OT:RR:CTF:EMAIN H335773 MFT

Center Director, Electronics C.E.E.
U.S. Customs and Border Protection
301 E. Ocean Blvd.
Long Beach, CA 90802

ATTN: Dirik J. Lolkus, Supervisory Import Specialist

RE: Application for Further Review of Protest No. 2704-23-167714; Classification of a Baby Monitor Set

Dear Center Director:

The following is our decision on the Application for Further Review (AFR) of Protest No. 2704-23-167714, which was filed on August 16, 2023, on behalf of Exclusive Group, LLC, d/b/a Binatone North America (protestant). The protest concerns the classification by U.S. Customs and Border Protection (CBP) of a certain baby monitor set under the Harmonized Tariff Schedule of the United States (HTSUS).

We note that the protestant requested an opportunity to orally discuss the issues in this matter per Section 177.4 of Title 19 of the Code of Federal Regulations (19 C.F.R. § 177.4) but failed to respond to several attempts to schedule a conference. Therefore, we are issuing this decision based on the presented and available facts.

FACTS:

The merchandise under consideration consists of a baby monitor set from China described as the “Nursery Pal Deluxe.” The Nursery Pal Deluxe includes: a wireless camera described as the “Baby Unit”; a five-inch touchscreen monitor described as the “Parent Unit”; 1 a multi-surface mount for the camera; a protective bumper for the monitor; and power adapters.

1 The protestant refers to the subject touchscreen monitor as the “Parental Unit” and “Parent Unit” interchangeably. Given that the product literature only refers to the touchscreen monitor as the “Parent Unit,” we will refer to the touchscreen monitor as such. The retail packaging for the Nursery Pal Deluxe identifies each of the five items listed above in a section titled “What’s in the box.”

The wireless camera, or “Baby Unit,” consists of: a light sensor; a camera lens; infrared LEDs; a microphone and speaker; a temperature sensor; screw holes for the multi-surface mount; a 1,200 mAh rechargeable battery; a “PAIR” button for wireless connectivity; and a privacy protector to block the camera lens. While the Baby Unit lacks the ability to record images on the camera itself, it can connect to a 2.4 GHz Wi-Fi signal, enabling the user to remotely view the camera’s live video feed from the “HubbleClub” smartphone app and record the live video feed to a smartphone’s internal storage. The app also allows users to monitor notifications for temperature levels, noise, and detected motions.

The touchscreen monitor, or “Parent Unit,” is a device that consists of: a five-inch touchscreen display; an external, adjustable radio-frequency (RF) antenna; a volume control switch; a flashlight; a speaker; a reset pinhole; a power socket; a rotatable ring stand for supporting the device upright on a surface; and a 2,100 mAh lithium-ion rechargeable battery. The Parent Unit can receive and display the live video feed from the camera via an RF signal. When viewing the video feed from the Parent Unit, users can use the touchscreen to pan and tilt the camera view. Like the camera, the Parent Unit does not have any in-built capability of recording the images. It comes equipped with Linux-based software that allows users to play preloaded lullabies, soothing sounds, digital picture books, and educational games and videos.

The camera and monitor are pre-registered and linked together when put up for retail sale, obviating the need for end-users to pair the devices together during initial setup. The monitor can connect to four cameras at a time, and users may switch between the four different camera feeds from the monitor itself. Upon startup, the monitor defaults to the camera view; no further input from the user is required to access the camera feed. The secondary media features – i.e., the lullabies, sounds, books, games, and videos – are accessible from a separate, hidden menu bar. To access these secondary features, users must swipe up from the bottom of the screen to reveal the menu bar, and then tap either the “play” symbol (for lullabies, sounds, and books) or the “Hubble Baby” icon (for games and videos).

We note that the merchandise’s user guide refers to the set as a “baby monitor” and welcomes users by highlighting the remote monitoring features:

Thank you for purchasing the Smart Video Baby Monitor. Now you can see and hear your baby sleeping in another room[,] or you can monitor your older children in their play[]room. Our Connected Baby Monitor let[s] you see your baby from the hand-held viewer, or from your smartphone. Watch over and communicate with your baby from anywhere in the world.

ISSUES:

Whether the subject touchscreen monitor, or “Parent Unit,” is classified under heading 8527, HTSUS, as a “reception apparatus for radiobroadcasting,” or under heading 8528, HTSUS, as a “monitor.”

2 Whether the subject baby monitor set is classified under heading 8525, HTSUS, as a “television camera,” or under heading 8527, HTSUS, as a “reception apparatus for radiobroadcasting.”

