CLA-2 RR:CR:GC 963697 GOB
Peter Jay Baskin
Sharretts, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, N.Y. 10004
RE: Electric alarm clock; Clock movement; Measurement of movement
Dear Mr. Baskin:
This letter is with respect to your letters of November 11, 1999 and January 3, 2000 on behalf of SDI Technologies Inc., in which you request a binding ruling regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of a Timex electric alarm clock, model no. T112B. We regret the delay in responding.
FACTS:
You describe the alarm clock as follows:
The product in question is an electronic, AC-powered table alarm clock with a digital LED display. In addition to the time, the clock’s display features alarm status, low battery, and PM indicators. The article incorporates a series of push buttons along the front of its base which may be used to set the clock and alarm times. It also has a “snooze” bar on the top to temporarily deactivate the alarm for a short period. By means of a toggle switch on the back, the user may set the clock’s alarm to sound either like a cathedral bell or chimes. The clock has a battery back-up feature, but no battery is included with the product.
ISSUE:
What is the tariff classification of the subject alarm clock?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). 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 GRI’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
The provisions under consideration are as follows:
9103 Clocks with watch movements, excluding clocks of heading 9104:
9103.10 Electrically operated:
9103.10.20 With opto-electric display only
* * * * * *
9105 Other clocks:
Alarm clocks:
9105.11 Electrically operated:
9105.11.40 With opto-electronic display only.
* * * * * *
Chapter 91, Note 3, HTSUS, provides as follows:
For the purposes of this chapter, the expression “watch movements” means devices regulated by a balance wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with display or a system to which a mechanical display can be incorporated. Such watch movement shall not exceed 12 mm in thickness and 50 mm in width, length or diameter. [Emphasis in original.]
Chapter 91, Additional U.S. Note 1(d) provides as follows:
The term “clock movements” means devices regulated by a balance wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with a display or a system to which a mechanical display can be incorporated. Such clock movements shall either exceed 12 mm in thickness or 50 mm in width, length or diameter, or both. [Emphasis in original.]
EN 91.03 provides in pertinent part as follows:
This heading covers clocks (including alarm clocks but excluding clocks of heading 91.04) provided they are equipped with watch movements, and are essentially constructed for indicating the time of day ... Such watch movements shall not exceed 12 mm in thickness and 50 mm in width, length or diameter.
... the heading excludes (b) clocks (including alarm clocks) which do not satisfy the conditions specified in the first paragraph, for example, pendulum clocks, clocks with any other regulating system capable of determining intervals of time and exceeding 12 mm in thickness or exceeding 50 mm in width, length or diameter and clocks with movements without a regulating system (e.g., driven by synchronous motor). These fall in heading 91.05.
[All emphasis in original.]
EN 91.05 provides in pertinent part as follows:
This heading covers timekeepers, not classified elsewhere in the Chapter, essentially constructed for indicating the time of day; they must, therefore, have movements other than watch movements. Clocks and alarm clocks with watch movements (as defined by Chapter Note 3) are excluded (heading 91.03).
[All emphasis in original.]
General EN to Chapter 91 provides in pertinent part as follows:
For the purposes of Note 3 to this Chapter, which defines watch movements, the following methods of measurement apply:
(a) Measurement of thickness
The thickness of a movement is the distance from the outer plane of the dial support (or the visible surface of the display if the latter is incorporated in the movement) to the furthest opposite outer plane, without taking account of any screws, nuts or other fixed parts projecting beyond that plane.
(b) Measurement of width, length or diameter
As appropriate, the width, length or diameter (which are determined by their axis of symmetry) is to be measured without taking the winding spindle or crown into consideration.
[All emphasis in original.]
Note 3 to Chapter 91 and Additional U.S. Note 1(d) to Chapter 91 define watch and clock movements almost identically, i.e., as devices regulated by a balance-wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with a display or a system to which a mechanical display can be incorporated. However, the Notes (including the EN’s, excerpted above), differentiate clock movements from watch movements on the basis of size - a watch movement cannot exceed 12 mm in thickness and 50 mm in width, length or diameter. Clocks with watch movements are classified in heading 9103, HTSUS (assuming they are not clocks of heading 9104, HTSUS). Clocks with clock movements (i.e., a movement which exceeds either 12 mm in thickness or 50 mm in width, length or diameter) are classified in heading 9105, HTSUS.
We must therefore determine the thickness and the width, length or diameter of the movement of the electric alarm clock in order to determine whether it has a watch movement or a clock movement.
