OT:RR:CTF:EMAIN H331779 SKK
Assistant Center Director
Consumer Products and Mass Merchandising
Center of Excellence and Expertise
U.S. Customs & Border Protection
5600 Pearl Street
Rosemont, IL 60018
ATTN: Christy M Darnell-Crosby, Import Specialist; Michele Mortimer, Supervisory Import
Specialist
RE: Application for Further Review of Protest No. 3901-23-129207; tariff classification of
digital doorbell security camera.
Dear Assistant Center Director:
This is our decision regarding an Application for Further Review (AFR) of Protest No. 3901-23-129207, filed by counsel on behalf of Amazon.com Services, LLC (Protestant). The Protest and AFR concern the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a digital doorbell camera for home monitoring.
The subject merchandise was entered on December 24, 2021, under heading 8525, specifically subheading 8525.80.40, HTSUS (2021)[1], 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: Other: Digital still image video cameras." The merchandise was liquidated on October 28, 2022, 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: Other: Television cameras: Other." As a product of China, the subject merchandise was also subject to additional ad valorem duties pursuant to U.S. Note 20 to Subchapter III, Chapter 99, subheading 9903.88.03, HTSUS.
The AFR was forwarded to this office for consideration. No sample was provided for examination.
This decision takes into consideration the substance of a discussion held via teleconference between attorneys from this office and counsel on August 22, 2023, as well as additional information submitted by counsel at that meeting.
FACTS:
The subject article is a digital doorbell security camera identified as Amazon Standard Item Number (ASIN) B08SGKLDRV ("Blink Video Doorbell White") and ASIN B08SGC46M9 ("Blink Video Doorbell Black Plus Sync Module 2"), hereinafter collectively referred to as the "Blink Video Doorbell" or "BVD". The BVD includes a doorbell, camera, sensors, speaker, and microphone and is marketed as a home security monitoring camera. The device features an analogue/digital converter (ADC) and wireless output mechanism that streams video to the cloud for viewing on external devices (i.e., automatic data processing machines, smartphones, etc.). The BVD's features are controlled by an app via the user's smartphone or computer. Both still images and video are available for viewing and recording on the app. The BVD does not feature an external SD slot for external memory. The BVD has the following features:
. "Live View" - while connected to the internet, the BVD can capture and stream video to an external device in real time. "Live View" video can only be saved to the cloud via a BVD subscription. "Live View" video is not stored or recorded internally and can only be recorded externally through a paid BVD subscription plan or via local storage on the Amazon "Synch Module."
. "Motion Event" - while connected to the internet, the BVD captures still images at a specified number of frames per second when the motion sensor detects an event or at the direction of the user. The still images are concatenated into video format with synchronized audio recording. The video buffers for transmission to the cloud on the device's random access memory (RAM). If internet connectivity is lost before video is sent to the cloud, the video remains on the device's RAM until internet connection is re-established. "Motion Event" video is not stored or recorded internally and can only be recorded externally through a paid BVD subscription plan or via local storage on the Amazon "Synch Module."
. "24/7 Snapshot Capture" - regardless of internet connectivity, still images are captured at a fixed cadence of one image per hour. The still images comprise individual frames of time-lapse moving images. Still images are stored to Electrically Erasable Programmable Read-Only Memory (EEPROM) flash memory (presented as a thumbnail still image on the user's app) or concatenated and buffered in RAM for transmission to the cloud where it is presented on the app as time-lapse video. Time-lapse videos are viewed on external devices. Still images remain on the device's EEPROM flash memory (32MB/1,000 image capacity) until they are automatically overwritten when memory reaches capacity (with the oldest images replaced by newer images) or until they are automatically deleted within 12 hours of uploading to the cloud. The images are only available for viewing on the app.
. "Synch Module" (sold separately from the "Blink Video Doorbell White" and packaged with the "Blink Video Doorbell Black Plus Sync Module 2") - the "Sync Module" contains a universal serial bus (USB) flash drive port for local storage and pairs wirelessly with the BVD. Both still and moving images can be transferred from the Sync Module via the cloud to a compatible app for viewing.
ISSUE:
What is the proper classification of the subject camera under the HTSUS?
LAW AND ANALYSIS:
A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. 1514(a)(2). The subject Protest was timely filed on April 25, 2023, within 180 days of liquidation, pursuant to 19 U.S.C. 1514(c)(3). Further review of the protest is justified pursuant to 19 C.F.R. 174.24(a) because the protestant alleges that the Center's decision in this matter was inconsistent with prior rulings on similar merchandise.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If 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. Under GRI 6, the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.
The 2021 HTSUS provisions at issue are as follows:
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:
* * * * *
8525.80 Television cameras, digital cameras and video camera recorders:
Television cameras:
* * *
8525.80.30 Other...
8528.80.40 Digital still image video cameras
Legal Note 3 to Section XVI (Chapters 84 - 85) 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.
