CLA-2 RR:CR:SM W561583 MLR
Mr. J. Gary Mudd
American Printing House for the Blind, Inc. 1839 Frankfort Avenue
P.O. Box 6085
Louisville, KY 40206-0085
RE: Applicability of duty exemption under HTSUS subheading 9817.00.92-96 to cassette recorders, light boxes and components; Nairobi Protocol; specially designed or adapted for the handicapped
Dear Mr. Mudd:
This is in reference to your letter dated November 19, 1999, requesting a ruling on whether various completed products and component items are eligible for the duty exemption of subheading 9817.00.92-96, Harmonized Tariff Schedule of the United States (HTSUS). A catalog was submitted with your request and a meeting was held on December 1, 1999.
FACTS:
It is stated that the American Printing House for the Blind (APH) is a non-profit corporation with the sole purpose of manufacturing and distributing products and educational materials for use by individuals who are blind or visually impaired. APH imports products that are designed to be used by blind or visually impaired, and imports parts that are used to either manufacture or repair these products. It is stated that APH was named by Congress, through the "Act to Promote the Education of the Blind" in
1879 as the national, central source of school books and tangible apparatus for blind Students.
APH imports a "Handi-Cassette Recorder" and "Table top cassette recorder''
which have high contrast lettering and controls, touch checking of tape movement, an
audible low battery warning in the record mode, and digital speech control. APH also
imports light boxes which are used by people with low vision and consist of a lighted
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translucent work surface that is used to stimulate awareness of light, color and objects. Similar to the light box is a mini-Lite box designed to operate on rechargeable batteries. APH also offers a transition tote system stated to be designed to assist high school age students who are visually impaired or blind as they explore and prepare for the "world of work". The system contains either a student manual in large type, braille or on cassette tape covering 30 lessons on organizational skills, job-seeking skills, etc.
These articles have been receiving duty-free treatment; however, in addition to these items, APH imports components that it claims should be duty-free as they are used to repair these articles or are used with these articles.
Some of the items that APH imports for use with the above articles, as described in their catalog, include:
Mini-lite box components, such as acrylic sheeting, that will be assembled into a light box in the U.S. or be used as replacement parts;
Mini-lite carrying case made of tough nylon and roomy pockets to hold overlays and other materials
Handi-cassette recorder replacement Ni-cad batteries and battery clips
Handi-cassette recorder repair items and components
Handi-cassette recorder carrying case made of nylon
Table-top recorder spare parts and components.
Transition Tote Case designed to accommodate assistive technology and other specialized equipment of the "transition tote system", as well as books, folders, supplies, a clipboard and an APH prinUbraille calculator.
It is stated that the repair items and spare parts of the Handi-Cassette Recorder and Table-top recorder include items such as push knobs, plastic handles, AC power converters, ear phones, PCB assemblies, fuses, speakers, and rechargeable battery packs.
Other items imported by APH are:
Analog Clock Model which displays time in braille and raised large print, and is made of durable black plastic with high contrast white markings and hands that easily rotate but with no motor.
Janus Interline Slate which allows a person to write on both sides of a 3 x 5 index card without having to remove the paper, and notched on one side for easy insertion of the index card.
Speech Expresser (parts) which are "rechargeable batteries (four standard AA Ni-Cad that can be purchased anywhere rechargeable batteries are sold)"; power supply/recharger; headphone jacks; cables with 3.5 mm mono plugs; and adapters for 3.5 mm stereo and¼ inch mono jacks.
Listening post (parts) which are 3 foot cords with 3.5 mm plugs that allow four pairs of mono headsets to be connected simultaneously to one sound source.
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All imported articles are sold via catalog sales and over the phone.
ISSUE:
Whether the components listed above are eligible for duty-free treatment under subheading 9817.00.92-96, HTSUS.
LAW AND ANALYSIS:
The Nairobi Protocol to the Agreement on the Importation of Educational, Scientific, and Cultural Materials Act of 1982, established the duty-free treatment for certain articles for the handicapped. Presidential Proclamation 5978 and Section 1121 of the Omnibus Trade and Competitiveness Act of 1988, provided for the implementation of the Nairobi Protocol into subheadings 9817.00.92, 9817.00.94, and 9817.00.96, HTSUS. These tariff provisions specifically state that "[a]rticles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons" are eligible for duty-free treatment.
U.S. Note 4(a), subchapter XVII, Chapter 98, HTSUS, states that, "the term 'blind or other physically or mentally handicapped persons' includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working."
Customs utilizes a principle known as the "probability of general public use" in determining what constitutes "specially designed or adapted" within the meaning of the Nairobi Protocol. See also T.D. 92-77. This principle involves consideration of various factors on a case-by-case basis.
