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HQ 963867




August 7, 2000

CLA-2 RR:CR:GC 963867 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.80.10 and 8518.30.20

Thomas Phalen
Vice President, Tax and Customs
Plantronics, Inc.
345 Encinal Street
Santa Cruz, CA 95060

RE: Reconsideration of NY E88224; CA 10 adapter; CS 10 telephone headset system

Dear Mr. Phalen:

This is in response to your letter of February 16, 2000, to the Customs National Commodity Specialist Division requesting reconsideration of NY E88224 issued to you on October 28, 1999, by the Director, National Commodity Specialist Division, with respect to the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of articles described as a CA 10 adapter and a CS 10 telephone headset system.

FACTS:

The articles are described as follows in NY E88224:

They are accessory type sets that expand the functionality of a standard line telephone. They are designed as Small/Home Office (SOHO) solutions. The CA 10 Adapter set contains a 900 MHz base unit that connects by line to the telephone, a remote unit, and an AC Adapter. The remote unit is designed to connect to a headset (not supplied with this set). It can be clipped onto a belt. The base unit interfaces with the line telephone. Both the base and the remote contain radio frequency receivers and transmitters, and amplifiers. The remote has a volume control, talk button, channel button, and mute button. The remote is designed to recharge while sitting in a slot on the base. The AC adapter provides power for the adapter [the base unit]. The CA 10 Adapter is designed to connect by line through a standard telephone to the Public Switched Telephone Network (PSTN)

The CS 10 telephone headset system contains the CA 10 Adapter as previously described and a Plantronics headset The CS 10, which includes a headset, is designed to provide for hands free operation and to connect by line through a standard telephone to the Public Switched Telephone Network (PSTN).

Neither the CA 10 adapter nor the CS 10 telephone headset system is a telephone set because they are missing key features such as a bell or buzzer, switching device, and dialing selector.

In NY E88224, Customs determined that the CA 10 adapter was classified in subheading 8517.80.10, HTSUS, and the CS 10 telephone headset system was classified in subheading 8518.30.20, HTSUS.

In your request for reconsideration, you state:

I believe that the proper classification is HTS 8525.20 covering “Transmission apparatus for radiotelephony incorporating reception apparatus.” The reason for my belief is that the essential character of the product is that of a transmission apparatus for radiotelephony, whether or not incorporating reception apparatus under HTS 8525. Determination should be made as to whether the product is a transmission apparatus irregardless of the fact that it contains a headset. If the product contains a headset then it should be classified under 8525.20.

ISSUE:

The tariff classification of the CA 10 adapter and the CS 10 telephone headset system – are they provided for in heading 8517, HTSUS, heading 8518, HTSUS, heading 8525, HTSUS, or heading 8526, HTSUS?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s 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.

The HTSUS provisions under consideration are as follows:

Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof: Other apparatus:
8517.80.10 Telephonic
8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones, earphones and combined microphone/speaker sets; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones, earphones and combined microphone/speaker sets: Other
Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video camera recorders: Transmission apparatus incorporating reception apparatus: Radar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other:
8526.92.00 Radio remote control apparatus[.]

EN 85.25 (A) provides, in pertinent part:

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. [Emphasis supplied.]

GRI 3 provides as follows:

When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

EN (VIII) for GRI 3(b) provides:

The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

EN (IX) for Rule 3(b) provides:

For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

Because both of the subject articles are used with line telephones (i.e., with line connection), EN 85.25 (A) indicates that the articles are not included within heading 8525.

CA 10 Adapter

The CA 10 Adapter includes an adapter/base unit and a remote unit. It is a composite good. See EN (IX) for Rule 3(b), above.

Heading 8517 covers electrical apparatus for line telephony. The introductory paragraph to EN 85.17 provides:

The term “electrical apparatus for line telephony or line telegraphy” means apparatus for the transmission between two points of speech or other sounds (or of symbols representing written messages, images or other data), by variation of an electric current

We find that the adapter/base unit, by itself, would be described in heading 8517 and would be classified in subheading 8517.80.10, HTSUS, as: “Electrical apparatus for line telephony :Other apparatus: Telephonic[.]”

We find that the remote unit, by itself, would be described in heading 8526 and would be classified in subheading 8526.92.00, HTSUS, as: “ radio remote control apparatus: Other: Radio remote control apparatus.”