LAW AND ANALYSIS:

A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. § 1514(a)(2). The protestant timely filed this protest on August 16, 2023, within 180 days of liquidation of the first entry pursuant to 19 U.S.C. § 1514(c)(3). Further review of Protest No. 2704-23-167714 is properly accorded to the protestant per 19 C.F.R. § 174.24(b), as the decision against which the protest was filed is alleged to involve questions of law or fact which have not been ruled upon by CBP. Specifically, the protestant alleges that there has not been a previous ruling from CBP involving the classification of a baby monitor set put up for retail sale consisting of a “Linux-based, RF-enabled smartphone-like device with music and video-playing capability.” The protestant entered the subject merchandise on June 13, 2022, under heading 8527, HTSUS, as a “reception apparatus for radiobroadcasting.” On February 24, 2023, CBP liquidated the subject merchandise under heading 8528, HTSUS, which provides for “monitors [. . .] not incorporating television reception apparatus,” as well as subheading 9903.88.15, HTSUS.

Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 GRIs 2 through 6 will then be applied in order. In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, 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. 2

GRI 3 governs the classification of goods classifiable under two or more headings. GRI 3(a) states that “the heading which provides the most specific description shall be preferred to headings providing a more general description.” GRI 3(b) states, in pertinent part, that goods put up in sets for retail sale that cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character. GRI 3(c) states that when goods cannot be classified by reference to GRIs 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings which merit equal consideration.

The HTSUS headings under consideration are as follows:

8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording

2 See Treasury Decision (T.D.) 89-80, 54 Fed. Reg. 35127–35128 (Aug. 23, 1989).

3 or reproducing apparatus; television cameras, digital cameras and video camera recorders ***** 8527 Reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock ***** 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus

GRI 1 requires that we classify the subject baby monitor set in accordance with the terms of the applicable headings and any relative chapter or section notes. The subject baby monitor set consists of goods that are classified in more than one heading. Regarding the subject wireless camera, the protestant accepts that “the current iteration” of the camera, as imported, is prima facie classifiable as a “television camera” of heading 8525, HTSUS. But while there is no disagreement that the touchscreen monitor is classifiable outside of heading 8525, HTSUS, the protestant differs as to that component’s correct heading. As such, before applying the remaining rules of GRI 3 to the Nursery Pal Deluxe writ large, we must first address the touchscreen monitor’s classification and sequentially apply the GRIs for that component.

I. Classification of the Touchscreen Monitor, or “Parent Unit”

Note 3 to Section XVI, HTSUS, provides as follows:

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 of that component or as being that machine which performs the principal function.

The subject touchscreen monitor, or “Parent Unit,” is a machine designed for the purpose of performing multiple alternative functions. These functions, in the main, include playing certain media – including lullabies, picture books, games, videos, and sounds – as well as displaying the live video feed from the wireless camera through an RF signal. Therefore, under Note 3 to Section XVI, HTSUS, the Parent Unit must be classified “as if consisting only of that component or as being that machine which performs the principal function.”

We find that the principal function of the subject touchscreen monitor is to display the live video feed from the wireless camera as a “monitor” of heading 8528, HTSUS. First, the touchscreen monitor defaults to viewing the live camera footage. Upon startup, the camera’s footage is the information that the device first and automatically conveys to the user: no further action on the user’s part is necessary to view the camera feed. In contrast, the secondary media features are relegated to a separate, hidden menu bar and are not immediately accessible. Users must instead take the extra steps of swiping up from the bottom of the display to reveal the menu

4 bar and tapping either the “play” symbol (for lullabies, sounds, and books) or the “Hubble Baby” icon (for games and videos). This prioritization of the live camera feed demonstrates that the Parent Unit, by design, facilitates baby monitoring first, while the media functions are of secondary importance.

The importance of the monitoring function over the media functions is also evidenced by the Parent Unit’s pre-registration and linking to the wireless camera. The two items already being connected in the first instance, with no additional steps to take for registering the camera, further suggests that the merchandise was designed to streamline the customer’s usage of the monitoring function off the shelf. The touchscreen monitor’s support for four wireless cameras and its ability to switch between the different video feeds point to its ample monitoring capabilities into the bargain. More than an incidental perquisite, the support for several camera views pinpoints a deliberately designed and substantial function. If there were any remaining doubt as to the Parent Unit’s principal function, the first page of the user guide for the subject merchandise, while not controlling, would help answer such uncertainty, particularly with regard to its repeated reference to the set as a “baby monitor,” the promotion of the monitoring function to the user above other capabilities, and the notable silence regarding the secondary media functions:

