CLA-2-85:OT:RR:NC:N1:108
Ms. Attila Kertesz
Adaptive Recognition America Corp.
28059 US Highway 19 N, Ste. 203
Clearwater, FL 33761
RE: The tariff classification of an IP camera from Hungary
Dear Ms. Kertesz:
In your letter dated August 26, 2013, you requested a tariff classification ruling.
The subject merchandise, based on the submitted information, is an IP camera, which is referred to as the “FreewayCAM Digital LPR (License Plate Recognition) Camera.” The housing of this digital color video camera embeds the illuminator, the motorized autofocus, the auto-iris, and the auto-zoom optics with its adaptive automated regulations. This camera also contains a high-speed CPU, which allows such intelligent functions as an automatic mode to configure settings of auto brightness control, auto day/night switch, and autofocus. This IP camera captures real-time moving images and transmits them to a location outside the camera for viewing and recording. It is stated that this camera does not have any inbuilt recording capability.
At the time of importation, this IP camera is packaged with an Ethernet cable, a power supply cord, a wall bracket, and a user’s manual. This combination is considered a set for tariff classification purposes, with the essential character being imparted by the IP camera.
You suggest that this IP camera be classified in subheading 8525.80.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides, in relevant part, for Television cameras, digital cameras and video camera recorders: Digital still image video cameras.
In this regard, although the IP camera is referred to as a “digital still image video camera,” it is stated not to have the capability of recording images. It contains an internal buffer memory designed to briefly hold a limited amount of data in order to alleviate short-term processing overloads.
However, it should be noted that digital cameras are considered to have no internal memory for retrieval of images if subsequent to the time they are captured, the images are no longer saved. This is supported in ruling decision HQ 966172, dated June 4, 2003, when it was determined that the capability of buffering (temporarily storing) still images, in sequential order to transmit them from the camera to an ADP (automatic data processing) machine, was not internally recording those images in the capacity of a digital still image camera.
Since it is required that cameras in subheading 8525.80.4000, HTSUS, be capable of internally recording still images, classification in subheading 8525.80.4000, HTSUS, is precluded.
The applicable subheading for this type of IP camera will be 8525.80.3010, 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: Other: Color. The rate of duty will be 2.1 percent ad valorem.
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 ruling, contact National Import Specialist Lisa Cariello at (646) 733-3014.
Sincerely,
Myles B. Harmon
Acting Director
National Commodity Specialist Division