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 EN to heading 85.25 provides, in pertinent part:
(B) TELEVISION CAMERAS, DIGITAL CAMERAS AND VIDEO CAMERA RECORDERS
This group covers cameras that capture images and convert them into an electronic signal that is:
(1) transmitted as a video image to a location outside the camera for viewing or remote recording (i.e., television cameras); or
(2) recorded in the camera as a still image or as a motion picture (i.e., digital cameras and video camera recorders).
* * * * *
Television cameras may or may not have an incorporated device for remote control of lens and diaphragm as well as for remote control of the horizontal and vertical movement of the camera (e.g., television cameras for television studios or for reporting, those used for industrial or scientific purposes, in closed circuit television (surveillance) or for supervising traffic). These cameras do not have any inbuilt capability of recording images.
Some of these cameras may also be used with automatic data processing machines (e.g., webcams).
* * * * *
In digital cameras and video camera recorders, images are recorded onto an internal storage device or onto media (e.g., magnetic tape, optical media, semiconductor media or other media of heading 85.23). They may include an analogue/digital converter (ADC) and an output terminal which provides the means to send images to units of automatic data processing machines, printers, televisions or other viewing machines. Some digital cameras and video camera recorders include input terminals so that they can internally record analogue or digital image files from such external machines.
Generally, the cameras of this group are equipped with an optical viewfinder or a liquid crystal display (LCD), or both. Many cameras equipped with an LCD can employ the display both as a viewfinder when capturing images and as a screen for displaying images received from other sources or for reproducing images already recorded.
* * * * *
The subject security camera is a composite machine consisting of a camera, doorbell, sensors, speaker and microphone. There is no dispute that the camera component performs the principal function, with the other components serving a subsidiary function to the camera. Accordingly, pursuant to Section XVI Note 3, the subject article is classified under heading 8525, HTSUS, as if consisting only of the camera component.
There is also agreement that the subject device is described by subheading 8525.80, HTSUS (2021), which provides for "television cameras, digital cameras and video camera recorders." Therefore, per GRI 6, the issue before us is classification at the 8-digit level, i.e., whether the subject camera is a "television camera" of subheading 8525.80.30, HTSUS, or a "digital still image video camera" of subheading 8525.80.40, HTSUS.
Although EN 85.25(B), set forth supra, provides guidance regarding a category of camera classifiable under heading 8525, HTSUS, i.e., "television cameras, digital cameras, and video camera recorders," it does not pertain to the scope of the phrase "digital still image video cameras" found in subheading 8525.80.40, HTSUS, which is an 8-digit domestic subheading. Nevertheless, the EN is instructive regarding the distinction between "television cameras" and "digital cameras" of subheading 8525.80, HTSUS (2021). In this regard, the EN describes "television cameras" as capturing images and converting them to electronic signals that are transmitted as video to external locations outside the camera for viewing or remote recording, with no inbuilt capability for recording images. The EN describes "digital cameras" as capable of capturing images and converting them into electronic signals that are recorded in the camera as a still image or motion picture. As such, the fact that EN 85.25(B) describes "television cameras" as a separate category of merchandise from other digital cameras of heading 8525, HTSUS, supports the conclusion that subheadings 8525.80.30 and 8525.80.40, HTSUS (2021), are mutually exclusive, with the primary distinguishing factor being the design feature (or lack thereof) to send a signal to an external device (e.g., television cameras or surveillance cameras) versus recording video content onto an internal storage device or media for direct retrieval by the user.
In Sony Electronics, Inc., v. United States, 35 Int'l Trade Rep. (BNA) 2395 (Ct. Int'l Trade Dec. 23, 2013), the Court of International Trade (CIT) examined the scope of subheading 8525.80.40, HTSUS (2007), determining that "digital still image video cameras" covered cameras capable of capturing both still and moving images. The camera at issue in that decision was the Sony "NSC-GCI Net-Sharing Cam," described as a handheld camera that captured both still and moving images with 2MB of user accessible internal memory and featuring a removable flash memory stick for additional storage. The camera connected to a personal computer via universal serial bus (USB) cable to permit the downloading or uploading of images to a computer or the web. The Sony court concluded that as the subject camera captured both still and moving digital images, it was fully described by subheading 8525.80.40, HTSUS (2007). In reaching this decision, the CIT was silent as to the required recording capabilities of "digital still image video cameras" of subheading 8525.80.40, HTSUS (2007), however we note that the
camera at issue in Sony is consistent with the description of "digital cameras and video camera recorders" (i.e., digital cameras that are not "television cameras") in EN 85.25(B), HTSUS, supra, in that it featured user accessible internal memory and a removeable flash memory stick.
