CLA 2 RR:CR:GC 960664 PH
Chief, Residual Liquidation and
Protest Branch
U.S. Customs Service
6 World Trade Center, Room 761
New York, NY 10048-0945
RE: Protest 1001-97-101119; Olympus digital still camera
Dear Port Director:
This is in response to protest 1001 97 101119, which pertains to the tariff classification of an Olympus digital still camera under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this ruling, consideration was given to the supplemental submissions dated May 16, 1997 and October 16, 1998, by counsel for protestant. We regret the delay.
FACTS:
Five entries, each filed in 1996, are included in the protest against the classification of the merchandise, invoiced as "Olympus Digital Still Camera[,] [model #] D-200L", in subheading 8525.40.00, HTSUS, as still image video cameras and other video camera recorders. The entries were liquidated on October 3 and December 27, 1996, and January 3, 10, and 17, 1997. On February 7, 1997, counsel for the importer filed this protest.
The protestant states that the article stores and reproduces images by means of digital technology and can only be used in conjunction with a computer. According to information obtained by this office, the Olympus D-200L digital still camera is able to store images, has an internal memory, has an LCD screen, and includes "Windows & Mac" link software.
The protestant contends that the article functions exclusively as an input unit to automatic data processing (ADP) machines and is classifiable in subheading 8471.70.80 or 8471.80.40, HTSUS, or, alternatively, it may be an "optical scanner", classifiable in subheading 8471.60.80, HTSUS. The protestant argues that since analog technology is used in video and television cameras and the article uses digital technology, it is precluded from classification in heading 8525. Citing the history of the development of subheading 8525.40, HTSUS, the protestant contends that the provision was never intended to cover the type of technology used in the article. The protestant argues that the proper classification of the article is in subheading 8471.60.80, HTSUS, as an input unit of ADP machines, arguing that the article is an "input unit" as that term is used in heading 8471.60, meets the definition of "unit in Note 5(B) to Chapter 84, and that it has the essential character of an input unit to an ADP machine, pursuant to GRI 2(a). In regard to the argument that the article is classifiable as an "input unit" of an ADP machine under heading 8471, the protestant cites Customs rulings on the classification of optical scanning devices and contends that the most specific description of the article, under GRI 3(a), is found in subheading 8471.60.80, HTSUS. Alternatively, the protestant argues that if Customs determines the article is not an "input unit" of subheading 8471.60.80, HTSUS, then it is classifiable as a unit suitable for physical incorporation to ADP machines in subheading 8471.80.40, HTSUS.
ISSUE:
Whether the digital still camera is classifiable as a still image video camera in heading 8525, HTSUS, or an input unit or other unit of an automatic data processing machine in heading 8471, HTSUS.
LAW AND ANALYSIS:
Initially, we note that as to the September 19, 1996, entry (# 110-*****55-4), the protest was untimely (i.e., a protest must be filed within 90 days after but not before the notice of liquidation (19 U.S.C. 1514(c)(3)(A); 19 CFR 174.12(e)); the notice of liquidation was dated October 3, 1996, and the protest was filed February 7, 1997, 127 days after the notice of liquidation). For an example of the judicial treatment of a protest filed after the 90-day period for filing a protest, see Penrod Drilling Co. v. United States, 13 CIT 1005, 727 F. Supp. 1463, rehearing dismissed, 14 CIT 281, 740 F. Supp. 858 (1990), affirmed, 9 Fed. Cir. (T) 60, 925 F. 2d 406 (1991). The protest must be denied as to the September 19, 1996, entry. As to the remaining entries, the protest was timely filed (see above) and the matter protested is protestable (see 19 U.S.C. 1514(a)(2) and (5)).
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states, in pertinent part, that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes.
The Harmonized Commodity Description And Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise. Customs believes the ENs should always be consulted. See T.D. 89 80, published in the Federal Register August 23, 1989 (54 FR 35127, 35128).
The 1996 HTSUS headings and subheadings under consideration are as follows:
8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included:
8471.60 Input or output units, whether or not containing storage units in the same housing:
Other:
Other:
8471.60.70 Units suitable for physical incorporation into automatic data processing machines or units thereof
Other:
8471.60.80 Optical scanners and magnetic ink recognition devices.
8471.80 Other units of automatic data processing machines:
Other:
8471.80.40 Units suitable for physical incorporation into automatic data processing machines.
8525 Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video camera recorders:
8525.40.00 Still image video cameras and other video camera recorders.
Chapter 84, Note 5(B) provides, in part, that:
Automatic data processing machines may be in the form of systems consisting of a variable numbers of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all the following conditions:
(a) It is of a kind solely or principally used in an automatic data processing system;
(b) It is connectable to the central processing unit either directly or through one or more other units; and
(c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.
