CLA-2-85:OT:RR:NC:N2: 208
Kelly Danks
ICAT Logistics Inc.
6805 Douglas Legum Dr. Elkridge, MD 21075
RE: The tariff classification of inspection scope systems from China
Dear Ms. Danks:
In your letter dated March 5, 2024, on behalf of Inspectron Inc., you requested a tariff classification ruling.
The first item under consideration is the BK7000 video inspection scope, which is a high-definition borescope with a 5.5 mm dual imager. The BK7000 video inspection scope consists of a camera imager with a five-inch LCD capacitive touch screen. Based on the information provided, this video inspection scope captures and records still and video images of hard-to-reach interior structures.
The second item under consideration is the BK7000 HDLE (wireless handle). The BK7000 wireless handle is an accessory used with the BK7000 video inspection scope. This module, which contains a rechargeable lithium battery, connects to the 5.5mm imager with camera and transmits a video stream via Wi-Fi to the paired video inspection scope's screen. This wireless handle can also control the connected camera. It is our opinion that the principal function of the handle is performed by the image/video transmission.
In your submission, you suggested that this wireless handle should be classified in heading 8529, Harmonized Tariff Schedule of the United States (HTSUS), as a part of the camera. However, according to the information provided, the main function of this handle is to transmits video to the display unit. Therefore, classification in heading 8529, HTS, is not applicable.
The last item in question, is the BK7000 Combo, which is a combination of the BK7000 high-definition borescope with 5.5 mm dual imager and BK7000 HDLE wireless handle assembly, imported together packaged for retail sale. The 5.5mm imager with camera can connect to either the BK7000 display unit or to the BK7000 wireless handle. The wireless interface between the two devices allows the examination of an object up to ten meters away from the video inspection scope. The camera can be controlled via the video inspection scope or the wireless handle. It is the opinion of this office, that the BK7000 video inspection scope imparts the essential character of the set.
The applicable subheading for the BK7000 video inspection scope and BK7000 Combo set will be 8525.89.4000, 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: Other: Digital still image video cameras. The rate of duty will be Free.
The applicable subheading for the BK7000 HDLE (wireless handle) 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, including apparatus for communication in a wired or wireless network : Other apparatus for transmission or reception of voice, images or other data: 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8525.89.4000, HTSUS, and 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 subheadings 8525.89.4000, HTSUS, and 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, including information on exclusions and their effective dates, 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division