Importer: Counterweights Aren't Backhoe Parts, Should Get Section 301 Tariffs Exclusion

Counterweights for mini-excavators are not parts for "backhoes" and should be excluded from Section 301 tariffs, manufacturer Norca argued in a March 29 motion at the Court of International Trade. Norca accused the government of obscuring and overcomplicating the distinction between the two equipment types (Norca Engineered Products v. U.S., CIT # 21-00305).

The government "stretches the definition of 'excavate' (verb), not to describe a function, but instead to suggest that both excavators (noun) and backhoes (noun) are identical vehicles," Norca said. Backhoes represent a type of vehicle so distinct from excavators that "even children learn the differences," Norca argued.

The dispute concerns the correct 10-digit statistical classification for counterweights used on the construction vehicles. Norca had argued that because the counterweights are exclusively installed on Doosan Bobcat mini or compact excavators, which fall under Harmonized Tariff Schedule heading 8429, the counterweights do not fall under CBP's preferred classification, which is limited to parts for “backhoes, shovels, clamshells and draglines" and does not include "excavators" (see 2211030062).

Norca's preferred classification is subheading 8431.49.9095, a residual category for parts of certain machinery. Both statistical numbers are duty-free, but the government's proffered classification of 8431.49.904 falls under Section 301 tariffs. DOJ had argued that the mini-excavators are "a type of excavator that is described by the term 'backhoe' under subheading 8429.52.10" and therefore any parts would be classified as "backhoe" parts (see 2301240063).