CLA-2-84:OT:RR:NC:N1:103

Rachel Situ
Titan CHB Inc.
20955 Pathfinder Rd. Ste. 222
Diamond Bar, CA 91765

RE: The tariff classification of mini excavators from China

Dear Ms. Situ:

In your letter dated April 23, 2025, you requested a tariff classification ruling on behalf of your client, Torqnova Equipment.

The first item under consideration is identified as the H15R self-propelled mini crawler excavator, a compact version of a full-sized excavator. The subject excavator is composed of a 360-degree rotating upper frame assembly (containing an 8.6 kW internal combustion engine, a hydraulic system, a counterweight, and an open cab with operator controls) that is mounted atop a tracked undercarriage. Attached to the upper frame is a backhoe mechanical shovel with a maximum digging depth of 1.65 meters and a 0.025 cubic meter bucket capacity. The overall dimensions of the excavator are 2.59 meters in length, 1.53 meters in width, and 2.09 meters in height.

The second item under consideration is identified as the NT18K self-propelled mini crawler excavator, a compact version of a full-sized excavator. The subject excavator is composed of a 360-degree rotating upper frame assembly (containing a 10.2 kW internal combustion engine, a hydraulic system, a counterweight, and an open cab with operator controls) that is mounted atop a tracked undercarriage. Attached to the upper frame is a backhoe mechanical shovel that has a maximum digging depth of 2.12 meters and a 0.04 cubic meter bucket capacity. The overall dimensions of the excavator are 3.40 meters in length, 1.10 meters in width, and 2.28 meters in height.

The third item under consideration is identified as the STE20SR self-propelled mini crawler excavator, a compact version of a full-sized excavator. The subject excavator is composed of a 360-degree rotating upper frame assembly (containing an 11.2 kW internal combustion engine, a hydraulic system, a counterweight, and an open cab with operator controls) that is mounted atop a tracked undercarriage. Attached to the upper frame is a backhoe mechanical shovel that has a maximum digging depth of 2.27 meters and a 0.04 cubic meter bucket capacity. The overall dimensions of the excavator are 2.44 meters in length, 0.99 meters in width, and 2.41 meters in height.

The H15R, NT18K, and STE20SR are general purpose excavators used in a wide range of applications, including construction, landscaping jobs, utility work, etc. Due to their compact size, they are appropriate for smaller projects or job sites with confined spaces.

In your submission, you suggest all three mini crawler excavators are classified under subheading 8429.59.1030, Harmonized Tariff Schedule of the United States (HTSUS). While we agree that they are classified in heading 8429, we disagree at the subheading level. The subject excavators are hydraulically powered and have revolving upper frames.

The applicable subheading for the H15R, NT18K, and STE20SR mini crawler excavators will be 8429.52.1010, HTSUS, which provides for “Self-propelled bulldozers, angledozers, graders, levelers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers: Mechanical shovels, excavators and shovel loaders: Machinery with a 360 revolving superstructure: Backhoes, shovels, clamshells and draglines: New: Crawler mounted: Hydraulic.” The general rate of duty will be free.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 8429.52.1010, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.63, in addition to subheading 8429.52.1010, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8429.52.1010, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8429.52.1010, HTSUS, listed above.

The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/programs-administration/trade-remedies, respectively.

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 at https://hts.usitc.gov/.

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Paul Huang at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division