CLA-2:CO:R:C:M 954719 JAS
Area Director of Customs
110 S. Fourth Street, Rm. 137
Minneapolis, MN 55401
RE: PRD 3501-92-100144; Cabin Intercommunication Data
System (CIDS) for Airbus A-320; Passenger Address Audio and
Visual Signaling Apparatus; Apparatus for Making Audio and
Visual Communication with Passengers; Electric Sound or
Visual Signaling Apparatus, Heading 8531; Apparatus for Line
Telephony or Line Telegraphy, Heading 8517; Composite
Machine, Principal Function, Section XVI, Note 3; Heading
8803, Parts of Airplanes; Civil Aircraft Agreement (CAA)
Dear Sir:
This is our decision on Application for Further Review of
Protest No. 3501-92-100144, filed against your action in
classifying certain audio and visual communications equipment
from Germany for use aboard the Airbus A-320 aircraft. The entry
under protest was liquidated on April 10, 1992, and this protest
timely filed on May 21, 1992.
FACTS:
The Cabin Intercommunication Data System (CIDS) is a
microprocessor controlled data bus system for the control,
operation and testing of passenger address (PA), cabin
interphone, passenger call, passenger lighted signs, general
illumination and emergency evacuation signaling. It is apparatus
that permits the pilot and flight attendants to make audio
communication with the passengers and to activate certain visual
signaling apparatus.
A pilot wishing to make an audio announcement to the
passengers activates the public address microphone which emits a
signal in digital form. An encoding/decoding device, designated
the DEU-A, converts this signal into analog format which it then
transmits through the CIDS to the PA loudspeaker. The same
process enables the pilot or flight attendant to turn on NO - 2 -
SMOKING and FASTEN SEATBELTS signs which are visual signaling
devices. The DEU-A also works in reverse to convert passengers'
analog "call" signals to digital format which are displayed on
the flight attendant indicator panel. Another encoding/decoding
device, designated the DEU-B, allows flight attendants to address
passengers using a handset located at the flight attendant
station, in the same manner as the pilot utilizing the DEU-A,
except that after converting the analog signal to digital format
the CIDS relays the signals through the DEU-A to the PA
loudspeaker. The DEU-B also converts passengers' analog signals
to digital format which the CIDS visually displays on the flight
attendant's indicator panel. A passenger may activate his
reading light by means of a signal which the DEUs convert and
relay to the CIDS.
The CIDS was entered under the duty-free provision for other
parts of airplanes and helicopters, in subheading 8803.30.00,
Harmonized Tariff Schedule of the United States (HTSUS). Counsel
for the protestant reasserts this classification and notes the
safety-critical features mandated by the Federal Aviation
Administration which the CIDS implements. Alternatively, counsel
maintains that the CIDS is provided for in subheading 8531.80.00,
HTSUS, as other visual sound or signaling apparatus, noting that
much of the mandated safety information is displayed through
warning signals and indicator panels. The protested entry was
liquidated under the provision for private branch [telephonic]
switching apparatus, in subheading 8517.30.20, HTSUS. You now
contend, however, that the CIDS is an aircraft intercom system
classifiable in subheading 8517.81.00, HTSUS, as other telephonic
apparatus.
The provisions under consideration are as follows:
8517.30.20 Telephonic or telegraphic switching
apparatus: Private branch exchange
switching apparatus...8.5 percent
* * * *
8517.81.00 Other apparatus: Telephonic...8.5 percent
* * * *
8531.80.00 Electric sound or visual signaling apparatus:
Other apparatus...Free under CAA
* * * *
8803.30.00 Other parts of airplanes or helicopters
...Free - 3 -
ISSUE:
Whether the CIDS is a composite machine; if so, whether it
has a principal function.
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.
Initially, articles of chapter 85 are precluded from
classification in subheading 8803.30.00, HTSUS. Section XVII,
Note 2(f), HTSUS. Therefore, if the CIDS is a machine or
apparatus of chapter 85 it cannot be classified in subheading
8803.30.00.
From the information available to us, it appears that the
CIDS is apparatus that performs two functions that are
complementary. As such, it is a composite machine consisting
either of two or more machines fitted together to form a whole or
as being a machine that performs two or more complementary or
alternative functions. Section XVI, Note 3, HTSUS. Composite
machines are to be classified as if consisting only of that
component or as being that machine which performs the principal
function.
The CIDS performs an audio communications function that is
appropriate to goods of heading 8517, electrical apparatus for
line telephony or line telegraphy. It also performs a visual
signaling function appropriate to goods of heading 8531, electric
sound or visual signaling apparatus. Pilots normally utilize the
audible communications feature to announce emergency situations,
and shortly after takeoff to inform passengers of flying
conditions such as weather, altitude and airspeed as well as
estimated time of arrival and other conditions at the plane's
destination. Flight attendants use the same audio medium at the
beginning of each flight to explain the plane's safety features.
Passengers cannot use this feature to communicate with the pilot
or flight attendants. The audio feature, while certainly
important, is in relatively infrequent use and usually only at
certain specified times during a flight. On the other hand, the
pilot and flight attendants access the visual signaling feature
to illuminate the NO SMOKING and FASTEN SEATBELT signs over each
passenger's seat. The former is in constant use since most
domestic flights are non-smoking, while the latter is always in
use on takeoff and landing and on a sporadic basis during the
flight as the plane changes altitude or encounters turbulence. - 4 -
Individual passengers can "call" a flight attendant by generating
a signal that is converted and displayed on the flight
attendant's indicator panel. Passengers can also individually
activate their reading lights. Thus, the visual display function
is reciprocal and is available to the pilot, the flight
attendants and the passengers as well.
While not conclusive, the available evidence indicates to us
that it is the visual signaling function that is the more
versatile and is used with more frequency. We therefore conclude
that the principal function of the CIDS is in visual signaling,
appropriate to apparatus of heading 8531.
HOLDING:
Under the authority of GRI 1, the Cabin Intercommunication
Data System (CIDS) is provided for in heading 8531. It is
classifiable in subheading 8531.80.00, HTSUS, as other electric
sound or visual signaling apparatus. The rate of duty on such
apparatus under the Agreement on Trade in Civil Aircraft is free.
The protest should be allowed. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, you should mail this
decision, together with the Customs Form 19, to the protestant no
later than 60 days from the date of this letter. Any
reliquidation of the entry or entries in accordance with the
decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and to the public via the Diskette Subscription Service,
Lexis, the Freedom of Information Act and other public access
channels.
Sincerely,
John Durant, Director
Commercial Rulings Division