CLA-2-90:OT:RR:NC:N4:405
Margaret Easton
Star USA, Inc.
250 N. Davis Road
Ashland, OH 44805
RE: The tariff classification and country of origin of electro-diagnostic kits exported from Finland
Dear Ms. Easton:
In your letter dated July 12, 2011, on behalf of Volk Optical, Inc., you requested a tariff classification ruling. No sample was provided, but you submitted a 29 page letter and several dozen additional pages of exhibits.
You state that “the imported items will be imported as kits.” The five kits that you give detailed information about and request classification for are the Complete Kit, the Ophthalmoscope Kit, the Otoscope Kit, the Deramatoscope Kit, and a kit consisting of the HAND1, cradle and aluminum case.
Each kit consists primarily of a digital camera (the HAND1), specialized optical modules, a cradle/charger, plus various, additional, relatively minor items, all packed in a box with an interior shaped specifically for them.
Harmonized System Explanatory Note ij to Heading 90.18 excludes cameras unless incorporated permanently in the instruments or appliances of that Chapter. However, we consider it to be sufficient that first four kits have, in addition to the camera, the specialized optical module(s) that will necessarily be used in conjunction with it for the intended documentation/diagnosis of the patient’s outer and/or inner eye, inner ear and/or skin. The HS EN to 85.13 points to 90.18 for the classification of specialized medical inspection lamps, e.g., for ear inspection, and HS EN 90.18 I-C-2 indicates ophthalmoscopes are included and 90.18-I-D does the same regarding auriscopes, usually another name for an otoscope.
We agree that the applicable subheading for the Complete Kit, the Ophthalmoscope Kit, the Otoscope Kit and the Deramatoscope Kit will be 9018.19.9550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “other” Electro-medical instruments and appliances and parts and accessories thereof. The rate of duty will be free.
Regarding the kit consisting of the HAND1, cradle and aluminum case, you propose classification in HTSUS 8525.80.40. However, the issue of the scope of digital cameras under heading 8525, HTSUS, is currently pending before the United States Court of International Trade in the matter of Sony Electronics v. United States, Court Nos. 08-00264 and 08-00265. Section 177.7, Customs Regulations (19 CFR 177.7) provides that rulings will not be issued in certain circumstances. Specifically, § 177.7(b) reads, in pertinent part: No ruling letter will be issued with respect to any issue which is pending before the United States Court of International Trade, the United States Court of Appeals for the Federal Circuit or any court of appeal therefrom. As such, CBP will not issue a classification ruling on the digital cameras at this time.
You also requested the classification of various subcomponents IF they were imported separately. As cited above, you state that “the imported items will be imported as kits.” Per Customs Regulation 177.7, no rulings will be issued to transactions which are essentially hypothetical in nature so we will rule only on components for which you currently plan to import separately (normally either packed as multiples of the same component for your inventory or packed for separate shipment directly to ultimate purchasers) contrary to the statement above. In any case, ruling requests are limited a maximum of 5 items of the same class or kind. You may resubmit a request for subcomponents, up to 5 of the same class or kind, which you do plan to import separately.
You also asked for a ruling concerning the country of origin of the “kit”. We assume you mean the Complete Kit.
An important element of the Complete Kit is the HAND1, which you describe as “Assembled in Austria. Sent to Finland to incorporate software.”
Regarding the marking of the Complete Kit, we are returning your request for a ruling. We need additional information in order to issue a ruling. Please submit the information described below:
1. Provide samples, photographs, drawings or other pictorial representations of the components assembled in Austria. What is the country of origin and approximate cost of each of those components?
2. Provide a detailed explanation of the assembly, including an explanation of the expertise and equipment necessary for the assembly, especially when one of the components which are being assembled is not of Austrian origin.
3. What is the software that is incorporated in Finland? What changes does it result in? In particular, does it change the use and/or function of the export from Austria? See Headquarters Ruling Letter H014068 - HkP, dated October 9, 2007.
If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section. If your request was submitted electronically and the information required does not involve sending a sample, you can re-submit your request and the additional information electronically.
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 concerning your proposed classification of the HAND1 in 8525.80.40, contact National Import Specialist Lisa Cariello at (646) 733-3014. If you have any other questions regarding the ruling, contact National Import Specialist J. Sheridan at (646) 733-3012.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division