CLA-2 OT:RR:CTF:TCM H012694 HkP
8531.90.9000
8536.50.90
8537.10.9050
Ms. Gail P. Mason
Import Specialist
Airbus North America Holdings, Inc.
21780 Filigree Court
Ashburn, VA 20147
RE: Classification of a passenger service information unit
Dear Ms. Mason:
This is in response to your request, received by the National Commodity Specialist Division of U.S. Customs and Border Protection (“CBP”) on May 14, 2007, in which you requested a binding ruling on behalf of Airbus North America Holdings, Inc. At issue is the proper classification of a passenger service information unit and of each of its component panels under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your request, which included schematic drawings and sample, was forwarded to this office for a response.
FACTS:
According to the information provided, the passenger service information unit (“PSIU”) (part no. D9259004304600) is a plastic panel made up of three separate panels (the switch, information, and reading light panels), power units and electrical connections, fitted together. It is installed on aircrafts above a row of passenger seats.
The “switch panel” (part no. D92590177012) contains three on/off switches, which control the reading lights, and a “call” switch, which summons a flight attendant. It also contains a power board which supplies 28 V direct current (“DC”) to the switches.
The “information panel” (part no. D92590176012) incorporates a loudspeaker and an indicator panel. The loudspeaker is connected to the airplane’s public address (“PA”) system, through which information is communicated by the crew to the passengers. The sign has “no smoking” and “fasten your seatbelt” symbols, which are illuminated by the crew as needed. The catalogue price of the loudspeaker is approximately one-third the price of the full panel.
You have stated in your submission that the “reading light panel” (part no. D92590175012) contains three halogen reading lamps. However, upon examining the sample provided, we note that a printed circuit board (“PCB”) populated with transformers, integrated circuits, memory, and other components is mounted on the underside of the reading light panel. After a request for further information, you informed us that the PCB is connected to the “Cabin Intercommunication Data System (“CIDS”), and controls the panels described in this ruling, and that the board supplies 115 V alternating current (“AC”) and 28 V DC. Based on the catalogue price of the PSIU and the individual panels, we estimate that the price of the PCB is approximately 27 times of the price of the reading light panel. The PCB makes up approximately 90 % of the price of the PSIU.
ISSUE:
What is the correct classification of the passenger service information unit and its component parts?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.
GRI 3 provides, in relevant part:
When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
* * *
(b) Mixtures, composite goods consisting of different materials or made up of different components … which cannot be classified by reference to 3(a) shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS at the international level. While not legally binding nor dispositive, the ENs 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.
The EN to GRI 3(b) provides, in pertinent part:
(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
The HTSUS provisions under consideration are as follows:
8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; … :
* * *
Loudspeakers, whether or not mounted in their enclosures:
8518.21.0000 Single loudspeakers, mounted in their enclosures …..
8531 Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof:
* * *
8531.20.00 Indicator panels incorporating liquid crystal devices (LCDs) or light emitting diodes (LEDs) …..
* * *
8531.20.0040 Other …..
8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts; … :
* * *
8536.50 Other switches:
* * *
Other:
* * *
8536.50.90 Other …..
8537 Board, 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:
For a voltage not exceeding 1,000 V:
* * *
8537.10.90 Other …..
* * *
Other:
8537.10.9050 Panel boards and distribution boards …..
9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof, not elsewhere specified or included:
9405.10 Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares:
* * *
9405.10.80 Other …..
The Legal Notes to Section XVI provides, in relevant part:
2. Subject to Note 1 to this section, note 1 to chapter 84 and note 1 to chapter 85, parts of machines … are to be classified according to the following rules:
* * *
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading … are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. …
3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative function are to be classified as if consisting only of that component or as being that machines which performs the principal function.
* * *
5. For the purposes of these notes, the expression “machine” means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85.
General EN (VI) to Section XVI provides, in relevant part:
Where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply General Interpretive Rule 3 (c); such is the case, for example, in respect of multi-function machines potentially classifiable in several of the headings 84.25 to 84.30, in several of the headings 84.58 to 84.63 or in several of the headings 84.69 to 84.72.
