CLA-2 RR:TC:MM 959320 DWS
Port Director of Customs
555 Battery Street
San Francisco, CA 94111
RE: Protest 2809-96-100199; Fast Media Remote Control; Functional
Unit;
Section XVI, Note 4; Universal Electronics, Inc. v. U.S.;
NY A83103;
Additional U.S. Rule of Interpretation 1(c); 8473.30.50
Dear Port Director:
The following is our decision regarding Protest 2809-96-100199 concerning your action in classifying and assessing duty
on the Fast Media Remote Control under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of the Packard Bell Fast Media
Remote Control, which is specifically designed for and
exclusively used with automatic data processing machines
manufactured by Packard Bell. The remote control consists of two
devices. The hand held remote unit sends a signal to the
receiver unit (discussed below) which either directly controls
various multimedia functions built-in to the computer, or inputs
information similar in function to a wireless mouse or keyboard.
Direct control functions include a computer CD ROM play switch,
sound volume, channel select for television, FM radio, etc.,
telephone answering, telephone number dialing, and answering
machine message play. Direct input functions include the input
of numbers, multi-directional on-screen cursor control, and
selection of any on-screen function.
The receiver unit is a stand alone unit, which is attached
to the computer by a cable attached to the Serial A port on the
back of the computer. The receiver unit receives signals from
the hand held remote unit through its built-in infrared sensor.
The remote control functions with the assistance of
specially designed software, which is pre-loaded onto the hard
disk of a Packard Bell multimedia computer. When a signal is
received by the receiver unit, the computer's hard drive
commences the process of analyzing the signal and sending the
appropriate signal to an output device.
Due to a unique infrared signal, the remote control cannot
be used with other manufacturer's computers, nor may it be used
with other appliances utilizing remote control infrared signals,
such as televisions , video cassette recorders, and CD players.
The remote control was entered on August 8, 14, 20, 27,
September 3, 11, 20, and 25, 1995, under subheading 8473.30.50,
HTSUS, as an other accessory of the machines of heading 8471,
HTSUS, not incorporating a cathode ray tube. The entries were
liquidated on November 17 and December 29, 1995, under subheading
8537.10.90, HTSUS, as an other control board for a voltage not
exceeding 1,000 volts (V). The protest was timely filed on
February 9, 1996.
The subheadings under consideration are as follows:
8473.30.50: [p]arts and accessories (other than covers,
carrying cases and the
like) suitable for use solely or
principally with machines of headings
8469 to 8472): [p]arts and accessories
of the machines of heading
8471: [n]ot incorporating a cathode ray
tube: [o]ther.
Goods classifiable under this provision receive duty-free
treatment.
8537.10.90: [b]oards, 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 of chapter 90, and numerical
control apparatus, other
than switching apparatus of heading
8517: [f]or a voltage not exceeding
1,000 V: [o]ther.
The 1995 general, column one rate of duty for goods
classifiable under this
provision is 4.8 percent ad valorem.
ISSUE:
Whether the remote control constitutes a functional unit
classifiable under subheading 8537.10.90, HTSUS, as an other
control board for a voltage not exceeding 1,000 V.
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 is determined according to the
terms of the headings and any relative section or chapter notes.
Section XVI, note 4, HTSUS, states that:
[w]here 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 together
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.
The remote control consists of individual and separate
machines which are intended to contribute to the clearly defined
function of controlling the operations of a computer. Therefore,
we must now ascertain whether this function is covered by one of
the headings in chapters 84 or 85, HTSUS.
In Universal Electronics, Inc. v. U.S., (CAFC Slip.Op. 96-1345, April 24, 1997), the U.S. Court of Appeals for the Federal
Circuit (CAFC) affirmed the decision of the U.S. Court of
International Trade (CIT) in classifying infrared remote control
units under subheading 8537.10.00 (predecessor to subheading
8537.10.90, HTSUS), HTSUS. In the decision, in determining
whether the merchandise was described under heading 8537, HTSUS,
the CAFC stated:
[t]he [CIT] determined that "for electric control" means
that "information is input,
and as a consequence, electricity causes the desired result
to occur." The court's
opinion makes clear that the "electricity" to which it
refers is the electric current
that ultimately cause the desired result, and not to
intermediate signals. Thus, the
court interpreted "for electric control" as being a very
broad clause that merely
requires that the result desired (e.g., an increase in
volume) be caused via
electricity. . . We agree with the interpretation accorded
to the phrase "for electrical
control" by the [CIT], which comports with the ordinary,
dictionary definitions of the
terms. The tariff provision does not explicitly require the
electric control to be direct.
Absent such a statement, we see no reason to incorporate any
specific limitations
as to which device (the subject imports or the appliance
controlled) need create the
electric current that produces the desired result. The
requisite electric control,
therefore, may be direct or indirect. . . The [CIT]
determined that "the subject
remote controls are for electric control' because they
serve as part of a control
system: users input information into the remote controls,
and as a consequence,
electricity causes the desired result to occur." In other
words, the subject imports
are "for electric control" because the infrared signal
emitted by the subject imports
controls the flow of electricity within the target
appliance. Indeed, the control of
electricity in the target appliances is the sole purpose of
the subject imports.
Based upon the reasoning of the CAFC in Universal
Electronics, the remote control is included in the "broad clause"
"for electric control" and is therefore described under
subheading 8537.10.90, HTSUS. A user of the remote control
inputs information into the device by pushing the desired button,
which causes the chosen event to occur. The infrared signal
emitted by the hand held remote unit, through the receiver unit,
controls the flow of electricity within the computer. See NY
A83103, dated May 28, 1996, which held similar merchandise to be
classifiable under subheading 8537.10.90, HTSUS.
Because the function of the remote control is not more
specifically provided for elsewhere in the HTSUS, based upon
section XVI, note 4, HTSUS, it is a functional unit classifiable
under subheading 8537.10.90, HTSUS.
HOLDING:
The Fast Media Remote Control is a functional unit
classifiable under subheading 8537.10.90, HTSUS, as an other
control board for a voltage not exceeding 1,000 V.
The protest should be DENIED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, this decision, together
with the Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of this 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 the public
via the Diskette Subscription Service, Freedom of Information
Act, and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division