CLA-2 OT:RR:CTF:TCM H029719 HkP
Mr. Dennis Morse
BDP International, Inc.
2721 Walker Avenue, N.W.
Grand Rapids, MI 49504
RE: Revocation of NY N007536; USB cable (item no. 774360); Ethernet cable (item no. 700043)
Dear Mr. Morse:
This is in reference to New York Ruling Letter (“NY”) N007536, issued to you on March 6, 2007, on behalf of your client Miejer Distribution. At issue in that ruling was the classification of a USB cable and of an Ethernet cable under the Harmonized Tariff Schedule of the United States (HTSUS). U.S. Customs and Border Protection (“CBP”) classified this merchandise under subheading 8544.42.9000, HTSUSA, as, “other electric conductors for a voltage not exceeding 1,000 V, fitted with connectors, other.” We have reviewed NY N007536 and found it to be incorrect. For the reasons set forth in this ruling, we hereby revoke NY N007536.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation was published on August 6, 2008, in the Customs Bulletin, Volume 42, No. 33. Two comments supporting the proposed revocation were received in response to this notice.
FACTS:
The merchandise at issue is described in NY N007536 as follows:
The first item in question is a six-foot long USB computer cable. This cable is fitted with a type “A”, male, USB connector on one end and a type “B", male, USB connector on the opposite end. This cable is used to connect a Personal Computer to a variety of USB devices, allowing for the transfer of data or music between the two.
The second item in question is a twenty-five foot Ethernet computer cable. This cable is fitted with modular “Ethernet” connectors on each end. It’s used to connect a Personal Computer to gaming systems, the Internet and various other computing devices.
ISSUE:
What is the correct classification of the USB cable and the Ethernet cable under the 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 2 through 6 may then be applied in order.
The HTSUS provisions under consideration 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:
* * *
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 …..
We do not dispute that the cables are provided for under heading 8544, HTSUS. However, we now believe that their classification at the eight-digit level was incorrect. CBP previously classified the USB cable and the Ethernet cable at issue in subheading 8544.42.90, HTSUSA, as other electric conductors, “other.” After reviewing the nature of the cables, we now find that their correct classification is subheading 8544.42.20, HTSUS, which provides for electric conductors “of a kind used for telecommunication.” Our position is based on the fact that USB and Ethernet cables are used for the two-way transfer of data between a personal computer and various other devices. CBP has previously classified a SCSI II (“skuzzy”) cable with connectors, used to connect a PC to various other devices, in subheading 8544.41.40, HTSUSA. Pursuant to the 2007 changes to the HTSUS, the products of subheading 8544.41, HTSUS (2006), have been transferred to subheading 8544.42, HTSUS (2008).
One commenter noted that the proposed reclassification of the USB and Ethernet cables under subheading 8544.42, HTSUS, was consistent with the description of telecommunication cables provided in the Explanatory Notes to heading 8544. He also noted that CBP rulings establish that USB cables may be used with devices other than a computer, such as a Palm or other personal digital assistant, without being connected to a computer.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS at the international level, that is, the up to the first six digits of a heading. The provision under consideration (8544.42.20) is an eight-digit U.S. provision of the HTSUS. The fact that the cables at issue are similar to the description of telecommunication cables provided in EN 85.44 has no bearing on classification at the eight-digit level.
The other commenter was of the opinion that that there were at least two other families of cables that also needed to be included under subheading 8544.42, HTSUS - IEEE 1394 Interface Cables (serial bus interface cables) and Category 5 cables (subject of NY N022954, dated Feb. 27, 2008). We note that the Category 5 cable in NY N022954 is already classified under subheading 8544.42, HTSUS, as being “of a kind used for telecommunications”. IEEE 1394 cables are not currently the subject of any ruling and, therefore, are not subject to the provisions of 19 U.S.C. § 1625(c).
HOLDING:
By application of GRI 1, the USB cable and the Ethernet cable at issue are classified under heading 8544, HTSUS. They are specifically provided for in subheading 8544.42.20, HTSUS, which provides for: Insulated … wire, cable … and other insulated electric conductors, whether or not 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 2008 column one, general rate of duty is Free.
EFFECT ON OTHER RULINGS:
NY N007536, dated March 6, 2007, 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,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division