In the instant analysis, although the subject camera captures both still and moving images it does not internally record images. Captured images can only be retrieved from the cloud via the app and viewed on external devices. The camera features both RAM and internal flash memory that functions to concatenate still images into moving images (video) and buffer video segments for transmission to the cloud (temporarily retain pre-loaded data segments to enhance video transmission). See Headquarters Ruling Letter (HQ) 966172, dated June 4, 2003, in which CBP determined that buffering does not constitute an internal recording function if the images are not saved. The subject camera does not feature an SD slot or, as was the case with the camera at issue in Sony, user accessible internal memory or other removeable memory. Moreover, the subject camera erases (overwrites) all captured images when memory reaches capacity or within 12 hours of upload to the cloud. If internet connectivity is lost prior to images uploading to the cloud, the images remain in flash memory until internet connection is resumed and uploading resumes. Although Protestant submits that the "Sync Module" may be used to store the camera's still and moving images, the "Synch Module" is a local USB drive (not internal) and is not sold with all versions of the BVD camera. Based on the foregoing, the subject camera does not record images onto an internal storage device or onto media and, therefore, classification is not proper under subheading 8525.80.40, HTSUS (2021).
The subject camera can be configured to provide a variety of images in terms of the length of video and intervals of still frame images via the "Snapshot Capture" feature for desired viewing in the mobile app. Likewise, the camera features RAM and flash memory to facilitate the transmission of content to the cloud and guard against losing content when the camera is offline. All of these features are in furtherance of the camera capturing and transmitting video images to locations outside the camera, in the manner of a surveillance camera described in EN 85.25(B), supra, and not for the internal recordation of images for direct retrieval by the user. As such, the subject camera is properly classified under subheading 8525.80.30, HTSUS (2021), which provides for television cameras. See HQ H254873, dated August 30, 2016 (classification of a camera that captures video and still images, but does not internally record images, under 8525.89.30, HTSUS); HQ H237590, dated July 9, 2015 (classification of a camera without inbuilt recording capability that transmits video to an external monitor for viewing or remote recording under subheading 8525.80.30, HTSUS); New York Ruling Letter (NY) N324932, dated April 13, 2022 (classification of a security camera that captures video, but does not internally record images, under subheading 8525.89.30, HTSUS).
Lastly, we note that Protestant cites to the following rulings in support of its argument that the subject camera is properly classified as a digital still image video camera of subheading 8525.80.40, HTSUS (2007-2021), or its precursor subheading 8525.40.40, HTSUS (2003-2007):
. New York Ruling Letter (NY) J89576 (digital camera with SD card), dated February 3, 2003;
. NY K85155, dated April 21, 2004; (digital still image camera with USB docking cradle and "memory for future reference")
. NY M84597, dated June 23, 2006; (digital still image camera - the ruling does not describe internal storage capabilities, but internet research on this product indicates the presence of a SD);
. NY N028259 (child's digital camera with USB port for removeable memory), dated May 21, 2008;
. NY N072389 (child's digital camera with USB port for removeable memory), dated September 9, 2009;
. NY N237383 (document camera with internal SD card), dated January 29, 2013;
. NY N301257 (digital cameras with internal SD card), dated November 14, 2018;
. NY N322052 (Vivint digital security camera with micro SD card), dated November 1, 2021;
. NY N301534 (digital Wristcam that can internally preserve 2,000 photos on 8GB of flash memory), dated November 27, 2018;
. NY R00718 (digital surveillance camera with flash memory or SDRAM), dated August 27, 2004;
. NY K82625 (image presentation camera), dated February 9, 2004.
The above rulings are distinguished from the instant merchandise in that they feature SD cards or other forms of user accessible internal memory. Although the Wristcam in NY N301534 and the instant merchandise both utilize internal flash memory, images stored on the Wristcam's flash memory are capable of being preserved for subsequent retrieval and viewing on the device, whereas the camera at issue does not have this capability. Moreover, the still image presentation camera at issue in NY K826625 and the digital surveillance camera at issue in NY R00718 are distinguished from the subject camera in that both are described as possessing internal storage.
HOLDING:
By application of GRIs 1 (Note 3 to Section XVI) and 6, the subject camera is classifiable under heading 8525, specifically subheading 8525.80.30, HTSUS (2021), 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: Other: Television cameras: Other." The general, column one duty rate is free.
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 U.S. International Trade Commission's website at www.usitc.gov.
You are instructed to DENY the protest.
You are instructed to notify the Protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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[1] HTSUS subheading 8525.80 was renumbered 8525.89 effective January 27, 2022. See Presidential Proclamation 10326 (86 Fed. Reg. 73593-73599, dated Dec. 28, 2021). The tariff language was not changed.