CLA-2-85:OT:RR:NC:N2:209

Fang Lu
Hevo Technology Corporation
19702 Bluefiled Plz.
Yorba Linda, CA 92886

RE: The tariff classification of a wireless intercom headset system from China

Dear Fang Lu:

In your letter dated March 18, 2022, you requested a tariff classification ruling on a wireless intercom headset system.

The item concerned is referred to as the “Solidcom C1 full-duplex wireless intercom headset system”. The system is comprised of up to 8 wireless headsets and a HUB station. The audio communication between headsets is achieved through wirelessly sending voice data from one headset to the HUB station which forwards the voice data to the rest of the headsets that are paired to the HUB station. The voice communication within the system is using a closed network allowing only the paired headsets to transmit voice signals. This is accomplished through the HUB station which encrypts the voice data using AES 128-bit encryption. The system uses radio frequency bands between 1,880 MHz and 1,900MHz depending on the country or region with up to 1,000 feet of transmission range.

The wireless headsets and the HUB station are designed to be used together. They are regarded as a functional unit, and classification of these two items is governed by Note 4 to Section XVI: Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

According to the information provided, the wireless headsets and the HUB station contribute together to the clearly defined function of transmitting encrypted voice signals in a closed network. The two items work together to perform a clearly defined function covered by Heading 8517, Harmonized Tariff Schedule of the United States (HTSUS).

The applicable subheading for the “Solidcom C1 full-duplex wireless intercom headset system” will be 8517.62.0090, HTSUS, which provides for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other”. The general rate of duty will be Free.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8517.62.0090, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8517.62.0090, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.

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 the World Wide Web at https://hts.usitc.gov/current.

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 Steven Pollichino at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division