain motor vehicles in this heading is determined by certain features which indicate that the vehicles are designed for the transport of goods rather than for the transport of persons. These features are especially helpful in determining the classification of motor vehicles, generally vehicles having a gross vehicle weight rating of less than 5 tonnes, which have either a separate closed rear area or an open rear platform normally used for the transport of goods, but may have rear bench-type seats that are without safety seat belts, anchor points or passenger amenities and that fold flat against the sides to permit full use of the rear platform for the transport of goods. Included in this category of motor vehicles are those commonly known as “multipurpose” vehicles (e.g., van-type vehicles, pick-up type vehicles and certain sports utility vehicles). [Emphasis added]
The applicable subheading for the Unimog U406 configured as vehicle for transport of goods will be 8704.21.0000, HTSUS, which provides for “Motor vehicles for the transport of good: Other, with compression-ignition internal combustion piston engine…: G.V.W. not exceeding 5 metric tons.” The rate of duty is 25%.
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 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 at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division