CLA-2 CO:R:C:G 087911 AJS
Mr. Sal Della Ventura
Manager
Classification & Compliance
Sony Corporation of America
Sony Drive
Park Ridge, New Jersey 07656
RE: Intelligent dialer; subheading 8470.30.00; subheading
8517.81.00; subheading 8543.80.90; heading 8470; Explanatory Note
84.70(A); heading 8517; Explanatory Note 85.17; apparatus;
Section XVI, note 3; heading 8543; Explanatory Note 85.43.
Dear Mr. Della Ventura:
Your letter of August 29, 1990, requesting a tariff
classification for the model PDS-110 intelligent dialer has been
forwarded to this office for reply.
FACTS:
The article in question is an intelligent dialer (ID). It
features a telephone dialer, telephone directory, memo mode,
calculator and LCD display all housed in a rectangular shaped
plastic body. The article is battery operated.
The telephone dialer is used to call any stored telephone
number, or any other number using manual dialing as well as
giving access to long distance services and special codes. In
addition, the dialer provides last-number redial, area code
bypass, remote control of answering machines, and slow dialing
for difficult calling. The dialer also features one-touch
dialing of 6 frequently called numbers.
The telephone directory provides a database phone book with
up to 110 telephone numbers and names stored in any order.
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The memo mode permits input of information to be recalled
such as anniversary and birthday dates, travel schedules,
additional private phone directory, sales data etc.
The calculator is the full-function type with 8-digit
display and includes percentage and square root functions plus
memory calculations.
The LCD display shows two lines of information at a time,
with up to 8 alphanumeric characters per line.
ISSUE:
Whether the ID is properly classifiable within subheading
8470.30.00, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for other calculating
machines; or within subheading 8517.81.00, HTSUSA, which provides
for other telephonic apparatus; or within subheading 8543.80.90,
HTSUSA, which provides for other electrical machines and
apparatus, having individual functions, not specified or included
elsewhere in this chapter.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's). GRI 1 provides
that classification is determined first in accordance with the
terms of the headings of the tariff and any relative section or
chapter notes.
Heading 8470, HTSUSA, provides for calculating machines and
similar machines incorporating a calculating device. Calculating
machines comprise a wide range of machines varying from the
simplest types which can only add and subtract to more complex
machines which can perform the four arithmetic operations and
several other types of calculations (e.g., extract square roots,
raise a number to a given power and carry out trigonometric
calculations). Explanatory Note (EN) 84.70(A). They include,
in particular, pocket electronic calculators and office
electronic calculators, whether or not programmable. EN 84.70
(A). Calculating machines consist of a manual arrangement for
data input, calculating device and an output device. EN 84.70
(A)(1)-(3). The ID as a whole does not satisfy this
description. While it consists of a calculating device, it also
consists of a telephone dialer, telephone directory and memo
mode. Accordingly, the ID does not satisfy the terms of heading
8470, HTSUSA, and cannot be classified therein.
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Heading 8517, HTSUSA, provides for "electrical apparatus for
line telephony or line telegraphy". This term encompasses
apparatus for the transmission between two points of speech or
other sounds (or of symbols representing written messages, images
or other data), by variation of an electric current or of an
optical wave flowing in a metallic or dielectric (copper, optical
fibres, combination cables etc.) circuit connecting the
transmitting station to the receiving station. EN 85.17. This
heading covers all such electrical apparatus designed for this
purpose. EN 85.17.
The telephone dialer, directory and memo mode portion of the
ID satisfy the terms of heading 8517, HTSUSA. The dialer
operates in a manner similar to the dialing selector of a tele-
phone set in that it enables the caller to obtain a line
connection. The user can either manually input a telephone
number or retrieve one from the dialer's directory or memo mode.
