CLA-2 OT:RR:CTF:EMAIN H319416 DSR
TARIFF NOS.: 8544.42.20
Port Director, Los Angeles/Long Beach Seaport
301 E. Ocean Blvd.
Suite 1400
Long Beach, CA 90802
Attn: Helene Mikes, Supervisory Import Specialist/Prior Disclosure Coordinator,
Electronics Center of Excellence and Expertise
RE: Application for Further Review of Protest Number 2704-17-103077; Tariff classification of various telecommunications cables
Dear Port Director:
This letter is in reply to the Application for Further Review (“AFR”) of Protest Number 2704-17-103077, filed on August 2, 2017, on behalf of Best Buy Purchasing, LLC (“Protestant”). The protest is against U.S. Customs and Border Protection’s (“CBP”) liquidation of various telecommunications cables under subheading 8544.42.90 of the Harmonized Tariff Schedule of the United States (HTSUS) (other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors) and dutiable at a rate of 2.6% ad valorem. We have held a teleconference with Protestant and counsel on October 29, 2021 and have considered the clarifications and additional arguments presented at the time. Our decision follows.
FACTS:
There are twenty-four types of telecommunications cables at issue in the protest. Each cable is used to facilitate the transfer of voice, images or data. At the time of entry, Protestant classified the items under subheading 8544.42.90, HTSUS, which provides for other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors. Protestant now asserts that the cables are properly classified in subheading 8544.42.20, HTSUS, which provides for “Other electric conductors, for a voltage not exceeding 1,000 V: … fitted with connectors: Of a kind used for telecommunications.”
Each cable is rated to handle up to 1,000 volts. The following paragraphs and images provide the physical characteristics of the cables.
The cable described as NS-HZ303 is described as a 6’ 3.5 mm Mini Audio Cable. It incorporates male 3.5mm plugs on both ends. The cable consists of two bundles of several inner conductor strands surrounded by insulation and one bundle of cotton yarn strands. The bundles are collectively surrounded by an aluminum sheath, then a spiral shield and finally a paper sheath. That collective bundle is finally surrounded by a PVC jacket. See representative image […] below:
[…]
The cable designated as NS-HZ304 is described as a 6’ 3.5 mm Audio Extension Cable. The cable consists of two bundles of several inner conductor strands surrounded by insulation and one bundle of cotton yarn strands. It incorporates a male 3.5mm connector on one end and a female 3.5 mm connector on the other end. The bundles are collectively surrounded by an aluminum sheath, then a spiral shield and finally a paper sheath. That collective bundle is finally surrounded by a PVC jacket. See representative image […] below:
[…]
The cable designated as NS-HZ503 is described as a 6’ Mini-to-RCA Stereo Audio Cable. It consists of an insulated electric cable that is manufactured in a “Y” shaped configuration. It incorporates a 3.5mm connector on one end. A single cable exits this connector and eventually splits into two cables. At the end of each of the two split cables is an RCA connector, one red and one white. The approximate length of this cable assembly is 6 feet. Each cable consists of a bundle of several strands of central conductor immediately surrounded by insulating material, which is then surrounded by a spiral shield, a paper sheath and finally a PVC jacket. See representative image […] below:
[…]
The cable designated as NS-HZ504 is described as a 6’ Composite Video Stereo Audio Cable. It consists of three adjacent connected bundles of multiple strands of inner conductor. The first two identical bundles of inner conductor are each immediately surrounded by dielectric insulating material, then a spiral shield, paper and a PVC jacket. Each of those bundles terminates on each end with two audio jacks. The third bundle is immediately surrounded by dielectric insulating material, a foil shield, a braid shield, and finally a PVC jacket. The third bundle terminates at each end with a video jack. See representative image […] below:
[…]
The cable designated as NS-HZ501 is described as a 6’ Stereo Audio Cable. It consists of two identical, adjacent bundles of multiple strands of inner conductor. The cable terminates on both ends with two audio jacks. Each bundle of inner conductor is immediately surrounded by PVC insulation, then a spiral shield that acts as a ground and is not a conductor to carry a signal back to the source of the signal (“GND”), paper and a PVC jacket. See representative image […] below:
[…]
The cable designated as NS-HZ505 is described as a 6’ S-Video Cable. It consists of a strand of cotton and two identical adjacent bundles of multiple strands of inner conductor, with each bundle encased in insulation and a foil braid shield that acts as a ground, and with the cotton strand and encased bundles of center conductor all collectively encased in a sheath of paper filling and then a PVC jacket. The cable terminates on each end with a male-to-male video connector. See representative image […] below:
[…]
The cable designated as NS-HZ508 is described as a 6’ Component Video Cable. This cable has three conductors encased in a single PVC jacket across its length. The cable is split into three male RCA connectors on both ends. This cable has three inner conductors that carry the video signal. The shielding acts as a ground (not as a secondary conductor to return current back to the source). Each bundle is immediately surrounded by insulating material, foil braid shielding and then a PVC jacket. See representative image […] below:
[…]
