HQ 086888: Container Stacker Straddle Carrier

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 086888

                                        AUG 2 1990

            CLA-2:CO:R:C:G  086888 JAS

            CATEGORY:   Classification

            TARIFF NO.: 8426.12.0000

            Mr. Terence Derry
            Valmet Materials Handling Equipment, Inc.
            1520 Randolph Avenue
            Avenel, N.J. 07001

            RE:  Container Stacker Straddle Carrier

            Dear Mr. Derry:

                 In your letter of April 2, 1990, you inquire as to the
            tariff classification of container handling straddle carriers
            from Finland.  Our ruling follows.

            FACTS:

                 Descriptive literature you submitted depicts self-
            propelled machines used in container terminals to load, unload,
            stack and transport containers over short distances.  They
            consist of a large steel superstructure/chassis mounted on two
            parallel sets of wheels.  The wheels turn independently for
            maximum maneuverability.  The superstructure is open at both
            ends to permit the straddle carrier to be driven over and
            straddle the container to be lifted.  Lifting is accomplished
            by means of two horizontal, heavy duty cylinders mounted on the
            top frame, lift chains, and a T-shaped telescopic top lift
            spreader designed to handle all sizes of containers.  The
            operator's cabin is located at the top of the superstructure
            for clear visibility.

            ISSUE:

                 Whether the straddle carrier in issue is a works truck
            fitted with lifting or handling equipment.

















                                       - 2 -


            LAW AND ANALYSIS:

                 Merchandise is classifiable under the Harmonized Tariff
            Schedule of the United States Annotated (HTSUSA) in accordance
            with the General Rules of Interpretation (GRIs).  GRI 1 states
            in part that for legal purposes classification shall be
            determined according to the terms of the headings and any
            relative section or chapter notes and, provided the headings or
            notes do not require otherwise, according to GRIs 2 through 6.

                 You maintain that under the HTSUSA predecessor tariff
            code, the Tariff Schedules of the United States (TSUS), these
            straddle carriers were free of duty.  The HTS equivalent,
            heading 8427, is a duty-free provision for fork-lift trucks and
            other works trucks fitted with lifting or handling equipment.
            Heading 8426, on the other hand, provides for derricks, cranes,
            including cable cranes, mobile lifting frames, straddle
            carriers and works trucks fitted with a crane.

                 Explanatory Notes (ENs) constitute the Customs Cooperation
            Council's official interpretation of the Harmonized System.
            Though not binding, they provide a commentary on the scope of
            the Harmonized System, and are thus useful in ascertaining the
            classification of merchandise under the System.  Customs
            believes they should always be consulted.  Relevant ENs
            describe the straddle carriers of heading 84.26 as consist[ing]
            of a chassis of the "straddle" type, generally with vertical
            telescopic members for adjusting the height.  This chassis is
            normally mounted on four or more tyred wheels which usually
            serve both as driving and steering wheels so as to permit
            maneuvering within a very small radius.  Straddle carriers are
            used in factories, warehouses, dock areas, airports etc., for
            handling long loads or for stacking containers.  These notes
            describe the machines in issue here.  In addition, ENs
            describing the trucks and equipment of heading 84.27
            specifically exclude straddle carriers and works trucks fitted
            with a crane of heading 84.26.

                 While the underlying intent in converting the TSUS to the
            HTSUSA was to be revenue neutral to the greatest extent
            possible, it was recorgnized that in some cases the conversion
            would result in changes in duty rates.  Regrettably, this is
            such a case.

            HOLDING:

                 Under the authority of GRI 1, the Valmet container stacker
            straddle carrier is provided for by name in heading 8426.













                                      - 3 -

            Actual classification is in subheading 8426.12.0000, HTSUSA,
            mobile lifting frames on tires and straddle carriers.  The rate
            of duty is 2 percent ad valorem.


                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division