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HQ 950407

November 15, 1991

CLA-2 CO:R:C:M 950407 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8531.10.00

Mr. Brian Johnson
Border Brokerage Company
P.O. Box B
Blaine, Wash. 98230

RE: Vessel Monitoring and Control System; Section XVI, Note 4; Functional Unit

Dear Mr. Johnson:

This is in response to your letter of September 4, 1991, on behalf of Sea-Hornet Marine Industries, Canada, Inc., concerning the classification of a vessel monitoring and control system under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The merchandise is an electrical system designed to monitor a vessel's existing sensors such as fire, burglary, water in bilge, and gas build-up in the engine compartment. The main system (part #VM-3301) is comprised of 19 input and 11 output zones, a control panel, and a remote keypad. Specific information can be typed into the remote keypad by the system's user. If the system senses smoke, water or gas leakage, or intrusion, it activates both an audio and visual (blinking light) alarm. Both alarms are generated from the control panel. The visual alarm is illuminated through the remote keypad. Separately imported speakers amplify the audio alarm. In addition, it appears that, with the use of separate accessories, the device offers some measure of protection from flooding by "attempting" (as described in the literature) to activate the bilge pump in a flooded compartment. Also, if gas leakage is sensed, the system can shut off the ignition. Other accessories, imported separately, may be connected to the system for more efficient usage. The system operates off a lead acid, 12 volt battery.

ISSUE:

What is the classification of the vessel monitoring and control system under the HTSUSA?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative chapter or section notes.

You claim that the merchandise is classifiable under subheading 8531.10.00, HTSUSA, which provides for: "[b]urglar or fire alarms and similar apparatus: [o]ther." You state that the essential character of the product is the alarm system for the existing sensors.

It is our position that the clearly defined function of the vessel monitoring and control system as imported is the audio and visual alarms. As imported, the function of the system is to detect a certain problem on a vessel (water or gas leakage, fire, burglary), then to alert those in the immediate vicinity, both visually and audibly. Therefore, under GRI 1, the merchandise is classifiable under subheading 8531.10.00, HTSUSA.

HOLDING:

The vessel monitoring and control system is classifiable under subheading 8531.10.00, HTSUSA, which provides for: "[b]urglar or fire alarms and similar apparatus: [o]ther." The general, column one rate of duty is 2.7 ad valorem. However, if the regulations of the United States-Canada Free-Trade Agreement are met, then the rate of duty is free.

Sincerely,

John Durant, Director
Commercial Rulings Division

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