CLA-2 R:C:M 957326 LTO
Mr. Renato Martinez
Eva, Inc.
300 Montgomery Street
Suite 633
San Francisco, California 94104
RE: Video image processor for EVA 2000; HQ 087077, 087498, 089391, 953551; NY 897116 revoked; Section XVI, note 1(m); optical; chapter 90, note 3; section XVI, note 4; functional unit; heading 8473; U.S. v. Corning Glass Works
Dear Mr. Martinez:
This is in response to your letter of July 27, 1994, requesting reconsideration of NY 897116, issued to you on June 29, 1994, concerning the classification of a video image processor for the EVA 2000, an automatic road surveillance device, under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response. Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057 (1993) (hereinafter, "section 625"), notice of the proposed revocation of NY 897116 was published June 14, 1995, in the Customs Bulletin, Volume 29, Number 24.
FACTS:
The article in question is a video image processor for the EVA 2000, an automatic road surveillance device. The EVA 2000 operates by analyzing video images provided by video cameras installed on the road network. The device measures the following traffic variables: count, volume, density, average speed, occupancy and average spatial headway.
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The video image processor is designed for use in measuring traffic variables. The processor contains dedicated printed circuit boards with electronic components which perform these measurements. The video cameras and connecting cables will not be imported in the same shipment with the video processor.
In NY 897116, the video image processor was held to be classifiable under subheading 9031.40.80, HTSUS, which provides for optical measuring or checking instruments, appliances and machines, not specified or included elsewhere in chapter 90. You contend that the device is classifiable under subheading 8473.30, HTSUS, which provides for parts and accessories of the automatic data processing machines of heading 8471, HTSUS.
ISSUE:
Whether the EVA 2000 automatic road surveillance device is classifiable as a part for an automatic data processing machine under heading 8473, HTSUS, or as a measuring or checking instrument, appliance or machine under heading 9031, HTSUS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."
Note 1(m) to section XVI, HTSUS, states that the section, which includes chapters 84 and 85, does not cover articles of chapter 90. Thus, if the EVA 2000 is classifiable under heading 9031, HTSUS, it cannot be classified in a section XVI heading.
The EVA 2000 consists of a video image processor, video camera(s) and connecting cables. If imported together, the components of the EVA 2000 would constitute a "functional unit." Note 3 to chapter 90, HTSUS, states that the provisions of note 4 to section XVI, HTSUS, apply to chapter 90. Note 4 to section XVI provides as follows:
Where a machine (including a combination of machines) consists of
individual components (whether separate or interconnected by piping,
by transmission devices, by electric cables or by other devices)
intended to contribute to a clearly defined function covered by one
of the headings in chapter 84 or chapter 85, then the whole falls to be
classified in the heading appropriate to that function.
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Heading 9031, HTSUS, provides for measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter. The EVA 2000 is a traffic surveillance device that measures the following traffic variables: count, volume, density, average speed, occupancy and average spatial headway. Thus, the individual components of the EVA 2000 contribute together to a clearly defined function described by heading 9031, HTSUS, and the device, if imported complete, would be classified under this heading. Specifically, the EVA 2000 would be classified under subheading 9031.40.80, HTSUS, which provides for optical measuring instruments. See Additional U.S. Note 3 to chapter 90, HTSUS.
The EVA 2000's video image processor, however, is not, by itself, "optical," and it cannot be classified as an optical instrument. See HQ 087077, dated March 27, 1991 (wherein we stated that there are no HTSUS legal notes or ENs that provide for "unfinished" functional units). Moreover, while the processor cannot, by itself, perform a measuring function, it is used in the process of measuring or checking and can be classified as a measuring instrument. See HQ 953551, dated May 10, 1993; HQ 089391, dated February 6, 1992; HQ 087498, dated October 9, 1990; U.S. v. Corning Glass Works, 66 CCPA 25, 586 F.2d 822 (1978). Thus, the video image processor is classifiable under subheading 9031.80.00, HTSUS, which provides for other measuring instruments.
HOLDING:
The EVA 2000's video image processor is classifiable under subheading 9031.80.00, HTSUS, which provides for other measuring instruments, appliances and machines, not specified or included elsewhere in this chapter. The corresponding rate of duty for articles of this subheading is 4.3% ad valorem.
EFFECT ON OTHER RULINGS:
NY 897116, dated June 29, 1994, is revoked. In accordance with section 625, this ruling will become effective 60 days after publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change
of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division