CLA-2 RR:CR:GC 966307 DBS
Port Director
Bureau of Customs and Border Protection
111 W. Huron Street, Room 603
Buffalo, NY 14202
RE: Protest 0901-02-100144; personal computer video cameras
Dear Port Director:
This is our decision on Protest 0901-02-100144 filed against your classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of 3 types of personal computer video cameras. The entries were liquidated on February 22, 2002 and the protest was timely filed on May 20, 2002.
FACTS:
This protest concerns the classification of the “IBM PC Camera Pro (model # 995334) (“Camera Pro”), the ”IBM PC Camera Pro Max (model # 995333) (“Pro Max”), and the “Pyro 1394 WebCam (model # 209509) (“Pyro Cam”). All three “PC cameras” are designed for direct connection to an automatic data processing (ADP) machine – the Camera Pro and Pro Max through USB ports, and the Pyro Cam through IEE 1394 FireWire. They are intended for use with desktop or notebook personal computers. The cameras utilize CCD (charge-coupled device) image sensors which convert light into electrons that are then converted into digital signals, compressed and transmitted to the ADP machine. The resulting images may be processed by a variety of software programs. All models come with bundled software to enable the user to utilize the different functions, such as creating videomails, sending still images via e-mail, Internet conferencing, video and still image editing, etc. However, we believe that most, if not all devices attached to an ADP machine require
the installation of software that will allow the device to be recognized and to function with the ADP machine.
The Camera Pro is essentially a rectangular box shape attached to a base, with an adjustable focus lens protruding from one end, and measures 5.3 cm x 10.2 cm x 5.6 cm (W x D x H). The camera has a push-button positioned on the top for taking still-frame pictures. The camera’s still image resolution is 640 x 480 pixels (VGA), digital video resolution is 352 x 288 pixels, and streaming video capture is at 30 frames per second (fps). The technical specifications state there is no internal memory. The camera is sold with mounting clips, CD-ROM with bundled software and drivers, and user’s guide.
The Pro Max has the same shape, dimensions, push-button, resolutions and streaming video capture rate as the Camera Pro. The technical specifications state there is no internal memory. The difference between the two cameras is that the Pro Max has National Television System Committee (NTSC) input capability, enabling users to capture and download video directly from a camcorder, VR or VCD/DVD into the ADP machine. The camera is sold with a tripod mount, CD-Rom of bundled software and drivers and user’s guide.
The Pyro Cam is an ovoid attached to a base, with an adjustable focus lens protruding from the middle. This camera has a ¼-inch CCD with a square pixel array of progressive 330K effective pixels. The camera’s still image resolution and digital video resolution are up to 640 x 480 pixels (VGA), and streaming video capture is at 30 fps. It has an electronic shutter with variable charge-storage time. The technical specifications state there is no internal memory. The Pyro Cam is sold with an attached 1394 cable (FireWire), CD-ROM with bundled software and drivers, and a user’s manual.
The PC cameras have no internal memory for retrieval of images subsequent to the time they are captured. None can operate independently from an ADP machine. And none of the cameras have viewfinders or LCDs (liquid crystal displays).
You classified the PC cameras as other television cameras of subheading 8525.30.90, HTSUS. Protestant claims the PC cameras are classifiable in subheading 8525.40.40 as digital still image video cameras.
ISSUE:
Whether the instant cameras are classifiable as television cameras of subheading 8525.30.90, HTSUS, or as still image digital cameras of subheading 8525.40.40, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The 2001 HTSUS provisions under consideration are as follows:
8525 Transmission apparatus, for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video recorders:
8525.30 Television cameras:
8525.30.90 Other
* * *
8525.40 Still image video cameras and other video camera recorders:
8525.40.40 Digital still image video cameras
* * *
The classification of PC cameras designed to be connected to ADP machines, used for videoconferencing, and for the capture of still images and moving images is not new. Customs has classified similar PC cameras as television cameras of subheading 8525.30.90, HTSUS. See HQ 964973, dated July 17, 2002, HQ 965097, dated July 19, 2002; HQ 958632, dated January 25, 1996; NY A84032, dated May 31, 1996; NY B81818, dated February 13, 1997; NY A81240 dated March 18, 18, 1996; NY F88315, dated June 29, 2000.
