CLA-2-90:RR:NC:N1:105 I82544
Mr. Ron Wangerin
Nexus Data, Inc.
2557 SW Grapevine Pkwy
Suite 300
Grapevine, Texas 76051
RE: The tariff classification of Automatic Meter Reading Devices from Israel
Dear Mr. Wangerin:
In your letter dated May 6, 2002, you requested a tariff classification ruling.
You supplied no sample, but a flyer for the GA-TX Gas Meter AMR (Automatic Meter Reading) Transmitter. It is designed to be used in conjunction with standard meters which measure the usage and display it on dials. Field technicians retrofit existing meters on site by attaching your device, designed for a specific meter. They count the rotations of the dials and periodically transmits that information via integral, battery-powered, radio frequency transmitters to a nearby base, which receives, decodes, and retransmits the data to the Network Control Center. It is thus not necessary for an employee to physically read the dials on the meter each month.
You propose classification in HTS 8525.10. However, Headquarters Ruling Letter 961387, March 20, 1998, classified in HTS 9028.90.00 a similar item, described:
“The merchandise consists of electric meter modules which will be incorporated into electric meters once imported into the U.S. The modules measure consumers’ electric power usage and allow electric utility companies to remotely read their meters. Each module reads an electric meter by counting the rotations of the meter disk via an optically interrupted system. The module then, periodically, transmits the collected information to the utility’s controller unit using a short-range radio frequency via a spread spectrum modulation technique. The modules consist of printed circuit board assemblies (PCBAs) incorporating a variety of electronic components, including resistors, capacitors, diodes, integrated circuits, inductors, switches, fuses, and screws.”
You state, “These transmitters are a product of Israel as 35% of the components are products of Israel.” You appear to be confusing the direct cost test in HTS General Headnote 8-b-iii-B with the determination of Country of Origin, which is determined by the Substantial Transformation tests. However, if your items are products of Israel and meet the other requirements in Gen Headnote 8 and the corresponding Customs Regulations, they are eligible for entry free of duty.
The applicable subheading for the GA-TX AMR will be 9028.90.0080, Harmonized Tariff Schedule of the United States (HTS), which provides for parts and accessories of gas and liquid supply or production meters. The general rate of duty will be 3.2 percent ad valorem.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist J. Sheridan at 646-733-3012.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division