It is your contention that the movement of the subject alarm clock, for tariff purposes, is the integrated circuit. You claim that since the integrated circuit does not exceed 12 mm in thickness and 50 mm in width, length, or diameter, it is a watch movement as defined in Note 3 to Chapter 91, HTSUS. Therefore, you conclude that the alarm clock is described in heading 9103, HTSUS.
In HQ 561945 dated May 21, 2001, which modified HQ 560202 dated December 20, 1996, we stated in pertinent part as follows:
Although the LCD assembly does not measure or determine intervals of time, but merely displays them, the language of Note 3 defines “watch movements” as “devices regulated by a *** quartz crystal or any other system capable of determining intervals of time, with a display” (emphasis added). Therefore, based upon the information provided, the components which comprise the “watch movement” of the subject LCD watch are those components listed as comprising both the electronic subassembly and the LCD subassembly: the printed circuit board (PCB), resistors, capacitors, piezoelectric quartz crystal, integrated circuit, transistor, coils and electroluminescent (EL) circuit driver, the liquid quartz device, elastomeric or conductive rubber connectors and electroluminescent lamp polarizers.
Customs ruled similarly in HQ 560683 dated July 26, 2001.
This office requested the input of the Customs Service Office of Laboratories and Scientific Services with respect to the measurement of the movement. In Lab report NO20010967 dated November 19, 2001, the Customs Laboratory in New Orleans stated in pertinent part as follows:
Analysis by the U.S. Customs Service Research Laboratory indicates the sample “movement” meets the definition of a “clock movement” as defined by Additional U.S. Note 1(d), Chapter 91, HTSUS. The dimensions of the sample’s movement are: i) Length = 61.0 mm (length of the LED display.) ii) Width = 21.3 mm (width measurement of the portion of the “Clock and Audio” PCB containing the “movement” components) iii) Thickness = 23.0 mm (as measured from the front of the LED display to the top of capacitor C9)[.]
In a memorandum dated October 26, 2001, the Director, Customs Service Research Laboratory stated in pertinent part as follows:
Examination of the materials sent by ORR reveals the Clock IC (U2) uses a 60Hz input on pin 25 as the time counter in normal AC operation. This 60Hz pulse comes from the 60Hz line voltage, after passing through a transformer and circuitry on the “Clock and Audio” PCB. (The clock is also capable of operating at 50Hz, with minor changes to the circuitry.) When the AC power is interrupted, the clock switches to a battery back-up, the time counter switches to a holding state and a built in oscillator begins operation. The frequency level of this clock oscillator is determined according to the capacitor/resistor value inputted on Clock IC (U2) pin 27. In the Laboratory’s opinion, the portion of the “Clock and Audio” PCB circuitry containing components Clock IC (U2), R21, R22, R23, R24, C9, C10, C11, C13, D7, & D8, determines intervals of time and should be considered as part of the sample’s “movement.”
The sample’s LED display is mounted on the inside of the clock housing, on a separate PCB, and is connected to the “Clock and Audio” PCB by means of two 14-wire cables. The length and width of the LED display were measured and a thickness measurement was taken on the undisturbed clock sample, between the front of the LED display and the top of capacitor C9 on the “Clock and Audio” PCB, as mounted in the clock housing. (The small “snooze” PCB was removed from the clock to facilitate measurement.)
The dimensions of the sample’s movement are: length = 61 mm (length of LED display), width = 21.3 mm (width measurement of the portion of the “Clock and Audio” PCB containing the “movement” components listed above), and thickness = 23.2 mm (as measured from the front of the LED display to the top of capacitor C9). In the Laboratory’s opinion, the sample “movement” meets the definition of a “clock movement.”
[Emphasis supplied.]
The conclusion of the Customs Research Laboratory with respect to the composition of the alarm clock’s movement (see the sentence in italics, excerpted above), which is consistent with HQ 561945 (also excerpted above), is at variance with your claim with respect to the alarm clock’s movement.
We adopt the determination of the Customs Research Laboratory with respect to the composition and measurement of the movement of the subject alarm clock.
Accordingly, we find that the subject alarm clock has a clock movement within the scope of Additional U.S. Note 1(d). Therefore, it is not described in heading 9103, HTSUS. We find that the subject alarm clock is described in heading 9105, HTSUS, and is classified in subheading 9105.11.40, HTSUS.
HOLDING:
The alarm clock is classified in subheading 9105.11.40, HTSUS, as: “Other clocks: Alarm clocks: Electrically operated: With opto-electronic display only.”
Sincerely,
John Durant, Director
Commercial Rulings Division