CLA-2 CO:R:C:M 089223 KCC
Dr. Jack Lin
Telestate International
101 E. Park Blvd., Suite 589
Plano, Texas 75074
RE: Infrared Voice Communication System; Legal Note 4, Section
XVI; EN 85.37; 067473; 087261
Dear Dr. Lin:
This is in response to your letter dated April 9, 1991, to
the Assistant Area Director, New York Seaport, requesting a
tariff classification ruling under the Harmonized Tariff Schedule
of the United States (HTSUS) of the SmartCom 2001 System. Your
letter was forwarded to this office for a reply.
FACTS:
The SmartCom 2001 System is a communications system that
provides home security, a hands free infrared voice intercom,
multi-line telephones with music on hold, a message center, a
door intercom, emergency dialing, energy control and a management
subsystem. The system consists of a control panel that handles
all signaling and communications, a console that provides the
user with centralized control, an intercom station for various
rooms in the home, a door box, and a hand held remote control
unit. The SmartCom 2001 System includes intercom, security,
telephone, answering machine, energy control and management
subsystem functions. It is also capable of being programmed to
allow additional functions to be placed into the system.
ISSUE:
What is the classification of the SmartCom 2001 System under
the 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:
...classification shall be determined according to the terms
of the headings and any relative section or chapter
notes....
Legal Note 4, 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 to chapter 84 or chapter 85, then the whole falls
to be classified in the heading appropriate to that
function.
The SmartCom 2001 covers functions which are provided for in
various headings of chapter 85 and 90 of the HTSUS. Heading
8537, HTSUS, provides for boards, panels and other bases equipped
with two or more switches or fuses for electric control or the
distribution of electricity.
The Explanatory Notes (EN) to heading 8537, HTSUS, state
that the devices found in this heading consist of an assembly of
apparatus of headings 8535 or 8536, HTSUS, on a board, panel,
console, etc., or mounted in a cabinet, desk, etc. The goods of
this heading vary from small switchboards with only a few
switches, fuses, etc. (e.g., for lighting installations) to
complex control panels for machine tools, rolling mills, power
stations, radio stations, etc., including several of the articles
cited in the text of this heading. This heading also covers
"'Programmable controllers' which are digital apparatus using a
programmable memory for the storage of instructions for
implementing specific functions such as logic, sequencing,
timing, counting and arithmetic, to control, through digital or
analog input/output modules, various types of machines." See,
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) 85.37, page 1391. The ENs constitute the
Customs Cooperation Council's official interpretation of the
Harmonized System. Although generally indicative of proper
interpretation of the various provisions, they are not legally
binding on the contracting parties. Thus, while they should be
consulted for guidance, the ENs should not be treated as
dispositive. Customs believes that the ENs should be consulted
for interpretation of the Harmonized System. T.D. 89-90.
The SmartCom 2001 System is a machine that consists of
individual components interconnected through electric cables
(home wiring system), intended to contribute to the defined
function of electric control or the distribution of electricity.
Therefore, this System is properly classified under subheading
8537.10.00, HTSUS, which provides for: " [b]oards, panels
(including numerical control 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 or
apparatus of chapter 90, other than switching apparatus of
heading 8517: [f]or a voltage not exceeding 1,000 v." See,
Headquarters Ruling Letter (HRL) 067473 dated July 16, 1982, and
HRL 087261 dated January 17, 1991, for the classification of
home control systems.
HOLDING:
The SmartCom 2001 System is classified under subheading
8537.10.00, HTSUS, which provides for: "[b]oards, panels
(including numerical control 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 or
apparatus of chapter 90, other than switching apparatus of
heading 8517: [f]or a voltage not exceeding 1,000 v." The rate
of duty is 5.3% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division