CLA-2 CO:R:C:G 087361 MBR
Mr. Dale G. Vander Yacht
Border Brokerage Company
P.O. Box B
Blaine, Washington 98230
RE: Bestwood Smart Home System
Dear Mr. Vander Yacht:
This is in reply to your letter of May 11, 1990, on behalf
of Bestwood Electronics Corp., requesting classification of the
Bestwood Smart Home System, under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA).
FACTS:
The Bestwood Smart Home System ("System") is comprised of a
SH-1102 "Command Center" module, SH-1121 3 pin Appliance
Controller module (plug in type), SH-1122 Appliance Controller
module (wall set type), SH-1123 Wall Switch Controller module
(for lights or appliances controlled by switches), SH-1151 Keypad
Controller module. The "Command Center" module controls up to a
maximum of 8 plug in or wall set modules, which provides the
capability to electrically control: lights, fans, air
conditioners, audio systems, garage door openers, water
sprayers, washers, dryers, water flow, dehumidifiers, electric
pans, ovens, teapots, etc. The System may also control a door
telephone, emergency alarm, recorder, monitoring system,
emergency lights, burglar alarm and fire safety system. Four
home/office zones may be monitored by use of magnetic switches,
crack sensors, etc. The System also enables control via a
remote telephone. The System uses the home/office wiring that is
already in place at the desired location.
ISSUE:
What is the classification of the Bestwood Smart Home System
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)?
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
You argue that this System is properly classifiable under
heading 8543, HTSUSA, which provides for: "[e]lectrical machines
and apparatus, having individual functions, not specified or
included elsewhere in this chapter...."
However, Legal Note 4., Section XVI, states:
Where a machine (including a combination of machines)
consists of individual components (whether separate or
interconnected by piping, by transmission devices, by
electric cables or by other devices) intended to contribute
together to a clearly defined function covered by one of the
headings in chapter 84 or chapter 85, then the whole falls
to be classified in the heading appropriate to that
function.
Clearly, this System is a machine that consists of
individual components interconnected through electric cables
(home/office wiring system), intended to contribute to the
clearly defined function of electric control or the distribution
of electricity.
Therefore, this System is properly classifiable under
heading 8537, HTSUSA, which provides for: "[b]oards, panels
(including numerical control panels), consoles, desks, cabinets
and other bases, equipped with two or more apparatus of heading
8535 or 8536, for electric control or the distribution of
electricity...." See HQ 067473, dated July 16, 1982, for a
similar holding regarding similar merchandise.
This System is therefore not classifiable under heading
8543, HTSUSA, because it is "specified or included elsewhere in
this chapter" (8537, HTSUSA).
HOLDING:
The Bestwood Smart Home System is classifiable under
subheading 8537.10.00, HTSUSA, which provides for: "[b]oards,
panels (including numerical control panels), consoles, desks,
cabinets and other bases, equipped with two or more apparatus of
heading 8535 or 8536, for electric control or the distribution of
electricity, including those incorporating instruments or
apparatus of chapter 90, other than switching apparatus of
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heading 8517: [f]or a voltage not exceeding 1,000 v." The rate
of duty is 5.3% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division