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HQ 956550


August 11, 1994

CLA-2 CO:R:C:M 956550 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.10.80

Mr. Robert Calandra
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, NY 10022-1106

RE: Cabin Telecommunications Unit ("CTU"); Electronic Interface; Other Transmission Apparatus for Electro-magnetic Signals; Civil Aircraft Agreement ("CAA"); EN 85.25(A); HQs 954698, 956169

Dear Mr. Calandra:

This is in response to your letter dated April 14, 1994, to the Area Director of Customs in New York, on behalf of GTE Airfone, concerning the tariff classification of GTE's Cabin Telecommunications Unit ("CTU") under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response.

FACTS:

The merchandise, labeled as the Cabin Telecommunications Unit ("CTU"), is an airborne electronic interface that connects a passenger telephone handset to one of two dedicated and specialized radios situated in an equipment bay of an aircraft. The CTU functions as an integral component of an in-flight telecommunications system which transmits voice and data signals to ground radios and ground central switching networks.

The CTU is one of five subsystems that comprise "GenStar", an advanced in-flight digital telecommunications system for commercial airline passengers. The in-flight component of the "GenStar" System consists of the CTU combined with two other specialized subsystems: (i) the passenger seatback handset subsystem (called "UTE"); and (ii) the airborne radio subsystem (called "ARADs"). The CTU acts as an interface controller by routing a prepared radio digital signal from the UTE handset to the ARADs.

The other components needed to complete the "GenStar" System are two ground-based and separate elements: (i) Ground Radios Subsystems ("GRSs"), which are situated in radio base stations throughout North America, that receive the specialized radio link voice and data signals from the aircraft, and (ii) Ground Switching Networks ("GSNs").

ISSUE:

Is the CTU classifiable as other transmission apparatus for electro-magnetic signals 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.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) 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. See T.D. 89-80, 54 Fed.Reg. 35127, 35128 (August 23, 1989). EN 85.25(A), page 1374, states as follows:

This apparatus is used for the transmission of signals (representing speech, messages or still pictures) by means of electro-magnetic waves which are transmitted through the ether without any line connection.

This group includes inter alia: . . .

(2) Radio-telephony apparatus for motor vehicles, ships, aircraft, trains, etc. . . .

The "GenStar" System, which is an in-flight telecommunications system that allows passengers to transmit voice and data signals to ground radios and ground central switching networks, is prima facie classifiable under the function-related heading of 8525, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radio telegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus . . . :" See HQ 956169 (April 29, 1994) and HQ 954698 (April 29, 1994).

The CTU acts as an interface controller by routing a prepared radio digital signal from the passengers' handset to the radio airborne subsystem. However, the CTU does not incorporate reception apparatus. In HQs 956169 and 954698, Custom determined that similar radio interfaces, not incorporating reception apparatus, were classifiable under subheading 8525.10.80, HTSUS, which provides for: "Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus . . . : [t]ransmission apparatus: [o]ther: [o]ther. . . ." Therefore, we find that the CTU is classifiable under subheading 8525.10.80, HTSUS, as other transmission apparatus.

HOLDING:

The Cabin Telecommunications Unit (CTU) is classifiable under subheading 8525.10.80, HTSUS, which provides for: "Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus . . . : [t]ransmission apparatus: [o]ther: [o]ther. . . ." The general, column one rate of duty is 6 percent ad valorem.

Goods classifiable in subheading 8525.10.80, HTSUS, may be eligible for free entry under the Civil Aircraft Agreement, upon compliance with applicable law and Customs Regulations.

Sincerely,

John Durant, Director
Commercial Rulings Division

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