We are unable to classify the CA 10 Adapter at GRI 1.

GRI 2 is not applicable here.

We find that the CA 10 Adapter cannot be classified by GRI 3(a) because none of the pertinent headings provides a more specific description than the other headings. The second sentence of GRI 3(a) is applicable here – because two headings each refer to only part of the goods, those headings are to be regarded as equally specific in relation to those goods.

We thus turn to GRI 3(b) and a consideration of which of the two items gives the CA 10 Adapter its essential character. We find that the adapter/base unit is a more integral part of the composite good than the remote unit. For example, when the user of this item speaks on the telephone while sitting alongside the telephone and base unit, the remote unit “will sit in a slot on the adapter so that it will look like [the] only two units [are] the headset and adapter.” In such a situation or usage, the remote unit is not an integral, or necessary, part of this item. Further, the adapter connects by line to a telephone; a telephone is not part of the set but the line connection to the telephone through the adapter is a crucial element of the set. Accordingly, we find that the adapter/base unit gives the CA 10 Adapter its essential character. Therefore, pursuant to GRI 3(b), we find that the CA 10 Adapter is provided for in heading 8517 and is classified in subheading 8517.80.10, HTSUS.

We disagree with your claim with respect to the applicability of heading 8525 because of the presence of radio frequency technology. We note that heading 8517 includes telephone sets with cordless handsets which utilize radio waves. Our position with respect to the non-applicability of heading 8525 is supported by the EN 85.25 (A), excerpted above, which indicates that articles that form part of line telephones (i.e., with line connections) are not within heading 8525, HTSUS.

CS 10 Telephone Headset System

The CS 10 telephone headset system contains the adapter/base unit, remote unit, and headset. It is a composite good. See EN (IX) for Rule 3(b), above.

As stated above, the adapter/base unit, by itself, would be classified in subheading 8517.80.10, HTSUS, and the remote unit, by itself, would be classified in subheading 8526.92.00, HTSUS. The headset, by itself, would be provided for in heading 8518, and classified in subheading 8518.30.20, HTSUS, as “Headphones, earphones, and combined microphone/speaker sets: Other[.]”

We find that we are unable to classify the CS 10 telephone headset system at GRI 1.

GRI 2 is not applicable here.

We find that the CS 10 telephone headset system cannot be classified by GRI 3(a) because none of the pertinent headings provides a more specific description than the other headings. The second sentence of GRI 3(a) is applicable here – because two or more headings each refer to only part of the goods, those headings are to be regarded as equally specific in relation to those goods.

We believe that the headset and the adapter/base unit are both important components of the CS 10 telephone headset system. The headset and the hands-free operation which it affords is a significant feature and selling point of the set. The adapter connects by line to a telephone; a telephone is not part of the set but the line connection to the telephone through the adapter is a crucial element of the set. We do not believe that the remote unit contributes to the good, or to the essential character of the good, to nearly the degree that the adapter/base unit and headset do. For example, as stated above, when the user uses this item while sitting alongside the telephone and adapter/base unit, the remote is not an integral, or necessary, part of the item. Accordingly, we find that the essential character of the CS 10 telephone headset system is provided by the adapter/base unit and by the headset; the essential character is not provided by the remote unit. We find that both the adapter/base unit and headset merit equal consideration with respect to the essential character of the CS 10 telephone headset system.

Accordingly, we proceed to GRI 3(c), i.e., the good shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

Pursuant to GRI 3(c), we determine that the CS 10 telephone headset system is provided for in heading 8518, HTSUS. It is classified in subheading 8518.30.20, HTSUS as: “Headphones, earphones, and combined microphone/speaker sets: Other[.]”

HOLDING:

The CA 10 adapter is provided for in heading 8517, HTSUS, and is classified in subheading 8517.80.10, HTSUS, as “Electrical apparatus for line telephony :Other apparatus: Telephonic[.]”

The CS 10 telephone headset system is provided for in heading 8518, HTSUS, and is classified in subheading 8518.30.20, HTSUS as: “Headphones, earphones, and combined microphone/speaker sets: Other[.]”

NY E88224, dated October 28, 1999, is affirmed.

Sincerely,

John Durant, Director
Commercial Rulings Division

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