CLA-2 RR:TC:MM 958419 RFA
Mr. Jerry Killion
Manager, Operations Support
Sanyo Manufacturing Corporation
2001 Sanyo Avenue
San Diego, CA 92173
RE: Voice Interface Unit (VIU); Telecommunication Apparatus for
Carrier-Current Line Systems or for Digital Line Systems;
Electrical Machines and Apparatus Not Specified Elsewhere;
Headings 8517 and 8543; EN 85.17(III); NY 810627, revoked
Dear Mr. Killion:
This is in response to your letter dated July 24, 1995,
requesting reconsideration of NY 810627, issued by the Area
Director of Customs, New York Seaport, on May 22, 1995, to Porter
International, Inc., on behalf of Sanyo Manufacturing
Corporation. In NY 810627, Customs determined the tariff
classification of the Voice Interface Unit (VIU) under the
Harmonized Tariff Schedule of the United States (HTSUS).
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057)(1993),
notice of the proposed revocation of NY 810627 was published on
March 20, 1996, in the Customs Bulletin, Volume 30, Number 12.
No comments were received in response to the notice.
FACTS:
The merchandise, labeled as the Voice Interface Unit (VIU),
is the interface between the in-home telephone equipment and the
digital telephone network, the FPN 1000 System. The FPN 1000
System is a flexible and cost-effective way to provide customers
with telephone service over coaxial cable networks- the same
networks used to deliver conventional analog or compressed
digital video programming. The end-user will be able to make
local and long-distance telephone calls through the VIU and the
FPN 1000 System. This system is suited for cable network hubs
and Fiber To The Feeder (FTTF) serving areas of 200 to 2,000
subscribers. All communications are transmitted over a single
broadband distribution system using fiber/coaxial cable
technology. Telephone, data, and video occupy separate radio
frequency (RF) channels. The network backbone is organized
architecturally as independent high speed parallel buses. The
feeder from the fiber hub is a standard cable television tree and
branch mixed fiber/coaxial cable distribution network to the
home. The VIU connects to the cable network receiving and
transmitting signals.
The VIU supports standard DTMF or pulse dial telephones,
modems, or FAX machines. The VIU converts the analog signal from
the telephone equipment to a digital signal with which it time
division multiplexes and pulse code modulates its RF transmit
signal (inbound to the headend). It likewise demultiplexes and
demodulates the outbound signals from the headend which are in
its time slot and converts them to analog "voice" signals. A
built-in auxiliary port facilitates the connection of data and
video equipment to the VIU.
ISSUE:
Is the VIU classifiable as telecommunication apparatus for
carrier-current line systems or for digital line systems, or as
other electrical machines and apparatus not specified elsewhere,
under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
In NY 810627, dated May 22, 1995, Customs determined that
the VIU was classifiable under subheading 8517.81.00 (now
subheading 8517.80.10) HTSUS, as other telephonic apparatus. You
indicate that the VIU should be classifiable under subheading
8543.80.60 (now subheading 8543.89.60), HTSUS, because the VIU is
specifically designed for connection to a telephone apparatus and
a telephone network. Subheading 8543.89.60, HTSUS, provides for:
"[e]lectrical machines and apparatus, having individual
functions, not specified or included elsewhere in this chapter. .
. : [o]ther machines and apparatus: [o]ther: [a]rticles designed
for connection to telegraphic or telephonic apparatus or
instruments or to telegraphic or telephonic networks. . . . "
To be classifiable under heading 8543, HTSUS, the VIU must
not be described in any other heading within chapter 85, HTSUS.
In 1996, the HTSUS amended Heading 8517, HTSUS, to provide for
telecommunication apparatus for carrier-current line systems or
for digital line systems.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the official interpretation of
the HTSUS. While not legally binding or dispositive, the ENs
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of
these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23,
1989). EN 85.17, page 1363, states as follows:
(III) APPARATUS FOR CARRIER-CURRENT LINE
SYSTEMS OR FOR DIGITAL LINE SYSTEMS
These systems are based on the modulation of an
electrical carrier-current or of a light source by
analogue or digital signals. Use is made of the
carrier-current modulation technique and pulse code
modulation (PCM) or some other digital system. These
systems are used for the transmission of all kinds of
information (words, data, images, etc.)
These systems include all categories of
multiplexers and related line equipment for metal or
optical-fibre cables. "Line equipment" includes
transmitters and receivers or electro-optical
converters. [Combined modulators-demodulators (modems)
are also classified here.]
The VIU modulates the voice signals from analog to digital
and from digital to analog when it receives and transmits audio
signals from the telephone to the cable network/line equipment.
The principal purpose of the VIU is to provide telephonic
communication over existing cable line networks. Therefore, we
find that the VIU is classifiable under heading 8517, HTSUS, as
telecommunication apparatus for carrier-current line systems or
for digital line systems. Because the VIU meets the terms of
heading 8517, HTSUS, as telecommunication apparatus,
classification under heading 8543, HTSUS, is precluded.
HOLDING:
The VIU is classifiable under subheading 8517.50.50, HTSUS,
which provides for: "[e]lectrical apparatus for line telephony or
line telegraphy, including line telephone sets with cordless
handsets and telecommunication apparatus for carrier-current line
systems or for digital line systems; videophones. . . : [o]ther
apparatus, for carrier- current line systems or for digital line
systems: [o]ther: [t]elephonic. . . . " The general, column one
rate of duty is 8.5 percent ad valorem.
EFFECT ON OTHER RULINGS:
NY 810627, dated May 22, 1995, is hereby revoked. In
accordance with 19 U.S.C. 1625(c)(1), this ruling will become
effective 60 days after publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to 19 U.S.C.
1625(c)(1) 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
Tariff Classification Appeals
Division