CLA-2-85:OT:RR:NC:N1:109

Mr. John M. Peterson, Esq.
Neville Peterson LLP
Counsellors at Law
17 State Street
19th Floor
New York, NY 10004

RE: The tariff classification of a CareLink Monitor from Malaysia

Dear Mr. Peterson:

In your letter dated January 17, 2012 you requested a tariff classification ruling on behalf of your client, Medtronic, Inc.

The merchandise subject to this ruling is a CareLink Monitor. It is a small one pound external device that receives recorded data from an implantable cardiac device (ICD), such as a pacemaker or defibrillator, which is implanted into the chest of a patient. An ICD, upon an arrhythmic event, such as a slow heartbeat, a fast heartbeat, or an irregular pattern, sends electrical impulses to restore the heart’s proper rhythm and records data on the patient. Your letter states that Medtronic, Inc. imports ICDs that contain a feature called wireless telemetry, which allows those devices to wirelessly transmit the recorded data to a source outside the body, i.e., a physician or a separate monitor, so that the data can be reviewed. The CareLink Monitor, which is located outside the body, receives the data wirelessly from that type of ICD and transmits the data over a standard phone line to a physician through Medtronic’s CareLink Network. The CareLink Monitor can be programmed for manual or automatic data transmission and will automatically communicate with the network upon signs of an arrhythmic event. The data transmitted is comparable to information that would be obtained during a doctor’s office visit, using the same wireless telemetry. Your submission states that the CareLink Monitor is available only by prescription.

The applicable subheading for the CareLink Monitor will be 8517.62.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other." The rate of duty will be free.

In your submission you request consideration of a secondary classification for the CareLink Monitor under HTSUS 9817.00.96, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. It is clear that this item was specially designed for use in relaying information from an article implanted within someone suffering from a permanent or chronic handicap for their benefit.  We agree with you that none of the exclusions apply from HTSUS, Chapter 98, Subchapter 17, U.S. Note 4.

On that basis, we also agree that a secondary classification will apply in HTSUS 9817.00.96 as specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped (except articles for the blind). Note that the requirement that you prepare and file a U.S. Department of Commerce form ITA-362P has been eliminated via a notice from the International Trade Administration, published in the Federal Register of June 1, 2010.  This merchandise is already duty free, but if you elect to claim the secondary classification in Chapter 98 of 9817.00.96 and meet the entry requirements, no merchandise processing fee will apply to those importations even if they are non-NAFTA, noting, e.g., Headquarters Ruling Letter 229110 IDL, 8-29-02.  Also note that this classification has no effect on any quota, visa, or restricted merchandise requirements.

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).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the classification in 9817.00.96 of these items, contact National Import Specialist J. Sheridan at (646) 733-3012. If you have any other questions regarding the ruling, contact National Import Specialist Linda Hackett at (646) 733-3015.

Sincerely,

Thomas J. Russo
Director
National Commodity Specialist Division