CLA-2:CO:R:C:M 954192 JAS
Area Director of Customs
110 S. Fourth Street, Rm. 137
Minneapolis, MN 55401
RE: PRD 3501-90-000137; Audio Management Unit; Audio Signal
Centralizing Unit for the Airbus A320; Apparatus for Radio
Communication Between Pilot and Passengers, Ground Crew;
Radio Transmitting and Receiving Apparatus; Headings 8517,
8525, 8526, 8529; Parts Certified for Use in Civil Aircraft,
Victoria Distributors Inc. v. United States, 57 CCPA 76, 425
F.2d 759; Section XVII, Note 2(f), HTSUS; Civil Aircraft
Agreement (CAA)
Dear Sir:
This is our decision on Application for Further Review of
Protest No. 3501-90-000137, filed against your action in
liquidating an entry of radio communications apparatus from
France. The entry was liquidated on April 20, 1990, and this
protest timely filed on May 24, 1990.
FACTS:
The merchandise in issue is the Audio Management Unit (AMU)
which functions as an interface between the user and various
onboard radio communications and radio-navigational systems. The
AMU collects both incoming and outgoing communications and
navigational signals and directs them to the radio transmitters,
receivers, or to the passenger address system.
Utilizing a control panel which is a part of this apparatus,
the pilot or any crew member can select a communication mode
(i.e., airport control tower, navigational system, passenger
address function, etc.) he wishes to use. In the transmission
mode the AMU collects the sender's audio transmission and routes
it to the appropriate radio transceiver on board the A320. In
the receiving mode, the AMU collects the designated signal
received and directs it to the user's headset. The apparatus
also determines the priority of various audio signals and allows - 2 -
the pilot to override other types of onboard audio signals. That
is, using the AMU the pilot can break into the passenger
entertainment system and communicate directly with the
passengers. The AMU also has an interphone function that the
user can select through the control panel to permit direct
communication between the pilot and/or crew with ground support
personnel, bypassing onboard transmitters and receivers.
The AMU was entered under the duty-free provision for other
parts of airplanes or helicopters, in subheading 8803.30.00,
Harmonized Tariff Schedule of the United States (HTSUS). You
determined that the AMU is apparatus that directs signals for
intercom use, and liquidated the entry under subheading
8517.81.00, HTSUS, a provision for telephonic intercom systems.
In a submission dated September 9, 1993, counsel for the
protestant advances alternative claims under provisions in
chapter 85 for radio transmission apparatus whether or not
incorporating reception apparatus, for radio navigational aid
apparatus, or for parts of these apparatus.
The provisions under consideration are as follows:
8517.81.00 Electrical apparatus for line telephony
or telegraphy: Other apparatus: Telephonic
...8.5 percent
* * * * *
8525.10.80 Transmission apparatus for radio telephony,
radiotelegraphy...radiobroadcasting...whether
or not incorporating reception apparatus:
Other: Other...Free under the CAA
* * * * *
8526.91.00 Radio navigational aid apparatus: Other...
Free under the CAA
* * * * *
8529.90.40 Parts suitable for use solely or principally
with the apparatus of headings 8525 to 8528:
Other: Assemblies and subassemblies
consisting of 2 or more parts or pieces
fastened or joined together...Free under the
CAA
* * * * *
8803.30.00 Parts of goods of heading 8801 or 8802: Other
parts of airplanes or helicopters...Free - 3 -
ISSUE:
Whether the AMU is classifiable as radio transmission
apparatus or as parts of such apparatus.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized System.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80.
Articles of chapter 85 are precluded from classification in
subheading 8803.30.00. See Section XVII, Note 2(f), HTSUS.
Therefore, if the AMU is provided for in any of the competing
chapter 85 provisions it must be classified there.
Relevant ENs at p. 1360 state that goods of heading 8517 are
apparatus for the transmission between two points of speech or
other sounds by variation of an electric current or of an optical
wave flowing in a metallic or dielectric circuit connecting the
transmitting station to the receiving station. The AMU does
permit direct voice communication between persons. However, it
also functions to collect and route audio signals to onboard
transmitters and receivers. As such, from the evidence of record
we are unable to conclude that the AMU is described by heading
8517.
Relevant ENs at pp. 1374 and 1375 state that apparatus of
heading 8525 is used for the transmission of signals
(representing speech, messages or still pictures) by means of
electro-magnetic waves which are transmitted through the ether
(the medium that transmits radio waves) without any line
connection. The AMU has a function (the collection and routing
of audio signals) that conforms to this description; however, it
also has a direct voice communication function which leads us to
conclude that the AMU is a more diversified apparatus than that
encompassed by heading 8525. - 4 -
There are no ENs that clarify the scope of heading 8526.
However at p. 1375 the following are listed as examples of radio
navigational aid equipment of heading 8526: radio beacons and
radio buoys, with fixed or rotating aerials; receivers, including
radio compasses equipped with multiple aerials or with a
directional frame aerial. By design and function, the AMU is not
compellingly analogous to these apparatus.
Finally, as to the claim under heading 8529, in addition to
meeting the test of sole or principal use, one line of cases
holds that a "part" for tariff purposes is an article that in
some way contributes to the safe or efficient use of a larger
article. Victoria Distributors, Inc. v. United States, 57 CCPA
76, 425 F. 2d 759 (1970), and related cases. In this case,
counsel has not demonstrated whether, or in what respect, the AMU
is part of a larger apparatus encompassed by headings 8517, 8525,
8526, 8527 or 8528; nor is there evidence in the record from
which we can independently determine the validity of the claims.
We conclude that neither the provision under which the entry
was liquidated, nor any of the claimed chapter 85 provisions
apply. Therefore, section XVII, note 2(f), HTSUS, does not
operate here. We further conclude that by its design and
function, the AMU is apparatus that permits the pilot and crew to
transmit and receive data in the form of audio signals. This is
a function that contributes to the safe and efficient operation
of the A320, particularly where a navigation function is
involved. The AMU therefore qualifies as part of an aircraft of
heading 8802.
HOLDING:
Under the authority of GRI 1, the Audio Management Unit
(AMU) is provided for in heading 8803. Actual classification is
in subheading 8803.30.00, HTSUS, as other parts of airplanes or
helicopters. The rate of duty is free.
The protest should be allowed. A copy of this decision
should be attached to the Customs Form 19 and forwarded to the
protestant, through counsel, as part of the notice of action on
the protest.
Sincerely,
John Durant, Director