CLA-2-85:OT:RR:NC:N1:109
Cheryl Murphy-Corbeil
National Consulting Manager
Cole International Inc.
5955 Airport Road
Mississauga, ON L4T 1N2
Canada
RE: The tariff classification of a two way radio system from Canada
Dear Ms. Murphy-Corbeil:
In your letter dated October 28, 2013, you requested a tariff classification ruling on behalf of your client, Tallysman Wireless.
The merchandise in question is known as the Sprite TW200 for Mototrbo Professional Digital Two Way Radio System. This device is a telematics solution which is a term describing the convergence of telecommunications and information processing. This term refers to automation devices in automobiles such as the emergency warning system for vehicles, GPS navigation, integrated hands-free cell phones, wireless safety communications, and automatic driving assistance systems. The Sprite TW200 telematics solution provides extensive capabilities such as, GPS event driven reporting and logging, waypoint reporting, and it provides features to minimize possible data loss due to signal fading. The end result is a fully featured Telematics platform that fully exploits the radio resources and maximizes channel usage by minimizing air-time data transmissions.
The function of the TW200 is to automatically initiate event reports such as distance moved and changes in I/O lines. The complete system is comprised of the TW200 in vehicle Telematics box, a Mototrbo two way radio systems, and a host dispatch application. The TW200 does not provide any navigational function or aid. It processes GPS data received from a GPS receiver embedded within a Mototrbo digital radio. It logs and processes the data and generates reports based on pre-determined criteria. The TW200 in-vehicle does not transmit data to another device but it does have a USB interface with a Mototrbo digital two way radio. The data received is typically passed to a PC application which displays the vehicle location or the status of the vehicle.
Based on HQ W967550, this device is considered a composite machine performing functions of headings 8517 and 8543, HTSUS. Based on the information provided, it is our opinion that both functions are equally important. There is no clear singular principal function for the Sprite TW200. The General ENs to Section XVI, HTSUS, provide, with respect to multi-function and composite machines: "Where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply GRI 3(c)". GRI 3(c) provides that goods which cannot be classified by reference to GIR 3(a) or (b) must be classified in the heading which occurs last in numerical order among those which equally merit consideration. Therefore based upon GRI 3(c), the Sprite TW200 for Mototrbo Professional Digital Two Way Radio System is classifiable within heading 8543, HTSUS.
The applicable subheading for the Sprite TW200 for Mototrbo Professional Digital Two Way Radio System will be 8543.70.9650, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus…: Other machines and apparatus: Other: Other: Other: Other.” The general duty rate will be 2.6 %.
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 Steven Pollichino at (646) 733-3008.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division