CLA-2 CO:R:C:M 951004

District Director
United States Customs Service
Suite 501
55 East Monroe Street
Chicago, IL 60603-5790

RE: Protest No. 3901-89-001669; heading 8517; telephones; subheading 9817.00.96; articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons

Dear District Director:

This is in response to the request for Further Review of Protest No. 3901-89-001669, dated December 14, 1989, regarding the eligibility for duty-free treatment under subheading 9817.00.96, Harmonized Tariff Schedule of the United States (HTSUS), of "Tel-Ease" telephones. A sample was submitted for our examination.

FACTS:

The article at issue is the "Tel-Ease" telephone, model No. 100501. The submitted telephone has ash colored jumbo size buttons that have large grey colored numbers and letter. It has tone and volume adjustment controls, a flashing light and an automatic redial button. It has a ten number memory and colored emergency designators. The "Tel-Ease" has an amplified receiver that can increase incoming volume up to 20 db and it has an amplified ringer that has 90 db output in the high position. The importer states that the "Tel-Ease" is hearing aid compatible, meaning that nothing in the telephone will blow a user's hearing aid.

Your office liquidated the "Tel-Ease" telephone in subheading 8517.10.00, HTSUS, which provides for telephone sets, single lines, other with special features (such as memory, redial, autodial, speaker and the like) other.

The importer contends that the "Tel-Ease" telephone is an article or device specially designed or adapted for the handicapped person, specifically for those with sight and/or hearing impairments, in subheading 9817.00.96, HTSUS, and is therefore, entitled to entry free of duty.

According to the importer, the "Tel-Ease" telephones are sold to telephone companies, state agencies and to distributors who sell to hearing audiologists. The importer states in his submission that this phone has been selected as a "Telecommunications Device for the Hearing Impaired" by the State Council for the Hearing Impaired in one of the southern states. In addition, the importer states that the Special Services Department of a Regional Bell Operating Company has selected this phone as one to be offered to their special needs people.

ISSUE:

Is the "Tel-Ease" telephone classified in subheading 8517.10.00, HTSUS, which provides for telephone sets, single lines, other with special features (such as memory, redial, autodial, speaker and the like) other, or in subheading 9817.00.96, HTSUS, which provides for articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons, other.

LAW AND ANALYSIS:

Subheading 9817.00.96, HTSUS, provides that articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons are eligible for duty free treatment. U.S. Note 4(a) to subchapter XVII, Chapter 98, HTSUS, states that:

For purposes of subheadings 9817.00.92, 9817.00.94 and 9817.00.96, the term "blind or other physically or mentally handicapped persons" includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working. The importer contends that the "Tel-Ease" telephone has three distinct features that qualify it as an article designed or adapted for handicapped persons, specifically those with either sight and/or hearing impairments. First, the jumbo sized buttons with large numbers help the sight impaired. The numbers are also available in large contrasting colors designed in response to information received from the Association for the Blind. Second, the "Tel-Ease" was the first telephone introduced into the marketplace with a built in amplified receiver for the Third, the "Tel-Ease" includes a loud electronic ringer that has a lower tone than most phones. The importer also emphasizes the presence of the ring indicator light, the automatic redial, the ten number memory and the emergency indicators.

The legislative history of subheading 9817.00.96, HTSUS, discusses the concern of Congress that the design, modification or adaption of an article must be significant, so as to clearly render the article for use by handicapped persons. (Senate report (Finance Committee) No. 97-564, Sept. 21, 1989). It is our position that the degree of additional features for the benefit of the handicapped in the phone under consideration is minimal and is, therefore, insufficiently significant to alter the basic character of a conventional phone. For example, while the large numbers on the dial buttons would certainly help anyone, visually impaired or not, they intrinsically constitute an attractive design feature that would appeal to many people who are not visually impaired. The telephones are also not marketed and sold just to the hearing and sight impaired but are available to the general public. Tone and volume control, speed dial, flashing light, and number memory, are all features that are increasingly found in standard telephones sold to the general public.

Thus, while the "Tel-Ease" telephone maybe of benefit to the sight and hearing impaired, we do not believe it is the type of equipment which can be said to be specially designed or adapted for handicapped people. Therefore, the "Tel-Ease" telephones, are classified in subheading 8517.10.70, HTSUS, and are not eligible for duty free treatment in subheading 9817.00.96, HTSUS.

HOLDING:

The protest should be denied in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.


Sincerely,

John Durant, Director
Commercial Rulings Division