CLA-2 RR:CR:GC 963672 GOB
Port Director
U.S. Customs Service
P. O. Box 31301
Laredo, TX 78044
RE: Electronic control systems; Photocopying apparatus
Dear Sir:
This ruling is our decision regarding Protest 2304-99-100322 filed by Xerox Corporation (“protestant”) concerning the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of electronic control systems for photocopying apparatus.
FACTS:
The five entries at issue were filed between September 30, 1998 and October 7, 1998, and were liquidated between August 13, 1999 and August 20, 1999. The articles at issue are described by the protestant as electronic control systems.
The protestant states:
Xerox Corporation part # 101K29436 electronic control system (ECS) is a user interface module designed for the Xerox Model A2-97 or DC212 copier.
The bill of materials … identifies the components incorporated in this module, including the user interface (input keyboard and display), the user interface bezel, and the electronics that support them, power supplies and logic chips…
Additional U.S. Note 5 to Chapter 90, HTSUS, specifically identifies user control assemblies as parts of photocopying apparatus of subheading 9009.12, HTSUS, provided they incorporate “more than one of the following: printed circuit assembly, power supply, user input keyboard, wiring harness, display unit (cathode ray type or flat panel);” The article in question clearly meets this criteria, as it incorporates the printer circuit assemblies, power supplies and the user input keyboard, uses led’s in place of a flat panel display, and has the harness connectors built into the electronic components for direct connection when assembled to the rest of the copier.
The design and use of this ECS assembly is not simply for electronic control or the distribution of electricity, and goes well beyond the definition of heading 8537, HTSUS.
Xerox Corporation part # 101K29436 electronic control system (ECS) is a specifically identified major assembly for photocopying apparatus of subheading 9009.12, incorporates more than two specifically named components, and is therefore properly classified under HTSUS 9009.90.1000.
In addition, the article also qualified as NAFTA originating goods at the time of entry, and the goods are entitled to duty free entry under the North American Free Trade Agreement.
[Emphasis in original.]
The subject merchandise was rate advanced and liquidated under subheading 8537.10.90, HTSUS.
ISSUE:
Whether the subject articles are provided for in heading 8537, HTSUS, or in heading 9009, HTSUS?
LAW AND ANALYSIS:
We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
Heading 8537 covers:
Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517[.]
Heading 9009 covers:
Photocopying apparatus incorporating an optical system or of the contract type and thermocopying apparatus; parts and accessories thereof[.]
Whether an article is a part of another article may depend on the nature of the “part” and its usefulness, function, and purpose in relation to the article which it is designed to serve. In Kores Manufacturing Corp. v. United States, 3 CIT 178, 190, 545 F. Supp. 1303, 1315 (1982), the court stated that “[i]n order to be classified as a ‘part’ the article must serve a useful function in relation to the main article and in some way contribute to the efficient or safe operation of that article.”
As the subject article appears to be integral to the operation of a photocopy machine, it is our position that the article is a part of that photocopy machine, which itself is a good of heading 9009, HTSUS. Because the subject article is a part of a good of chapter 90, HTSUS, Legal Note 2 to Chapter 90, HTSUS, is relevant. It provides:
Subject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules:
Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8485, 8548 or 9033) are in all cases to be classified in their respective headings;
Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind;
All other parts and accessories are to be classified in heading 9033.
Additional U.S. Note 5(c) to Chapter 90 provides:
Subheadings 9009.90.10 and 9009.90.30 cover the following parts of photocopying apparatus of subheading 9009.12:
…
(c) User control assemblies, incorporating more than one of the following: printed circuit assembly, power supply, user input keyboard, wiring harness, display unit (cathode ray type or flat panel); …
The documentation of record indicates that the subject articles as imported contain three power supply items. One item supplies the power for the display/control panel while the other two items supply power for the electro/mechanical operation of the photocopier.
We agree with the protestant’s claim that Additional U.S. Note 5(c) to Chapter 90 is applicable. Further, the documentation does not reflect that the subject articles are goods within the scope of heading 8537. Thus, Legal Note 2(a) to Chapter 90 is not applicable. Legal Note 2(b) to Chapter 90 is applicable.
On the basis of Legal Note 2(b) to Chapter 90, HTSUS, and Additional U.S. Note 5(c) to Chapter 90, HTSUS, we find that the subject articles are provided for in heading 9009, HTSUS, and are classified in subheading 9009.90.10, HTSUS, as “Photocopying apparatus incorporating an optical system or of the contract type and thermocopying apparatus; parts and accessories thereof: … Parts and accessories: Parts of photocopying apparatus of subheading 9009.12 specified in additional U.S. note 5 to this chapter: Parts other than photoreceptors or assemblies containing photoreceptors[.]”
Because of this determination, it is unnecessary to consider the protestant’s claim with respect to duty-free entry under the North American Free Trade Agreement.
HOLDING:
The articles are provided for in heading 9009, HTSUS, and are classified in subheading 9009.90.10, HTSUS, as “Photocopying apparatus incorporating an optical system or of the contract type and thermocopying apparatus; parts and accessories thereof: … Parts and accessories: Parts of photocopying apparatus of subheading 9009.12 specified in additional U.S. note 5 to this chapter: Parts other than photoreceptors or assemblies containing photoreceptors[.]”
You are instructed to GRANT the protest.
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 will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.treas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division