CLA-2 CO:R:C:M 952987 DWS
Ms. Laura Lyons
AT&T, Inc.
1090 East Duane Avenue
Sunnyvale, CA 94086
RE: Portable Tone Dialer; HQ 087911; Explanatory Note 85.17
Dear Ms. Lyons:
This is in response to your letter of October 27, 1992, to the
Regional Commissioner of Customs, New York, concerning the
classification of portable tone dialers under the Harmonized Tariff
Schedule of the United States (HTSUS). Your letter, together with
the sample Portatone TD200 DTMF Dialer, has been referred to
Headquarters for a reply.
FACTS:
The merchandise consists of a battery operated portable tone
dialer. The Portatone dialer is used with rotary telephones and
allows instant and convenient access to telephone based information
services. It is designed to control telephone answering machines,
bank-by-phone systems, electronic voice mail systems, and call
diverters. To operate the Portatone dialer, a user dials the
telephone number of the desired service, using a standard
telephone. Upon hearing the dialed telephone number answer, the
user places the rubber ring on the back of the Portatone over the
mouthpiece of the telephone handset. The user then enters the
required access code using the numbered dialer keypad on the front
of the Portatone. This causes the Portatone to emit varying tones
which the telephone based information service acts on, performing
a programmed function based on the tone. It is also noted that the
dialer can be used to dial any telephone number by placing the
dialer to a handset as detailed above.
ISSUE:
What is the proper classification of the portable tone dialer
under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
Heading 8517, HTSUS, provides for: "[e]lectrical apparatus for
line telephony or telegraphy, including such apparatus for carrier-
current line systems; parts thereof."
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1889). In part, Explanatory
Note 85.17 (p. 1360) states that:
[t]he term "electrical apparatus for line telephony or line
telegraphy" means apparatus for the transmission between two
points of speech or other sounds . . . by variation of an
electric current . . . connecting the transmitting station to
the receiving station.
In HQ 087911, dated February 4, 1991, a similar item was held
to be classifiable under heading 8517, HTSUS. The merchandise in
that ruling consisted of an "Intelligent Dialer". As the
"Intelligent Dialer" could store telephone numbers, "[t]he 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."
Although the "Intelligent Dialer" is more advanced than the
subject dialer, it operates in basically the same manner. Both
apparatus transmit varying tones "between two points of speech or
other sounds" (the user and the information based service).
Therefore, it is our position that the portable tone dialer is also
classifiable under heading 8517, HTSUS. Specifically it is
classifiable under subheading 8517.81.00, HTSUS, which provides
for: [e]lectrical apparatus for line telephony or telegraphy,
including such apparatus for carrier-current line systems; parts
thereof: [o]ther apparatus: [t]elephonic."
HOLDING:
The portable tone dialer is classifiable under subheading
8517.81.00, HTSUS. The general, column one rate of duty is 8.5
percent ad valorem.
Sincerely,
John Durant, Director