CLA-2 CO:R:C:M 953461 RFA
Mr. Ray Lewis
Northern Airborne Technology Ltd.
Suite 14
1925 Kirschner Road
Kelowna, B.C.
Canada V1Y 4N7
RE: Aircraft Audio Controller; Aircraft Tactical Control Heads;
Radio Interface; Control Panels; EN 85.37; EN 85.25; Civil
Aircraft Agreement ("CAA")
Dear Mr. Lewis:
In your letters dated December 9, 1992, and January 12,
1993, to the Area Director of Customs in New York, you inquired
as to the tariff classification of devices for use in aircraft
under the Harmonized Tariff Schedule of the United States
(HTSUS). Your letters were referred to this office for a direct
response.
FACTS:
According to your letters, there are three types of
merchandise at issue: the AA90/AMS Series Aircraft Audio
Controllers ("audio controllers"); the TAC/COM Aircraft Tactical
FM Communication Control Heads ("control heads"); and the AA34-
200 Radio Interface for Aircraft Audio Systems ("radio
interface").
The first type of merchandise is the audio controllers which
allow a pilot of an aircraft to select and monitor the radios
used for airborne communications (i.e., air traffic control or
COM radio, FM communication for police or other emergency
services) and navigation signals (i.e., Navaid) through the use
of switches. It also provides an intercom system for
communications between the various crew members through use of
the headsets.
The second type of merchandise are the control heads which
are installed in the aircraft to allow the pilot to control and
select, through the use of switches, the operational
characteristics of a variety of remote-mounted, airborne tactical
FM radios. By using the control heads, the pilot can use the
airborne tactical FM radios' functions such as power, volume,
frequency selection and display, receive/transmit annunciation,
and operational mode selection.
The third type of merchandise is the radio interface which
accepts commercial radio signals such as emergency services of
police, fire, and ambulance, and converts the audio frequency
signal in order to make it compatible with the aircraft radio
equipment.
ISSUE:
Is the subject merchandise classifiable as parts for
aircraft or are they control panels and/or other radio
transmission apparatus 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 shall be
determined according to the terms of the headings and any
relative section or chapter notes.
You suggest classification of all three types of merchandise
under heading 8518, HTSUS, as other audio-frequency electric
amplifiers. However, according to the principles of GRI 1, we
find that this heading does not adequately describe the subject
merchandise.
Subheading 8537.10.00, HTSUS, provides for: "[b]oards,
panels (including numerical control panels). . .equipped with two
or more apparatus of heading 8535 or 8536, for electric control
or the distribution of electricity. . .: [f]or a voltage not
exceeding 1,000 V. . ." The Harmonized Commodity Description and
Coding System Explanatory Notes (EN) constitute the Customs
Cooperation Council's official interpretation of the HTSUS.
While not legally binding, 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. EN 85.37, page
1391, states
[t]hese consist of an assembly of apparatus of the kind
referred to in the two preceding headings (e.g.,
switches and fuses) on a board, panel, console, etc.,
or mounted in a cabinet, desk, etc. They usually also
incorporate meters, and sometimes also subsidiary
apparatus such as transformers, valves, voltage
regulators, rheostats or luminous circuit diagrams.
The goods of this heading vary from small switchboards
with only a few switches, fuses, etc. (e.g., for
lighting installations) to complex control panels for
machine-tools, rolling mills, power stations, radio
stations, etc., including assemblies of several of the
articles cited in the text of this heading.
According to the information provided, the first type of
merchandise, the audio controllers, allows the pilot to select
from a variety of radio frequencies used for airborne
communications. The second set of merchandise is the Control
Heads which allows the pilot to turn on and off the power to
tactical FM radios, select the frequency desired, as well as
receive/transmit annunciation. Based upon EN 85.37 and GRI 1, we
find that the audio controllers and the control heads are
classifiable as control panels under subheading 8537.10.00,
HTSUS.
The third type of merchandise is the radio interface which
converts commercial radio signals (i.e., AM/FM, police band,
etc.) into a signal which is compatible with the aircraft
communication system. Transmission apparatus of electro-
magnetic signals is covered under heading 8525, HTSUS. EN
85.25(A), page 1374, states "[t]his apparatus is used for the
transmission of signals. . .by means of electro-magnetic waves
which are transmitted through the ether without any line
connection." Based upon EN 85.25(A), we find that the radio
interface is classifiable under subheading 8525.10.80, HTSUS,
which provides for: "[t]ransmission apparatus for . . .
radiobroadcasting. . .whether or not incorporating reception
apparatus or sound recording or reproducing apparatus. . .:
[t]ransmission apparatus: [o]ther: [o]ther. . ."
In your letter, you indicate that the merchandise is
specifically designed to be used in aircraft. Parts of aircraft
are provided for in heading 8803, HTSUS, which is in section
XVII. Section XVII, Note 2(f) states that the expression "parts"
does not apply to electrical machinery or equipment (chapter 85),
whether or not they are identifiable as for the goods of section
XVII. As stated above, all three types of the subject
merchandise are classifiable in chapter 85. Therefore, they are
precluded from being classified in heading 8803, HTSUS, as parts
of aircraft.
However, some of the articles may be eligible for duty-free
treatment under the Civil Aircraft Agreement ("CAA"). In order
to be eligible for these benefits, it is important to note that
in addition to the certification of use required under section
10.183(d) of the Customs Regulations [19 CFR 10.183(d)], and the
approval for such use by the appropriate airworthiness authority,
an imported article must be classifiable in a heading under the
HTSUS listed in the United States Annex to the Agreement on Trade
in Civil Aircraft. Heading 8537, HTSUS is not currently in the
Annex. This means the negotiators did not intend to include
goods, such as the audio controller and the control heads, within
the scope of the CAA. However, heading 8525, HTSUS, is in the
Annex. Provided that the other qualifications above are met, the
radio interface may be eligible for duty-free treatment under the
CAA.
HOLDING:
The audio controllers and control heads are classifiable
under subheading 8537.10.00, HTSUS, which provides for control
panels. The general, column one rate of duty is 5.3 percent ad
valorem.
The radio interface is classifiable under subheading
8525.10.80, HTSUS, which provides for other transmission
apparatus for electro-magnetic signals. The general, column one
rate of duty is 6 percent ad valorem. However, if all of the
requirements under the CAA are met, then the radio interface may
be eligible for duty-free treatment.
Sincerely,
John Durant, Director
Commercial Rulings Division