CLA-2 CO:R:C:M 955511 DWS
Ms. Irene Rogers
Gulfstream Aerospace Corporation
P.O. Box 2206
Savannah, GA 31402-2206
RE: Navigation Unit; Explanatory Note 90.14(C); HQ's 953462
and 087979; Section XVI, Note 4; 8526.91.00
Dear Ms. Rogers:
This is in response to your letter of July 1, 1993, to the
District Director of Customs, Savannah, Georgia, concerning the
classification of a navigation unit under the Harmonized Tariff
Schedule of the United States (HTSUS). Your letter has been
referred to this office for a response.
FACTS:
The merchandise consists of a Litton navigation unit (model
no. LTN-72RL), manufactured in Canada. The unit is an inertial
based area navigation system for use in an aircraft, and it manages
flight direction which is set by the pilot or crew automatically.
The system is comprised of an inertial navigation unit, an inertial
platform, a mode selector unit, and an Alpha-numeric entry and
display unit. It does not receive or transmit radio signals. The
system does contain a gyroscope, which enables a user to check on
heading, altitude, etc. The self-contained data base provides
instant access to several thousand pre-stored geographical
locations which may be used for assembling the flight plan. The
data can be changed on an "as required" basis by using an external
cassette loader.
The subheadings under consideration is as follows:
8526.91.00: [r]adio navigational aid apparatus.
The general, column one rate of duty for goods classifiable
under this provision is 4.9 percent ad valorem.
9014.20.60: [i]nstruments and appliances for aeronautical
or space navigation (other than compasses):
[o]ther: [o]ther: [e]lectrical.
The general, column one rate of duty for goods classifiable
under this provision is 4.9 percent ad valorem.
ISSUE:
Whether the navigation unit is classifiable under subheading
8526.91.00, HTSUS, as a radio navigational aid apparatus, or under
subheading 9014.20.60, HTSUS, as an other electrical instrument for
aeronautical navigation.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS 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 section or chapter notes.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 90.14(C) (p. 1481) states that:
[t]his group includes:
(A) - (B) xxx
(C) Special instruments for air navigation, such as:
(1) Altimeters. . .
(2) Air speed indicators. . .
(3) Climbing or diving speed indicators. . .
(4) Artificial horizons or gyro-horizons and turning
and banking indicators. . .
(5) Mach-meters. . .
(6) Accelerometors. . .
(7) Automatic Pilots. . .
In HQ 953462, dated April 21, 1993, we stated that:
[u]nder heading 9014, the common meaning of the terms
navigate and navigation connotes the science or art of
conducting aircraft from one place to another; especially,
the method of determining position, course and distance
travelled over the surface of the earth by the principles
of geometry and astronomy, and by reference to
instruments used as aids. The [Explanatory Notes], at
p. 1481, (C)(1) through (7), list various meters and
indicators which measure or determine aerodynamic variables
and provide the pilot with information from which he can
activate apparatus that maintains or alters the plane's
course.
See also HQ 087979, dated February 3, 1992.
Section XVI, note 4, HTSUS, states that:
[w]here 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.
It is our position that the system components contribute
together to the clearly defined function of flight direction
management, which is performed by the instruments of heading 9014,
HTSUS. Therefore, based upon the definition of "navigation" in HQ
953462 and the exemplars given in Explanatory Note 90.14(C), the
subject navigation unit is specifically classifiable under
subheading 9014.20.60, HTSUS.
It has been suggested that the navigation unit is classifiable
under subheading 8526.91.00, HTSUS. However, because the unit
neither transmits nor receives radio signals, it is not described
under subheading 8526.91.00, HTSUS, and is precluded from
classification under that provision.
HOLDING:
The navigation unit is classifiable under subheading
9014.20.60, HTSUS, as an other electrical instrument for
aeronautical navigation.
Goods classifiable under subheading 9014.20.60, HTSUS, upon
compliance with section 10.183, Customs Regulations
(19 CFR 10.183), receive duty-free treatment under the Civil
Aircraft Agreement.
Sincerely,
John Durant, Director