When a telephone number is displayed on the LCD, the speaker
portion of the ID is placed against the mouthpiece of a
telephone. The send button is then depressed so that tones are
generated which represent the displayed telephone number. These
tones are transmitted through the mouthpiece to the telephone
transmitter so that a call can be made. In addition, devices for
memorizing a telephone number are cited as examples of the
telephonic apparatus provided for within heading 8517, HTSUSA.
EN 85.17. The telephone directory and memo mode portions of the
ID memorize telephone numbers. Accordingly, the telephone
dialer, directory and memo mode portions of the ID satisfy the
description of apparatus for line telephony. However, the ID
incorporates a calculating mechanism which does not satisfy the
terms of heading 8517, HTSUSA. Therefore, the ID as a whole is
not classifiable within heading 8517, HTSUSA, by the application
of the terms of this heading.
The term "apparatus" is intended to encompass a group of
devices or a collection or set of materials, instruments or
appliances to be used for a particular purpose or a given end.
ITT Thompson Industries, Inc. v. United States, 3 CIT 36, 44, 537
F. Supp. 1272, 1277-78, aff'd 703 F. 2d 585 (Fed. Cir. 1982).
See also The Deseret Co., v. United States, 10 CIT 609, 611
(1986), broad definition of apparatus encompass "an aggregate of
materials intended for a specific use". The ID satisfies these
descriptions. It consists of a telephone dialer, directory and
memo mode which are to be used for the particular purpose of
making telephone calls. The ID also contains a calculating
mechanism. Accordingly, the ID ia an "apparatus" which performs
both telephonic and calculating functions.
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GRI 1 provides for classification to be determined by the
relative section notes if classification cannot be determined by
the terms of the headings. The section notes for headings 8517
and 8470 provide for the classification of machines adapted for
the purpose of performing two or more alternative functions.
Section XVI, note 3. A "machine" means any machine, machinery,
plant, equipment, apparatus or appliance cited in the headings
of chapter 84 or 85. The ID satisfies this description. It is a
machine consisting of telephonic apparatus (heading 8517) and a
calculating device (heading 8470) which are adapted together for
the purpose of performing telephonic communications and
calculating functions. These types of machines are to be
classified as if consisting only of that component or as being
that machine which performs the principle function of the
machine. Section XVI, note 3. In this instance, the principle
function of the ID relates to telephonic communications. The
machine is described as an "intelligent dialer". The functions
of the telephone dialer portion of the ID are assigned the
greatest degree of emphasis in the descriptive literature. The
functions of the telephone directory and a portion of the memo
mode revolve around the use of the telephone dialer. The
calculator function and remainder of the memo mode functions do
not relate to those of the dialer. However, it is our opinion
that these functions are subsidiary to that of the telephone
dialer and directory, and not the principle function of the ID.
Subheading 8517.81.00, HTSUSA, provides for other telephonic
apparatus. The telephone dialer, telephone directory and memo
mode portions of the ID satisfy the terms of this subheading. As
stated previously, the dialer is used in place of the dialing
selector of a telephone set to enable the caller to make a
telephone call. Both the telephone directory and memo mode
operate as devices for memorizing telephone numbers from which
the dialer can recall stored numbers. Based on the fact that the
principle functions of the ID relate to the operation of the
telephone dialer, the ID is properly classifiable within this
subheading by the operation of Section XVI, note 3.
Heading 8543, HTSUSA, provides for electrical machines and
apparatus having individual functions, not specified or included
elsewhere in this chapter. This heading covers all electrical
appliances and apparatus, not falling in any other heading of
this Chapter, nor covered more specifically by a heading of any
other Chapter of the Nomenclature, nor excluded by the operation
of a Legal Note to Section XVI or to this Chapter. EN 85.43.
The operation of legal note 3 to section XVI requires the
classification of the ID within another heading of this chapter.
Therefore, the ID is precluded from classification within
heading 8543, HTSUSA.
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HOLDING:
The intelligent dialer is properly classifiable within
subheading 8517.81.00, HTSUSA, which provides for telephonic
apparatus dutiable at the rate of 8.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division