CLA-2 OT:RR:CTF:EMAIN H316742 DSR
Linda Golf
Assistant Center Director
U.S. Customs and Border Protection
Center of Excellence & Expertise, Consumer Products & Mass Merchandising Center157
157 Tradeport Drive
Atlanta, Georgia 30354
RE: Internal advice request; Classification of Echo Show 5, Echo Show 8, and Echo Show 10
Dear Ms. Golf:
Pursuant to 19 C.F.R. 177.11, this letter is in reference to a request for internal advice concerning the classification of articles described as the Echo Show 5, Echo Show 8, and Echo Show 10. We have considered the information included with the request, as well as supplemental information provided by the requester on August 12, 2021, and May 17, 2022. Our response follows.
FACTS:
The merchandise at issue consists of products named Echo Show 5, Echo Show 8, and Echo Show 10. Each product incorporates a main circuit board comprised mainly of an integrated microprocessor, random access memory, and flash drive/memory; a touch screen (to enable visual and touch interactivity); a camera; speakers; and an array of microphones. Those components allow the products to receive and process voice and touch inputs from a user (as well as record and display digital videos and images), and then transmit resultant data (requests) through a user’s connected Wi-Fi router to external servers. The servers interpret the transmitted requests and determine the appropriate signals to transmit back to the Echo Show products that would allow the products to perform myriad tasks that include, but are not limited to, the following:
• Answer questions with answers found on the Internet
• Place and accept VoIP communication calls with or without video
• Stream movies and videos from Amazon or third-party on-demand service providers
• Create to-do lists
• Control home devices
• Receive notifications
• Set alarms/timers
• Stream music
• Play audiobooks
• Provide current event updates
• Order food
• Provide weather forecasts
• Provide traffic status
The Echo Shows can also transmit control signals received from the external servers to otherwise independent devices that are connected to the same area network as the Echo Shows (and that can process those control signals), such as external speakers, cameras, and “smart” light bulbs and electrical plugs.
ISSUE:
Are the Echo Show devices classified heading 8518, HTSUS, as loudspeakers, or are they classified in heading 8517, HTSUS, as machines for the reception, conversion and transmission or regeneration of voice, images, or other data, including switching and routing apparatus?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). 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. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The HTSUS provisions under consideration in this ruling 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:
. . .
Other apparatus for 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):
. . .
8517.62.00 Machines for the reception, conversion and transmission or regeneration
of voice, images or other data, including switching and routing apparatus
* * * *
8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their
enclosures; headphones and earphones, whether or not combined with a
microphone, and sets consisting of a microphone and one or more
loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets;
parts thereof:
. . .
Loudspeakers, whether or not mounted in their enclosures:
. . .
8518.21.00 Single loudspeakers, mounted in their enclosures
8518.22.00 Multiple loudspeakers, mounted in the same enclosure
* * *
As an initial matter, we note that the Echo Show models, and their associated power cords and user manuals, are classified as “sets” pursuant to GRI 3(b), because the Echo Shows, power cords and user manuals are imported packaged together for retail sale and are classifiable in different headings, are “put up together” to enable a user to power and operate the Echo Shows, and are offered for sale directly to purchasers without repacking. See EN (X) to GRI 3(b). There can be no dispute that the Echo Shows impart the essential character of the sets, because they are the dominant component articles in relation to the power cords and user manuals. They are also the reason why a consumer would purchase the sets. Consequently, in accord with GRI 3(b), the sets are classified as if consisting only of the Echo Shows.
We also call attention to Note 3 to Section XVI, HTSUS, which contains instructions pertaining to the classification of composite machines. Note 3 to Section XVI, HTSUS, states:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only that component or as being that machine which performs the principal function.
The ENs to Section XVI, provide, in relevant part, as follows:
(VI) MULTI-FUNCTION MACHINES AND COMPOSITE MACHINES
(Section Note 3)
In general, multi-function machines are classified according to the principal function of the machine.
…
Composite machines consisting of two or more machines or appliances of different kinds, fitted together to form a whole, consecutively or simultaneously performing separate functions which are generally complementary and are described in different headings of Section XVI, are also classified according to the principal function of the composite machine.
…
For the purposes of the above provisions, machines of different kinds are taken to be fitted together to form a whole when incorporated one in the other or mounted one on the other, or mounted on a common base or frame or in a common housing.
