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HQ 955628


February 25, 1994

CLA-2 CO:R:C:M 955628 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.30.50

Mr. Samuel Zekser
Sobel Shipping Co., Inc.
170 Broadway, Suite 1501
New York, New York 10038-0084

RE: TT Systems, Inc.; Facsimile Switch; Telegraphic Switching Apparatus; Telephone; Switch; HQ 952366

Dear Mr. Zekser:

This is in reply to your letter on behalf of TT Systems, Inc., dated November 19, 1993, to the Regional Commissioner of Customs, New York, requesting the classification of the "Dedicator Facsimile Switches," under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was forwarded to this office for reply.

FACTS:

The "Dedicator Facsimile Switches," models DLE-100, DLE-200 and DLE-300, are intermediary switching devices that are situated between a telephone line wall jack and a telephone, a facsimile (fax), and/or an answering machine. They are designed to enable the user to share one telephone line with a telephone, an answering machine, and a fax machine. These facsimile switches monitor incoming calls and automatically switch ths facsimile transmissions to the fax machine. Thus, they eliminate the need for a dedicated phone line for a fax machine. The DLE-200 is an improved version of the DLE-100. The DLE-300 provides an added feature of an additional jack for the connection of a modem.

ISSUE:

What is the classification of the "Dedicator Facsimile Switches," under the Harmonized Tariff Schedule of the United States (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...

In HQ 952366, dated April 5, 1993, Customs addressed the classification of two models of similar facsimile switches, called the "Fax Detector" and the "ExtraLine." They were designed to sense a facsimile transmission (telegraphic transmission) and then to switch that signal to the facsimile machine. They enable a user to share one telephone line between a fax machine, a telephone, and an answering machine.

In that decision we cited the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to the HTSUS, page 1362, regarding telegraphic apparatus. This EN states, in pertinent part, as follows:

(II) TELEGRAPHIC APPARATUS

This is essentially designed for converting texts or images into appropriate electrical impulses, for transmitting those impulses, and at the receiving end, receiving these impulses and converting them either into conventional symbols or indications representing the text, or into the text image itself.

Although this EN was not necessarily specifically written for the instant types of telegraphic switching apparatus, we are of the opinion that the facsimile transmission itself is telegraphic since text or images are converted into electrical impulses and then converted back to the text or image at the receiving end. As the court has stated, "[i]t must also be remembered that the tariff statutes were enacted 'not only for the present but also for the future, thereby embracing articles produced by technologies which may not have been employed or known to commerce at the time of the enactment * * *.'" NEC America, Inc. v. United States, 8 CIT 184, 186 (1984), citing Corporacion Sublistatica, S.A. v. United States, 1 CIT 120, 126, 511 F.Supp. 805, 809 (1981); See also Davis Turner & Co. v. United States, 45 CCPA 39, 41, C.A.D. 669 (1957).

Therefore, since the facsimile transmission is described as "telegraphic transmission" for tariff purposes, and since the facsimile switch provides the function of switching the facsimile transmission, it remains Customs position that facsimile switches are classifiable under subheading 8517.30.50, HTSUS, which provides for: "[e]lectrical apparatus for line telephony or telegraphy,
including apparatus for carrier-current line systems: [t]elephonic or telegraphic switching apparatus: [o]ther."

HOLDING:

The TT Systems, Inc., "Dedicator Facsimile Switches," model numbers DLE-100, DLE-200, and DLE-300, are classifiable under subheading 8517.30.50, HTSUS, which provides for: "[e]lectrical apparatus for line telephony or telegraphy, including apparatus for carrier-current line systems: [t]elephonic or telegraphic switching apparatus: [o]ther." The rate of duty is 4.7% ad valorem.

Sincerely,


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