CLA-2 OT:RR:CTF:TCM H257211 ALS
Robert L. Bekalarski
Acting Assistant Director Partnership & Enforcement
Industrial & Manufacturing Materials-Center of Excellence and Expertise
U.S. Customs and Border Protection
726 Exchange Street, Suite 400 Buffalo, New York 14210
RE: Internal Advice; Tariff Classification of RFC Noise Filter Inductors
Dear Port Director:
This letter is in reply to your request for internal advice of September 2, 2014, initiated by request of Pilkington North America, Inc. (“PNA”) regarding the tariff classification of Radio Frequency Choke (RFC) Noise Filter Inductors (also referred to herein as “RFC Inductors” or “RFC”). Our decision is set forth below.
FACTS:
PNA describes the RFC Inductor and its functions as follows:
The RFC [Inductor] is a component that links the defroster grid (located on the rear window of a vehicle) to the vehicle. It is specialized defroster terminal that incorporates the coil (inductor) into its construction. The RFC has two purposes. One obvious function is to convey electrical energy from the vehicle to the defroster grid in order to heat up the rear window to eliminate fog, ice, or snow. However, another vital purpose is to provide a barrier to prevent both unwanted noise and capture radio waves...
For external source (FM radio waves) the function of the RFC is to help hold radio energy within the defroster grid so that the radio can use the defroster grid as either part of the FM antenna or the entire FM antenna. This is achieved because the coil in the RFC [Inductor] has high impedance in the range of FM radio signals (88 MHz ~ 108 MHz). By having high impedance within the FM range, FM signals are effectively “trapped” with the defroster grid and can be used for FM reception. If there were no RFC in place and a standard defroster terminal was used, the FM radio energy would just “bleed” off to either the ground side or battery side of the grid...
The RFC [Inductor] acts as a ground coil for a radio antenna incorporated into an automotive rear windshield and is used in conjunction with an antenna module unit assembly which consists of an actual connector.
PNA had classified RFCs upon entry under subheading 8504.50.4000, HTSUS.
ISSUE:
Is the RFC Noise Filter Inductor, as described above, properly classified under subheading 8504.50.40, HTSUS which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Other inductors: For power supplies for automatic data processing machines or units thereof of heading 8471; power supplies for goods of subheading 8443.31 or 8443.32; power supplies for monitors of subheading 8528.42 or 8528.52 or projectors of subheading 8528.62; for telecommunication apparatus”, or under subheading 8504.50.80, HTSUS which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Other inductors: Other”?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order.
GRI 6 provides the following:
For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
ARI 1(a) provides the following:
In the absence of special language or context which otherwise requires—
(a) a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the
controlling use is the principal use;…
The following subheadings of the HTSUS are under consideration in this case:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8504.50 Other inductors:
8504.50.40 For power supplies for automatic data processing machines or units thereof of heading 8471; power supplies for goods of subheading 8443.31 or 8443.32; power supplies for monitors of subheading 8528.42 or 8528.52 or projectors of subheading 8528.62; for telecommunication apparatus
* * *
8504.50.80 Other...
* * * * * * * * *
PNA contends that the RFC is a telecommunication apparatus as that term is used in subheading 8504.50.40. PNA argues that the “common or popular meaning” of the term telecommunications should be applied in this case because the HTSUS does not define the term. PNA further argues that the RFC is a telecommunications device because it receives radio broadcasts. PNA also argues that “telecommunication apparatus” as the term is referenced in subheading 8504.50.40 is not restricted to exclude the RFC as a telecommunication apparatus.
When a tariff term is not defined by the HTSUS or the legislative history, its correct meaning is its common, or commercial, meaning. Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001). "To ascertain the common meaning of a term, a court may consult 'dictionaries, scientific authorities, and other reliable information sources' and 'lexicographic and other materials.'" Id. (quoting C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271, 69 C.C.P.A. 128 (C.C.P.A. 1982); Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989)).
“Telecommunications” is generally defined as the transmission of words, images, data, or other information in the form of electromagnetic signals, such as radio waves. See, e.g.: www.dictionary.com/browse/telecommunications, Dictionary.com (2017); www.techopedia.com/definition/5570/telecommunications, Technopedia.com (2017). “Apparatus” is generally defined as equipment designed for a particular use. See, e.g.: www.dictionary.com/browse/apparatus, Dictionary.com (2017);
www.merriam-webster.com/dictionary/apparatus, Merriem-Webster.com (2017); dictionary.cambridge.org/us/dictionary/english/apparatus, Dictionary.Cambridge.org/US (2017).
Thus, as a collective term, “telecommunications apparatus” is equipment that is designed specifically to transmit information in the form of electromagnetic signals, such as radio waves.
We note again that the RFC has two functions. The first is to convey electrical energy from the vehicle’s electrical system to the defroster grid that in turn heats the window to defrost it, and the second is to capture radio waves and filter noise from those waves as it passes the waves along to the vehicle’s radio. Whether it is conveying electrical energy or capturing radio waves and filtering noise, the RFC is an inductor.
We concluded in a previous ruling that “[a]lthough the merchandise meets the requirements to be classified under subheading 8504.50, HTSUS, nothing has been provided that these inductors are principally used in power supplies of ADP machines or in telecommunication apparatus. Since principal use has not been established, the proper classification for this merchandise should be subheading 8504.50.80...” CBP Ruling HQ 963137 (January 15, 2002).
Upon review of subheading 8504.50.40, HTSUS, we find that the RFC is clearly not a machine or unit thereof of heading 8471, clearly not a power supply for goods of subheading 8443.31 or 8443.32, and clearly not a power supply for monitors of subheading 8528.42 or 8528.52 or projectors of subheading 8528.62.
With regard to whether the RFC Inductor is “for telecommunications apparatus”, we note that the vehicle’s defroster grid to which the subject merchandise is connected has a dual function: heating the vehicle’s rear window for defrosting, and augmenting the vehicle’s radio by capturing radio waves and filtering noise from the radio waves. Therefore, the subject RFC Inductor also performs a dual function. Assuming arguendo that the defroster grid constitutes a “telecommunications apparatus” when performing this latter function, it cannot be said that the subject RFC Inductor is principally used in furtherance of augmenting the radio versus the supplying of energy to the defroster grid. Thus, consistent with our findings in HQ 963137, we conclude that the subject merchandise is not “for telecommunications apparatus”, and therefore not classifiable under subheading 8504.50.40. As the inductor is not otherwise specified in heading 8504, we conclude that subheading 8504.50.40 is not applicable to the RFC. As the inductor is not otherwise specified in heading 8504, we conclude that the RFC is properly classified under subheading 8504.50.80.
HOLDING:
The subject RFC Noise Filter Inductor is properly classified, by virtue of GRIs 1 and 6, under subheading 8504.50.80, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Other inductors: Other...” The general column one rate of duty, for merchandise classified in this subheading is 2.2%.
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.
No later than 60 days from the date of the decision, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web
at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division