Here, the Echo Shows’ components (which are in and of themselves “machines”), perform separate but complementary functions described in different headings of Section XVI, HTSUS. The integrated chips and processors receive and process voice and touch commands from a user, and then transmit resultant data requests through a user’s connected Wi-Fi router to AWS servers and servers of third-party on-demand service providers. Those external servers interpret the transmitted requests and send the appropriate data signals back to the Echo Shows, where they are processed by the device’s integrated chips and processors to accomplish a task listed supra or signal an external device to do so. Circuitry within the Echo Shows can convert data into electrical current that is conveyed to the Echo Shows’ incorporated speakers. The incorporated speakers produce sound by converting that electric current into sound waves. The integrated microphone array can receive audible commands from a user, while the touchscreen enables visual and touch interactivity. The camera records videos and images from the environment around an Echo Show. In accord with Note 3 to Section XVI, HTSUS, the Echo Shows are classified as if consisting only of that component, or as being that machine, that performs the devices’ principal function.
Radio transceivers are classified in heading 8517, HTSUS, which provides, in pertinent part, for “Other apparatus for the transmission or reception of voice, images, or other data […] including apparatus for communication in a wired or wireless network […]”, specifically in subheading 8517.62. The term “data” is not defined in the tariff, but CBP has defined the term as “information that has been translated into a form that is digitally transmitted or processed.” See Headquarters Ruling H071756 (September 28, 2011). EN 85.17 states, in relevant part:
This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks.
…
(II) OTHER APPARATUS FOR 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)
…
(F) Transmitting and receiving apparatus for radio-telephony and radio-telegraphy.
This group includes:
(1) Fixed apparatus for radio-telephony and radio-telegraphy (transmitters, receivers and transmitter-receivers). Certain types, used mainly in large installations, include special devices such as secrecy devices (e.g., spectrum inverters), multiplex devices (used for sending more than two messages simultaneously) and certain receivers, termed “diversity receivers,” using multiple receiver technique to overcome fading.
(2) Radio transmitters and radio receivers for simultaneous interpretation at multilingual conferences.
(3) Automatic transmitters and special receivers for distress signals from ships, aircraft, etc.
(4) Transmitters, receivers or transmitter/receivers of telemetric signals.
(5) Radio-telephony apparatus, including radio-telephony receivers, for motor vehicles, ships, aircraft, trains, etc.
(6) Portable receivers, usually battery operated, for example, portable receivers for calling, alerting or paging.
* * * * *
The EN to heading 85.18 provides, in pertinent part, the following:
This heading covers microphones, loudspeakers, headphones, earphones and audio-frequency electric amplifiers of all kinds presented separately, regardless of the particular purpose for which such apparatus may be designed (e.g., telephone microphones, headphones and earphones, and radio receiver loudspeakers).
The heading also covers electric sound amplifier sets.
. . .
(B) LOUDSPEAKERS, WHETHER OR NOT MOUNTED IN THEIR
ENCLOSURES
The function of loudspeakers is the converse of that of microphones: they reproduce sound by converting electrical variations or oscillations from an amplifier into mechanical vibrations which are communicated to the air. . . .
Matching transformers and amplifiers are sometimes mounted together with loudspeakers. Generally the electrical input signal received by loudspeakers is in analogue form, however in some cases the input signal is in digital format. Such loudspeakers incorporate digital to analogue converters and amplifiers from which the mechanical vibrations are communicated to the air.
Loudspeakers may be mounted on frames, chassis or in cabinets of different types (often acoustically designed), or even in articles of furniture. They remain classified in this heading provided the main function of the whole is to act as a loudspeaker. Separately presented frames, chassis, cabinets, etc., also fall in this heading provided they are identifiable as being mainly designed for mounting loudspeakers; articles of furniture of Chapter 94 designed to receive loudspeakers in addition to their normal function remain classified in Chapter 94.
The heading includes loudspeakers designed for connection to an automatic data processing machine, when presented separately.
. . .
The Echo Shows are essentially remote access devices that are principally designed to wirelessly transmit and receive data to and from external servers over wireless networks to allow a user to access and use Internet-based services to accomplish myriad tasks and to control the operation of various external devices. In other words, the principal function of the devices is to coordinate (i.e., receive and transmit) the data traveling between the aforementioned servers, other devices connected to the network, and the users. This principal function is apparent in the devices’ broad ability and design to serve as an interface between users and the various applications residing on external servers. This data reception and transmission principal functionality is described under heading 8517, HTSUS, as “Other apparatus for the transmission or reception of voice, images, or other data […] including apparatus for communication in a wired or wireless network[…]”. The devices are specifically classified in subheading 8517.62.00, HTSUS, which provides for “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: Other apparatus for 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): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.”
HOLDING:
By application of GRIs 1 (Note 3 to Section XVI), 3(b), and 6, the Echo Show 5, Echo Show 8 and Echo Show 10 are classified in heading 8517, HTSUS, specifically in subheading 8517.62.00, HTSUS, which provides, in pertinent part, for “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.” The column one, general rate of duty is “Free.”
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 at www.usitc.gov.
You are to provide this decision to the internal advice requester no later than 60 days from the date of the decision. At that time, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division