CLA-2 CO:R:C:M 087876 MBR
Kenneth B. Reisenfeld
Reisenfeld & Associates
919 Eighteenth Street, N.W.
Suite 800
Washington, D.C. 20006
RE: Revocation of NY 853953 (dated June 16, 1990); Alarm Systems;
Electric Sound or Visual Signaling Apparatus; Indicator Panels
Incorporating Liquid Crystal Devices (LCD's) or Light Emitting
Diodes (LED's)
Dear Mr. Reisenfeld:
This is in response to your request for reconsideration of NY
853953, dated June 16, 1990, on behalf of Digital Security Controls
and Harman Security Products, regarding the classification of
indicator panel/keypad units for alarm systems, under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
Digital Security Controls ("DSC") manufactures alarm systems.
Harman Security Products ("Harman") is a wholly owned subsidiary of
DSC, responsible for marketing DSC products in the U.S. The
indicator panel/keyboard unit together with a separate control unit
comprise the DSC basic alarm system. When installed on site, the
remote indicator panel/keypad unit is mounted in an accessible
location near an entry/exit point, inside the protected premises.
The separate control unit is mounted out of sight, generally in a
closet or basement. When installed, the two units are connected by
a four conductor cable. The instant ruling deals only with the
indicator panel/keypad unit.
DSC manufactures nine versions of its indicator panel/keypad
units. Six versions utilize LED displays and conform to the
different models of the basic system (PC 1000RK, PC 1500RK, PC
2500RK, PC 2530RK, PC 2550RK, and PC 3000RK). Three versions
incorporate an LCD message display which signals emergencies and
explains the system's conditions in English language text.
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DSC's indicator panel/keypad units consist of an LED indicator
panel (the LCD models also include an LCD panel which displays
emergencies, system information, and prompts on two 16 character
LCD lines), a numerical keypad, a built-in sounder, three enlarged
emergency buttons, and a circuit board. The circuit board for the
LED models contains resistors, transistors, diodes, and integrated
circuits permitting the indicator panel/keypad to communicate with
the CPU contained in the separate control unit. The LCD indicator
panel/keypad units also contain EEPROM memory to store the
translation information for the English language display. The
primary difference between the various models is the number of
zones to be monitored, ranging from four zones (PC 1000RK) to
sixteen zones (PC 3000RK).
ISSUE:
What is the proper classification of the DSC indicator
panel/keypad for alarm systems, under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA)?
LAW AND ANALYSIS:
Internal Advice 4/91, HQ 088595, dated September 12, 1991,
held that the Harman "Basic Alarm Systems," comprising the control
unit and the remote keypad, imported together, were classifiable
under 8531.10.00, HTSUS.
The instant ruling, therefore, is restricted to the DSC/Harman
indicator panel/keypad units imported separately. On June 6, 1990,
DSC submitted a ruling request resulting in the issuance of NY
853953, dated June 16, 1990, which addressed the classification of
"programmable control panels" imported from Canada.
The importer's counsel argues that: "DSC's [ruling] request of
June 6, 1990 was intended to obtain a classification ruling for the
indicator panel/keypad units when they are shipped separately from
the control unit. The New York Ruling, however, does not describe
nor provide a proper classification for the indicator panel/keypad
units. Therefore, we request that the New York Ruling be revoked
and that Headquarters issue a ruling for both DSC and Harman which
properly classifies the indicator panel/keypad units as indicator
panels under HTS Item 8531.20 or, alternatively, as parts of
burglar alarms under HTS Item 8531.90."
Subheading 8531.20.00, HTSUS, provides for: "[e]lectrical
sound or visual signaling apparatus (for example, bells, sirens,
indicator panels, burglar or fire alarms), other than those of
heading 8512 or 8530; parts thereof: [i]ndicator panels
incorporating liquid crystal devices (LCD's) or light emitting
diodes (LED's)."
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The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) regarding heading 8531, HTSUS, page 1381,
state:
With the exception of signalling apparatus used on cycles or
motor vehicles (heading 85.12) and that for traffic control on
roads, railways, etc. (heading 85.30), this heading covers all
electrical apparatus used for signalling purposes, whether
using sound for the transmission of the signal (bells,
buzzers, hooters, etc.) or using visual indication (lamps,
flaps, illuminated numbers, etc.), and whether operated by
hand (e.g., door bells) or automatically (e.g., burglar
alarms).
The heading includes, inter alia:
(D) Indicator panels and the like. These are used (e.g., in
offices, hotels and factories) for calling personnel,
indicating where a certain person or service is required,
indicating whether a room is free or not. They include:
(1) Room indicators. These are large panels with
numbers corresponding to a number of rooms. When a
button is pressed in the room concerned the
corresponding number is either lit up or exposed by
the falling away of a shutter or flap.
Certain of these indicator panels, etc., also incorporate
bells or other sound signalling devices.
The importer's counsel argues that the subject products are
electrical apparatus which both signal emergencies and convey
information through visual LED and LCD indicators. The "memory"
and zone LED lights and the LCD display fulfill the principal
function of the alarm system by signalling whether a burglary,
fire, or other emergency has or is occurring. The indicator panel
further indicates the zone(s) [rooms] that have been entered. Once
alerted, the user can take proper precautions before entering the
premises. The units' system LED lights and LCD readout also
display critical information which is both readily understood by
the user and necessary for the user to operate the burglar alarm
system.
We agree that these indicator panel/keypad units are properly
provided for in subheading 8531.20.00, HTSUS, since they "may
simply convey information or notify of a specific event which will
be readily understood by the user." A & A International, Inc. v.
United States, 5 CIT 183, 189 (1983).
The indicator panel/keypad unit is a composite machine
consisting of two machines fitted together (the indicator panel and
the keypad) to form a whole. Section XVI, Legal Note 3., states:
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Unless the context otherwise requires, composite machines
consisting of two or more machines fitted together to form a
whole and other machines adapted for the purpose of performing
two or more complementary or alternative functions are to be
classified as if consisting only of that component or as being
that machine which performs the principal function.
The purpose of the alarm system is to notify the user of the
present status/situation at the premises. The indicator panel
itself alerts the user to burglaries, fires, and emergency
conditions that are occuring at that time. Therefore, it is
Customs position that the indicator panel in fact carries out the
principal function(s) of the indicator panel/keypad unit, and is
thus classifiable under the provision for indicator panels.
HOLDING:
The Digital Security Controls "Indicator Panel/Keypad Units,"
marketed by Harman Security Products, are classifiable in
subheading 8531.20.00, HTSUS, which provides for: "[e]lectrical
sound or visual signaling apparatus (for example, bells, sirens,
indicator panels, burglar or fire alarms), other than those of
heading 8512 or 8530; parts thereof: [i]ndicator panels
incorporating liquid crystal devices (LCD's) or light emitting
diodes (LED's)."
EFFECT ON OTHER RULINGS:
NY 853953, dated June 16, 1990, is revoked under authority of
Section 177.9(d), Customs Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division