Thank you for purchasing the Smart Video Baby Monitor. Now you can see and hear your baby sleeping in another room[,] or you can monitor your older children in their play[]room. Our Connected Baby Monitor let[s] you see your baby from the hand-held viewer, or from your smartphone. Watch over and communicate with your baby from anywhere in the world. [emphasis added]

Given these facts, we conclude that the principal function of the subject touchscreen monitor is to “monitor.” However, the protestant contends that the subject touchscreen monitor is more appropriately classified as a “reception apparatus for radiobroadcasting” under heading 8527, HTSUS. In support of this assertion, the protestant avers that “since the Congress who drafted the headings and subheadings is presumed to understand the scope of the heading, the language of the subheadings is instructive as to the scope of the heading,” and that “[i]t would be unreasonable to assume that Customs did not intend that articles described in a subheading to heading 8527 would not be considered to be prima facie classified in that heading.” But this “bottom-up” approach for determining the scope of a heading and Congress’s intent is “backwards,” to borrow the courts’ phrasing. The Court of Appeals for the Federal Circuit has explicitly rejected the protestant’s proposed analysis, 3 and as the court has reiterated, “a proper classification analysis starts with the terms of the headings, not the subheadings.” 4 Thus, the

3 “Gerson's and its amici's bottom-up analysis – which begins with a subheading and proceeds upward through the headings – is backwards. Classification under the GRIs must take a top-down approach, beginning, as it must, with the language of the headings, and ending with the language of the subheadings.” Gerson Co. v. United States, 898 F.3d 1232, 1239–40 (Fed. Cir. 2018) (emphasis added) (internal quotations omitted). See also Orlando Food Corp. v. United States, 140 F.3d 1437, 1440 (Fed. Cir. 1998) (“Only after determining that a product is classifiable under the heading should the court look to the subheadings to find the correct classification for the merchandise”) (emphasis added). 4 See Magid Glove & Safety Mfg. Co. v. United States, 87 F.4th 1352, 1358 (Fed. Cir. 2023) (quoting Orlando Food, 140 F.3d at 1440).

5 protestant’s attempt to direct our attention to the language of the subheadings under heading 8527, HTSUS, is flawed.

Moreover, the protestant argues that the subject touchscreen monitor “operates primarily as an audio receiver and secondarily as a video receiver,” and as such, must be classified under heading 8527, HTSUS. But the protestant failed to substantiate this claim: nothing in the submitted facts even hints at why the audio reception functionality is more pronounced or significant than the video reception functionality, nor why the two should not be considered in tandem as supporting the monitoring function. Finally, the protestant argues that the subject touchscreen monitor is simply not classifiable as a “monitor” of heading 8528, HTSUS:

The Parental [sic] Unit was not designed, in ordinary use, to act as either a primary or secondary monitor. Using the Parental Unit as a monitor of the type covered by heading 8528 would be a fugitive use. Even as a fugitive use, it could not function as even a secondary monitor without the addition of specialized software on both the sending camera unit and the receiving Parental Unit.

The facts disarm these assertions. The Parent Unit directly launches the camera feed; it is pre-registered and linked with the camera; it supports the viewing of several camera feeds at once; and it is touted for its monitoring functionality. To take on board the protestant’s view would be to ignore what is plain, and we decline to do so here: the Parent Unit is a “monitor” of heading 8528, HTSUS, by application of GRI 1.

II. Classification of the Baby Monitor Set as a Whole

As analyzed above, the subject baby monitor set consists of goods classifiable in more than one heading: in the main, a “television camera” of heading 8525, HTSUS, and a “monitor” of heading 8528, HTSUS. Since the subject merchandise is classifiable in more than one heading, we apply GRI 3. We note that the goods cannot be classified by application of GRI 3(a) because, for purposes of the subject protest, the provision for “television cameras” under heading 8525, HTSUS, is no more specific than the provision for “monitors” under heading 8528, HTSUS. Neither provision describes the goods with greater certainty, nor does one provision contain more difficult requirements to satisfy than the other. Therefore, we turn to GRI 3(b), which instructs that we classify the goods in the subject baby monitor set “as if they consisted of the component that gives them their essential character.”

