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HQ 956469




August 30, 1994

CLA-2 CO:R:C:M 956469 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.10.60, 8529.90.99

Mr. Richard D. English
Air Express International
120 Tokeneke Road
P.O. Box 1231
Darien, CT 06820

RE: Cellular Mobile Telephones (CMT); Cell Site Components; Combiners; Phone Repeaters; Power Monitor Units; Receiver Multicoupler Systems; Transmission Apparatus; Parts; Section XVI, Note 2; EN 85.25(A); Heading 8543; HQs 088255, 087724

Dear Mr. English:

This is in response to your letter, dated May 11, 1994, on behalf of Allgon System, concerning the tariff classification of cellular mobile telephone (CMT) cell site components under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of four components of a cellular mobile telephone (CMT) cell site in a cellular network. Cell sites receive and transmit telephone messages received from CMT at various locations (i.e., automobiles or construction sites), for re-transmission to their ultimate destination.

The four components are described as combiners, phone repeaters, power monitor units ("PMUs"), and receiver multicoupler systems. Combiners are to be used to combine four separate cellular telephone signals which are received from the cell site into one signal which is then sent to the antenna for re-transmission. The phone repeaters are used to amplify and retransmit radio signals from one cell site base station to another until it reaches its ultimate destination. The PMUs are used in cell site base stations to monitor power and signal output. The receiver multicoupler systems are used to amplify and filter incoming radio signals.

ISSUE:

Are the cell site components classifiable as transmission apparatus or electrical machinery not specified or included elsewhere 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 your letter, you contend that all four components are provided for under heading 8543, HTSUS, as electrical apparatus not specified or included elsewhere in this chapter. Specifically, you claim the merchandise is classifiable under subheading 8543.80.60, HTSUS, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter. . . : [o]ther machines and apparatus: [a]rticles designed for connection to telegraphic or telephonic apparatus or instruments or to telegraphic or telephonic networks. . . ." However, if the merchandise is classifiable under another heading within chapter 85, HTSUS, then the merchandise cannot be classified under heading 8543, HTSUS.

According to the information provided, the merchandise consists of cell site components which receive and transmit telephone messages received from CMTs at various locations for re-transmission to their ultimate destination. Transmission apparatus for radiotelephony are prima facie classifiable under heading 8525, HTSUS.

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, page 1374, states as follows:

(A) Transmission apparatus for radio-telephony or radio-telegraphy

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.

Customs has previously determined that apparatus which receive and decode a signal through the ether that is subsequently transmitted or relayed is in the transmission path. Almost all transmitters and relay apparatus must, by their very nature, contain a receiver, because the must receive a signal before they can transmit or relay it. Apparatus that is in the transmission path are provided for under heading 8525, HTSUS. See HQ 088255 (December 17, 1990) and HQ 087724 (April 2, 1991).

Because the receiver multicoupler system amplifies and filters incoming radio signals, and the combiner receives four signals and combines them into one signal, we find that both components are apparatus within the transmission path. The receiver multicoupler system and the combiners are classifiable under subheading 8525.20.60, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, . . . whether or not incorporating reception apparatus. . . : [t]ransmission apparatus incorporating reception apparatus: [o]ther: [o]ther. . . ."

The phone repeaters are transmitters because it transmits signals by means of electro-magnetic waves through the ether to other cell sites. Therefore, the phone repeaters are classifiable under subheading 8525.10.60, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, . . . whether or not incorporating reception apparatus. . . : [t]ransmission apparatus: [o]ther: [t]ransmitters. . . ."

The PMUs are not apparatus within the transmission path because they do not aid in the transmitting or receiving of a signal. However, the PMUs are part of the cell site because they monitor power and signal output from cell site base stations. Section XVI, note 2 provides as follows:

Parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of Chapter 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;

(c) All other parts are to be classified in heading 8485 or 8548.

We find that the PMUs are suitable for use solely with the cell site transmission apparatus because they monitor the signal and power output. Based upon section XVI, note 2(b), the PMUs are classifiable under subheading 8529.90.99, HTSUS, which provides for: "[p]arts suitable for use solely or principally with the apparatus of headings 8525 to 8528: [o]ther: [o]ther: [o]ther. . . ."

Classification of the subject merchandise is precluded under heading 8543, HTSUS, because the combiners, the receiver multicoupler system, and the phone repeaters are classifiable under heading 8525, HTSUS, and the PMUs are classifiable under heading 8529, HTSUS.

HOLDING:

The receiver multicoupler system and the combiners are classifiable under subheading 8525.20.60, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, . . . whether or not incorporating reception apparatus. . . : [t]ransmission apparatus incorporating reception apparatus: [o]ther: [o]ther. . . ." The general, column one rate of duty is 6 percent ad valorem.

The phone repeaters are classifiable under subheading 8525.10.60, HTSUS, which provides for: "[t]ransmission apparatus for radiotelephony, radiotelegraphy, . . . whether or not incorporating reception apparatus. . . : [t]ransmission apparatus: [o]ther: [t]ransmitters. . . ." The general, column one rate of duty is 6 percent ad valorem.

The PMUs are classifiable under subheading 8529.90.99, HTSUS, which provides for: "[p]arts suitable for use solely or principally with the apparatus of headings 8525 to 8528: [o]ther: [o]ther: [o]ther. . . ." The general, column one rate of duty is 5.9 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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