Mr. Steven Draffen
Olympus America, Inc.
3500 Corporate Parkway
P.O. Box 610
Center Valley, PA 18034-0610
RE: The tariff classification of the Capsule Endoscopic Set and the Capsule Endoscopic System from Japan.
Dear Mr. Draffen:
In your letter dated August 20, 2007, you requested a tariff classification ruling.
The subject merchandise, based on the submitted information, is the Capsule Endoscopic Set (MAJ-1469), which is comprised of 5 capsule endoscopes (small color cameras known as the Olympus EC Type 1) with activator, 50 antenna lead covers, and patients’ endoscopic instruction sheets, all of which are packaged, at the time of importation, in a manner suitable for sale directly to the user without repacking; and the Capsule Endoscopic System (MAJ-1467), which consists of a recorder unit with data display panel (e.g., error messages, but not images of the patient’s organs), an antenna lead set with 8 antenna leads, a recorder unit harness, a recorder unit cradle (including cable with AC adapter), a real-time viewer with a 2-inch diagonal LCD panel, a real-time viewer cable, two battery packs, a battery charger, an USB thumb drive, and an instruction manual, all of which are packaged in a fitted suitcase, at the time of importation, in a manner suitable for sale directly to the user without repacking.
In reference to the Capsule Endoscopic Set (MAJ-1469), each capsule endoscope, referred to as the “capsule,” when ingested will begin to take live images of the patient’s internal organs and digestive system in real time and then will transmit these images by a built-in wireless antenna to the recorder unit in noting that the capsule does not have recording capability. The capsule activator, incorporating a permanent, nonflexible magnet within a plastic case, is designed to be inserted in position on the capsule container to activate the capsule circuit. The antenna lead covers, which are stated to be composed of adhesive, single-use paper covers, are designed to connect the antenna lead set to the patient’s body for the purpose of capturing the images transmitted by the capsule to the recorder unit.
In regard to the operation of the Capsule Endoscopic System (MAJ-1467), the antenna lead set is connected to the recorder unit that is placed in the harness, and the harness is secured to the patient by a suspender-belt arrangement. The real-time viewer, not incorporating video recording or reproducing apparatus, can be connected by means of the real-time viewer cable to the recorder unit to view in real time the images being recorded. The two battery packs with battery charger are used for the recorder and the real-time viewer. Once the procedure is completed, the recorder unit is removed from the patient and is placed on the cradle, which is connected to the workstation PC for downloading the recorded information to the PC for diagnosis. The USB thumb drive is used to copy the downloaded information from the PC for use in the physician’s laptop or desktop.
Based on the above information, the Capsule Endoscopic Set (MAJ-1469) is considered to be a set for tariff classification purposes with the essential character being imparted by the capsule endoscopes.
The applicable subheading for this endoscopic set (MAJ-1469) will be 8525.80.3010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Transmission apparatus for radio-broadcasting or television… Television cameras, digital cameras and video camera recorders: Television cameras: Other: Color. The rate of duty will be 2.1 percent ad valorem.
The Capsule Endoscopic System (MAJ-1467) is also a set for tariff classification purposes with no one component imparting the essential character of the set; therefore, in accordance with General Rule of Interpretation 3 (c), classification will be in the heading (in this instance, 8528, HTSUS) which occurs last in numerical order among those which equally merit consideration.
The applicable subheading for the Capsule Endoscopic System (MAJ-1467) will be 8528.59.2500, HTSUS, which provides for Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other monitors: Other: Color: With a flat panel screen: Other: With a video display diagonal not exceeding 34.29 cm. The rate of duty will be Free.
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.
Robert B. Swierupski