CLA-2-90:OT:RR:NC:1:405
Mr. Martin J. Farnan
Faz Technology Incorporated
12151 Research Parkway, Suite 100
Orlando, FL 32826
RE: The tariff classification of tunable laser interrogator from Ireland
Dear Mr. Farnan:
In your letter dated August 22, 2014, you requested a tariff classification and country of origin ruling.
The tunable laser interrogator, Model Number FZI40000AA, is an optical device for reading sensors which measure the real world using photons. Light is used to accurately measure physical changes in the environment. The product utilizes basic sensors that are sensitive to strain and temperature. The photons, i.e., packets of light particles, are channeled to the sensors via fiber optic cables. The reflections from these sensors return to the receiver where they are translated into the required measurement reading, i.e., temperature and strain. Main applications are said to be for (1) structural health monitoring, e.g., dams, bridges, marine vessels, oil rigs and spacecraft and (2) seismic measurements (geophone and hydrophone) for oil/gas exploration.
Production of the tunable laser interrogator begins in the United States. The majority of the sub-components are said to be from the United States. The assembled hardware is then sent to Dublin, Ireland for calibration, software programming (software and firmware) and testing. The specification, development and engineering takes place in Ireland. The product’s functions depend on this calibration and embedded software. The exported hardware lacks the functional intelligence present in the completed product. It is the programming brought about in Ireland along with the installation of the software/firmware that causes various distinct electronic interconnections to be formed within the exported hardware components so that non-functioning circuitry becomes functional. The completed product is exported from Ireland to end customers in Europe and the USA.
You include copies of Binding Tariff Information (“BTI”) decisions as part of your submission. These BTIs from the Classification Unit, Office of the Revenue Commissioners, Ireland (BTI IE14NT-14-2211) and the German Customs Administration (BTI DE5292/11-1) classify the merchandise under consideration in subheading 9031.49.90 which provides for which provides for other measuring or checking instruments, appliances and machines, not specified or included elsewhere in Chapter 90. This office notes that HQ 965325 dated January 16, 2002 contains the following: “As stated in T.D. 89-80, published in the Federal Register on August 23, 1989 (54 FR 35127), classification rulings from other Customs administrations on like merchandise are instructive only and are not binding on the United States. Nevertheless, such rulings are indicative of a classification we may wish to consider during our own rulings process.”
Alternatively, you also suggest classification in subheading 9015.80.2000 which provides for meteorological instruments and appliances: other optical instruments and appliances, in subheading 9030.40.00 which provides for other instruments and apparatus for measuring electrical quantities, which are specially designed for telecommunications or in subheading 9027.50.40 which provides for Instruments and apparatus for physical or chemical analysis …; parts and accessories thereof: Other instruments and apparatus using optical radiations (ultraviolet, visible, infrared): Other: Electrical.
As there is no evidence that the tunable laser interrogator is principally used in either meteorological or telecommunications applications, subheadings 9015.80.2000 and 9030.40.00 can be eliminated from consideration. Classification in subheading 9031.49.90 would also not be appropriate as the product is specifically provided for in a tariff provision found elsewhere in Chapter 90, i.e., subheading 9027.50.40, Harmonized Tariff Schedule of the United States (HTSUS),
The applicable subheading for the complete tunable laser interrogator, Model Number FZI40000AA will be 9027.50.4060, HTSUS, which provides for Instruments and apparatus for physical or chemical analysis … (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes; parts and accessories thereof: Other instruments and apparatus using optical radiations (ultraviolet, visible, infrared): Other: Electrical ... Other. The rate of duty will be 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 World Wide Web at http://www.usitc.gov/tata/hts/.
You also request a ruling on the country of origin of the tunable laser interrogator. Although the assembled hardware imported into Ireland consists of important components, it is the calibration and programming (software/firmware) that gives the product its ability to function and analyze. The calibration and programming are not just simple enhancements of the product, but rather cause a significant change in its very nature. Submitted information shows that the processing performed in Ireland is complex requiring skill and expertise. Consequently, it is the opinion of this office that the goods imported into Ireland are substantially transformed in Ireland from assembled hardware into a functional instrument, thus rendering the turnable laser interrogator a product of Ireland.
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 Patricia O’Donnell at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division