us-cbp-cross-rulings-hq-083669•HQ 083669: Classification of a mobile security shredder imported from Canada
HQ 083669: Classification of a mobile security shredder imported from Canada
us-cbp-cross-rulings-hq-083669HQ 083669: Classification of a mobile security shredder imported from CanadaGuidance
Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.
HQ 083669
May 8, 1989
CLA-2 CO:R:C:G 083669 VEA
CATEGORY: Classification
TARIFF NO.: 8704.22.50
William T. Clune
Ameri-Can Customshouse Brokers, Inc.
Peace Bridge Plaza
Buffalo, New York 14213-2488
RE: Classification of a mobile security shredder imported
from Canada
Dear Mr. Clune:
In a letter dated January 19, 1989, you requested a ruling
on behalf of your client, Shred-Tech Inc., on the classifica-
tion of a mobile security shredder, under the Harmonized Tariff
Schedule (HTS). This ruling is our decision on that request.
FACTS:
The descriptive literature submitted with your request
describes the article as a mobile security shredder truck. The
vehicle is a diesel powered, van-type delivery truck equipped
with a paper shredding and compacting machine. It is
manufactured by Shred-Tech Limited, a Canadian company
specializing in reduction engineering and manufacturing.
The body of the vehicle consists of the shredding area and
the cargo area. The shredding compartment includes the
shredder, the controls, the loading hopper, the paper compactor
and loading doors on both sides of the vehicle. Auxiliary
equipment contained in the shredder area include an oil cooler
opening, a shredder opening, a window, two side doors, a step
ladder and rail, and a dome light. The cargo area has a chute
or door opening built into its side wall. The dimensions of
the shredder and cargo area are as follows. The shredder area
is 180-1/2 inches long and 93-7/8 inches wide. The cargo area
is 84-1/2 inches long and 93-7/8 inches wide. The gross
vehicle weight is 29,500 lbs.
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The shredder operates when bags of paper are placed in the
shredder hopper and the controls are pushed or pulled. The
shredded paper is then pushed through a compactor and into the
cargo van area of the truck through a chute in the wall. The
unit shreds paper at a rate of approximately 1,000 lbs. per
hour, and can store approximately 8,000 lbs. of shredded paper.
The entire body of the truck can be hydraulically lifted for
dumping at a landfill or recycling site.
The importer states that the shredder truck will be
imported into the United States in either of two situations.
The vehicle will either be manufactured and assembled in Canada
from a chassis and body produced in Canada, or a truck chassis
will be purchased from a U.S. manufacturer and shipped to
Shred-Tech for installation of the body.
ISSUE:
Whether the mobile shredder unit is properly classifiable
as a special purpose motor vehicle under heading 8705,
subheading 8705.90.00, or as a motor vehicle for the transport
of goods under heading 8704, subheading 8704.22.5080.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) govern
classification under the Harmonized Tariff Schedule. GRI 1
states that classification shall be determined according to the
terms of the headings and to any relative section or chapter
notes. The relevant headings at issue in this case include:
8705 Special purpose motor vehicles, other
than those principally designed for the
transport of persons or goods (for example,
wreckers, mobile cranes, fire fighting
vehicles, concrete mixers, road sweepers,
spraying vehicles, mobile workshops,
mobile radiological units):
8705.90.00 Other
* * * * * * *
8704 Motor vehicles for the transport of goods:
* * * * * * *
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Other, with compression-ignition internal
combustion piston engine (diesel or semi-
diesel):
* * * * * * *
8704.22 G.V.W. not exceeding 5 metric tons
but not exceeding 20 metric tons
* * * * * * *
8704.22.50 Other
* * * * * * *
8704.22.5080 G.V.W. exceeding 15 metric tons
but not exceeding 20 metric tons
* * * * * * * *
Under GRI 1, the motor vehicle at issue in this case
cannot be classified in heading 8705. To qualify for
classification in this heading, a vehicle must be a special
purpose motor vehicle. The Explanatory Notes, the official
interpretation of the HTS at the international level, although
not legally binding, offer some guidance on interpreting
provisions under the HTS. The Explanatory Notes for heading
8705 state that the primary purpose of vehicles covered in this
heading is not the transport of persons or goods. They are
equipped with various devices that enable them to perform
certain non-transport functions. Although such a motor vehicle
transports the device to a specific location, once the vehicle
is at the location, the device and vehicle act as a unit to
perform a special function.
The shredder truck in this case does not meet the special
purpose requirement under heading 8705. The mobile shredder
truck and shredder function as two separate units. The truck
transports the shredder to a specific location where paper is
picked up and shredded. The truck then transports the shredded
paper to a landfill or recycling site. Thus, the motor
vehicle's primary function is to transport the shredder and the
shredded paper.
Based on the language of the heading, the vehicle in this
case should be classified in heading 8704. Heading 8704
provides for motor vehicles which are specifically designed to
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transport goods. The primary purpose of the motor vehicle in
this case is to transport the shredder to various sites to
collect paper and then to transport the shredded paper to a
landfill or recycling site. The shredder function is
incidental to the principal function of the entire unit which
is to transport. Although the vehicle contains an on-site
shredder, this adds to its overall convenience and does not
detract from its primary function of transporting.
Motor vehicles classified in heading 8704 are dutiable at
25 percent, or are duty free under the Automotive Products
Trade Act (APTA), if they meet the conditions in General Note
3(c)(iii) of the HTS. This note states that motor vehicles
classified under heading 8704 may be entered duty free under
APTA, if they are Canadian articles. An article originates in
Canada and is a Canadian article if it meets the conditions
listed in General Note 3(c)(vii).
Under the facts presented in this case, we cannot
determine whether the vehicle meets the conditions of General
Note 3(c)(vii). A copy of that provision is enclosed with this
ruling.
HOLDING:
The mobile shredder truck is properly classifiable as a
motor vehicle for the transport of goods under heading 8704,
subheading 8704.22.5080, if it has a compression-ignition
internal combustion engine, and its G.V.W. exceeds 15 metric
tons, but does not exceed 20 metric tons; and is dutiable at
25%; or is duty free if it satisfies the conditions under APTA.
Sincerely,
John Durant, Director
Commercial Rulings Division
allums library
6cc: Area Director, New York Seaport
VEAllums:jaj:4/28/89
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