CLA-2 CO:R:C:M 089927 KCC
Mr. Karl Thompson
Communications Manufacturing Company
2234 Colby Avenue
Los Angeles, California 90064
RE: CMC Terminations; designed to temporarily terminate an
electrical circuit; GRI 1
Dear Mr. Thompson:
This is in response to your letter dated May 22, 1991, to
Customs in New York, regarding the tariff classification of
Communications Manufacturing Company (CMC) Terminations under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Your letter and descriptive information were forwarded
to this office for a response.
FACTS:
The merchandise at issue is CMC 7635, 7637, and 7638
Terminations. The Terminations are used by telephone companies
to temporarily terminate a telephone line when performing return
loss measurements, terminal balance tests or office balance
tests. The Terminations are comprised of small encapsulated
packages that incorporate an electrical circuitry that has a 135
(CMC 7635), 600 (CMC 7638), or 900 (CMC 7637) ohms resistor, and
a capacitor that operates on 250 Vdc. Extending out of the
terminator package are two flexible tinsel leads which are
equipped with insulated alligator clips. The Terminations are
imported into the U.S. from Canada.
ISSUE:
What is the proper tariff classification of the CMC
Terminations under the HTSUSA?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes..."
Subheading 8536.90.00, HTSUSA, provides for electrical
apparatus for making connections to or in electrical circuits for
a voltage not exceeding 1,000 V. Chapter 85, HTSUSA, is within
Section XVI, HTSUSA, making the Section XVI notes applicable to
this classification. Section XVI, Note 5, HTSUSA defines
"machine" as "any machine, machinery, plant, equipment, apparatus
or appliance cited in the headings of chapter 84 or 85." This
note indicates that the term "apparatus" means a working unit, an
article which is able to complete its purpose by itself. The
Terminations satisfy the description of an "apparatus." The
Terminations are articles which are capable in and of themselves
to complete their intended function of temporarily terminating an
electrical circuit.
Explanatory Note (EN) 85.36 of the Harmonized Commodity
Description and Coding System (HCDCS) provides that the
apparatus of heading 8536, HTSUSA, are "used to connect together
the various parts of an electrical circuit." HCDCS, EN 85.36,
Vol. 4, p. 1390. The Explanatory Notes, although not
dispositive, are to be looked to for proper interpretation of the
HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989). The
Terminations in question satisfy this description. They are used
to temporarily terminate or close an electrical circuit in
circuits under 1,000 V in order to perform return loss
measurements and balance tests.
HOLDING:
The CMC Terminations are properly classified under
subheading 8536.90.00, HTSUSA, which provides for "Electrical
apparatus for switching or protecting electrical circuits, or for
making connections to or in electrical circuits (for example,
switches, relays, fuses, surge suppressor, plugs, sockets, lamp-
holders, junction boxes), for a voltage not exceeding 1,000
V...Other apparatus."
Subheading 8536.90.00, HTSUSA, is an eligible tariff
provision for preferential treatment under the United States-
Canada Free Trade Agreement (CFTA). If the Terminations are
deemed to be goods originating in the territory of Canada,
pursuant to General Note 3(c)(vii), HTSUSA, they will be eligible
for preferential tariff treatment.
Sincerely,
John Durant, Director
Commercial Rulings Division