CLA-2-85:OT:RR:NC:N2:209
Cindi Kavanaugh
Senor Trade Advisor
Mohawk Global Trade Advisors
4455 Genesee Street
Buffalo, NY 14225
RE: The tariff classification of the ScripTalk Station from China
Dear Ms. Kavanaugh:
In your letter dated November 14, 2019, you requested a tariff classification ruling on behalf of your client, En-Vision America, Inc.
The item concerned is referred to as the ScripTalk Station. This item is a portable
electronic device that aids individuals (blind, visually impaired, or print impaired) with the ability to manage their own medications. The device is a wireless speaker that is used to audibly reproduce the information from a prescription bottle label.
In use, the pharmacy will use a specific program to download medical information onto an RFID tag. The tag is attached to a user’s medication bottle. When a visually impaired/blind user needs to determine what information is contained on their medication bottle they place the bottle with the RFID tag within close proximity to the ScripTalk Station and press the play button. The ScripTalk Station wirelessly receives data from the RFID tag and audibly plays that information so the user can hear it.
You have proposed classification of the ScripTalk Station under heading 8517.62.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.”
The essential components of the ScripTalk Station are the speaker which provides the audible information to the user and the RFID transceiver module. As such the ScripTalk Station is a composite machine which performs two or more complementary functions, therefore, Note 3 to Section XVI is applicable. Note 3 to Section XVI, states the following:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
It’s the opinion of this office that the speaker provides the principal function to this device. CBP has consistently classified wireless speakers that operate using RF, Bluetooth and Wi-Fi connectivity within heading 8518, HTSUS. These include speakers that have the ability to wirelessly transmit/receive streaming audio and control commands, and to act as a wireless smart phone interface in regards to receiving and transmitting voice when used to answer and/or make telephone calls. Based upon past precedents classification within heading 8517, HTSUS, would be inapplicable.
The applicable subheading for the ScripTalk Station will be 8518.21.0000, (HTSUS), which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Loudspeakers, whether or not mounted in their enclosures: Single loudspeakers, mounted in their enclosures”. 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 8518.21.00, HTSUS, unless specifically excluded, are subject to an additional 15 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 8518.21.0000, 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.
You have also requested duty free treatment in an alternate classification in subheading 9817.00.94, HTSUS under the Nairobi Protocol. The Nairobi Protocol to the Agreement on the Importation of Educational, Scientific, and Cultural Materials Act of 1982, established the duty-free treatment for certain articles for the handicapped. It appears that this item is designed to benefit those whose vision cannot be corrected for reading via contact lenses or eyeglasses, and it also benefits the totally blind since it is speaking the text, not magnifying it. Based on the information supplied, it is the opinion of this office that a secondary classification will apply for the Scrip Talk Station in subheading 9817.00.94, HTSUS, as articles specially designed or adapted for the use or benefit of the blind, free of duty and user fees (if any), if all applicable entry requirements are met.
Please note that the additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
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