CLA-2 OT:RR:CTF:TCM H127136 CKG
James L. Sawyer
Gardner, Carton & Douglas
191 N. Wacker Drive, Suite 3700
Chicago, IL 60606-1698
RE: Modification of HQ W967779 and Revocation of HQ 961830; classification of electrical cables
Dear Mr. Sawyer:
This is in reference to your request of January 08, 2010, for the reconsideration of Headquarters Ruling Letter (HQ) W967779, issued on March 30, 2006, on behalf of Precision Interconnect, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of two styles of cable assemblies. We have reconsidered this decision, and for the reasons set forth below, have determined that the classification of styles 2 and 4 in subheading 8544.20.00, HTSUS, is incorrect. We have further determined that HQ 961830, dated October 2, 1998, incorrectly classified a similar electric cable in subheading 8544.20.00, HTSUS.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to modify HQ W967779 and revoke HQ 961830 was published on June 7, 2017, in Volume 51, Number 23 of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
In HQ W967779, five styles of cable assemblies were cIassified in various subheadings under heading 8544, HTSUS, as insulated cable. You request reclassification of two styles, identified as items 2 and 4, which were classified in subheading 8544.20.00, HTSUS, as coaxial cables. HQ W967779 described the five cable assemblies as follows:
The subject merchandise consists of various cables used in PI’s patient monitoring cable assemblies. These cables are designed to monitor minute changes in the human body, detecting voltages in the millivolt or even microvolt range. The cables vary in shape and size, but they all perform the same basic function. The cables consist of various numbers of individual conductors, bundled together in different combinations, each wrapped in appropriate insulating sheaths.
…
Item 1 – Part #500241708 is described as a composite cable consisting of multiple single conductors, arranged in pairs and triples, some of which are shielded as pairs or triples, bundled together for the cable break-out harnessing arrangement. The bundles are cabled together and bound by a fluoropolymer tape, all of which is surrounded by a wire braided shield, which is surrounded by an extruded PVC jacket. The finished cable operates at a voltage of less than one volt.
Item 2 – Part # 650270002 consists of four unshielded single conductors (tinned copper wires, each insulated with PVC), cabled together and bound with Mylar or equivalent tape, all of which is surrounded by a braided shield, which is then surrounded by an extruded PVC jacket. The finished cable operates at a voltage of less than one volt.
Item 3 – Part # SL3A1303 consists of a central conductor made of stranded tinned copper wire surrounded by an extruded insulating layer of PVC. The cable consists of a single conductor. The finished cable operates at a voltage of less than one volt.
Item 4 – Part # 500254403 consists of a shielded triple conductor (i.e., three unshielded single conductors, cabled together, wrapped by a spiral wound wire and surrounded by an extruded PVC jacket) laid and bonded side-by-side with two more identical shielded triple conductors to make a 3-wide ribbon of jacketed shielded strips. The finished cable operates at a voltage of less than one volt.
Item 5 – Part# 500254206 is a composite cable consisting of multiple single conductors, arranged in pairs and triples, some of which are shielded as pairs or triples, bundled together as appropriate for a cable break-out harnessing arrangement. The bundles are cabled together and bound by a fluoropolymer tape, all of which is surrounded by a wire braided shield, which is surrounded by an extruded PVC jacket. The finished cable operates at a voltage of less than one volt.
In HQ 961830, the cable at issue was described as follows:
The article in issue, referred to as a wiring harness, was described as consisting of an insulated electrical cable with several connectors attached at one end and a single connector attached at the other end…
A submitted sample, designated 171-0614-00/13155, is a 7-foot cable consisting of multiple Teflon-coated copper wires surrounded by a braided outside metallic conductor called a “serve.” The entire cable is further encased in rubber. The copper wires at each end, with tips bared, are evenly spaced in plastic ferrules which you refer to as programmable integrated circuits.
The submission accompanying your request for reconsideration further indicates that while the outer braided metal shield in the Precision Interconnect cables provides shielding to protect the cables from electromagnetic interference, it does not conduct electrical signals and is not part of the circuit.
