CLA-2-85:OT:RR:E:NC:1:108

Mr. Paul Wondolleck
Calix Networks
1035 N. McDowell Blvd.
Petaluma, CA 94954

RE: The tariff classification of optical network terminals (ONTs) from China.

Dear Mr. Wondolleck:

In your letter dated June 2 2009, you requested a tariff classification ruling.

The merchandise under consideration is the Calix 700GX optical network terminals (ONTs), part numbers 100-01480, 100-01481, 100-01482, 100-01483, 100-01484, 100-01485, 100-01486, and 100-01488, which integrate extensive Internet Protocol (IP) functionality into a compact enclosure. These multi-function machines have a Gigabit Ethernet interface for IPTV (Internet Protocol Television) and data services and supports voice, video, and data on a single fiber. In addition, the 700GX ONTs transmit high-speed data, POTS (plain old telephone service), and IPTV (Internet Protocol Television) services to subscribers in their networks.

Consideration was given to classify this merchandise within subheading 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, as you suggested; however, it was deemed inappropriate. Multi-function machines are classified according to the principal function pursuant to Section XVI, legal Note 3. However, it has been determined that these multi-function machines have no one component that imparts the principal function. Thus, if a principal function cannot be determined, General EN (VI) to Section XVI directs us to apply General Interpretative Rule 3 (c). General Interpretative Rule 3 (c) provides that goods shall be classified under the heading which occurs last in numerical order among those (heading 8517 and heading 8525) which equally merit consideration. Based on the above, classification of these ONT’s will be under heading 8525, HTSUS.

The applicable subheading for these Calix 700GX ONTs will be 8525.50.30, Harmonized Tariff Schedule of the United States (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: Transmission apparatus: Television: Other. The rate of duty will be 1.8 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,

Robert B. Swierupski
Director
National Commodity Specialist Division