Customs has allowed certain tape players to be eligible for subheading 9817.00.94, HTSUS, treatment. See HRL 952398 dated December 30, 1992, (a "Telex TBC" talking book cassette player with color coded, over-sized, and molded keys; variable speed, tone, and volume control; and sold exclusively to the Library of Congress was eligible); HRL 221541 dated July 26, 1989, (cassette players to be purchased by the Federation of the Blind, without recording facilities, but possessing tactile switches for the blind, and for use with special four track); and HRL 558910 dated March 3, 1995.
Similarly, it is our opinion that the cassette recorders are specially designed or adapted for the blind as they feature operation buttons with tactile symbols and touch checking of tape movement. The light boxes too are specially designed or adapted for the blind as they provide a light work surface for people with low vision.
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In this case, we also find the analog clock model and Janus interline slate to be eligible for duty-free treatment under subheading 9817.00.94, HTSUS. The analog clock specifically displays time in braille and the slate is used to write braille.
In regard to the other items that APH imports and claims are used to repair the cassette recorders and light boxes, such as push knobs, plastic handles, batteries, battery clips, AC adapters, ear phones, PCB assemblies, fuses, speakers, and acrylic sheeting, the superior text preceding subheading 9817.00.92, HTSUS, was amended by Presidential Proclamation in 1995 to encompass "parts and accessories ... that are specially designed or adapted for use in the foregoing articles." See Presidential Proclamation 6821, 60 FR 47663 at 47674, dated September 13, 1995. This amendment was effective for goods entered on or after January 1, 1995.
Prior to the Presidential Proclamation, whether an item was a "part" was relevant because it would be excluded from eligibility insofar as the subheadings encompassing the Nairobi Protocol did not apply to "parts" of articles. This was based on a restatement of the established principle of Customs law, reiterated by the courts, "that a tariff provision which does not specifically provide for parts does not include parts." Westminster Corp. v. United States, 432 F. Supp. 1055, 1058 (1977); Glass Products, Inc. v. United States, 641 F. Supp. 813, 815 (CIT 1986); and Murphy & Co. v. United States, 13 Ct.Cust. Appls. 256, T.D. 41201 (1925). Even after the amendment of subheading 9817.00.96, HTSUS, it is relevant to examine whether an item is a "part" because the items APH imports must either be (1) articles that are specially designed or adapted for the use or benefit of the blind, or (2) parts and accessories that are specially designed or adapted for use in the foregoing articles. We note that the latter category does not require it to be specially designed for the blind or handicapped, but only for those articles themselves.
With regard to the carrying cases, in HRL 561020 dated October 14, 1998, Customs examined three diabetes organizers and determined that their distinctive design features and characteristics, easily distinguish them from articles useful to the general public so that any use thereof by the general public would be so improbable that it would be fugitive. Examples of the distinctive features were: the separate cool compartment for insulin, the elastic straps for insulin bottles and syringes, compartments for meters, items to measure temperature and a detachable medical waste pouch. Furthermore, the company selling these products stated that they were sold in specialized sections of drugstores, by mail, and they were advertised in specialized publications targeted to people with diabetes. It was also noted that the company specialized in the health care area and specifically, with articles for people with diabetes. We found that the three diabetes organizers are specially designed or adapted for the use or benefit of handicapped persons and were entitled to duty-free treatment under subheading 9817.00.96, HTSUS.
In addition, HRL 561020 found mobility organizers and carrypaks for walkers,
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We note that the subject items are for use in the respective articles for the blind and are adapted to the requirements of such articles so that, for example, the jacks plug into the proper-sized holes of such articles. However, we do not find these parts to be "specially designed or adapted for use in the respective articles. Items such as jacks, AC power converters, fuses, ear phones etc. are articles that are used by the general public, and while they may be designed to be used with the respective articles, they are not specially designed or adapted. Accordingly, we do not find these items to be articles specially designed or adapted for the use or benefit of the blind, or parts and accessories that are specially designed or adapted for use in the foregoing articles.
HOLDING:
Based on the information submitted, the Analog Clock Model and Janus Interline Slate are articles specially designed or adapted for the blind, and therefore, eligible for duty-free treatment under subheading 9817.00.94, HTSUS. We also find that the carrying cases are eligible for duty-free treatment under subheading 9817.00.96, HTSUS, as accessories that are specially designed for use with the respective articles for the blind. We find that the acrylic sheeting and battery clips are parts that are specially designed for use in articles for the blind, but that the other repair components are not as they are items that are generally available to the public, used by the public, and are not specially designed or adapted.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
John Durant, Director Commercial Rulings Division