United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1994 HQ Rulings > HQ 0955016 - HQ 0955095 > HQ 0955064

Previous Ruling Next Ruling



HQ 955064


February 2, 1994

CLA-2 CO:R:C:M 955064 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8537.10.00, 9031.40.00

District Director of Customs
1000 Second Avenue
Suite 2200
Seattle, WA 98104

RE: Protest No. 3004-92-100136; Optimizer Systems With Scan Heads; Controller; Optical Measuring instruments; Headings 8537 and 9031; EN 85.37; HQ 085281

Dear District Director:

The following is our decision regarding the request for further review of Protest No. 3004-92-100136, which concerns the classification of a complete Optimizer System with Scan Heads, and the Scan Heads imported separately, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise consists of a complete Dynavision M- Series Optimizer System with Scan Heads which is a device used in saw mill operations to determine the thickness of logs in order to control the cutting of the logs in the most advantageous manner. The Optimizer System with Scan Heads is a general purpose profile scanner capable of supplying three-dimensional profiles of the logs.

The M-Series consists of 2 Scan Heads (top and bottom) and 1 controller board, model number DSP. Each Scan Head places 6 laser beams on the target surface at 4 inch intervals. The top/bottom scanning arrangement measures true thickness/profile over a 2 foot section with one Scan Head on top and the other on the bottom. The DSP controller board collects measurements from these heads and stores them for use by other computers for optimization. One board profile is in buffered memory available for access while the next board is being scanned. The use of multiple heads and DSP controller boards allows for scanners of any length up to 28 feet.

The Scan Heads use only solid state components including solid state lasers. It measures the distance from the Scan Heads to the surface of the object being measured. There are 6 measurement points for each Scan Head. The measurements are taken at approximately 1000 per second. The actual number of measurements stored per 4 inch profile is dependent on the encoder interfaced to the controller boards, model DSP-02.

The DSP-02 controller board is an interface between the Scan Heads and an IBM-PC computer. The board receives the analog video information from the Scan Heads and converts them to distance readings to the surface of an object being measured. It then sends these distance readings to memory where it can be read by an IBM-PC computer which makes the necessary calculations and then instructs the saws on how to slice the logs to achieve the best results of a maximum yield of usable lumber.

The Optimizer System with Scan Heads and the Scan Heads imported separately were entered under subheading 9031.40.00, HTSUS, as optical measuring and checking instruments, eligible for duty-free treatment under the Canadian Free Trade Agreement (CFTA). The entries of the Optimizer System with Scan Heads were liquidated under subheading 8537.10.00, HTSUS, as numerical control panels with voltage not exceeding 1,000 V., ineligible for duty-reduction treatment under the CFTA. The entries of the Scan Heads alone were liquidated under subheading 9031.40.00, HTSUS, ineligible for duty-free treatment under the CFTA.

The entries of the subject merchandise were liquidated on June 19, 1992. The protest was timely filed on September 17, 1992.

The subheadings under consideration are as follows:

8537.10.00: 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: [f]or a voltage not exceeding 1,000 V. . . .

Goods classifiable under this provision have a general, column one rate of duty of 5.3 percent ad valorem. The CFTA rate of duty in 1992 was 1 percent ad valorem. The CFTA rate of duty in 1991 was 2.1 percent ad valorem.

9031.40.00 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter. . . .: [o]ther optical instruments and appliances. . . .

Goods classifiable under this provision have a general, column one rate of duty of 10.0 percent ad valorem. The CFTA rate of duty is free.

ISSUE:

Whether the Optimizer System and Scan Heads are classifiable as other optical measuring instruments or as numerical control panels with voltage not exceeding 1,000 V., under the HTSUS?

LAW AND ANALYSIS:

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

In HQ 085281, dated November 8, 1989, Customs held that an Optimizer System, a computerized scanning device, which measured the dimensions of logs and boards and determined the best way to cut them in order to maximize the value or volume of lumber, was classifiable under subheading 8537.10.00, HTSUS, as numerical control panels with voltage not exceeding 1,000 V. Customs based this decision after consulting the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) for heading 8537, HTSUS.

The ENs constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. EN 85.37, page 1391, states that articles of heading 8537, HTSUS:

. . .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.

The heading also covers: . . . (3) "[p]rogrammable controllers" which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines.

In HQ 085281, Customs held that the Optimizer System meets the description of heading 8537, HTSUS, because it "processes digital signals in a computer which makes calculations and then issues instructions to various machines which enable them to cut lumber in the most efficient manner." We find that the subject merchandise operates in the same manner as the merchandise in HQ 085281. Therefore, based upon this ruling and EN 85.37, we find that the subject Optimizer System with Scan Heads is classifiable as numerical control panels with voltage not exceeding 1,000 V., under subheading 8537.10.00, HTSUS.

The Scan Heads, which incorporate optical elements to measure the thickness of the logs, are classifiable under subheading 9031.40.00, HTSUS, when entered separately. Therefore, the only remaining issue is whether the Scan Heads entered separately under subheading 9031.40.00, HTSUS, qualify for CFTA treatment. The protestant has provided proper documentation as to the claim of CFTA eligibility. We have reviewed those documents and agree that both the Optimizer System with Scan Heads and the Scan Heads entered separately, qualify for CFTA treatment.

HOLDING:

The Optimizer System with Scan heads is classifiable under subheading 8537.10.00, HTSUS, as numerical control panels with voltage not exceeding 1,000 V., eligible for CFTA treatment. The Scan Heads, entered separately, are classifiable under subheading 9031.40.00, HTSUS, as optical measuring instruments, eligible for CFTA treatment.

You should deny the protest, except to the extent that classification of the merchandise as indicated above results in a partial allowance. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling