CLA-2 CO:R:C:M 954698 MBR
Ms. Stephanie Moody
Administrative Operations
Gulfstream Aerospace Corporation
P.O. Box 2206
Savannah, Georgia 31402-2206
RE: SATCOM; Racal "Satfone" System; Radio Transmission Apparatus;
Satellite Telephonic System; Satellite Data Unit; Radio
Frequency Unit; High Power Amplifier; Antenna; Radome; NY
857982
Dear Ms. Moody:
This is in reply to your letters of May 28, 1993, and February
3, 1994, requesting classification of the Racal "Satfone" System,
under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
SATCOM is an aeronautical satellite communications multi-
channel system that provides the aircraft with simultaneous,
independant communications. It has been certified by the F.A.A.
for use on civil aircraft. It allows passengers to make or receive
telephone calls, including fax messages. For ground-to-air
contact, the voice, fax modem or packet data is sent over
traditional phone lines to a Ground Earth Station ("GES"). The GES
then transmits the digitized information to the International
Maritime Satellite ("INMARSAT"), which covers the region in which
the aircraft is flying. For air-to-ground communication, the
process is simply reversed.
The Racal Avionics "Satfone" System is the Aircraft Earth
Station ("AES") radio transmission and reception system which is
mounted in the aircraft. The "Satfone" system provides a digital
link (9600 bits per second) between the AES and an INMARSAT via
radio waves. The "Satfone" system is comprised of several
components described below.
The Satellite Data Unit ("SDU") provides interface functions,
command, control and coordination of the system. The SDU also
maintains a table of frequencies for each ocean
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region, controls system log-on procedures, monitors timing
sequences, formats inputs and outputs, and receives position input
from the aircraft's navigation system in order to provide the
antenna with directional steering coordinates.
The Radio Frequency Unit ("RFU") converts radio frequency
inputs from the SDU to frequencies needed by the High Power
Amplifier for transmission. The RFU is the system's
transmitter/receiver. The RFU transmits at 1626.5 to 1660.5 MHz
and receives at 1530 to 1559 MHz radio frequencies.
The High Power Amplifier ("HPA") boosts the radio frequency
inputs from the RFU to levels required for transmission.
The antenna is a phased array antenna with a low noise
amplifier/diplexer and beam steering unit. The "Radome" is an
aerodynamic cover for the antenna.
ISSUE:
What is the classification of the "Racal Avionics Satfone
System," imported as a system and imported in separate components,
under the Harmonized Tariff Schedule of the United States (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:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Classification of Goods Under General Rule of Interpretation
1 of the Harmonized System, T.D. 89-80, 54 Fed. Reg. 35127, 35128
(Aug. 23, 1989), states, in pertinent part, that classification
under GRI 1 proceeds as follows:
(1) If the nature or make-up of the goods reveals a function
(a specific intended use), then the proper function-related
chapter must be examined. First, it must be determined that
the function of the article is indeed included in the chapter.
Next, the section and chapter notes must be consulted to
ensure that classification of the article is not ruled out by
a legal note....Consideration must also be given to the
possibility that more than one function related chapter may
apply.
The nature and make-up of the Satfone system reveals the
function to be digital radio transmission and reception.
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Specifically, the function is that of transmission apparatus
for radio-telegraphy, i.e., "for the transmission of signals
(representing speech, messages or still pictures) by means of
electro-magnetic waves which are transmitted through the ether
without any line connection." Harmonized Commodity Description and
Coding System Explanatory Notes (EN), page 1374.
Thus, the Satfone system is prima facie classifiable under the
function-related heading of 8525, HTSUS, which provides for:
8525 Transmission apparatus for radiotelephony,
radiotelegraphy, radiobroadcasting or television,
whether or not incorporating reception apparatus...:
8525.20.60 Transmission apparatus incorporating reception
apparatus: [o]ther: [o]ther."
Section XVI, Legal Note 4, provides guidance here: "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 Satfone system components are principally intended to
contribute to the clearly defined function of transmission
apparatus incorporating reception apparatus in chapter 85, and
therefore must be classified in this chapter. Therefore, the
system, imported together, is classifiable in subheading
8525.20.60, HTSUS, which provides for other transmission apparatus
incorporating reception apparatus. See NY 857982, dated November
30, 1990, for a similar decision.
The SDU provides interface functions, command, control and
coordination of the system, maintains a table of frequencies for
each ocean region, controls system log-on procedures, monitors
timing sequences, formats inputs and outputs, and receives position
input from the aircraft's navigation system in order to provide the
antenna with directional steering coordinates. However, the SDU
does not incorporate reception apparatus. Therefore, the SDU
separately imported, is classifiable as transmission apparatus in
subheading 8525.10.80, HTSUS.
The RFU is, in fact, a transmitter incorporating reception
apparatus, and as such is classifiable in subheading 8525.20.60,
HTSUS, which provides for: "[t]ransmission apparatus for
radiotelephony, radiotelegraphy... whether or not incorporating
reception apparatus...: [t]ransmission apparatus incorporating
reception apparatus: [o]ther: [o]ther."
The HPA is transmission apparatus, which does not incorporate
reception apparatus. Therefore, it is classifiable as other
transmission apparatus in subheading 8525.10.80, HTSUS, which
provides for: "[t]ransmission apparatus for radiotelephony,
radiotelegraphy, radiobroadcasting or television, whether or not
incorporating reception apparatus...: [o]ther: [o]ther."
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The Antenna and Radome are suitable for use solely or
principally with the Satfone system, which is classifiable in
heading 8525, HTSUS. Therefore, separately imported, the Antenna
and Radome are classifiable in subheading 8529.10.60, HTSUS, which
provides for:
"[p]arts suitable for use solely or principally with the apparatus
of headings 8525 to 8528: [a]ntennas and antenna reflectors of all
kinds; parts suitable for use therewith: [o]ther."
HOLDING:
The components of the Racal Avionics Satfone System, imported
together, are classifiable in subheading 8525.20.60, HTSUS, which
provides for: "[t]ransmission apparatus for radiotelephony,
radiotelegraphy...whether or not incorporating reception
apparatus...: [t]ransmission apparatus incorporating reception
apparatus: [o]ther: [o]ther." The rate of duty is 6% ad valorem.
The Satellite Data Unit, separately imported, is classifiable
as other transmission apparatus in subheading 8525.10.80, HTSUS.
The rate of duty is 6% ad valorem.
The Radio Frequency Unit is a transceiver classifiable under
subheading 8525.20.60, HTSUS, which provides for: "[t]ransmission
apparatus for radiotelephony, radiotelegraphy...whether or not
incorporating reception apparatus...: [t]ransmission apparatus
incorporating reception apparatus: [o]ther: [o]ther." The rate of
duty is 6% ad valorem.
The High Power Amplifier, separately imported, is classifiable
as transmission apparatus classifiable in subheading 8525.10.80,
HTSUS, which provides for: "[t]ransmission apparatus for
radiotelephony, radiotelegraphy, radiobroadcasting or television,
whether or not incorporating reception apparatus...: [o]ther:
[o]ther." The rate of duty is 6% ad valorem.
The antenna and Radome, separately imported, are classifiable
in subheading 8529.10.60, HTSUS, which provides for: "[p]arts
suitable for use solely or principally with the apparatus of
headings 8525 to 8528: [a]ntennas and antenna reflectors of all
kinds; parts suitable for use therewith: [o]ther."
Sincerely,
John Durant, Director