CLA-2 CO:R:C:M 953835 KCC
District Director
U.S. Customs Service
300 South Ferry Street
Terminal Island, Room 2017
San Pedro, California 90731
RE: Protest No. 2704-93-100380; VHS-C Camcorder; television
camera; video recording or reproducing apparatus;
8521.10.00; Sears Roebuck and Co. v. U.S., Slip Ops. 92-60
and 92-148; Boast, Inc. v. United States; EN 85.25; McGraw-
Hill Encyclopedia of Science & Technology
Dear District Director:
This is in response to the Application for Further Review of
Protest No. 2704-93-100380, which pertains to the tariff
classification of VHS-C Camcorders under the Harmonized Tariff
Schedule of the United States (HTSUS). Arguments made by counsel
on behalf of the protestant at a meeting on August 31, 1993, and
information presented in a further submission dated September 7,
1993, were taken under consideration in preparing this decision.
FACTS:
The article at issue is a VHS-C Camcorder ("camcorder").
The entry of the camcorders was liquidated on October 30, 1992,
under subheading 8525.30.00, HTSUS, which provides for television
cameras. In a protest timely filed on January 27, 1993, counsel
contends that the camcorders are properly classified under
subheading 8521.10.00, HTSUS, which provides for video recording
or reproducing apparatus.
The competing subheadings are:
8521.10.00 Video recording or reproducing
apparatus...Magnetic tape-type....
8525.30.00 Transmission apparatus for radiotelephony,
radiotelegraphy, radiobroadcasting or television,
whether or not incorporating reception apparatus
or sound recording or reproducing apparatus;
television cameras...Television cameras....
ISSUE:
Is the VHS-C Camcorder classified as a video recording or
reproducing apparatus under subheading 8521.10.00, HTSUS, or as a
television camera under subheading 8525.30.00, HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, 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...."
The classification of camcorders within the Tariff Schedules
of the United States (TSUS) (the precursor tariff to the HTSUS),
was addressed in Sears Roebuck and Co. v. United States, 16 CIT
, Slip Op. 92-60 (April 27, 1992) ("Sears I"), and Sears Roebuck
and Co. v. United States, 16
CIT __, Slip Op. 92-148 (Aug. 28, 1992) ("Sears II"). The Court
in Sears I determined that camcorders were not classified in item
685.49, TSUS, as a combination article consisting of a television
camera and a tape recorder. After reviewing various definitions
of television cameras from the time of enactment of the provision
(1960), the Court determined that the camcorders did not consist
of a television camera. The Court found that a television camera
"converts visual images and sounds into electric signals and is
used in connection with television transmission apparatus in
transmitting electrical waves over a distance." Sears I, at 46.
The Court determined that the Sears camcorders were used "for
home recording, and its primary purpose is to make a tape of what
appears before the lens." Id., at 47. The Court remanded the
action to Customs to determine the proper classification of the
camcorder.
On remand, Customs classified the camcorder in item 685.40,
TSUS, as a tape recorder. The Court in Sears II determined that
classification in item 685.40, TSUS, was correct. The Court
found that Congress was aware of video tape recorders, as it had
enacted TSUS language referencing magnetic video tape for
recording pictures and sound in item 724.12, TSUS. Therefore, as
it had not made a separate provision for video tape recorders,
the Court concluded that Congress intended to include camcorders
under the provision for tape recorders.
The Harmonized Commodity Description and Coding System
(HCDCS) Explanatory Notes (ENs), although not dispositive, are to
be given considerable weight in the interpretation of the HTSUS.
Boast, Inc. v. United States, 17 CIT __, Slip Op. 93-20 (February
10, 1993). See also, H. Cong. R. No. 100-576, 100th Cong., 2d
Sess. at 549, reprinted in 1988 U.S. CODE CONG. & ADMIN. NEWS
1581-83.
EN 85.25 (pg. 1375) provides guidance on the intended scope
of the term "television cameras." EN 85.25 states that
This heading covers television cameras, whether or not with
an incorporated device for remote control of lens and
diaphragm as well as for remote control of the horizontal
and vertical movement of the camera (e.g., television
cameras for television studios or for reporting, those used
for industrial or scientific purposes or for supervision
traffic). Cameras for underwater work and portable cameras
with or without a built-in video recorder are also
classified here (emphasis added).
We are of the opinion that the camcorders at issue are
within the class or kind of merchandise classified, under the
current language of the HTSUS, as "television cameras" under
subheading 8525.30.00, HTSUS. EN 85.25 provides that the term
"television camera" not only covers television broadcasting
cameras, but also cameras for industrial and scientific purposes,
underwater cameras, and portable cameras with built-in video
recorders. The protestant states that all the cameras listed in
EN 85.25 must meet the definition of television cameras stated in
Sears I, which is "converts visual images and sounds into
electric signals and is used in connection with television
transmission apparatus in transmitting electrical waves over a
distance." Sears I, 46.
However, we believe that the Sears I Court's understanding
of the term "television camera", which was derived from the
prevalent definitions of the time, has changed with technological
evolution. As evidenced in EN 85.25 and modern technical
sources, the term "television camera" has a broader meaning today
than it had at the time of Sears I. The McGraw-Hill Encyclopedia
of Science & Technology, Vol. 18, pgs. 189-193 (7th Edition,
1992), describes television camera as:
An electrooptical system used to pick up and convert a
visual image or scene into an electrical signal called
video. The video may be transmitted by cable or wireless
means to a suitable receiver or monitor some distance from
the actual scene. It may also be recorded on a video tape
recorder for playback at a later time....
A television camera may fall within one of several
categories: studio, portable, or telecine. It may also be
one of several highly specialized cameras used for remote
viewing of inaccessible places, such as the ocean bottom or
the interior of nuclear power reactors....
Television cameras intended for industrial, consumer, or
broadcast portable use are usually one piece, with all
elements of the camera system contained in one assembly.
Such cameras may be combined with a detachable or built-in
videocassette recorder to form a camcorder. A broadcast-
quality studio camera, on the other hand, usually consists
of a separate head and camera control unit (CCU) connected
by a multiple-conductor cable....
Portable cameras usually combine all the basic elements
into one package and may be used for a multitude of
purposes. They have found their way into electronic news
gathering for broadcast television, and into electronic
field production, where they can be used for production of
broadcast programs, commercials, and educational
programs...They have become so popular and inexpensive that
they have almost completely supplanted film-based home movie
cameras.
Based on EN 85.25 and the above cited description, it is
evident that television cameras come in various forms such as
stationary or portable studio or broadcast-quality cameras,
consumer cameras and telecine cameras. All of these cameras pick
up and convert a visual image or scene into an electrical signal,
video, which is transmitted by cable or wireless means to a
receiver or monitor for viewing and/or recording, or it is
recorded on a video tape within the camera. The difference
between the broadcast-quality and consumer cameras is the
technical sophistication built into the camera. For example,
broadcast-quality cameras have more lines of horizontal
resolution which yield a sharper image and a higher signal-to-
noise ratio which gives a less grainy image.
Subheading 8521.10.00, HTSUS, provides for video recording
or reproducing apparatus. The camcorder is not classified under
this subheading because, as discussed above, it is specifically
classified as a television camera under subheading 8525.30.00,
HTSUS. Accordingly, the camcorder is not classifiable under
subheading 8521.10.00, HTSUS.
HOLDING:
The VHS-C Camcorders are classified under subheading
8525.30.00, HTSUS, which provides for television cameras. The
protest should be denied. A copy of this decision should be
attached to the Customs Form 19 and provided to the protestant as
part of the notice of action on the protest.
Sincerely,
John Durant, Director