CLA-2-85:OT:RR:NC:N2:209
Roy Delbyck
Law Offices of Roy Ian Delbyck
Room 929 Star House, 3 Salisbury Road,
Tsimshatsui, Kowloon Hong Kong
RE: The tariff classification of a wireless telecommunication headset system from China
Dear Mr. Delbyck:
In your letter dated January 9, 2024, you requested a tariff classification ruling on behalf of your client VoCoVo Inc.
The product in question is a wireless headset system primarily for use in a retail environment by retail teams. The product is referred to as the "Client System," Model No. VCH8000. The system consists of a hub, 4 headsets, 4 headbands, a dock, and power supply. The components of the “Client System” will be packaged together in a single carton and sold to customers as an integrated system.
The “Client System” is designed to enable retail teams to speak to each other through headsets that are wirelessly connected to a hub. Audio communication between headsets is achieved through wirelessly sending voice data from one headset to the hub which forwards the voice data to the rest of the headsets. The voice communication uses a closed network allowing only the headsets to transmit voice signals. The hub and the headsets employ the Digital Enhanced Cordless Telecommunications (DECT) wireless standard, which encrypts the voice data using 64-bit encryption. The radio frequency bands used are between 1920 MHz and 1930 MHz with up to 150 feet of transmission range.
The “Client System” operates as a closed network. Communications via the hub can only be accessed by “Client System” headset users. The Client System is designed to allow communications via one conference. All headsets in deployment receive all communications because they are connected to the same conference/network and thus can hear and participate in the conference.
The components that make up the Client System are designed to be used together. They are regarded as a functional unit, and classification of these components is governed by Note 4 to Section XVI:
Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.
According to the information provided, the components of the Client System contribute together to the clearly defined function of transmitting encrypted voice signals in a closed network. The items work together to perform a clearly defined function covered by Heading 8517, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for the “Client System” wireless headset system will be 8517.62.0090, HTSUS, which provides for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” The general rate of duty will be Free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8517.62.0090, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8517.62.0090, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 World Wide Web at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division