The EN to GRI 3(b) provides the following guidance, in pertinent part, on determining which component imparts the essential character of a retail set:

The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

We previously found that for certain goods consisting of a “television camera” of heading 8525, HTSUS, and a “monitor” of heading 8527, HTSUS, the ability to view the camera footage

6 without the presented monitor indicates that the monitor may be the lesser component with respect to the merchandise’s overall functionality. For example, in Headquarters Ruling Letter (HQ) H270703, we revoked two ruling letters that considered the classification of certain “camera inspection systems (or ‘scopes’) for difficult-to-access spaces.” 5 We found that these scopes were “composite machines” under Note 3 to Section XVI, HTSUS, in that they consisted of “cameras” of heading 8525, HTSUS, and “monitors” of heading 8528, HTSUS, and were fitted together to form a whole. Accordingly, we determined that “they [were] to be classified as if consisting only of that component that perform[ed] the principal function.” The scopes in both of the revoked ruling letters (New York Ruling Letter (NY) N107616 and NY N225535) were capable of recording images, and these images could be viewed on displays other than the included “monitor.” We concluded in HQ H270703 that the “camera components perform[ed] the essential function of capturing images that enable visual inspection” and held that “[a]s the monitors merely display[ed] the captured images, and images recorded on a SD storage card may be displayed on devices other than the monitor, the monitors [did] not perform the principal function of the subject inspection systems and their role [was] subsidiary to that of the cameras.” The functionality of the included monitors, we reasoned, was no different from that of the “optical viewfinder or LCD commonly found on digital video cameras” described in the EN to heading 8525, HTSUS. 6

We find that the wireless camera analogously imparts the essential character of the subject baby monitor set. Though the subject wireless camera is incapable of recording the captured images on the device itself, the images are nonetheless viewable on displays other than the included touchscreen monitor. The touchscreen monitor here shares the fate of those in HQ H270703 in that it is not required for viewing the images captured from the camera. Users may instead view the images from the HubbleConnect smartphone app. The baby monitoring function can thus occur with or without the touchscreen monitor. The fact that the touchscreen monitor has secondary media playback features may distinguish it from the monitors at issue in HQ H270703, which “merely display[ed] the captured images,” but that difference carries little weight when, as we concluded above, the principal function of the Parent Unit is to act as a baby monitor. As such, we find that the subject wireless camera “perform[s] the essential function of capturing images that enable” the baby monitoring function and imparts the essential character of the baby monitoring set. We note that while the scopes at issue in HQ H270703 were “composite machines” subject to a principal function analysis, whereas the Nursery Pal Deluxe in this case consists of goods put up in a set for retail sale under GRI 3(b), the conclusions in both cases hinge upon the weight of their respective components’ functionality within a given context.

Finally, the protestant maintains that the goods cannot be classified by application of GRI 3(b) because a long line of CBP decisions involving “television cameras” of heading 8525, HTSUS, and “monitors” of heading 8528, HTSUS, should direct us to classify the subject

5 See Headquarters Ruling Letter (HQ) H270703 (dated Nov. 4, 2020). 6 The EN to heading 8525, HTSUS, provides as follows, in pertinent part: “Generally, the cameras of this group are equipped with an optical viewfinder or a liquid crystal display (LCD), or both. Many cameras equipped with an LCD can employ the display both as a viewfinder when capturing images and as a screen for displaying images received from other sources or for reproducing images already recorded.”

7 merchandise by application of GRI 3(c). 7 Here, the fact pattern is easily distinguishable from the cited decisions in that the camera footage is able to be viewed without the included monitor. That feature alone greatly diminishes the role that the subject touchscreen monitor plays in relation to the use of the goods because the touchscreen monitor is not designed to be the sole means of executing the monitoring function – a smartphone will suffice. The rulings highlighted by the protestant are silent on the issue of outside viewability and thus present a significantly different fact pattern. Therefore, the cited rulings do not control the outcome of this matter.

We conclude that because the subject wireless camera imparts the essential character of the baby monitor set, the entire set is classifiable as if it consists only of the wireless camera. It is undisputed that the subject wireless camera is classifiable as a “television camera,” of heading 8525, HTSUS. Therefore, we hold that the subject baby monitor set is classifiable under heading 8525, HTSUS, which provides for “television cameras.”

HOLDING:

By application of GRIs 1, 3(b), and 6, the subject baby monitor set is classified under heading 8525, HTSUS, specifically subheading 8525.89.30, HTSUS, which provides for, “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Other: Television cameras: Other.” The general column one rate of duty is free.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8525.89.30, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8525.89.30, HTSUS, listed above.

You are instructed to DENY the Protest.

Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP website at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

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

7
These decisions include HQ 958082 (dated September 6, 1995); HQ 957743 (dated September 6, 1995); HQ
957722 (dated May 12, 1995); HQ 955279 (dated November 8, 1993); and New York Ruling Letters (NY) N311935
(dated June 11, 2020) and N308147 (dated December 17, 2019).

8