OT:RR:CTF:EMAIN H258594 DSR

Mr. Francisco Pantoja
Regional Trade Compliance Manager
Tellabs Operations Inc.
1415 W. Diehl Rd., MS 16
Naperville, IL 60563

RE: Revocation of NY N022319; Classification of a 7100PP-R-xM RCMM optical patch panel from China

Dear Mr. Pantoja:

This letter is in reference to New York Ruling Letter (NY) N022319, issued to you on February 8, 2008. We have concluded that the optical patch panel’s classification under heading 8517, Harmonized Tariff Schedule of the United States (HTSUS), is incorrect. Therefore, we are revoking NY N022319 for the reasons set forth in this ruling.

Notice of the proposed action was published in Customs Bulletin Vol. 59, No. 13, dated March 26, 2025, pursuant to Section 625(c)(1) of the Tariff Act of 1930 (codified in 19 U.S.C § 1625(c)(1)), as amended by Section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993)). No comments were received in response.

FACTS:

In NY N022319, the optical patch panel is described as follows:

The merchandise subject to this ruling is a 7100PP-R-xM RCMM optical patch panel. It is sold as an optional part for the Tellabs 7100 Optical Transport System (OTS), which sends voice, data, and video traffic via fiber optic cables. The 7100PP-R-xM RCCM optical patch panel is a custom mechanical assembly that can only be used in a 7100 OTS. The 7100PP-R-xM RCMM optical patch panel provides access to each of the 44 channels handled by the 7122A/B Reconfigurable Channel Multiplexer Module (RCMM) within the 7100 OTS. The 7100PP-R-xM RCCM optical patch panel provides, via the front panel, 8 multi-fiber cables with MTP connectors on the end and 22 duplex LC connectors. Inside the optical patch panel, the 8 multi-fiber cables are split out to 44 individual transmit and receive fibers that are terminated at the front panel via the 22 duplex LC connectors. The optical patch panel can be mounted vertically or horizontally in a Tellabs 7100 OTS rack.

ISSUE:

Whether the optical patch panel is classified in heading 8517, HTSUS, as a part of “apparatus for the transmission or reception of voice, images or other data,” or heading 9013, HTSUS, as an “optical appliance[ ] or instrument.”

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). 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. The HTSUS headings under consideration are as follows:

8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof * * * 9013 Lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter

Legal Note 1(m) to Section XVI, HTSUS, which includes heading 8517, HTSUS, states that articles of Chapter 90, HTSUS, are not covered in Section XVI. Moreover, Additional U.S. Note 3 to Chapter 90, HTSUS, provides:

For the purposes of this chapter, the terms “optical appliances” and “optical instruments” refer only to those appliances and instruments which incorporate one or more optical elements, but do not include any appliances or instruments in which the incorporated optical element or elements are solely for viewing a scale or for some other subsidiary purpose.

Pursuant to Note 1(m) to Section XVI, if the subject optical patch panel is an article of Chapter 90, HTSUS, it is precluded from consideration in heading 8517, HTSUS. As such, the threshold inquiry is whether the subject optical patch panel is classifiable in any of the headings of Chapter 90, HTSUS.

2 The subject optical patch panel incorporates eight multi-fiber optical cables with MTP connectors and 22 duplex LC connectors, with each of the eight multi-fiber optical cables further splitting out to forty-four individual optical fibers that terminate at the front panel of the optical patch panel via the 22 duplex LC connectors. The optical cables and fibers are not solely for viewing a scale and clearly do not fulfill a “subsidiary purpose,” as they are the main contributors to what is the ultimate purpose of the optical patch panel – to serve as a passive connection and management assembly for the transmission and reception of optical signals.

An “optical” appliance or instrument with no purpose but to channel and direct information through fiber optic cables, and which is not the fibers themselves, falls within heading 9013, HTSUS. See ADC Communications, Inc. v. United States, C.I.T. Slip. Op. 17-144 (October 18, 2017), aff’d, ADC Communications, Inc. v. United States, No. 18-1316 (Fed. Cir. 2019). Therefore, we conclude that the subject optical patch panel is properly classified in heading 9013, HTSUS.

HOLDING:

By application of GRIs 1 and 6, in addition to Note 1(m) to Section XVI), the subject optical patch panel is classifiable under heading 9013, HTSUS, specifically under subheading 9013.80.91, HTSUS, which provides for “Lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter: Other devices, appliances and instruments: Other.” The column one, general rate of duty is 4.5% ad valorem.

This ruling does not address the applicability of any additional duties that may apply to the goods discussed herein. Likewise, duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.

EFFECT ON OTHER RULINGS:

NY N022319, dated February 8, 2008, is hereby revoked.

In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.

Sincerely,

for Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division

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