CLA-2 CO:R:C:M 950407 DWS
Mr. Brian Johnson
Border Brokerage Company
P.O. Box B
Blaine, Wash. 98230
RE: Vessel Monitoring and Control System; Section XVI, Note 4;
Functional Unit
Dear Mr. Johnson:
This is in response to your letter of September 4, 1991, on
behalf of Sea-Hornet Marine Industries, Canada, Inc., concerning
the classification of a vessel monitoring and control system
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA).
FACTS:
The merchandise is an electrical system designed to monitor
a vessel's existing sensors such as fire, burglary, water in
bilge, and gas build-up in the engine compartment. The main
system (part #VM-3301) is comprised of 19 input and 11 output
zones, a control panel, and a remote keypad. Specific
information can be typed into the remote keypad by the system's
user. If the system senses smoke, water or gas leakage, or
intrusion, it activates both an audio and visual (blinking light)
alarm. Both alarms are generated from the control panel. The
visual alarm is illuminated through the remote keypad.
Separately imported speakers amplify the audio alarm. In
addition, it appears that, with the use of separate accessories,
the device offers some measure of protection from flooding by
"attempting" (as described in the literature) to activate the
bilge pump in a flooded compartment. Also, if gas leakage is
sensed, the system can shut off the ignition. Other accessories,
imported separately, may be connected to the system for more
efficient usage. The system operates off a lead acid, 12 volt
battery.
ISSUE:
What is the classification of the vessel monitoring and
control system under the HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative chapter
or section notes.
You claim that the merchandise is classifiable under
subheading 8531.10.00, HTSUSA, which provides for: "[b]urglar or
fire alarms and similar apparatus: [o]ther." You state that the
essential character of the product is the alarm system for the
existing sensors.
It is our position that the clearly defined function of the
vessel monitoring and control system as imported is the audio and
visual alarms. As imported, the function of the system is to
detect a certain problem on a vessel (water or gas leakage, fire,
burglary), then to alert those in the immediate vicinity, both
visually and audibly. Therefore, under GRI 1, the merchandise is
classifiable under subheading 8531.10.00, HTSUSA.
HOLDING:
The vessel monitoring and control system is classifiable
under subheading 8531.10.00, HTSUSA, which provides for:
"[b]urglar or fire alarms and similar apparatus: [o]ther." The
general, column one rate of duty is 2.7 ad valorem. However, if
the regulations of the United States-Canada Free-Trade Agreement
are met, then the rate of duty is free.
Sincerely,
John Durant, Director
Commercial Rulings Division