However, we will reiterate here Customs position. Protestant claims the PC cameras are classifiable in subheading 8525.40.40, HTSUS. In order to address the claim, we employ GRI 6, which permits the comparison of same-level subheadings within a heading, in part by application of Rules 1 through 5, applied by the appropriate substitution of terms. As only subheadings at the same level are comparable, we must first address the 6-digit level: subheading 8525.30, HTSUS, “television cameras” and subheading 8525.40, HTSUS, “still image video cameras and other video camera recorders.”
The legal text to subheading 8525.40, HTSUS, describes the cameras of the subheading as "recorders." ENs 85.25(D)(1) and (2) (3rd Edition, 2002) indicate that the cameras of this category "record images" or "record sequential images." Cameras of subheading 8525.40, HTSUS, are cameras which have the ability to record and store still images or video on permanent or removable media within the camera (e.g., random access memory (RAM), flash memory cards, memory sticks or magnetic tape, as with certain camcorders), such that the images can be retrieved and viewed at a time subsequent to the time they are captured.
The instant PC cameras do not incorporate their own storage media or use removable storage media so the captured images or video cannot be retrieve at a subsequent time. Accordingly, the cameras do not “record.” Rather, the captured images or video are stored by the ADP machine to which the cameras are attached in the ADP machine’s internal memory (e.g., hard drive) or on removable media of heading 8523, HTSUS (e.g. floppy disk). The images can be retrieved from the ADP machine, not the camera’s memory.
Television cameras, on the other hand, are typically designed and used for the transmission of video images. EN 85.25(C) states that television cameras of the heading include “television cameras for television studios or for reporting, those used for industrial or scientific purposes or for supervising traffic.” As with the cameras that are the subject of HQ 964973, supra, the instant cameras capture and transmit video images to the ADP machine for processing or for direct transmission over the Internet (videoconferencing). Whether a camera transmits video images to a television, a video monitor for surveillance or to an ADP machine for display or processing, it performs the function of a category of cameras that are within the scope of “television cameras” of subheading 8525.30, HTSUS, because it transmits live images as television cameras do. See HQ 964973; see also HQ 965097 July 19, 2002; HQ 958632, dated January 25, 1996; NY A84032, dated May 31, 1996; NY B81818, dated February 13, 1997; NY A81240 dated March 18, 18, 1996; NY F88315, dated June 29, 2000.
Classification opinions of the Harmonized System Committee (HSC) of the World Customs Organization (WCO) may provide assistance in understanding the international agreement, the Harmonized System, on which the HTSUS is based. At its 27th session in May 2001, the HSC amended the Compendium of Classification Opinions to include the classification of camera apparatus presented in a box for retail sale, which included a camera similar to those at issue, camera stand, a cable to connect to an ADP machine, installation diskette, and instruction manual, in subheading 8525.30, HTSUS. Annex Q/17 to Doc. NC0430B2 and Annex to Doc. NC0381B1 (HSC/27/May 01). The opinion states that “[t]he apparatus is used for capturing video or still images, converting them into digital signals and sending the signals directly to the ADP machine where the data can be recorded, reworked, edited, etc. with appropriate software…[O]ne can produce videos and still images, hold video conferences and produce illustrated documents.” It stated the camera had no internal memory. The HSC relied on the application of GRIs 1 and 6, and Note 5(E) to Section XVI (to exclude the provisions of Chapter 84).
The three cameras are imported with theirs stands, manuals and CD-ROMs. In product literature, they appear to be packaged for direct sale. GRI 3(b) provides for “goods put up in sets for retail sale.” EN (X) to GRI 3(b) sets for the criteria for classification as a set. It states that the merchandise must: (a) consist of at least two different articles which are, prima facie, classifiable in different headings, (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and, (c) are put up in a manner suitable for sale directly to users without repacking.
All of the components would be individually classified in different headings (e.g. camera is 8525, CD-ROM is 8524). Each component contributes to the use of the PC cameras, and they are packaged for direct sale. Thus, the components are classifiable as a set for retail sale. As such, they are classifiable in the heading that provides for the components which impart the essential character of the set.
EN VIII to GRI 3(b) explains that "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." All of the components contribute to the use of the PC camera and have no independent uses. Accordingly, the PC cameras represent the essential character of the sets.
HOLDING:
The “IBM PC Camera Pro (model # 995334), the ”IBM PC Camera Pro Max (model # 995333) and the “Pyro 1394 WebCam (model # 209509) are classified in subheading 8525.30.90, HTSUS, which provides for “Transmission apparatus, for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video recorders: television cameras: other.”
The protest should be DENIED.
In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Bureau of Customs and Border Protection Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial Rulings Division