Tariff classification of a Motor Grader Wheel.

HQ 003917 December 18, 1997 RR:IA 003917 ch CATEGORY: Classification TARIFF NO.: 8431.49.9060 Robert Torresen, Esq. Powell. Goldstein, Frazer & Murphy Sixth Floor (South) 1001 Pennsylvania Avenue, N.W. Washington, D.C. 20004 Re: Tariff classification of a Motor Grader Wheel. Dear Mr. Torresen: This is in response to your letter, dated March 8, 1996, identifying a difference in tariff classification between the United States, Canada and Mexico. Pursuant to Article 513(6)(a)(ii) of the North American Free Trade Agreement (NAFTA), the NAFTA Customs Subgroup discussed the classification of a motor grader wheel at a meeting convened on December 5-6, 1996. In view of the discussion, and upon further consideration of the matter in order to make clear the view of the Customs Service, we conclude that the motor grader wheel is classified as set forth in this ruling. FACTS: The product in question is a motor grader wheel (Part No. 2G5744). The wheel possesses an interchangeable rim and tubeless tires (six 13.00 - 24, 8 PR (G-2) traction type). The motor grader wheel is designed to be mounted on a Caterpillar motor grader (120G). The 120G motor grader is designed for earth leveling or smoothing by means of an adjustable grading blade. ISSUE: What is the proper tariff classification for the motor grader wheel? LAW AND ANALYSIS: The motor grader is specifically provided for as a grader of subheading 8429.20. The competing headings for the motor grader wheel are heading 84.31, found in Section XVI of the Harmonized System; and heading 87.08, found in Section XVII. Heading 84.31 provides for parts of self-propelled bulldozers and graders of heading 84.29. Parts are classified in heading 84.31 if they are solely or principally used with graders or bulldozers of heading 84.29. (See Section XVI, Note 2(b)). You have indicated that the motor grader wheel, by virtue of its diameter and the size of its hub, rim, bolt holes and bolts, is dedicated for use exclusively with the motor grader for which it is intended. That is to say, it cannot be used with any other vehicle classified elsewhere within the Harmonized System. Accordingly, the wheel is prima facie classifiable in heading 84.31. It is correct that Section XVI does not cover articles of Section XVII. (See Section XVI, Note 1(l)). However, there are several reasons why the wheel cannot be classified in Section XVII. First, Note 2(e) to Section XVII specifically excludes parts classifiable in heading 84.31 from Section XVII. Moreover, the General Explanatory Note to Section XVII, Item III, Part (A), exclusion 5(h), directs the classification of parts for grading machines to heading 84.31 even when they can be identified for use in motor vehicles of Section XVII. In addition, heading 87.08 provides for parts and accessories of the motor vehicles of headings 87.01 to 87.05. Note 3 to Section XVII indicates that heading 87.08 applies only to parts which are suitable for use solely or principally with vehicles classified in chapter 87. (See also General Explanatory Note to Section XVII, Item III; Explanatory Note to heading 87.08). As stated above, the motor grader wheel cannot be used in the motor vehicles which are described in headings 87.01 through 87.05 (i.e., tractors, motor vehicles for the transport of ten or more persons, motor vehicles principally designed for the transport of ten or more persons, motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods, special purpose vehicles). In view of the foregoing, the motor grader wheel cannot be classified in heading 87.08 as a matter of law. The Explanatory Note to heading 84.31 indicates that parts, including wheels, are excluded from the heading if they are identical with those for motor vehicles of heading 87.08 and they are not solely or principally used with motor graders and bulldozers of heading 84.29. The motor grader wheel at issue is not identical to the wheels used for motor vehicles of Chapter 87 and is designed exclusively for motor graders of heading 84.29. For this reason, the Explanatory Note does not apply to the circumstances of this case. HOLDING: The motor grader wheel is classifiable under subheading 8431.49.9060, Harmonized Tariff of the United States, which provides for other parts suitable for use solely or principally with the machinery of headings 8425 to 8430. The applicable rate of duty is 1.0 percent ad valorem. Sincerely, John Durant, Director Tariff Classification Appeals Division