CLA-2 OT:RR:CTF:EMAIN H270703 SKK
Ms. Donna L. Hiltpold
Stanley Black & Decker
480 Myrtle St.
New Britain, CT 06053
RE: Revocation of NY N107616 and NY N225535; Digital camera inspection system; Inspection scope; Videoscope
Dear Ms. Hiltpold:
This ruling is in reference to New York Ruling Letter (NY) N107616, dated June 23, 2010, issued to Stanley Black & Decker, regarding the classification of a digital camera inspection system under the Harmonized Tariff Schedule of the United States (HTSUS). In NY N107616, U.S. Customs and Border Protection (CBP) classified the subject article in heading 8528, HTSUS, specifically subheading 8528.59.25, HTSUS, which provides for “[M]onitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other monitors: Other: Color: With a flat panel screen: Other: With a video display diagonal not exceeding 34.29 cm.” Since the issuance of that ruling, we have determined NY N107616 to be in error.
CBP has also reviewed NY N225535, dated July 26, 2012, which involves the classification of a substantially similar video inspection system in subheading 8528.59.15, HTSUS, which provides for “[M]onitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other monitors: Other: Color: With a flat panel screen: Incorporating video recording or reproducing apparatus: With a video display diagonal not exceeding 34.29 cm.” As with NY N107616, we have determined that the tariff classification of the subject merchandise in NY N225535 is incorrect.
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, a notice proposing to revoke NY N107616 and NY N225535 was published on September 30, 2020, in Volume 54, Number 38 of the Customs Bulletin. No comments were received in response to the proposed action.
FACTS:
The merchandise at issue in NY N107616 is identified as the “Visioval colour digital
camera,” part number 2940. The product is described as a portable video system for inspecting difficult-to-access spaces that consists of a camera, monitor, cables, power supply, guidance ball, and guidance sleeve. In NY N107616, the subject article is described as not possessing recording capabilities. We note, however, that the manufacturer’s website contradicts this description and describes the merchandise as capable of photo and video recording. See http://www.virax.com/index.php/en/p/34011/pipe-inspection/colour-digital-inspection-camera-visioval-vx (site last visited April 2020).
In NY N225535, CBP classified an article identified as the “Video Scope, Digital, Wireless,” part number BK8000, which is used for automotive and industrial video inspection. The BK8000 consists of a battery-powered handle attached to a television type camera that transmits video images using wireless 802.11 protocols to a battery-powered LCD monitor that is connected to the camera via a cable. The LCD monitor has a diagonal screen size of 4.3 inches and contains inbuilt internal recording capability. The BK8000 is described on an industry website as a “Digital Wireless Video Scope from Snap-on [that] offers exceptional capabilities for inspecting hard-to-see places.” See http://www.fiberoptictoolsupply.com/blog/snap-on-bk8000-digital-wireless-video-scope/ (site last visited April 2020). LAW AND ANALYSIS:
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 will then be applied in order.
The following HTSUS provisions are under consideration:
8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders
8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus
Section XVI Note 3 provides:
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 functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
In NY N107616, the subject inspection system was classified as a retail set. CBP determined that as both the camera and monitor components contributed equally to the system’s overall function, and neither imparted the “essential character” to the subject article, classification pursuant to GRI 3(b) was inapplicable. Consequently, it was determined that classification was proper under heading 8528, HTSUS, pursuant to GRI 3(c).
Similarly, in NY N225535, CBP classified the subject inspection system as a composite machine of heading 8528, HTSUS, pursuant to GRI 3(c).
The subject merchandise at issue in NYs N107616 and N225535 are composite machines in that they consist of two or more machines of Section XVI, specifically cameras of heading 8525, HTSUS, and monitors of heading 8528, HTSUS, that are fitted together to form a whole. As such, pursuant to Section XVI Note 3, cited supra, they are to be classified as if consisting only of that component that performs the principal function.
The product literature available on the website links set forth above indicates that the subject articles are designed and marketed as camera inspection systems (or “scopes”) for difficult-to-access spaces. As such, the camera components perform the essential function of capturing images that enable visual inspection. As the monitors merely display the captured images, and images recorded on a SD storage card may be displayed on devices other than the monitor, the monitors do not perform the principal function of the subject inspection systems and their role is subsidiary to that of the cameras. In this regard, we find that the display component of the instant inspection system functions the same as the optical viewfinder or LCD commonly found on digital video cameras of heading 8525, HTSUS. See Explanatory Note 85.25(B). Accordingly, pursuant to Section XVI Note 3, the subject composite articles are to be classified under heading 8525, HTSUS, as if consisting only of the camera components.
Classification of the subject merchandise in heading 8525, HTSUS, is consistent with NY N209179, dated March 30, 2012 (well inspection camera that transmits images through a coaxial cable to a location outside the camera for viewing or remote recording); NY H81870, dated May 30, 2001, (digital still image camera with Internet access and data management/recording capability), and; N245401, dated September 12, 2013 (underwater video camera housed in a remotely operated vehicle).
We further note that the subject articles at issue in NYs N107616 and N225535 are
distinguished from the industrial videoscopes with optical measuring features classified in NYs N262187, N262178, and N262184, all dated March 30, 2015, and NYs N262197 and N262176, both dated April 1, 2015, under heading 9031, HTSUS, specifically subheading 9031.49.90, HTSUS, which provides for other optical measuring or checking instruments. In addition to a camera and monitor, the articles at issue in those rulings also featured “Stereo Measurement Technology” that enables quantitative three-dimensional defect measurement via eight different measurement modes for accurate evaluation of inspection targets as well as real-time tip-to-target measurement capability.
HOLDING:
By application of GRI 1 and Section XVI Note 3, the “Visioval colour digital camera”
(part number 2940) and the “Video Scope, Digital, Wireless” (part number BK8000) are classified under heading 8525, HTSUS, specifically under subheading 8525.80.30, HTSUS, which provides for “[T]ransmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Television cameras: Other:.” The applicable 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 on the internet at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N107616, dated June 23, 2010, and NY N225535, dated July 26, are 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,
Gregory Connor
for Craig T. Clark, Director
Commercial and Trade Facilitation Division
CC: Mr. Andrew Donaldson
Perceptron, Inc.
47827 Halyard Drive
Plymouth, MI 48170