CLA-2 RR:CR:GC 960389 DWS
Mr. Daniel J. Brink
Reinhart, Boerner, Van Deuren,
Norris & Reiselbach, S.C.
P.O. Box 92900
Milwaukee, WI 53202-0900
RE: Reconsideration of NY A86072; Current and Voltage
Transducers;
HQs 955916 and 088941; NYs A88229, 881670; 862381, 859809,
and
854001; Explanatory Note 85.04; Section XVI, note 1(m);
8504.31.20
Dear Mr. Brink:
This is in response to your letter of April 2, 1997, on
behalf of LEM USA, Inc., and a letter from your client dated
February 6, 1998, requesting reconsideration of NY A86072, dated
August 20, 1996, concerning the classification of current and
voltage transducers under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The merchandise consists of current and voltage transducers
(series L, H, and C), which generally consist of a secondary
winding, magnetic core, Hall effect chip, and associated
electronic circuitry. The transducers offer isolated current
measurement, as well as the measurement of direct current (DC),
alternating current (AC), or pulsed systems, often with one
transducer suited for all three measurements. They are used in
electric motor controllers, power converters, electric
locomotives, power supplies, and other power electronic
apparatus. The transducers are used in these applications as a
component of a larger control circuit, and where variable power
levels are switched off and on at high frequency. In their
condition as imported, the transducers possess one coil. An
electrical cable around which the transducer is installed acts as
the primary coil, and the transducer coil acts as the secondary
coil.
Each series of transducer possesses multiple and distinctive
architectures which are applicable to specific uses. Within
those general architectures (electrical design and construction),
the design architecture and theory of operation are identical.
The only difference among the series relate to the amount of
current which can be accommodated and the packaging.
ISSUE:
Whether the current and voltage transducers are classifiable
under subheading 8504.31.20, HTSUS, as other unrated transformers
having a power handling capacity not exceeding 1 kVA, or under
subheading 9030.39.00, HTSUS, as other instruments or apparatus
for measuring or checking voltage, current, resistance or power,
without a recording device.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
The HTSUS provisions under consideration are as follows:
8504 Electrical transformers, static converters (for example,
rectifiers) and inductors;
parts thereof:
Other transformers:
8504.31 Having a power handling capacity not exceeding 1
kVA
8504.31.20 Unrated.
* * * * * * * * *
9030 Oscilloscopes, spectrum analyzers and other instruments and
apparatus for
measuring or checking electrical quantities, excluding
meters of heading 9028;
instruments and apparatus for measuring or detecting alpha,
beta, gamma, X-ray,
cosmic or other ionizing radiations; parts and accessories
thereof:
Other instruments and apparatus, for measuring or
checking voltage,
current, resistance or power, without a recording
device:
9031.39.00 Other.
* * * * * * * * *
In NY A86072, Customs held that the subject transducers meet
the terms of heading 9030, HTSUS, and are specifically
classifiable under subheading 9030.39.00, HTSUS.
In addition to the information provided by your client
stating that their current voltage transducers offer isolated
current measurement, as well as the measurement of DC, AC, or
pulsed systems, it is also stated that:
[i]n addition to the usual industrial current measurement
applications where
shunt resistors, current transformers, or Hall effect
transducers are
satisfactory, new safety requirements particularly for
traction applications and
special applications have led to the development of many new
transducers.
***** (emphasis supplied).
In your submission requesting reconsideration, you state
that:
[w]e acknowledge that the LEM Transducers in the most
general interpretation
are used for measuring current or voltage.
You also state that:
[t]he primary function of the LEM transducers relates to the
transformer function.
The remaining devices contained in the LEM transducers are
clearly
subsidiary in nature. *****
We disagree that the Hall effect chip in each transducer
plays a subsidiary role in the function and intended use of each
transducer. In HQ 088941, dated January 16, 1992, we held that a
line scan camera (LSC), which is an infrared transducer, is not a
subsidiary component of a rototuner system (RS). In that ruling,
we stated that:
[t]he term "subsidiary" is described as "[s]erving to
supplement or assist . . .
[s]econdary in importance: subordinate." Webster's II New
Riverside
University Dictionary, p. 1155 (1984). The LSC is not used
for a subsidiary
purpose. When the LSC is used, it certainly is not used in
a supplemental
manner nor is it secondary in importance. It performs a
function that is not
performed by any other components of the RS. ***** The
protestant appears to
be of the view that the LSC serves a subsidiary purpose
because it is not used
all of the time that the RS is used. But this is not our
understanding regarding
the meaning of "subsidiary" as set forth in Note 2. The
meaning of subsidiary
has nothing to do with the amount of time optics are used in
the overall use of a
device, but it relates more to the type of task which the
optics perform when
being used in the operation of the device. *****
Based upon the July 24, 1996, submission to the National
Commodity Specialist Division of Customs, New York, requesting a
ruling on the transducers, it is our understanding that the
secondary coil of each transducer picks up the AC current, and
the Hall effect chip and the associated electronic circuitry pick
up the DC
current. This combination of electronics is what allows these
sophisticated transducers to measure complex current waveforms
accurately. The Hall effect chip is not subsidiary in that it
plays a primary role in the function and intended use of each
transducers.
You also claim that the transducers are similar to the ISDN
transformers of NY A88229, dated October 31, 1996, which were
held to be goods of heading 8504, HTSUS. We disagree. The items
in NY A88229 are commercially known as transformers; the subject
transducers are not known as transformers and are marketed as
transducers in the provided literature. Also, telephony
transformers are included in heading 8504, HTSUS [see Harmonized
Commodity Description and Coding System Explanatory Note 85.04
(p. 1448)]; there is no mention of current or voltage transducers
in heading 8504, HTSUS, or in Explanatory Note 85.04.
In several rulings, Customs has held transducers of varying
types and articles incorporating transducers to be articles of
chapter 90, HTSUS. See HQ 955916, dated May 16, 1994; HQ 088941;
NY 881670, dated January 19, 1993; NY 862381, dated April 23,
1991; NY 859809, dated January 31, 1991; NY 854001, dated July
24, 1990.
Based upon all the information provided, it is our position
that the subject transducers, each of which contain the Hall
effect chip, are marketed and used for measurement applications.
Therefore, we find that the subject transducers meet the terms of
heading 9030, HTSUS and are specifically classifiable under
subheading 9030.39.00, HTSUS.
You claim that the transducers are goods classifiable in
heading 8504, HTSUS. Section XVI, note 1(m), HTSUS, states
that:
1. This section does not cover:
(a) - (l) ******
(m) Articles of chapter 90.
Therefore, because it is our position that the transducers
are articles of chapter 90, HTSUS, they are precluded from
classification in heading 8504, HTSUS, a provision of section
XVI, HTSUS.
HOLDING:
The current and voltage transducers are classifiable under
subheading 9030.39.00, HTSUS, as other instruments or apparatus
for measuring or checking voltage, current, resistance or power,
without a recording device.
EFFECT ON OTHER RULINGS:
NY A86072 is affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division