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HQ 964610




February 4, 2002

CLA-2 RR:CR:GC 964610 KBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.50.90

Mr. Chuck Hamilton
Director of Contracts
Mariner Networks, Inc.
1585 South Manchester Avenue
Anaheim, CA 92802-2907

RE: Dexter 3000 Integrated Access Device

Dear Mr. Hamilton:

This is in regard to your letter dated August 28, 2000, to the U.S. Customs Service office in Los Angeles, CA, requesting a ruling as to the classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of the Dexter 3000 Integrated Access Device (IAD). Your request was forwarded to this office for reply. We are in receipt of your letter of January 26, 2001, regarding this matter. We regret the delay in responding.

FACTS:

The IAD is a modular product that will accept a variety of slide-in modules. The Dexter IADs enable small and medium-sized offices to connect to integrated broadband services. The Dexter 3000 is meant to provide a high performance, cost effective, multi-service access platform for connecting all of an office’s voice, data and video networking equipment to low speed, scalable, Wide-Area Network (WAN) services.

The Dexter 3000 eXpedite architechure allows network managers to prioritize traffic flows across their network so that, for example, email flows will not interfere with voice traffic. The Dexter 3000 allows growth up to four T1s or E1s of inverse-multiplexed ATM (Asynchronous Transfer Mode) while maintaining wire-speed bridging, routing and interworking.

ISSUE:

What is the classification for the Dexter 3000 IAD?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.

In interpreting the headings and subheadings, Customs looks to the Harmonized Commodity Description and Coding System Explanatory Notes (ENs). Although not legally binding, they provide a commentary on the scope of each heading of the HTSUS. It is Customs practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS provisions under consideration are as follows:

8517 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:

8517.50 Other apparatus, for carrier-current line systems or for digital line systems:

Other:

Telegraphic:

8517.50.90 Other:

Other apparatus

Telegraphic

Heading 8517, HTSUS, provides for electrical apparatus for line telephony or telegraphy, including telecommunication apparatus for digital line systems. EN 85.17, page 1472, states, in pertinent part, as follows:

[t]he 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 or of an optical wave flowing in a metallic or dielectric (copper, optical fibres, combination cable, etc.) circuit connecting the transmitting station to the receiving station.

The heading covers all such electrical apparatus designed for this purpose, including the special apparatus used for carrier-current line systems.

(III) APPARATUS FOR CARRIERCURRENT
LINE SYSTEMS OR FOR DIGITAL LINE SYSTEMS

These systems are based on the modulation of an electrical carrier-current or of a light beam by analogue or digital signals. Use is made of the carrier-current modulation technique and pulse code modulation (PCM) or some other digital system. These systems are used for the transmission of all kinds of information (words, data, images, etc.).

These systems include all categories of multiplexers and related line equipment for metal or optical-fibre cables. “Line equipment” includes transmitters and receivers or electro-optical converters. Combined modulators-demodulators (modems) are also classified here.

“Integrated Access” is defined by Newton's Telecom Dictionary, 16th Edition, 2000 as:
an AT&T term for the provision of access for multiple services such as voice and data through a single system built on common principles and providing similar service features for different classes of services.

IADs are described as an access node deployed at a user’s premises that can simultaneously deliver Class 5 switch voice services, packet voice services, and data services (via LAN (Local Area Network) ports) over a single WAN link. IADs were created to address the needs of Competitive Local Exchange Carriers (CLECs) and other service providers who are challenged with the high cost of co-locating equipment and leasing lines from local telecommunications companies. IADs act as a junction or connection point and provide a common platform that enables service providers to deliver voice and data over a single access network, reducing the cost of co-located equipment in the central office and allows service providers to lease fewer transport spans. This enables service providers to cost effectively deploy next generation managed services for the growing needs of small and medium businesses over a single high speed access link. See, e.g., www.Cisco.com; www.tollbridgetech.com; www.virata.com.

At the six digit level, by application of GRI 6, two subheadings appear to describe the merchandise, subheading 8517.50, HTSUS, which provides for other apparatus, for carrier-current line systems or for digital line systems, and subheading 8517.80, HTSUS, which provides for other apparatus. Subheading 8517.50, HTSUS, is applicable for items which effect the channel and frequency of the transmission. In HQ 962968 (October 26, 2000), concerning an encryption device, Customs differentiated these two subheadings finding that if the device transmitted then it would fall within subheading 8517.50.90, HTSUS. See also HQ 962564 (March 2, 2000); NY H82810 (July 18, 2001); NY H83926 (August 20, 2001). According to the brochure you supplied, the Dexter 3000 IAD is designed for a digital line system rather than carrier current, operating on T1/E1, ATM and xDSL interfaces. The Dexter 3000 IAD acts as a junction or connection point which prioritizes the transmission of multiple inputs over a single access network. Therefore, subheading 8517.50.90, HTSUS, describes the merchandise.

HOLDING:

By application of GRI 6, the Dexter 3000 IAD is classifiable in subheading 8517.50.90, HTSUS, which provides for 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, for carrier-current line systems or for digital line systems: other: telegraphic: other.

Sincerely,

John Durant, Director
Commercial Rulings Division

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