CLA-2 CO:R:C:G 082289 MBR
Ms. Madeline B. Kuflik
Attorney
Panasonic Company
One Panasonic Way
Secaucus, New Jersey 07094
RE: "Video Doorphone" intercom system, components imported
separately
Dear Ms. Kuflik:
This is in reply to your letter of May 6, 1988, on behalf of
Panasonic Company, requesting separate classification of the
components of the "Video Doorphone" intercom system, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
FACTS:
The "Video Doorphone" intercom system provides both visual and
auditory communication between a visitor at the door and the
occupant inside.
The first component of the system, called the "door unit,"
(model VA-9020) is attachable to a door. This unit contains a
video camera for transmitting a moving image of the visitor at
the door, as well as a microphone for the visitor to speak to
the occupant and a speaker for the occupant to speak to the
visitor. The CCD (charged coupled device) camera has an infrared
LED to allow for viewing, even in dark surroundings.
The second component is the monitor television with single line
telephone (model VA-9010). This unit permits the occupant to
view the visitor through a 4-inch black and white monitor cathode
ray tube and also to communicate with the visitor through the
phone. Other telephonic features of this unit include; 3 one-
touch dialers and 10 speed dialers each with a 16-digit capacity,
dialing mode selection (tone and pulse dialing), last number
redial, electronic hold and release, 3-step ringer volume control
(high/low/off) and 2-step receiving volume control (high/low).
Both components are interconnected by cables.
ISSUE:
What are the classifications of the components of the "Video
Doorphone" intercom system when imported separately, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
LAW AND ANALYSIS:
U.S. Customs Ruling Letter #HQ 081783, April 21, 1988, ruled
that the merchandise imported together was classifiable as a
composite machine under subheading 8517.81.00, HTSUSA, which
provides for other telephonic apparatus.
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Legal Note 4 to Section XVI states:
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 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 Harmonized Commodity Description and Coding System
Explanatory Notes, page 1133, in further delineation of Section
Note 4, state, in pertinent part:
For the purposes of this Note, the expression "intended
to contribute together to a clearly defined function"
covers only machines and combinations of machines
essential to the performance of the function specific
to the functional unit as a whole, and thus excludes
machines or appliances fulfilling auxiliary functions
and which do not contribute to the function of the
whole. The following are examples of functional units
of this type within the meaning of Note 4 to this
Section: (13) Burglar alarms, comprising, e.g., an
infra-red lamp, a photoelectric cell and a bell.
Clearly, both the "door unit," (model VA-9020), and the
"telephone/intercom unit," (model VA-9010), are components which
are intended to contribute together to a clearly defined
function, both of which are essential to the performance of the
function specific to the functional unit as a whole, in the same
manner as the essential relationship between burglar alarm
components. Both models are necessary, working in concert, in
order for the system to function at all.
Therefore, even when these components are imported separately,
they still remain classifiable in subheading 8517.81.00, HTSUSA,
which provides for other telephonic apparatus. See Ruling Letter
#HQ 081783, April 21, 1988.
HOLDING:
Both the "door unit," (model VA-9020), and the
"telephone/intercom unit," (model VA-9010), are classifiable
under 8517.81.00, HTSUSA, which provides for other apparatus:
telephonic. The rate of duty is 8.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division