CLA-2 RR:CR:GC 965367TPB
Ms. Joan M. McLeod
Nortel Networks, Inc.
55 Pineview Drive, Suite A
Amherst, NY 14228
RE: Circuit Packs; Optical Amplifiers; Dispersion Compensation Modules;
Revocation of NY H86252
Dear Ms. McLeod:
This is in reference to your letter of January 28, 2002, requesting reconsideration of NY H86252, issued to you on January 22, 2002, by the Customs National Commodity Specialist Division, New York, classifying certain optical amplifiers and dispersion compensation modules under subheading 9013.80.90, Harmonized Tariff Schedule of the United States (“HTSUS”). We regret the delay in responding. After careful review of this matter, it is now our belief that NY H86252 is incorrect. This ruling sets forth the correct classification.
Pursuant to 625 (c), Tariff Act of 1930 (19 U.S.C. 1625 (c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY H86252 was published on November 6, 2002, in the Customs Bulletin, Volume 36, Number 45. No comments were received in response to that notice.
FACTS:
There are two articles at issue. First are what you have termed optical amplifiers, hereinafter referred to as “circuit packs.” They are used in long-haul digital telecommunications systems. They come in the form of printed circuit assemblies that are plugged into either a single 7 foot bay or an 11 foot high by 23 inches wide OC-48 Network bay. Circuit packs
are used to extend the range of a telecommunication signal transmitted via optical fiber cable. The module components include a pump laser; and
an erbium-doped fiber (“EDF”). When the signal passes through the EDF, it is boosted. As the signal travels through the EDF, light from an electrically powered “pump” laser excites or stimulates the erbium ions to release their stored energy that the signal then absorbs. Chemically, the light’s one and only purpose is to stimulate the erbium, whose molecular structure renders it easily stimulated.
The “excited” particles release or transfer their energy to the signal by relaxing or becoming de-excited. As the incoming signal induces relaxation, the transfer of energy is synchronized to that of the incoming signal, resulting in an increase or power boost of the signal data. The signal continues through the EDF where the process is repeated on an atomic scale. As this process continues down the fiber, the signal grows stronger.
Second, the Dispersion Compensation Module (“DCM”) is a passive device used to counter chromatic dispersion in a long-haul transmission system. DCMs contain dispersion compensating fibers that apply a pre-defined level of dispersion to reconstruct (compress) the optical pulses, and are mounted in bays or frames which house the OC systems. DCMs provide negative or positive dispersion in order to compensate the dispersion accumulated in a given fiber type. DCMs are used exclusively with Nortel’s Optical transmission products and have no functionality as separate items.
ISSUE:
What is the classification of the DCMs and circuit packs?
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 2(a) states in part that incomplete or unfinished articles are to be classified as complete or finished if, as imported, they have the essential character of the complete or finished article. GRI 6 permits the comparison of same-level subheadings within the same heading, in part by application of Rules 1 through 5, applied by appropriate substitution of terms.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, 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 under the HTSUS. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The HTSUS provisions under consideration are as follows:
Section XVI, note 1(m), HTSUS, provides, in pertinent part, as follows:
This section does not cover:
…
(m) Articles of chapter 90;
…
Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof:
Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter; parts and accessories thereof:
The ENs for heading 85.17 provide, in pertinent part, as follows:
APPARATUS FOR CARRIER-CURRENT LINE SYSTEMS OR FOR DIGITAL LINE SYSTEMS
These systems are based on the modulation of… a light beam by… digital signals. …. These systems are used for the transmission of all kinds of information (words, data, images, etc.)
These systems include all categories of multiplexers and related line equipment for metal or optical-fibre cables. “Line-equipment” includes transmitters and receivers or electro-optical converters.
Circuit packs are complete devices used exclusively in long-haul digital telecommunication systems. Sealed within the mechanical box are the components necessary to boost an incoming optical signal in order to increase that signal’s range. These components include laser pumps, optical amplifiers, photodiodes, control circuits, supervisory circuits and power supply circuits. Heading 8517, HTSUS, captures goods principally used for digital line system transmission.
The merchandise before us fits within the terms of heading of 8517, HTSUS. The DCMs are apparatus used to counter chromatic dispersion in long-haul digital telecommunication systems. They have no other use outside of this area. We find that the DCMs are described by the terms of heading 8517. Therefore, we need not look to chapter 90 for classification.
The circuit packs contain optical amplifiers, which may, if principally used in other applications, be classified in heading 9013, which covers, in pertinent part, other optical appliances and apparatus not classified elsewhere in chapter 90. The instant circuit packs are not classified in chapter 90, as they are solely used in telecommunication digital line system, and contain other equipment as noted above. Thus, at GRI 1, the circuit packs are specifically provided for in heading 8517, HTSUS. Section XVI, note 1(m), which excludes goods of chapter 90, does not operate in this instance.
HOLDING:
For the above reasons, the DCMs and circuit packs are classified in subheading 8517.50.90, HTSUS, which provides for: “Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof: other apparatus for carrier-current line systems or for digital line systems: Other: Telegraphic: Other.”
EFFECT ON OTHER RULINGS:
NY H86252 is revoked. In accordance with 19 U.S.C. 1625 (c), this ruling
will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Acting Director
Commercial Rulings Division