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

Jason Dunn
CaptionCall LLC
4215 Riverboat Road
Salt Lake City, UT 84123

RE: The tariff classification of a captioning telephone from China

Dear Mr. Dunn:

In your letter dated May 28, 2025, you requested a tariff classification ruling.

The item concerned is referred to as the “Caption Phone 88T.” This device is a single line telephone set specially designed for use by hard-of-hearing individuals. It features real-time captioning, adjustable tonal controls, high-volume output, and a large screen display.

The phone works as a dual-tone multi-frequency (“DTMF”) telephone via connection to the telephone wireline network, with captioning done through a wireless network connection. It is available in English and Spanish, with a Bluetooth option for in-house communication. The phone also includes integrated controls for volume adjustment, playback, and a built-in microphone for hands-free calling.

The marketing material for this product is focused exclusively on individuals with hearing loss who require captioned telephone service. The Caption Phone is only available to users who certify, under penalty of perjury, that they have hearing loss necessitating the use of captioning, as required by federal law and FCC regulations. The product is not marketed or sold to the general public

The Caption Phone 88T can reach up to 98.5 decibels (“dB”) Sound Pressure Level (“SPL”) for the handset and speakerphone volume, with a volume boost on the handset reaching up to 121.5 dB SPL. The ringer volume can reach up to 105 dB SPL. In comparison, standard telephones typically have a maximum volume range of 66-75 dB SPL. Therefore, the Caption Phone 88T offers significantly higher volume levels to accommodate users with hearing impairments.

The customizable frequency amplification allows users to adjust the frequency and pitch of the audio output to match their specific hearing loss profile. This functionality goes beyond merely increasing or decreasing the volume; it enhances the clarity and intelligibility of speech for individuals with hearing loss by tailoring the audio output to their unique hearing needs. For example, users with high-frequency hearing loss can boost those frequencies, making consonants and other critical speech sounds clearer. As stated in the Caption Phone 88T user guide, it is recommended that individuals work with their audiologist to accurately obtain their specific hearing loss profile before customizing the frequency.

The Caption Phone 88T is equipped with Bluetooth connectivity, allowing it to pair directly with Bluetooth-enabled hearing aids, hearing streamer devices, or headphones. This direct connection provides a clearer audio signal and reduces background noise, which is a significant improvement over standard telephones that may not support such integration. In addition, the Caption Phone 88T has an audio port that allows for the connection of a Neck Loop device which allows for direct coupling to a user’s hearing aid. A neck loop is an assistive listening device that transmits audio directly to a user's hearing aids or cochlear implants, improving communication in noisy environments or over long distances.

The Caption Phone 88T features a large, 8-inch LCD touchscreen display. The screen is designed to display real-time captions in large, adjustable fonts for easy readability. The display is limited to alphanumeric characters and does not show still images or videos. The captioning service is provided by a live captioning agent who listens to the other party on the line to provide the text on the captioned phone’s display and transcribe the phone conversation. The agent may also use Speech Recognition Recognizer or AI to enhance the captioning service. The captions are available in English and Spanish.

The applicable subheading for the “Caption Phone 88T” will be 8517.18.0050, 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 : 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 8517.18.0050, 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 8517.18.0050, HTSUS, listed above.

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.

Based on the information supplied, the Caption Phone 88T does satisfy the 5 factors set out by CBP. As a result, it is the opinion of this office that a secondary classification will apply in subheading 9817.00.96, HTSUS.

The additional duties imposed by 9903.01.24, 9903.01.25 shall not apply to goods for which entry is properly claimed under subheading 9817.00.96 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (CBP), and whenever CBP agrees that entry under such a provision is appropriate.

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