CLA-2 CO:R:C:M 953624 DWS
Mr. Gordon W. Larson
Rudolph Miles & Sons
4950 Gateway East
P.O. Box 11057
El Paso, TX 79983
RE: Electronic Time Switches; Logic Modules; Switch Blocks;
Explanatory Note 91.07; GRI 2(a); Explanatory Note 2(a)(V)
and (VII); Complete and Unassembled; HQ 088891; 951508; GRI
3(a); 9109.19.10
Dear Mr. Larson:
This is in response to your letter of March 10, 1993,
concerning the classification of electronic time switches, logic
modules and switch blocks under the Harmonized Tariff Schedule of
the United States (HTSUS).
FACTS:
The merchandise consists of electronic time switches, logic
modules, and switch blocks. The electronic time switches (model
nos. TS212S, TS110S, TS114S, TS110C, and TS114C) are microprocessor
controlled, utilizing a primary oscillator with a quartz crystal
or ceramic resonator to synchronize processor operation. Under
typical operating conditions, the timekeeping functions are based
on an external time "standard", specifically the 60 Hz AC line
frequency. Backup timekeeping is achieved by operations entirely
internal to the microprocessor, and is related to the frequency of
the primary oscillator. The time switches require a 9 volt battery
for operation and memory retention.
The logic modules (model nos. TLA24, TL700, TL240, and TL242),
containing clock movements, are designed to be connected to the
subject switch blocks to form time switches. With the exception
of not possessing switching capabilities, they operate electrically
in the same manner as the time switches. They exceed 12mm in
thickness and 50mm in width and length, and require a 9 volt
battery for operation and memory retention.
As noted above, the switch blocks (models TC110, TC210,
TC210D, TC220, TC410, and TC410D) are designed to be connected to
the subject logic modules to form time switches. They consist of
relays, a manual override switch, and a regulated DC power supply
which will provide operational DC power to the logic modules.
It is our understanding from the information supplied that the
logic modules and the switch blocks will be either imported in
unequal numbers within the same shipment or imported separately.
ISSUE:
What is the proper classification of the electronic time
switches, logic modules, and switch blocks under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
We will first deal with the classification of the complete
time switches. Heading 9107, HTSUS, provides for: "[t]ime switches
with clock or watch movement or with synchronous motor."
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 91.07 (p. 1547) states that:
[t]his heading covers devices which do not have the character
of clocks of heading 91.05, but are mainly designed to make
or break electric circuits automatically at given times,
usually
at times determined according to a previously established
daily or weekly programme. To be included in this heading
these devices must have a movement of the watch or clock type
(including secondary or synchronous motor clock movements) or
a synchronous motor with or without reduction gear.
Because the subject time switches are specifically provided
for under heading 9107, HTSUS, it is our position that they are
classifiable under subheading 9107.00.80, HTSUS, which provides
for: "[t]ime switches with clock or watch movement or with
synchronous motor: [v]alued over $5 each."
We will now deal with the classification of the logic modules
and switch blocks, either imported together in unequal numbers and
in the same shipment or imported separately. The issue is whether
the articles constitute a complete and unassembled time switch.
GRI 2(a) states that:
[a]ny reference in a heading to an article shall be taken to
include a reference to that article incomplete or unfinished,
provided that, as entered, the incomplete or unfinished
article has the essential character of the complete or
finished article. It shall also include a reference to that
article complete or finished (or falling to be classified as
complete or finished by virtue of this rule), entered
unassembled or disassembled.
Explanatory Note 2(a)(V) (p. 2) states that:
[t]he second part of Rule 2(a) provides that complete or
finished articles presented unassembled or disassembled are
to be classified in the same heading as the assembled article.
When goods are so presented, it is usually for reasons such
as requirements or convenience of packing, handling or
transport.
In part, Explanatory Note 2(a)(VII) (p. 2) states that:
[f]or the purposes of this Rule, "articles presented
unassembled or disassembled" means articles the components
of which are to be assembled either by means of simple fixing
devices (screws, nuts, bolts, etc.) or by riveting or welding,
for example, provided only simple assembly operations are
involved.
It is our position that the logic modules, either imported
together with an unequal amount of switch blocks in the same
shipment or imported separate from the switch blocks, do not
constitute complete and unassembled time switches. See HQ 951508,
dated July 8, 1992.
It is argued that HQ 088891, dated June 21, 1991, is
dispositive of this issue. However, that ruling dealt with a
large number of disparate alarm system parts, shipped in bulk in
equal numbers. In the present case, the logic modules and switch
blocks are shipped together in unequal numbers. Therefore, because
HQ 088891 dealt with different facts, it is our position that it
does not apply to the subject merchandise.
Consequently, because the logic modules and switch blocks,
either imported together in unequal numbers and in the same
shipment or imported separately, do not constitute a complete and
unassembled time switch, we must determine the classification of
those articles as if they were shipped separately.
We agree that the switch blocks are classifiable under
subheading 8537.10.00, HTSUS, which provides for: "[b]oards, panels
(including numerical control panels), consoles, desks, cabinets and
other bases, equipped with two, or more apparatus of heading 8535
or 8536, for electric control or the distribution of electricity,
including those incorporating instruments or apparatus of chapter
90, other than switching apparatus of heading 8517: [f]or a voltage
not exceeding 1,000 V."
It is claimed that the logic modules are classifiable under
subheading 9109.19.10, HTSUS, which provides for: "[c]lock
movements, complete and assembled: [b]attery or AC powered:
[o]ther: [o]ther: [w]ith opto-electronic display only."
However, it is our position that the logic modules are
classifiable under 9106.90.80, HTSUS, which provides for: "[t]ime
of day recording apparatus and apparatus for measuring, recording
or otherwise indicating intervals of time, with clock or watch
movement or with synchronous motor (for example, time registers,
time-recorders): [o]ther: [o]ther."
In part, GRI 3(a) states that "[t]he heading which provides
the most specific description shall be preferred to headings
providing a more general description." We find that heading 9106,
HTSUS, is more specific in describing the subject logic modules.
The modules are apparatus for measuring intervals of time and they
incorporate clock movements. However, the modules also incorporate
other articles, such as microprocessors. Heading 9109, HTSUS,
describes clock movements only and is limited to such.
HOLDING:
The time switches are classifiable under subheading
9107.00.80, HTSUS, which provides for: "[t]ime switches with clock
or watch movement or with synchronous motor: [v]alued over $5
each." The general, column one rate of duty is 45 cents each and
6.4 percent ad valorem and 2.5 cents per jewel (if any).
The logic modules imported together with either an unequal
amount of switch blocks in the same shipment or imported separately
do not constitute complete and unassembled time switches.
The switch blocks are classifiable under subheading
8537.10.00, HTSUS, which provides for: "[b]oards, panels (including
numerical control panels), consoles, desks, cabinets and other
bases, equipped with two, or more apparatus of heading 8535 or
8536, for electric control or the distribution of electricity,
including those incorporating instruments or apparatus of chapter
90, other than switching apparatus of heading 8517: [f]or a voltage
not exceeding 1,000 V." The general, column one rate of duty is
5.3 percent ad valorem.
The logic modules are classifiable under 9106.90.80, HTSUS,
which provides for: "[t]ime of day recording apparatus and
apparatus for measuring, recording or otherwise indicating
intervals of time, with clock or watch movement or with synchronous
motor (for example, time registers, time-recorders): [o]ther:
[o]ther." The general, column one rate of duty is 45 cents each
and 7 percent ad valorem and 2.5 cents per jewel (if any).
Sincerely,
John Durant, Director