YES

3 decompositions
 #1 -----------
   4: hd(:(x1,x2)) -> x1

 #2 -----------
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))

 #3 -----------
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x1,x2)) -> x2

@Jouannaud and Kirchner's criterion
--- R
   4: hd(:(x1,x2)) -> x1

--- S
   4: hd(:(x1,x2)) -> x1


@Jouannaud and Kirchner's criterion
--- R
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))

--- S
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))


@Rule Labeling
--- R
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x1,x2)) -> x2

--- S
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x1,x2)) -> x2