The cable designated as NS-POY3506 is described as a 6’ Y-Audio cable. The cable is split into a “Y” shaped configuration, the terminates into a single audio jack on one end and splits into two audio jacks on the other end. It consists of two adjacent bundles of center conductor. Each bundle is immediately surrounded by dielectric insulating material, spiral shielding, paper and then a PVC jacket. See representative image […] below:
[…]
The cable designated as RF-G1208 is an 8’ Component Video Cable. It consists of three adjacent single strands of center conductor. Each strand of center conductor is immediately surrounded by nitrogen injected polyethylene foam insulating material, aluminum foil, copper braid and a PVC jacket. Those three bundles each terminate on both ends with male RCA connectors. See representative image […] below:
[…]
The cable designated as RF-G1203 is described as a 12’ Composite A/V Cable. It consists of three adjacent bundles of center conductor strands. This cable has five conductors encased in a single PVC jacket across its length. The cable is split into three male RCA connectors on each end. The complete cable has five inner conductors (two audio and one video cable). Each individual audio bundle making up the complete cable has two inner conductors. The third bundle (video) has a single inner conductor but has RCA. See representative image […] below:
[…]
The cable designated as NS-HZ510 is described as a 15’ Subwoofer Cable. It consists of two bundles of multiple center conductor strands each immediately surrounded by PVC insulation. There is no outer concentric conductor. The combinations of center conductor and PVC insulation are collectively surrounded by a paper sheath and a PVC jacket and terminate on each end with male RCA plugs. See representative image […] below:
[…]
The product designated as NS-HZ306 is described as a 20’ Headphone Extension and Adapter Kit. The cable in the kit consists of three bundles of multiple strands of center conductor, with each bundle immediately surrounded by polypropylene insulation. There is no outer concentric conductor. The three bundles are then collectively surrounded by a paper sheath and a PVC jacket and terminate on one end with a male audio plug and a female audio jack on the other end. The kit also includes two accessories: a 1/4"-to-3.5 mm adapter and a 1/8" to 3.5 mm adapter. See representative image […] below:
[…]
The cable designated as DX-PV12531 is described as a 12’ VGA Monitor Cable with Audio. It consists of three types of bundles of inner conductors and assorted cladding. The first type of bundle consists of three cables in total that are designated in the schematic below as “1(componentA)” “2” and “3.” Those cables are each composed of a coppered wire inner conductor surrounded by insulating material and an aluminum/mylar sheath (a drain wire sits between the aluminum/mylar sheath and the insulating material). The three cables each carry signals used for video. They contain no outer conductors. The second group of bundles consists of cables are used for electrical grounding. They are designated as “4,” “5,” “6,” “7,” “8” and “9” in the schematic.
The final bundle is designated in the schematic as “1P (componentC)” and consists of two inner conductors for carrying audio signals (each separately surrounded by insulation) and one conductor that acts as a drain wire (ground). The bundle is soldered with 3.5mm audio connectors at both ends. The entire cable DX-PV12531 terminates at both ends with a VGA connector and analog audio plug combination. See representative image [...] below:
[…]
The cable designated as DX-PV06531 is described as a Dynex 6’ VGA Cable. It is almost identical in structure to DX-PV12531, supra, differing only in length. The three types of cables comprising the entirety of DX-PV06531 function in the same manner as those described in the discussion of DX-PV12531, supra.
It also consists of three types of bundles of inner conductors and assorted cladding. The first type of bundle consists of three cables in total […] each composed of a coppered wire inner conductor surrounded by insulating material and an aluminum/mylar sheath (a drain wire sits between the aluminum/mylar sheath and the insulating material). The three cables each carry signals used for video. They contain no outer conductors. The second group of bundles consists of cables are used for electrical grounding. […]
The final bundle […] consists of two inner conductors for carrying audio signals (each separately surrounded by insulation) and one conductor that acts as a drain wire (ground). The bundle is soldered with 3.5mm audio connectors at both ends. The entire cable DX-PV12531 terminates at both ends with a VGA connector and analog audio plug combination. See representative image […] of DX-PV06531 below:
[…]
The cable designated as NS-PI06501 is a 6’ DVI-D to DVI-D cable. A representative image and schematic appear directly below. It consists of eight combinations of center conductor, insulation, drain wire and aluminum mylar or mylar sheaths, and a standalone drain wire. They are collectively surrounded by a braid shield and a PVC jacket. Four of the combinations are composed of two adjacent strands of center conductor and a drain wire, all immediately surrounded by insulation and an aluminum mylar sheath. Three of the four remaining combinations consist of a center conductor strand surrounded by insulating material. The remaining combination consists of two strands of center conductor, each surrounded by insulating material, and collectively surrounded by a sheath of aluminum/mylar and mylar. There is no outer concentric conductor. The cable terminates at each end with a DVI-D connector for transmitting digital signals.
