HQ 0086196 - "SecuriCrypto" data security devices - United States International Trade Commision Rulings

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HQ 086196

April 2, 1990

CLA-2 CO:R:C:G 086196 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.82.00

Mr. John Vanden Hoek
Triangle Industrial Center
P.O. Box 67
Medford, New Jersey 08055

RE: "SecuriCrypto" data security devices

Dear Mr. Vanden Hoek:

This is in reply to your letter of November 9, 1989, on behalf of the GRIM Corporation, requesting classification of SecuriCrypto data security devices, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The SecuriCrypto device is intended to guard data communications systems against unauthorized access or monitoring. The SecuriCrypto is an encryption system for data communications that utilizes a key of 1,000,000 bits. Typical applications include: between front-end computers, terminal controller to mainframe computer, between PC's, communication with peripherals and multipoint local area networks. The methods of communication include: fixed cables, modem (leased lines), modem (dial-up communication), high-speed digital links and satellite transmissions.

ISSUE:

What is the classification of the SecuriCrypto data communication security device under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

Heading 8517, HTSUSA, provides for: "[e]lectrical apparatus for line telephony or telegraphy...." The Harmonized Commodity Description and Coding System Explanatory Notes (EN) to heading 8517 of the HTSUSA, page 1360, state:

The term "electrical apparatus for line telephony or line telegraphy" means apparatus for the transmission between two points of speech or other sounds (or of symbols representing written messages, images or other data), by variation of an electric current or of an optical wave flowing in a metallic or dielectric (copper, optical fibers, combination cable, etc.) circuit connecting the transmitting station to the receiving station.

Clearly, the SecuriCrypto is apparatus designed for the transmission of data between two points, by variation of an electric current connecting the transmitting station to the receiving station. Therefore, it is Customs position that the SecuriCrypto is properly classifiable under subheading 8517.82.00, which provides for: "[e]lectrical apparatus for line telephony or telegraphy...: [o]ther apparatus: [t]elegraphic." See HQ 058516 (October 5, 1978).

HOLDING:

The SecuriCrypto is classifiable under subheading 8517.82.00, HTSUSA, which provides for: "[e]lectrical apparatus for line telephony or telegraphy...: [o]ther apparatus: [t]elegraphic. The rate of duty is 4.7% ad valorem.

Sincerely,

John Durant, Director

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