CLA-2 CO:R:C:M 954390 MBR
Mr. Roger Silvestri
Assistant Area Director
National Import Specialist Division
U.S. Customs Service
6 World Trade Center
New York, N.Y. 10048
RE: Call Display Unit; Signalling Apparatus; Telephonic
Apparatus; NEC America, Inc. v. United States; 8531;
8517; NY 858341; HQ 088520; HQ 952779; HQ 952406; HQ
953366; HQ 953444
Dear Mr. Silvestri:
This is in reply to your memorandum of June 4, 1993,
(CLA-2-85:S:N:N1B 112-953366), requesting reconsideration of
HQ 953366, dated April 5, 1993, regarding the classification
of a Call Display Unit, under the Harmonized Tariff Schedule
of the United States (HTSUS).
FACTS:
The telephone "Call Display" unit is a device that
displays the telephone number of a calling party on a liquid
crystal display (LCD). A coded representation of the calling
party's telephone number is sent on the telephone line to the
unit, which plugs into a standard modular wall jack. The
caller's number is stored in chip memory so that the user can
review the information at a later date. The Call Display also
records the time and date of call. The unit does not require
the attachment of a telephone in order to operate properly.
ISSUE:
Is the Call Display Unit classifiable under heading 8531,
HTSUS, as electric sound or visual signalling apparatus, or
under heading 8517, HTSUS, as electrical apparatus for line
telephony?
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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:
...classification shall be determined according to the
terms of the headings and any relative section or chapter
notes...
In NY 858341, dated December 11, 1990, it was held that
the Caller ID Unit was classifiable in heading 8517, HTSUS,
which provides for electrical apparatus for line telephony.
Subsequently, in HQ 088520, dated September 10, 1991, we
revoked NY 858341, and classified a similar telephone "Caller
ID" unit in heading 8531, HTSUS, which provides for signalling
apparatus.
In HQ 952779, dated October 31, 1992, we reconsidered HQ
088520, and held that the Caller ID Unit was classifiable as
electrical apparatus for line telephony in heading 8517,
HTSUS.
Similarly, in HQ 952406, dated October 31, 1992, we held
that a Caller ID Unit was classifiable as electrical apparatus
for line telephony in heading 8517, HTSUS.
However, in HQ 953366, dated April 5, 1993, we revoked HQ
952779, and held that the Caller ID Unit was classifiable in
heading 8531, HTSUS, which provides for signalling apparatus.
Additionally, HQ 953444, also dated April 5, 1993, revoked HQ
952406.
You now request reconsideration of HQ 953366, based upon
the following principle:
"If we were to follow Headquarters decision 953366 all
types of apparatus or instruments that incorporate a
digital readout panel such as thermometers, blood
pressure machines, volt, ampere, and watt meters,
odometers, speedometers, clocks, calculators and other
similar devices would have to be considered signalling
apparatus under heading 8531."
However, the court in NEC America, Inc. v. United States,
11 CIT 934 (1987), held that battery operated paging receivers
were classifiable under item 685.24, TSUS, which provides for
"other solid-state (tubeless) radio receivers." Item 685.70,
TSUS, is the predecessor provision to heading 8531, HTSUS.
The court in NEC America, citing the prior NEC America, Inc.
v. United States, 8 CIT 184, 596 F. Supp. 466 (1984), stated:
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After examining prior case law, the court indicated that
classification under item 685.70, TSUS, was "limited to
those articles whose sole purpose and function is merely
signalling." Hence, the court concluded that the superior
capabilities of the display pagers in issue, with their
ability to display information in digital form and to
retain it for later recall, clearly "transcend merely
signalling." (Emphasis added).
Therefore, as the court has interpreted the "signalling"
provision to be "limited to those articles whose sole purpose
and function is merely signalling," we do not anticipate that
all other apparatus with a liquid crystal display will be
classifiable in heading 8531, HTSUS. In fact, the court found
that a radio display pager "transcended merely signalling."
Thus, similarly, the apparatus enumerated (thermometers, blood
pressure machines, volt, ampere, and watt meters, odometers,
speedometers, clocks, calculators and other similar devices)
would also transcend merely signalling.
In HQ 953366, which provides the current precedent for
the classification of Caller ID Units, we stated:
A consideration of the distinctions between the
merchandise at issue under the TSUS provisions in NEC,
and the Caller I.D. devices at issue under the legal
principles of the HTSUS, leads to a finding that NEC is
not analogous to the instant matter. At issue in NEC was
the classification of radio receiver pagers which
received and stored coded messages, stock quotations and
telephone numbers. The instant matter involves Caller
I.D. devices which must be classified under the governing
principles of the HTSUS.
In HQ 953366 we also relied heavily on the Harmonized
Commodity Description and Coding System Explanatory Notes
{"ENs") regarding heading 85.31, page 1382, which state that
signalling apparatus includes:
Number indicators. The signals appear as illuminated
figures on the face of a small box; in some apparatus of
this kind the calling mechanism is operated by the dial
of a telephone.
Although not dispositive, the ENs are to be used for
guidance in determining the proper interpretation of the
HTSUS. 54 Fed. Reg. 35128 (August 23, 1989).
The court in NEC did not have the benefit of an EN such
as the one above, in which the imported merchandise squarely
fits. Thus, under the guidance of the ENs and the judicial
decisions, HQ 953366 is affirmed.
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You also request reconsideration of HQ 953366, based upon
the following principle:
"Following GRI 3(b) we have a problem accepting the above
decision. GRI 3(c) only comes into play when the
essential character/function of a composite item cannot
be established."
However, in HQ 953366 we did not resort to GRI 3(b) or
GRI 3(c) in our analysis. In HQ 953366 we stated the
following: "[a]lthough the devices appear to be prima facie
described by heading 8517, HTSUS, they are still classified in
heading 8531, HTSUS, where they are more specifically provided
for pursuant to GRI 3." Thus, we relied on GRI 3(a), which
provides that: "[t]he heading which provides the most specific
description shall be preferred to headings providing a more
general description."
HOLDING:
Signalling apparatus whose sole purpose and function is
merely signalling, and particularly apparatus which is
enumerated in the ENs in heading 85.31, is properly
classifiable in heading 8531, HTSUS. The Call Display Unit is
classifiable in subheading 8531.20.00, HTSUS, which provides
for signalling apparatus. HQ 953366, dated April 5, 1993, is
hereby affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division