Classification of the Passenger service information unit
The PSIU has been identified as a part of the CIDS. Legal Note 2(b) to Section XVI directs that parts suitable for use solely or principally with a particular kind of machine are to be classified with the machines of that kind. CBP has previously determined that the CIDS is classified in heading 8531, HTSUS, as other electric sound or visual signaling apparatus. See HQ 954719, dated February 1, 1994. Heading 8531, HTSUS, also provides for parts of articles of the heading. Based on the information provided to us, we understand that the PSIU is suitable for use solely or principally with the CIDS. Applying Note 2(b) to Section XVI, we find that the PSIU is classified under heading 8531, HTSUS, as a part of electric sound or visual signaling apparatus.
Classification of Components When Entered Separately
The Switch Panel
The switch panel contains three on/off switches for the reading lights and a call switch. Switches are classified in heading 8536, HTSUS. The switch panel at issue is merely an assembly of switches; therefore, we find that it is classified in heading 8536.
The Information Panel
The information panel is comprised of a loudspeaker of heading 8518 and an indicator panel of heading 8531, HSTUS. Legal Note 3 to Section XVI directs that composite machines performing two or more complementary or alternative functions are to be classified as if consisting only of that component which performs the principal function. The loudspeaker provides auditory information and the indicator panel provides visual information; each component appears to be equally important in relation to the functioning of the information panel. Consequently, we are unable to determine the principal function of the information panel and must apply GRI 3(c), as directed by General EN (VI) to Section XVI. GRI 3(c) directs that goods that cannot be classified by reference to GRI 3 (a) or (b) shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Both headings merit equal consideration. Accordingly, we find that the information panel is classified in heading 8531, HTSUS.
The Reading Light Panel
The “reading light panel” contains three halogen reading lamps and is fitted onto the ceiling of an airplane. Lamps and lamp fittings are provided for in heading 9405, HTSUS. CBP has previously found that dome lights comprising interior lighting for an aircraft were ceiling or wall lighting fittings of heading 9405. See HQ 965001, February 8, 2002. However, the panel under consideration also incorporates a populated printed circuit board. The terms of heading 8537, HTSUS, provide for, in part, boards or panels equipped with two or more apparatus of heading 8536, used for electric control or the distribution of electricity. The circuit board under consideration incorporates several apparatus of heading 8536, controls all the panels at issue and also connects to the Cabin Intercommunication Data System. We find, therefore, that the PCB is classified in heading 8537, HTSUS. Using a GRI 3(b) analysis, we find that the essential character of the panel is the circuit board by virtue of its value (approximately 27 times the price of the reading light panel) and role in relation to the use of the panel. This is so despite the bulkiness of the lights. Accordingly, we find that the panel is classified in heading 8537, HTSUS.
HOLDING:
By application of GRI 1 and Legal Note 2(b) to Section XVI, we find that the passenger service information unit is classified in heading 8531, HTSUS. It is specifically provided for in subheading 8531.90.9000, HTSUSA, which provides for: “Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms) other than those of heading 8512 or 8530; parts thereof: Parts: Other: Other.” The 2007 column one, general rate of duty is 1.3% ad valorem.
By application of GRI 1, we find that the switch panel is classified in heading 8536, HTSUS. It is specifically provided for in subheading 8536.50.90, HTSUSA, which provides for: ”Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches …), for a voltage not exceeding 1,000 V.: Other switches: Other: Other.” The 2007 column one, general rate of duty is 2.7% ad valorem.
By application of GRI 1 and Legal Note 3 to Section XVI, we find that the information panel is classified in heading 8531, HTSUS. It is specifically provided for in subheading 8531.20.0040, HTSUSA, which provides for, in relevant part: “Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms) other than those of heading 8512 or 8530 … : Indicator panels incorporating liquid crystal devices (LCD’s) or light emitting diodes (LED’s): Other.” The 2007 column one, general rate of duty is free.
By application of GRI 3(b), we find that the reading light panel is classified in heading 8537, HTSUS. It is specifically provided for in subheading 8537.10.9050, HTSUSA, which provides for: “Board, panels, consoles, desks, cabinets and other bases, equipped with tow or more apparatus of heading 8535 or 8536, for electric control of the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 V: Other: Other: Panel boards and distribution boards.” The 2007 column one, general rate of duty is 2.7% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
A copy of this ruling letter should be attached to entry documents filed at the time the goods are entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Gail A. Hamill, Chief
Tariff Classification and Marking Branch