The tariff classification of a Heavy-Load Material Transporter from Canada

N272395 February 24, 2016 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8704.90.0000 Ryan Wicklum, Supply Chain Manager Clearpath Robotics, Inc. 1425 Strasburg Road, Unit 2A Kitchener, N2R 1H2 CANADA RE: The tariff classification of a Heavy-Load Material Transporter from Canada Dear Mr. Wicklum: In your letter dated January 21, 2016 you requested a tariff classification ruling. The item under consideration has been identified as a Heavy-Load Material Transporter, (aka OTTO). You state that the OTTO is manufactured in Canada and it is marketed to customers in the United Stated to help increase throughput and reduce operational costs in warehouses and industrial centers. You state that the OTTO has a payload capacity of 1500 kg, allowing it to effortlessly move large items and standard pallets. The OTTO has a zero turn radius to allow movement in tight spaces, a passive suspension for load stability, and a maximum speed of 2.0 m/s. OTTO is equipped with safety-rated sensors, dynamic navigation guided intelligence based on localization and mapping software, and a perceptive LED display for safety. It is constructed of a one-piece welded steel frame and durable, powder-coated aluminum exterior, premium-grade drive wheels coated with Vulkollan, and a modular appliance interface and on-board power supply which allows the OTTO to easily integrate with standard industry appliances including carts, manipulators, lifts and conveyors to address a wide-range of assembly line configurations. In your letter, you propose classifying the transporter in subheading 8427.10.8060 which provides for “Fork-lift trucks;  other works trucks fitted with lifting or handling equipment: Self-propelled trucks powered by an electric motor: Other: Automated guided vehicle (AGV)”,  Harmonized Tariff Schedule of the United States (HTSUS). The model does not incorporate any lifting equipment.  According to information on your website, i.e.,   http://www.clearpathrobotics.com/otto-materials-handing-industrial-vehicle/, any lifting equipment that may be used with the transporter is optional and not required for the transporter to operate.  As the transporter is a self-propelled unit capable of moving goods without any lifting/handling equipment, classification in subheading 8427.10.8060, HTSUS, would not be appropriate.  In addition, Note 1(l) to Section XVI states that Section XVI does not cover “Articles of section XVII”. 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 8704.90 provides for “Motor vehicles for the transport of goods: Other”. General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” 8704.90.0000 provides for “Motor vehicles for the transport of goods: Other” The applicable subheading for the OTTO will be 8704.90.000, HTSUS, which provides for “Motor vehicles for the transport of goods: Other”. The general rate of duty will be 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 Sullivan at [email protected]. Sincerely, Deborah C. Marinucci Acting Director National Commodity Specialist Division