ISSUE:
Whether the subject cable assemblies are classifiable in subheading 8544.20, HTSUS, as coaxial cables, or subheading 8544.42, HTSUS, as other electrical conductors.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of
Interpretation (GRI). GRI 1 provides that classification 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 6, HTSUS, requires that the GRI's be applied at the subheading level on the understanding that only subheadings at the same level are comparable. The GRI's apply in the same manner when comparing subheadings within a heading.
The HTSUS provisions at issue are as follows:
8544: Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors:
8544.20.00: Coaxial cable and other coaxial electric conductors
Other electric conductors, for a voltage not exceeding 1,000 V:
8544.42: Fitted with connectors:
Other:
8544.42.20: Of a kind used for telecommunications…
8544.42.90: Other…
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The Harmonized Commodity Description and Coding System Explanatory
Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither 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 the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The Explanatory Notes to heading 85.44 provide:
The goods of this heading are made up of the following elements :
A conductor this may be single strand or multiple, and may be wholly of one metal or of different metals.
One or more coverings of insulating material the aim of these coverings is to prevent leakage of electric current from the conductor, and to protect it against damage. The insulating materials mostly used are rubber, paper, plastics, asbestos, mica, micanite, glass fibre yarns, textile yarns (whether or not waxed or impregnated), varnish, enamel, pitch, oil, etc. In certain cases the insulation is obtained by anodising or by a similar process (e.g., the production of a surface coating of metallic oxides or salts).
In certain cases a metal sheath (e.g., lead, brass, aluminium or steel); this serves as a protective covering for the insulation, as a channel for an insulation of gas or oil, or as a supplementary conductor in certain co axial cables.
Sometimes a metal armouring (e.g., spiral wound steel or iron wire or strip), used mainly for protecting underground or submarine cable.
…
The heading covers, inter alia :
…
(3) Telecommunications wires and cables (including submarine cables and data
transmission wires and cables) are generally made up of a pair, a quad or a cable core, the whole usually covered with a sheath. A pair or a quad consists of two or four insulated wires, respectively (each wire is made up of a single copper conductor insulated with a coloured material of plastics having a thickness not exceeding 0.5 mm), twisted together. A cable core consists of a single pair or a quad or multiple stranded pairs or quads.
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It is not in dispute that the instant cables are classified in heading 8544, HTSUS, as insulated cables. The issue arises at the six-digit subheading level. Styles 2 and 4 of HQ W967779, and the “wiring harness” of HQ 961830, were classified in subheading 8544.20, HTSUS, which provides for “coaxial cable and other coaxial electrical conductors.” You claim classification of styles 2 and 4 as “other electrical conductors, for a voltage not exceeding 1,000V,” in subheading 8544.42.90, HTSUS.
In HQ 964018 we considered the following definitions of the term “coaxial cable”:
The McGraw-Hill Encyclopedia of Science and Technology (1992) defines
coaxial cable as:
An electrical transmission line comprising an inner, central conductor surrounded by a tubular outer conductor. The two conductors are separated by an electrically insulating medium which supports the inner conductor and keeps it concentric with the outer conductor.
The IBM Dictionary of Computing (10th ed., 1993) defines coaxial cable as:
A cable consisting of one conductor, usually a small copper tube or wire, within and insulated from another conductor of larger diameter, usually copper tubing or copper braid.
The Microsoft Press Computer Dictionary (3rd ed., 1997) defines coaxial cable as:
A two-conductor cable consisting of a center wire inside a grounded cylindrical shield, typically made of braided wire, that is insulated from the center wire. HQ 964018 at 3.
In HQ 088496, we considered the following definition of “coaxial”:
Webster's New World Dictionary, Third College Edition, (1988), defines coaxial as: 3 "designating a high-frequency transmission line or cable in which a solid or stranded central conductor is surrounded by an insulating medium which, in turn, is surrounded by a solid or braided outside conductor in the form of a cylindrical shell: it is used for sending telephone, telegraph, television, etc. impulses."
The Oxford English Dictionary Online further defines “coaxial line” as follows:
[A] transmission line made up of two concentric circular conductors separated by an insulating medium, used esp. for medium and high frequency signals in television and multiplex telephony.
