CLA-2 OT:RR:CTF:TCM H286610 LWF
William J. Maloney
Sandler, Travis, and Rosenberg, P.A.
551 Fifth Avenue, Suite 1100
New York, NY 10176
Re: Tariff classification of the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers
Dear Mr. Maloney:
We are writing in response to your correspondence, dated April 12, 2017, in which you requested a binding tariff classification ruling from U.S. Customs and Border Protection (CBP) on behalf your client, Garmin, Ltd. (“Garmin”). Your ruling request concerns the tariff classification of the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
You request a tariff classification ruling concerning the classification of two wearable electronic fitness tracker devices: the Garmin “vívofit® 3” and “vívofit® jr.”
The Garmin vívofit® 3 is a rechargeable, battery-operated wearable electronic fitness tracker that is worn on a user’s wrist and is designed to collect data and support personal fitness. Using integrated Bluetooth wireless connectivity and an accelerometer sensor, the device is capable of capturing different physical activities, such as walking, running, biking, swimming, or sleeping, and transferring activity data to the “Garmin Connect” mobile or desktop app for review. The device is also capable of displaying activity data and time information on a 64 x 64 pixel sunlight-visible, transflective memory-in-pixel (MIP) display. When paired with a compatible smartphone, the vívofit® 3 automatically syncs activity data to the Garmin Connect mobile app. Syncing the devices enables a user to use the Garmin Connect app to analyze steps and sleep data, view activity totals, and gain insights into daily physical activity levels.
Similar to the Garmin vívofit® 3, the Garmin vívofit® jr. is a re-chargeable, battery-operated wearable electronic fitness tracker that is worn on a child’s wrist and is designed to manage data and support a child’s personal fitness. The vívofit® 3 and vívofit® jr. share similar design and performance characteristics; however, the distinguishing feature of the vívofit® jr. is the “parental interface” functions, which allow a parent to pair the device with a compatible smartphone and monitor a child’s activity levels via a mobile app.
Like vívofit® 3, the vívofit® jr. features Bluetooth wireless connectivity and an accelerometer sensor that is used to collect data as a child walks, runs, bikes, swims, or sleeps, and transfer that data to a connected mobile or desktop app for review. The device is also capable of displaying activity data and time information on an integrated, 64 x 64 pixel sunlight-visible, transflective memory-in-pixel (MIP) display.
ISSUE:
What is the tariff classification of the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (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 their appropriate order.
GRI 3 provides, in pertinent part, as follows:
When, by application of rule 2(b) or for any other reason, good are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
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The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading of the HS and are thus useful in ascertaining the proper classification of merchandise. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to GRI 3(b) provide, in pertinent part, that:
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The 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 a constituent material in relation to the use of the goods.
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The HTSUS provisions under consideration are as follows:
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof
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8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus
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9029 Revolution counters, production counters, taximeters, odometers, pedometers and the like; speedometers and tachometers, other than those of heading 9014 or 9015
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9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof
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As an initial matter, CBP notes that the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers are constructed of several component articles that are prima facie classifiable under two or more headings. Heading 8517, HTSUS, describes the devices’ Bluetooth radio module; heading 9029, HTSUS, describes the devices’ pedometer function; and heading 9031, HTSUS, describes the devices’ accelerometer module. Consequently, because the vívofit® 3 and vívofit® jr. are, prima facie, classifiable in two or more headings, the tariff classification of the devices shall be determined by application of GRI 3—specifically GRI 3(b), which directs that a composite good made up of different components shall be classified as if consisting of the material or component that gives the good its essential character.
GRI 3(b) covers mixtures, composite goods, and goods put up in sets for retail sale. For purposes of this rule, Explanatory Note IX to GRI 3(b) provides that, “composite goods made up of different components shall be taken to mean not only those in which the component are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.” (Emphasis original). As such, the Garmin vívofit® 3 and vívofit® jr. are properly described as composite goods, because they consists of electrical components of independent, individual function that are attached to each other to form an inseparable whole.
Under GRI 3(b), composite goods must be classified according to the material or component that imparts the article with its essential character. The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). 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.” Recent court decisions on the essential character for GRI 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Estee Lauder, Inc. v. United States, 815 F. Supp. 2d 1287, 1296 (Ct. Int’l Trade 2012); Structural Industries, 360 F. Supp. 2d 1330; Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007).
In accord with the meaning of “essential character” under GRI 3(b), CBP finds that the Garmin vívofit® 3 and vívofit® jr. are primarily used to connect and communicate with a paired “smart device” to measure and track health and fitness metrics. Similar to the Fitbit, Inc. “Surge” and “Charge” wireless fitness tracker devices at issue in Headquarter Ruling Letter (“HQ”) H279898, dated April 5, 2017, the Garmin vívofit® 3 and vívofit® jr. use internal components such as an accelerometer and pedometer sensor to measure various metrics such as steps taken, calories burned, and sleep activity. However, much of this information cannot be analyzed without first being transmitted to the paired smart device and subsequently viewed on a mobile or desktop display. To accomplish this primary function, the devices use an open wireless technology standard (Bluetooth) to transmit data between the wearable device and the Garmin Connect mobile app installed on a the paired device. Accordingly, the integrated Bluetooth wireless connectivity is indispensable to the function of the Garmin vívofit® 3 and vívofit® jr. to measure and track health and fitness metrics.
Upon evaluation of the form and function of each of the Garmin vívofit® 3 and vívofit® jr. components, CBP finds that the essential character of the devices is imparted by its wireless communication capabilities, which are described under heading 8517, HTSUS, as “Other apparatus for the transmission or reception of voice, images, or other data[…] including apparatus for communication in a wired or wireless network[…].” Consequently, by application of GRI 3(b), the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers are classified in heading 8517, HTSUS, specifically in subheading 8517.62.00.
HOLDING:
By application of GRI 3(b), the Garmin vívofit® 3 and vívofit® jr. wearable electronic fitness trackers are classified in heading 8517, HTSUS. Specifically, they are classified in subheading 8517.62.00, HTSUS, which provides for “Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.” The 2017 column one, general rate of duty for merchandise of subheading 8517.62.00, HTSUS, is free.
Duty rates are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Gregory Connor, Acting Chief
Electronics, Manufacturing, Automotive,
and International Nomenclature Branch