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NY 885401



TARIFF NO.: 8704.22.50

Mr. John Medemblik
Walinga Inc.
R.R. # 5, Guelph, ON
Canada N1H 6J2

RE: The tariff classification of recycling trucks from Canada

Dear Mr. Medemblik:

In your letter dated April 19, 1993 you requested a tariff class- ification ruling for a Walinga Inc. converted cab-chassis recycling truck that is imported in the United States. You have submitted descriptive brochures.

Your letter states that Walinga Inc. would obtain from Mack Canada Inc. either a model CS 300P or a model MS 300P Mack Midliner cab-chassis. Both of these cab-chassis models are imported into Canada by Mack Canada Inc. after being obtained from Mack Trucks Inc., Allentown, PA. The cab-chassis are manufactured in France.

The model CS 300P Midliner is powered by a RVI E5-215 h.p. engine (except for California models which are powered by a EC5- 205 h.p. engine). The model MS 300P Midliner is powered by a RVI E3-210 h.p. engine. The enclosed cab has a driver and two riders seats (and seat belts), a dome light, a fixed steering column, a panel with full instrumentation, etc. Other vehicle features include a RVI 6-speed transmission, 15 inch single plate clutch, dual airbrake system and a 12-volt starter. The frame features steel frame rails, a steel swept back type bumper, and frame mounted tow eyes.

Walinga Inc. will then convert the standard left hand drive Midliner into a special combination right hand drive and left hand drive vehicle. This is accomplished by adding a so-called "telephone booth", a second set of brake controls, accelerator controls, and a steering assembly. An additional right side windshield wiper and washer are also added. This procedure is called a cab conversion. In addition to this cab conversion, Walinga Inc. will also install a complete recycling truck body onto the Midliner cab-chassis. This process includes installing an over-the-top loading bucket that is mounted on the side of the truck body, a hydraulic hoist for the purpose of discharging the load, and a bustle tailgate assembly for the purpose of added load space. Your attached literature for the Walinga Champion recycling truck indicates its body has a 10 gauge body frame with 3/16 inch steel floor, a 10 gauge steel front wall section, a single roof lid opening, a 12 gauge steel roof, and full swing barn doors.

The approximate value of the vehicle described above would be (in U.S. dollars):

Mack cab-chassis $ 32,000
Walinga Inc. cab conversion $ 7,200
Walinga Inc. body conversion $ 32,000

The value may vary according to a few available options.

Upon completion of the conversion process in Canada the Walinga recycling truck will be imported into the United States. The recycling truck is utilized by the U.S. purchaser to collect and sort glass bottles, newspapers, plastic containers and other plastic items, and metal cans that have been sorted and stored in curb-side bins for the purpose of recycling these products. The recycling truck is a motor vehicle for the transport of goods.

The applicable subheading for the Walinga recycling truck will be 8704.22.50, Harmonized Tariff Schedule of the United States (HTS), which provides for motor vehicles for the transport of goods, other, with compression-ignition internal combustion piston engine (diesel or semi-diesel). The rate of duty on motor vehicles (valued at $1,000 or more) for the transportation of goods is temporarily increased to 25 percent ad valorem in subheading 9903.87.00, HTS.

General Note 3(c)(iii)(A), HTS, states that motor vehicles ... which are Canadian articles and which fall in provisions for which the rate of duty "Free (B)" appears in the "Special" subcolumn may be entered free of duty under the Automotive Products Trade Act (A.P.T.A.). As used in this note, the term "Canadian article" means an article which originates in Canada, as defined in subdivision (c)(vii) of this note. General Note 3(c)(vii)(B) states that goods imported into the customs territory of the United States are eligible for treatment as "goods originating in the territory of Canada" only if:

(1) they are goods wholly obtained or produced in the territory of Canada and/or the United states, or

(2) they have been transformed in the territory of Canada and/or the United states, so as to be subject---

(I) to a change in tariff classification as described in the rules of subdivision (c)(vii)(R) of this note....

(dd) A change to heading 8701 through 8705 from any other heading; provided, that the value of materials originating in the territory of Canada and/or the
United States plus the direct cost of processing performed in the territory of Canada and /or the United States constitute not less than 50 percent of the value of the goods when exported to the territory of the
United States.

If you wish to pursue a free rate of duty under A.P.T.A., please forward your request to U.S. Customs Headquarters, Office of Regulations and Rulings, 1301 Constitution Ave. N.W., Washington, D.C. 20229-0001. Include a complete breakout showing the country of origin and value of each item installed in the Walinga vehicle during the conversion process, and the cost of the converstion process itself.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director

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