OT:RR:CTF:EMAIN H299498 SKK
Jorge A. Garcia, Center Director
Electronics Center of Excellence and Expertise
U.S. Customs and Border Protection
301 E. Ocean Blvd.
Suite 1400
Long Beach, CA 90802
RE: Revocation of HQ H275685; Tariff Classification of a mobile telephone case/image display device
Dear Director:
This ruling is in reference to Headquarters Ruling Letter (HQ) H275685, dated August 3, 2017, in which this office issued an Internal Advice (IA) to U.S. Customs and Border Protection’s (CBP) Electronics Center of Excellence and Expertise (CEE) regarding the classification of an electronic device identified as “popSLATE.” The subject article is a mobile telephone accessory featuring an integrated image display screen. In H278685, CBP classified the popSLATE under heading 8543, Harmonized Tariff Schedule of the United States (HTSUS), specifically subheading 8543.70.99, HTSUS, which provides for “[E]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other.”
Upon reconsideration we have determined that the tariff classification of the subject merchandise at issue in HQ H275685 is incorrect. Pursuant to the analysis set forth below, CBP is revoking HQ H275685.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI, a notice proposing to revoke HQ H275685 was published on June 10, 2020, in Volume 54, Number 22 of the Customs Bulletin. No comments were received in response to the proposed action.
FACTS:
The merchandise at issue in HQ H275685 is identified as the “popSLATE” mobile telephone protective case with integrated image display screen. The popSLATE is designed for use with iPhone 6 mobile smart phones. The back of the case features a 4-inch viewing screen that displays “black and white photographs and illustrations” as well as “calendars, mobile boarding passes, digital movie tickets, maps, etc” that are transmitted from an iPhone to the popSLATE’s screen via Bluetooth wireless transmission protocol. The image display screen does not transmit data to other devices. The popSLATE has its own battery (240mAh) and can be activated independently. The popSLATE’s external components are made of Acrylonitrile (ABS) or ABS plus polycarbonate. The popSLATE display is a proprietary “E Ink” “type of electronic paper.” It is packaged for retail sale with a USB/micro USB charging cable and a “Quick Start Guide.” The popSLATE works in conjunction with the “Pop App,” an iPhone application available for download from Apple, Inc.’s App Store. The Pop App allows the user to “select which image to display on the E Ink screen.”
LAW AND ANALYSIS:
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 2 through 6 will then be applied in order.
The following provisions of the HTSUS are under consideration:
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:
8543.70 Other machines and apparatus:
8543.70.60 Articles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or telephonic networks…
Other: Other:
8543.70.99 Other…
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to heading 8543, HTSUS, state, in pertinent part:
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. The principal electrical goods covered more specifically by other Chapters are electrical machinery of Chapter 84 and certain instruments and apparatus of Chapter 90. The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading.
In HQ 275685, CBP classified the popSLATE under subheading 8543.70.99, HTSUS, which provides for “[E]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other.” In that ruling, pursuant to GRI 3(b), CBP determined that the instant merchandise was a composite good and that its essential character was imparted by the image display screen component, with the other components (e.g. the Bluetooth transceiver and the plastic shell) were ancillary. The popSLATE was therefore properly classified under heading 8543, HTSUS, as an electrical machine or apparatus, having an individual function, not elsewhere specified or included.
The subject article was also properly classified under subheading 8543.70, HTSUS, as it is an electrical apparatus that is neither covered by any other heading in Chapter 85, nor elsewhere in the Nomenclature, nor described by the preceding 8543, HTSUS, subheadings. However, we find that CBP erred in classifying the subject article under subheading 8543.70.99, HTSUS, which was tantamount to finding that it was not covered by subheading 8543.70.60, HTSUS. As the popSLATE is an electrical apparatus designed for connection to telephonic apparatus (i.e. a smartphone), it is specifically provided for under subheading 8543.70.60, HTSUS, pursuant to GRI 6. This conclusion is consistent with NY N024935, dated April 7, 2008, in which CBP classified a substantially similar device that functioned as an accessory to select models of Windows Mobile Smart Phones under subheading 8543.70.60, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the popSLATE is classified under heading 8543, HTSUS, specifically under subheading 8543.70.60, HTSUS, which provides for “[E]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus: Articles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or telephonic networks….” The 2020 applicable rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
HQ H275685, dated August 3, 2017, is hereby REVOKED.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days
after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division