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Similarly, Encyclopedia Britannica describes coaxial cables as follows: “A coaxial cable consists of two conductors laid concentrically along the same axis. One conducting wire is surrounded by a dielectric insulator, which is in turn surrounded by the other, outer conductor, producing an electrically shielded transmission circuit. The whole cable is wrapped in a protective plastic sheathing. The signal propagates within the dielectric insulator, while the associated current flow is restricted to adjacent surfaces of the inner and outer conductors. As a result, coaxial cable has very low radiation losses and low susceptibility to external interference.” See http://www.britannica.com/EBchecked/topic/123218/coaxial-cable.
Pursuant to the above definitions, a coaxial cable of subheading 8544.20, HTSUS, must have a single inner conductor surrounded by a layer of dielectric insulation, which is in turn surrounded by a metal sheath that acts as a secondary conductor. The outer conductor must run on a concentric, common axis with the primary conductor. The outer metal sheath intercepts and grounds electromagnetic energy it encounters at both ends of the cable. The dielectric layer keeps the spacing between the inner and outer conductor constant. The outer sheath acts as a secondary conductor; electrical current is transmitted forward by the central conductor, then sent back to the source on the secondary conductor. An electromagnetic field is formed between the inner and outer conductor. That electromagnetic field carries the RF signal, which travels within the dielectric, bouncing back and forth between the inner and outer conductors.
The cable assemblies under reconsideration contain multiple inner conductors wrapped in insulating sheaths and surrounded by a braided metal outer shield. This configuration cannot be considered coaxial because the conductors are not concentric (i.e., sharing a common center). Furthermore, the submission accompanying your request for reconsideration indicates that while the outer braided metal shield in the Precision Interconnect cables provides shielding to protect the cables from electromagnetic interference, it does not conduct electrical signals and is not part of the circuit. In coaxial cables, the outer sheath acts as a secondary conductor.
Subheading 8544.20, HTSUS, also provides for “other coaxial electric conductors.” In HQ W967779, we stated that “other coaxial electric conductors” in subheading 8544.20, HTSUS, refers to goods that contain coaxial “connectors”, although not necessarily in the conventional configuration set forth above. The use of “connectors” in this context appears to be a typographical error; rather, the statement should read: “’other coaxial electric conductors’ in subheading 8544.20, HTSUS, refers to goods that contain coaxial conductors.” These may include cables with multiple coaxial lines, even cables with coaxial and other conductors. However, the instant cables, lacking any coaxial conductors, are still not classifiable as “other coaxial electric conductors” of subheading 8544.20, HTSUS.
Because items 2 and 4 of HQ W967779, and the cable at issue in HQ 961830 are not coaxial cables or other coaxial conductors of subheading 8544.20, HTSUS, they are classified in subheading 8544.42, HTSUS.
Within subheading 8544.42, HTSUS, two provisions are implicated: subheading 8544.42.20 (“Of a kind used for telecommunications”), and subheading 8544.42.90, HTSUS (“Other”). The instant cables are used in medical equipment, for patient monitoring and ultrasonic scanning. Pursuant to EN 85.44, telecommunications cables are generally made up of a pair, a quad or a cable core, the whole usually covered with a sheath. In addition, CBP has, in examining the common and commercial meaning of the term “telecommunications”, determined that a telecommunications cable of subheading 8544.42.20, HTSUS is used for the transfer of data, images, or voice between electronic devices. See HQ H029719, dated Nov. 7, 2008 and HQ H100097, dated September 3, 2010. In accordance with the explanation of telecommunications cables in the Explanatory Notes and prior CBP rulings, the instant cables are classified in subheading 8544.42.20, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the instant electrical cables are classified in subheading 8544.42.90, HTSUS, which provides for “Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors; Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Of a kind used for telecommunications.” The 2017 column one, general rate of duty is Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided online at http://www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
HQ W967779, dated March 30, 2006, is hereby modified with respect to the classification of items 2 and 4 (part nos. 650270002 and 500254403).
HQ 961830, dated October 2, 1998, is hereby 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, Director
Commercial and Trade Facilitation Division