Under Chapter 84, Note 5(C), separately presented units of an ADP machine are to be classified in heading 8471. Paragraph (E) of Note 5, Chapter 84, HTSUS, to which paragraph (B) (above) is subject, provides:
Machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings.
Thus, if the article performs a specific function other than data processing, although it works in conjunction with an ADP machine, it is to be classified in the heading appropriate to its function.
Recently (see Headquarters Ruling (HQ) 960384 dated April 1, 1999), this office considered the classification of an article similar to that under consideration, the Casio QV-10 digital camera. According to information available to this office regarding that camera and the article under consideration, the functions and capabilities of the cameras are similar, for purposes of the tariff classification issues involved in this protest (i.e., both use digital technology to record, process, and store images in a digital format; both are able to store images; both have an internal memory; both have an LCD screen; both include computer link software; and both have ports for connection to an ADP machine).
In HQ 960384, we noted that articles such as the digital camera in that case and the article under consideration are cameras, even though they may be used, or interact with computers. We noted that according to the McGraw-Hill Encyclopedia of Science and Technology (electronic ed.):
Most cameras contain an aperture and shutter for controlling the amount of light reaching the light-sensitive material (exposure). The receiving material, the film, is usually a plastic sheet of flexible strip coated with a photosensitive silver halide emulsion. It can also be an electronic device such as a Newvicon tube or charge-coupled device, or a photosensitive material for a specific purpose.
[Cameras] can be distinguished by function, application, film size, or format. Distinctions are also based on type or viewfinder and body construction. Cameras for still photography include box, point-and-shoot, view-and-press, roll film, 35-mm, instant picture, stereo, underwater, and panoramic. Some categories overlap. Still video cameras use electronic sensors instead of film, and store the image on magnetic media or optical disks. [Emphasis added]
We concluded (in HQ 960384) that the main function of the digital camera there considered is to perform the function of a camera, that is, to take pictures, and that the ability to transfer the stored images to a computer is a subordinate or complementary function. As stated above, the digital camera considered in HQ 960384 and the article under consideration are similar, insofar as their capabilities and functions relating to tariff classification are concerned. We conclude that, although the article may work in conjunction with an ADP machine, it performs a specific function other than data processing (i.e., it functions as a camera in that it takes pictures). The heading which describes goods which have this specific function is heading 8525, HTSUS (still image video cameras and other video camera recorders (headings 9006 and 9007, HTSUS, for photographic and cinematographic cameras, are excluded by Note 1(h), Chapter 90, HTSUS)). Therefore, pursuant to Note 5(E), Chapter 84, HTSUS, the article may not be classified in heading 8471 and must be classified in the heading appropriate to its function. As found in HQ 960384 and stated above, the heading appropriate to that function is heading 8525, HTSUS.
This conclusion is consistent with a decision on a similar product in the Compendium of Classification Opinions. The Compendium of Classification Opinions represents decisions on the classification of various products at the international level that were presented to the Harmonized System Committee of the World Customs Organization (WCO) for consideration. The WCO administers the International Convention on the Commodity Description and Coding System and amendments to the Harmonized System. When a decision of the WCO is published in the Compendium it should receive the same weight as the ENs. See T.D. 89 80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). As noted in HQ 960384, the WCO recently amended the Compendium of Classification Opinions, listing a decision on the classification of the digital camera considered in that article (Annex K/21 to Doc. 42.750E (HSC/22/Nov.98)). The WCO decision specifically classified the digital still camera considered in HQ 960384 (and similar, for tariff classification purposes, to the digital still camera under consideration) in subheading 8525.40, HTSUS.
Not only is our decision consistent with the above-referenced WCO decision, but we also note that the classification by Customs of digital cameras in heading 8525, HTSUS, dates back at least to 1993. See HQ 954725, HQ 954726, and HQ 954727, all dated August 17, 1993, modifying previous rulings which classified digital cameras under subheading 9013.80.60, HTSUS, and classifying the cameras in subheading 8525.30.00, HTSUS. In 1996, subheading 8525.40.00, HTSUS, was created, which specifically provided for still image video cameras. Since then Customs has classified still video cameras under this subheading. See, e.g., NY 817941, dated January 14, 1996.
HOLDING:
The digital still camera is classifiable as a still image video camera in subheading 8525.40.00, HTSUS.
The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director,
Commercial Rulings Division