[…]
The cable designated as DX-HZ319 is described as a 6’ 3.5mm 4 Conductor TRRS Male to Male cable. It consists of three adjacent bundles of CCAM center conductor strands, each surrounded by PP insulation. The three bundles are collectively surrounded by foil shielding and CCAM spiral shielding and finally a PVC jacket. There is no outer conductor. The cable terminates at each end with a male audio plug. See representative image […] below:
[…]
The cable designated as NS-M10AUX2 is described as a 10’ Aux Single cable. It consists of three bundles of inner conductor, with two of those bundles surrounded by insulating material, and the other bundle of inner conductor wedged between filler material and a drain wire. Two other drain wires complete the components of inner material. An aluminum foil/mylar wrap surrounds the collective inner material components and an outer PVC jacket completes the cable. The cable terminates at each end with a male audio plug. See representative image […] below:
[…]
The cable designated as RF-G1201 is described as a 4’ Composite A/V Cable. It is structurally identical to RF-G1203, supra, except for length. It consists of three adjacent bundles of center conductor strands. This cable has five conductors encased in a single PVC jacket across its length. The cable is split into three male RCA connectors on each end. The complete cable has five inner conductors (two audio and one video cable). Each individual audio bundle making up the complete cable has two inner conductors. The third bundle (video) has a single inner conductor, but it has RCA connectors. See representative image […] below:
[…]
The cable designated as RF-G1210 is described as a 4’ Stereo Audio Cable. It consists of two combinations of inner conductor, polyethylene insulation, drain wire, aluminum foil shielding, and two layers of PVC jacketing. The inner conductor strands are surrounded by the insulation and are adjacent to a drain wire. The combinations of inner conductor, insulation and drain wire are surrounded by the aluminum foil shielding and then the inner PVC jacket and outer PVC jacket. There is no outer conductor. See representative image […] below:
[…]
The cable designated as RF-G1214 is described as a 12’ Subwoofer Cable. It consists of two strands of inner conductor surrounded by polyethylene insulation that lie adjacent to a drain wire. They are collectively surrounded by aluminum foil shielding and two PVC jackets. There is no outer conductor. The cable terminates at each end with a male RCA plug. See representative image […] below:
[…]
The cable designated as RF-G1215 is described as a 24’ Subwoofer Cable. It consists of a strand of copper inner conductor surrounded by polyethylene insulation, with an adjacent drain wire. The conductor, insulation and drain wire are collectively surrounded by aluminum foil shielding. Two surrounding PVC jackets complete the cable. There is no outer conductor. The cable terminates at each end with a male RCA plug. See representative image […] below:
[…]
ISSUE:
Whether the subject goods are classified in (1) subheading 8544.20.00 (coaxial cable and other coaxial electric conductors); (2) subheading 8544.42.20, HTSUS (other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors and of a kind used for telecommunications); or (3) subheading 8544.42.90, HTSUS (other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors, other)
LAW AND ANALYSIS:
Initially, we note that the matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. With respect to those entries that liquidated within 180 days of August 2, 2017, the protest was timely filed. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii)(codified as amended at 19 U.S.C. § 1514(c)(3)(2006)). Further Review of the protest is properly accorded pursuant to 19 C.F.R. § 174.24(a) because the protest decision is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee. The HTSUS provisions at issue are as follows:
8544 Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors:
* * *
8544.20.00 Coaxial cable and other coaxial electric conductors.
* * *
Other electric conductors, for a voltage not exceeding 1,000 V:
8544.42 Fitted with connectors:
* * *
Other:
8544.42.20 Of a kind used for telecommunications.
8544.42.90 Other.
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 based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989).
The Explanatory Notes to heading 85.44 provide:
The goods of this heading are made up of the following elements:
(A) A conductor this may be single strand or multiple, and may be wholly of one metal or of different metals.
(B) One or more coverings of insulating material the aim of these coverings is to prevent leakage of electric current from the conductor, and to protect it against damage. The insulating materials mostly used are rubber, paper, plastics, asbestos, mica, micanite, glass fibre yarns, textile yarns (whether or not waxed or impregnated), varnish, enamel, pitch, oil, etc. In certain cases the insulation is obtained by anodising or by a similar process (e.g., the production of a surface coating of metallic oxides or salts).
