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HQ 954697


February 9, 1994

CLA-2 CO:R:C:M 954697 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.10.20

Ms. Kim G. Price
Transportation
Sumitomo Electric
78 Alexander Drive
Research Triangle Park
North Carolina 27709

RE: Optical Video Transmission and Reception Network; Suminet 5700; HQs 952668, 953210, 952554, 953212, 088255, 087724, 088746

Dear Ms. Price:

This is in reply to your letter of May 24, 1993, requesting classification of the "Suminet 5700" optical television transmission and reception system, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The imported merchandise consists of optical transmission and reception modules used in the cable television industry for the transmission and reception of video visual and audio signals. The transmitter module receives an NTSC (National Television Standards Committee) signal input of up to 80 channels, converts that signal, and transmits a corresponding optical signal. The receiver module receives the optical signal and converts it back to the corresponding NTSC signal. Optical fiber cable will be used to link the two units. Optical transmission will take place with a 1310 nanometer lightwave. The optical fiber cables are not imported with the Suminet 5700.

ISSUE:

What is the classification of the Suminet 5700 optical video transmission and reception network, under the HTSUS?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS 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...

HQ 952668, dated December 21, 1992, addressed the classification of similar merchandise called the VisualLink 5000. The VisuaLink 5000 is a video codec (coder and decoder) which uses video compression technology to create motion video transmission for closed circuit broadcast applications. In HQ 952668 we held that the VisualLink 5000 was classifiable pursuant to GRI 1 under subheading 8525.10.20, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras: [t]ransmission apparatus: [t]elevision."

Transmission and reception apparatus are classifiable pursuant to their principal use, as defined by Additional U.S. Rule of Interpretation 1(a). For example, in HQ 953210, dated April 30, 1993, we held that repeaters (two port media converter designed for the fiber optic inter repeater link) which were principally used for automatic data processing ("ADP") local area networks, were classifiable as adapter units for ADP machines. See also HQ 952554, dated January 4, 1993, (ADP Optoelectronic Signal Converting units), and HQ 953212, dated April 30, 1993 (ADP repeater).

Whereas, HQ 088255, dated December 17, 1990, regarding an integrated receiver/decoder for the transmission of encrypted video/audio signals, held that merchandise for the transmission of video signals was classifiable in subheading 8525.10.20, HTSUS, which provides for television transmission apparatus. Similarly, in HQ 087724, dated April 2, 1991, we held that a satellite cable television headend receiver/descrambler was classifiable in subheading 8525.10.20, HTSUS, because it was in the television transmission path. Thus, even though it did not receive a standard NTSC signal from the satellite. The receiver/descrambler received the satellite signal, descrambled it, converted it, and transmitted an NTSC (television) signal on the ultimate viewer. Additionally, the Weather Star IV satellite cable television headend signal processor, ruled upon in HQ 088746, dated May 13, 1991, held that it was classifiable in subheading 8525.10.20, HTSUS, because its function was to receive (a satellite transmission), process it (decode it and convert it to an NTSC signal), and transmit an NTSC signal to the ultimate viewer/ subscriber.

Therefore, since the Suminet 5700 is principally used for the transmission of television signals, it is classifiable in subheading 8525.10.20, HTSUS.

On April 16, 1993, Customs issued NY 884918 to you regarding Sumitomo Electric models SDM3101-XF, SDM3201-XB, and ES-9202-1. It is important to note that the merchandise in NY 884918 was optical transceivers for ADP data transmission, not television transmission. Therefore, that merchandise was found to be ADP control and adapter units, classifiable in subheadings 8471.99.15, HTSUS, and 8473.30.40 (parts), HTSUS.

HOLDING:

The Suminet 5700, which is principally used for television transmission, is classifiable under subheading 8525.10.20, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras: [t]ransmission apparatus: [t]elevision." The rate of duty is 3.7% ad valorem.

Sincerely,

John Durant, Director

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