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

Larry Ordet
Sandler, Travis & Rosenberg, P.A.
5835 Waterford District Drive
Miami, FL 33126

RE: The tariff classification of an amplified telephone from China

Dear Mr. Ordet:

In your letter dated May 13, 2025, you requested a tariff classification ruling on behalf of your client Clarity Products LLC.

There are four telephones in question, they are referred to as, (1) XLC8, (2) XLC8HS, (3) XLC3.4+, and (4) the Alto Plus.

The XLC8 is an amplified lined telephone with a cordless handset. It provides 50dB amplification, tone control, extra loud ringer, outgoing speech amplification, and built-in answering machine. The XLC8HS is an amplified expansion handset (no base station) designed to work with the XLC8 telephone base station. It provides 50dB amplification, tone control, extra loud ringer, and outgoing speech amplification. The XLC3.4+ is an amplified lined telephone with a cordless handset. It provides 50dB amplification, tone control, extra loud ringer, and outgoing speech amplification, but does not include a built-in answering machine. The Alto Plus is an amplified corded phone with 53dB amplification, tone control, extra loud ringer, and outgoing speech amplification.

It is stated that these particular phones are designed specifically for use by the hearing impaired. They include:

At least 50dB of amplification, which means they amplify incoming sounds up to 50 decibels. Noise reduction software, which suppresses static and electrical interference, making conversations clearer for those suffering from hearing loss. Acoustic echo cancellation technology, which recognizes that the sounds coming from the earpiece have already been processed and prevents feedback. Digital signal processing that can distinguish and amplify the human voice while containing indirect sounds, a process similar to that found in hearing aids.

The applicable subheading for the (1) XLC8, (3) XLC3.4+ will be 8517.11.0000, Harmonized Tariff Schedule of the United States (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 (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks: Line telephone sets with cordless handsets.” The general rate of duty will be Free.

The applicable subheading for the (2) XLC8HS (expansion handset without base unit) 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 (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: 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.

The applicable subheading for the (4) the Alto Plus will be 8517.18.0050, 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 (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks: Other: Other.” The general rate of duty will be Free.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 8517.11.0000, 8517.62.0090, 8517.18.0050, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 8517.11.0000, 8517.18.0050, HTSUS, listed above. Product (2) XLC8HS falls within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.32, in addition to subheading 8517.62.0090, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8517.11.0000 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 8517.11.0000 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, 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.

In your submission you requested consideration of a secondary classification under 9817.00.96, HTSUS, which applies to articles and parts of articles specifically designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped.

Subheading 9817.00.96, HTSUS, covers: “Articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons; parts and accessories (except parts and accessories of braces and artificial limb prosthetics) that are specially designed or adapted for use in the foregoing articles . . . Other.” The term “blind or other physically or mentally handicapped persons” includes “any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.” U.S. Note 4(a), Subchapter XVII, Chapter 98, HTSUS. Subheading 9817.00.96, HTSUS, excludes “(i) articles for acute or transient disability; (ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; (iii) therapeutic and diagnostic articles; or, (iv) medicine or drugs.” U.S. Note 4(b), Subchapter XVII, Chapter 98, HTSUS.

In Sigvaris, Inc. v. United States, 227 F. Supp 3d 1327, 1336 (Ct. Int’l Trade 2017), aff’d, 899 F.3d 1308 (Fed. Cir. 2018), the U.S. Court of International Trade (CIT) explained that “specially” means “to an extent greater than in other cases or towards others” and “designed” means something that is “done, performed, or made with purpose and intent often despite an appearance of being accidental, spontaneous, or natural.” We must first evaluate “for whose, if anyone’s, use and benefit is the article specially designed,” and then, whether “those persons [are] physically handicapped [].” Sigvaris, 899 F.3d at 1314.

The Court of Appeals for the Federal Circuit (CAFC) clarified in Sigvaris, 899 F.3d at 1314-15 that to be “specially designed,” the merchandise “must be intended for the use or benefit of a specific class of persons to an extent greater than for the use or benefit of others” and adopted the five factors used by U.S. Customs and Border Protection (CBP):

(1) the physical properties of the article itself (i.e., whether the article is easily distinguishable by properties of the design, form, and the corresponding use specific to this unique design, from articles useful to non-handicapped persons); (2) whether any characteristics are present that create a substantial probability of use by the chronically handicapped so that the article is easily distinguishable from articles useful to the general public and any use thereof by the general public is so improbable that it would be fugitive; (3) whether articles are imported by manufacturers or distributors recognized or proven to be involved in this class or kind of articles for the handicapped; (4) whether the articles are sold in specialty stores which serve handicapped individuals; and, (5) whether the condition of the articles at the time of importation indicates that these articles are for the handicapped.

In HQ 950772 and HQ 951004, CBP considered similar telephones. In both instances the request for use of the special provision under subheading 9817.00.96, HTSUS, was denied. CBP explained that the degree of additional features for the benefit of the handicapped was minimal, as such they failed to alter the basic character of a conventional phone. It is CBP’s opinion that the telephones, subject to this ruling, are similar in use and function to those telephones in the aforementioned rulings of HQ 950772 and HQ 951004. Any recent advancements still do not alter the basic character of a conventional telephone.

Based on the information supplied, the four telephones in question, (1) XLC8, (2) XLC8HS, (3) XLC3.4+, and (4) the Alto Plus, do not satisfy the 5 factors set out by CBP. As a result, it is the opinion of this office that a secondary classification in subheading 9817.00.96, HTSUS, will not apply. The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 Steven Pollichino at [email protected].
Sincerely,

(for)
Steven A. Mack
Director
National Commodity Specialist Division