For coaxial cable it then states, in pertinent part:
(C) In certain cases a metal sheath (e.g., lead, brass, aluminum or steel); this serves as a protective covering for the insulation, as a channel for an insulation of gas or oil, or as a supplementary conductor in certain co axial cables.
(D) Sometimes a metal armouring (e.g., spiral wound steel or iron wire or strip), used mainly for protecting underground or submarine cable
Regarding whether any of the subject cable assemblies are covered by subheading 8544.20, HTSUS, as coaxial cable and other coaxial conductors, we noted in HQ 088496 (April 12, 1991), that Webster's New World Dictionary, Third College Edition, (1988), defines “coaxial” as:
Designating a high-frequency transmission line or cable in which a solid or stranded central conductor is surrounded by an insulating medium which, in turn, is surrounded by a solid or braided outside conductor in the form of a cylindrical shell: it is used for sending telephone, telegraph, television, etc. impulses.
Similarly, Encyclopedia Britannica describes coaxial cables as follows:
Self-shielded cable used for transmission of communications signals, such as those for television, telephone, or computer networks. A coaxial cable consists of two conductors laid concentrically along the same axis. One conducting wire is surrounded by a dielectric insulator, which is in turn surrounded by the other, outer conductor, producing an electrically shielded transmission circuit. The whole cable is wrapped in a protective plastic sheathing. The signal propagates within the dielectric insulator, while the associated current flow is restricted to adjacent surfaces of the inner and outer conductors.
Other definitions of coaxial cable are less focused on the use and function of the cable, and instead focus on the construction of such cables. For instance, the online Oxford English Dictionary defines coaxial cable (and line) as a “cable containing several coaxial lines and usually also conductors to supply repeaters and other associated equipment; also, a coaxial line; coaxial line, a transmission line made up of two concentric circular conductors separated by an insulating medium, used esp. for medium and high frequency signals in television and multiplex telephony.” (Emphasis added). www.oed.com (last visited January 11, 2021).
The IBM Dictionary of Computing (10th ed., 1993) defines coaxial cable as “A cable consisting of one conductor, usually a small copper tube or wire, within and insulated from another conductor of larger diameter, usually copper tubing or copper braid. The Microsoft Press Computer Dictionary (3rd ed., 1997) defines coaxial cable as “A two-conductor cable consisting of a center wire inside a grounded cylindrical shield, typically made of braided wire that is insulated from the center wire.” See also www.merriam-webster.com/dictionary (last visited January 11, 2021) (“coaxial cable” defined as a transmission line that consists of a tube of electrically conducting material surrounding a central conductor held in place by insulators and that is used to transmit telegraph, telephone, television, and Internet signals).
The instant cables contain multiple or single inner conductors wrapped in insulating sheaths and surrounded by braided metal outer shields that protect the signal that travels along the inner conductor from electromagnetic interference and do not act as outer conductors for the signal. Therefore, they are not coaxial cables of subheading 8544.20.00, HTSUS, and instead meet the terms of subheading 8544.42, HTSUS, which covers other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors.
Regarding the applicability of subheading 8544.42.20, the term "telecommunications" is not defined in the HTSUS. However, CBP has reviewed the proper interpretation of this term in the classification analysis of other cables. The agency has cited various dictionaries to determine the meaning of the term "telecommunications," including the following definitions: "The science of sending signals representing voice, video, or data through telephone lines" (Computer Telephone & Electronics Glossary ); and "Communications by electronic or electric means, as through radio, telephone, telegraph, television, or computers" (Webster's New World College Dictionary, 4th ed. (1999)).
Based on these definitions, CBP’s interpretation of the provision for cables “of a kind used for telecommunications" under subheading 8544.42.20, HTSUS, includes cables used for the transfer of data, images, or voice between electronic devices. See HQ H029719 (Nov. 7, 2008) and HQ H100097 (Sept. 3, 2010).
We find that each of the subject cable assemblies is of a kind used for telecommunications because each is used to facilitate the transfer of voice, images or data. As such, they are prima facie classifiable under subheading 8544.42.20, HTSUS. Consequently, there is no need to consider the applicability of subheading 8544.42.90, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the cables are classified under heading 8544, HTSUS, specifically under subheading 8544.42.20, HTSUS, which provides for “ Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Of a kind used for telecommunications.” The column one, general rate of duty is “Free.”
You are instructed to GRANT the protest with regard to those entries that were timely protested. You are instructed to DENY the protest with regard to any entries for which the protest was not timely filed. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP 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 International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP website at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division