HQ 0089807 - Rear Seat Control Modules for vehicles; HQ 087051; HQ 088042 - United States International Trade Commision Rulings

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HQ 089807

September 11, 1991

CLA-2 CO:R:C:M 089807 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8537.10.00; 8529.90.50

Mr. Frank M. Murphy
John V. Carr & Son, Inc.
P.O. Box 33479
Detroit, Michigan 48232-5479

RE: Rear Seat Control Modules for vehicles; HQ 087051; HQ 088042

Dear Mr. Murphy:

This is in response to your letter of June 7, 1991, to the District Director of Customs in Detroit, Michigan, concerning the classification of certain rear seat control modules under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Your letter was referred to this office for a response.

FACTS:

The article in question consists of a rear seat control module (RSCM). The RSCM is a discrete electronic device which allows the passengers in the rear of a vehicle to control the vehicle's radio functions. The features in the RSCM include a volume control, seek (up/down), a single memory button that acts as a memory seek, band control (AM/FM), speaker on/off, and two headphone jacks. The device will be used in the rear of the Ford Aerostar, Econoline, and VX 54 vans and wagons.

The RSCM consists of a circuit board in a plastic housing and is connected via a cable to the vehicle's stereo. The device can be disabled by the radio if desired. If it is disabled while in the speaker off mode, the external speakers are reactivated and the radio volume automatically returns to the level set before the speakers were turned off.

ISSUE:

Whether the article is properly classifiable within Heading 8537, HTSUSA, which provides for "panels . . . equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity," or within Heading 8529, HTSUSA, which provides for "[p]arts suitable for use solely or principally with the apparatus of headings 8525 to 8528."

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...

The importer suggests that the rear seat control module (RSCM) qualifies for classification under Heading 8529, HTSUSA, which provides for "[p]arts suitable for use solely or principally with the apparatus of headings 8525 to 8528." Specifically, the importer contends that the RSCM is a "part" of an article which is classifiable under Heading 8527, HTSUSA, which provides for "[r]adiobroadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, . . . ."

Section XVI, Legal Note 2(a) is pertinent to this discussion and provides as follows:

2. Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546, or 8547) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapters 84 and 85
(other than headings 8485 and 8548) are in all cases to be classified in their respective headings . . .

Thus, if the article in question would be a "good[] included in any of the headings of chapter 84 and 85," then that heading, rather than the one suggested by the importer, would be the proper one for classification purposes. It is the opinion of this office that the RSCM is described by Heading 8537, HTSUSA. This heading provides for the following:

8537 Boards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, other than switching apparatus of heading 8517 . . .

8537.10.00 For a voltage not exceeding 1,000 V . . .

Explanatory Note (EN) 85.37 states that the articles covered by Heading 8537 "consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams." In addition, EN 85.37 provides that "[t]he goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machine tools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading." Headings 8535 and 8536, HTSUSA, des cribe switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs, junction boxes and other devices for switching or protecting electrical circuits.

In the rulings cited by the importer (HRL 085355 and HRL 087362), this office found that the articles in question were not classifiable as control panels. The RSCM, however, is a control panel equipped with two or more apparatus of heading 8535 or 8536, and is, therefore, classifiable under Heading 8537, HTSUSA. See HRL 087051 and HRL 088042.

HOLDING:

The rear seat control module (RSCM) is classifiable under subheading 8537.10.00, HTSUSA, which provides for "[b]oards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, other than switching apparatus of heading 8517 . . . [f]or a voltage not exceeding 1,000 V."

The applicable rate of duty for subheading 8537.10.00 is 5.3% ad valorem. The rate of duty is 2.1% ad valorem, if the requirements of the United States-Canada Free Trade Agreement are met.

Sincerely,

John Durant, Director

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