CLA-2 CO:R:C:M 952672 LTO

Mr. Paul E. Linet
360 Massachusetts Avenue
Suite 105
Acton, Massachusetts 01720

RE: Outer tube sub-assemblies for videoendoscopes; mounted objective lenses; parts; reconsideration of PC 871835; heading 9018; EN 90.02; EN 90.18; Chapter 90, Note 2

Dear Mr. Linet:

This is in response to your letter of September 23, 1992, requesting reconsideration of Pre-Entry Classification 871835, dated April 8, 1992, which concerned the classification of outer tube sub-assemblies for videoendoscopes under the Harmonized Tariff Schedule of the United States (HTSUS). Additional information was provided in a letter dated February 4, 1993, from the President of Henke Sass Wolf of America, Inc.

FACTS:

The article in question is the outer tube sub-assembly that is used in constructing a finished, rigid videoendoscope. The videoendoscope is comprised of three major sections: a needle assembly, a focusing assembly and an optical assembly. The needle assembly includes the outer tube sub-assembly, a complete set of lenses (negative lens, field lens and relay lenses) and various mechanical pieces. The outer tube sub-assembly consists of a metal tube which contains a series of glass lenses (called a "relay lens system," because they relay an image along the length of the tube), which are not assembled into the sub-assembly until after importation. A bundle of optical fibers is arranged outside the lenses to convey light from an external light source into the area being viewed. The needle assembly is a means of connecting the outer tube sub-assembly to the other necessary components used to produce the videoendoscope. The proximal end of the videoendoscope is designed to couple directly to a video - 2 -

camera to complete an electronic visualization system.

In rigid endoscopes, an image is captured by the "field lens" and relayed along the length of the tube by a series of "relay lenses." The image reappears at the "field stop," and is transferred onto the imaging chip (CCD, or Charge Coupled Device) by "coupling lenses." The CCD converts the optical image into electrical signals, which are then processed by the video camera electronics for display on a monitor. Illumination of the scene being viewed is provided by either LED's (Light Emitting Diodes) or a tiny light bulb at the tip of the endoscope, or by optical fibers which run from the "sidearm" to the tip of the scope and are supplied with light from an external source.

The videoendoscope enables the medical profession to move from "open surgery" to minimally invasive surgery (MIS), in which the physician's hands remain outside the patient's body. The videoendoscope is a component of an electronic visualization system. This system is used to convey an image by a light source, which is transmitted by the outer tube sub-assembly through a relay lens system, and captured by a video camera and ultimately displayed on a video screen.

In PC 871835, the outer tube sub-assembly was held to be classifiable under subheading 9018.90.20, HTSUS, which provides for other parts and accessories of medical instruments and appliances. You contend that the article in question is classifiable as a part of a mounted objective lens for cameras under subheading 9002.11.80, HTSUS, or alternatively, under subheading 9033.00.00, HTSUS, as a part for a chapter 90 instrument, not specified or included elsewhere.

ISSUE:

Whether the article in question is classifiable as a part for mounted objective lenses, which are parts of or fittings for instruments or apparatus, under heading 9002, HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The headings at issue are as follows:

9002 Lenses, prisms, mirrors and other optical elements, of any material, mounted, being - 3 -

parts of or fittings for instruments or apparatus, other than such elements of glass not optically worked; parts and accessories thereof

* * * * * * * * * * * * *

9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Co-operation Council's official interpretation of the Harmonized System. While not legally binding, the ENs provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings.

EN 90.02, pg. 1461, states that Heading 9002, HTSUS, covers lenses of heading 9001, HTSUS, "when in a permanent mounting (viz., fitted in a support or frame, etc.) suitable for fitting to an apparatus or instrument. The articles of the heading are mainly designed to be incorporated with other parts to form a specific instrument or part of an instrument."

It is our opinion that the outer tube sub-assembly falls within the above description. The sub-assembly provides a permanent support or frame for the complete set of lenses (negative, field and relay lenses), which are dispersed throughout the entire sub-assembly. The lenses are assembled into the article in question after importation. The outer tube sub-assembly is designed to be incorporated with other parts, the lenses, to form a part of an instrument, a videoendoscope.

The function of the outer tube sub-assembly is to provide a housing for a series of lenses, and the sub-assembly is a part of a videoendoscope. Thus, the fact that the "head" of the sub- assembly provides the means to mount the needle assembly to the focusing assembly, and that the assembly contains a bundle of optical fibers, which run from the "sidearm" to the tip of the scope, to convey light from an external source, does not, in our opinion, take the article in question beyond the scope of heading 9002, HTSUS.

EN 90.18, pg. 1487, states that heading 9018, HTSUS, "covers a very wide range of instruments and appliances which, in the vast majority of cases, are used only in professional practice (e.g., by doctors, surgeons, dentists, veterinary surgeons, - 4 -

midwives), either to make a diagnosis, to prevent or treat an illness or to operate, etc." The note further provides that heading 9018, HTSUS, covers endoscopes, as well as, parts thereof.

Note 2 to chapter 90, which governs the classification of parts of chapter 90, provides as follows:

(a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 . . . are in all cases to be classified in their respective headings; (b) Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading . . . are to be classified with the machines, instruments or apparatus of that kind [emphasis added].

The outer tube sub-assembly is not a "good included" in any chapter 84, 85, 90 or 91 heading. Thus, note 2(b) to chapter 90 governs its classification. While it can be argued that the sub- assembly is suitable for use solely or principally with an instrument of heading 9018, HTSUS, it is our opinion that it is most identifiable as a part that is suitable for use solely or principally with the apparatus of heading 9002, HTSUS. However, we disagree with your contention that the sub-assembly is classifiable as a part for mounted objective lenses for cameras, as it is not the type of mounting contemplated by subheading 9002.11.80, HTSUS. The outer tube sub-assembly is classifiable as a part for other mounted objective lenses under subheading 9002.19.00, HTSUS.

HOLDING:

The outer tube sub-assembly is classifiable under subheading 9002.19.00, HTSUS, which provides for parts for other mounted objective lenses. The corresponding rate of duty for articles of this subheading is 6.6% ad valorem.

The portion of PC 871835, dated April 8, 1992, that relates to the above merchandise, is revoked.

Sincerely,

John Durant, Director