Mr. Ivan Lavrikov
Schenker of Canada Limited
6555 Northwest Drive
Mississauga, Ontario L4V1K2
RE: The tariff classification of a surveillance system from Korea.
Dear Mr. Lavrikov:
In your letter dated June 1, 2007, on behalf of Lorex Technology Inc., you requested a tariff classification ruling.
The subject merchandise is a surveillance system, which is denoted as model SG19LD804-161. It is comprised of the following: a 19 inch TFT LCD video monitor with a built-in digital video recorder (DVR) and hard disk drive (HDD), four color CCD cameras with cables, an ethernet 3M cable, and a remote control. This system is designed for use in small businesses, restaurants, convenience stores, law offices, clinics or homes for security through video monitoring of live action in real time.
This system is packaged for retail sale, in its imported condition, with all the aforementioned components. As per the importer, this system will not be repackaged after importation into the United States. It has been determined that the subject merchandise is a set for tariff classification purposes. The components of the set contribute to the complete function of visual monitoring of a business, an office or a home. The individual components function in a cohesive, seamless manner to complete this task. It is the opinion of this office that no single component can be viewed as imparting the essential character of the set. Therefore, classification of this set will be in accordance with Rule 3(c) of the General Rules for the Interpretation of the Harmonized System that requires classification in the heading (in this instance, heading 8528, Harmonized Tariff Schedule of the United States) which occurs last in numerical order among those which equally merit consideration.
In your letter, you express the opinion that model SG19LD804-161 is properly classified under subheading 8521.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other video recording or reproducing apparatus, whether or not incorporating a video tuner. Your reasoning for this classification suggests that the DVR within the video monitor is the essential component of this system; however, exclusionary note (c) in the Explanatory Notes (EN) for heading 8521, HTSUS, excludes video monitors from being classified in that heading. Video monitors are classified in heading 8528, HTSUS. Furthermore, subheading 8528.59.2000, HTSUS, describes the instant apparatus in its entirety, as a video monitor, color, with a flat panel screen, incorporating video recording or reproducing apparatus. Therefore, the 19-inch TFT LCD monitor, incorporating a DVR in its entirety, is properly classified in subheading 8528.59.2000, HTSUS.
The applicable subheading for the surveillance system, model SG19LD804-161, will be 8528.59.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 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: Other monitors: Other: Color: with a flat panel screen: Incorporating video recording or reproducing apparatus: Other. The rate of duty will be 3.9 percent.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
If you have any questions regarding the ruling, contact National Import Specialist Lisa Cariello at 646-733-3014.
Robert B. Swierupski