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HQ W967964





October 18, 2006

CLA-2 RR:CTF:TCM W967964 HkP

CATEGORY: CLASSIFICATION

TARIFF NO.: 8504.40.95
8525.10.3035

Port Director
Port of Buffalo
U.S. Customs and Border Protection
726 Exchange Street
Suite 400
Buffalo, NY 14210

RE: AFR of Protest No. 0901-05-100123; couplers, power inserters, multi-taps and splitters

Dear Port Director:

This is our decision regarding the Application for Further Review (“AFR”) of Protest No. 0901-05-100123, timely filed on behalf of Lindsay Electronics, Inc., concerning the classification of various couplers, power inserters, multi-taps, and splitters under the Harmonized Tariff Schedule of the United States (“HTSUS”).

FACTS:

The subject merchandise is described by Protestant as passive coaxial socket device connectors and coaxial couplers, identified as models: LGT series, LGTP series, LHS series, LTC series, LHR series, LHI series, LHC series, LDC series, and LAC series. According to the protestant the connectors and couplers are designed to function in line, as part of a television signal electrical circuit, making connections with the circuit via coaxial cable inputs and outputs.

Description of some models of the LHI, LHS, LHC, and LDC series are provided in the “100 Series Passives” section of the Lindsay Electronics website (www.lindsayelec.com). The LHI100 is described as a power inserter; the LHS102 as a 2 way line splitter, the LHS103 and the LHS103B as 3 way line splitters; the LHC108, LHC112, and the LHC116 as directional couplers; the LHI108, LHI112, and the LHI116 as status pickers/power inserters; the LHI 100D as a dual power inserter; and the LDC108S and the LDC112S as directional couplers – 2 way splitters. Although there is no specific discussion of the LTC series, the LGTP series data sheet describes the LTC series as “standard couplers”. The LHR100 series data sheet states:

The LHR100 Series uses a standard platform (housing) with a series of couplers that can be installed or plugged into the housing to produce the various values in the series. In addition, the system is designed to allow the coupler to be installed 6 different ways producing all possible port combinations. This flexibility allows the levels and signal direction [to] be updated without removal of the housing (no connector change out). The unit is simply opened and the internal coupler is replaced with a proper value and orientation.

In addition, the data sheets for the LGTP and LGT series describe these devices as “multi-taps”.

The merchandise was entered on various dates in 2004 and classified in subheading 8536.69.4010, HTSUS, which provides for: “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 V: Lamp-holders, plugs and sockets: Other: Coaxial connectors; , Coaxial connectors.” These entries were later rate advanced by U.S. Customs and Border Protection (“CBP”) and liquidated under subheading 8525.10.3035, HTSUS, which provides for, inter alia: “Transmission apparatus for television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; : Transmission apparatus: Television: Other: Other: ; directional couplers and other couplers; all of the foregoing designed for cable or closed-circuit television applications.” The last of the entries was liquidated on April 29, 2005. A protest was timely filed on May 10, 2005, in which protestant asserted that the appropriate classification for the subject merchandise was in subheading 8536.69.4010, HTSUS.

ISSUE:

Whether the couplers, multi-taps, and splitters are properly classified under heading 8525, HTSUS, as transmission apparatus for television, or under heading 8536, HTSUS, as electrical connectors.

Whether the power inserters are properly classified under heading 8525, HTSUS, as transmission apparatus for television, or under heading 8504, HTSUS, as static converters.

LAW AND ANALYSIS:

Initially, we note that the matter protested is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. The protest was timely filed, within 90 days of liquidation of the first entry for entries made before December 18, 2004, and within 180 days of liquidation of the first entry for entries made on or after December 18, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)).

Further Review of Protest No. 0901-05-100123 was properly accorded to protestant pursuant to 19 C.F.R. § 174.24 because the decision against which the protest was filed involves matters previously ruled upon by the Commissioner of Customs or his designee or by the Customs courts but facts are alleged or legal arguments presented which were not considered at the time of the original ruling.

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.

The HTSUS provisions under consideration are as follows:

8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: 8504.40 Static converters:
8504.40.95 Other ..

8525 Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; :

8525.10 Transmission apparatus:
Television:
8525.10.30 Other ..
Other:

8525.10.3035 Converters, decoders, preamplifiers, line amplifiers, distribution amplifiers and other amplifiers; directional couplers and other couplers; all the foregoing designed for cable or closed-circuit television applications ..

8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 V: Lamp-holders, plugs and sockets:
8536.69 Other:
8536.69.40 Coaxial connectors; cylindrical multicontact connectors; rack and panel connectors; printed circuit connectors; ribbon or flat cable connectors .. 8536.69.4010 Coaxial connectors ..

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, 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.

Protestant has stated:

The connectors & couplers are designed to function in line, as part of a TV signal electrical circuit, making connections with the circuit via coaxial cable inputs and outputs. The subject merchandise play[s] a passive role in the electrical circuit capable of only redirecting, splitting or continuing an electrical signal.

It is the Port’s view that the subject merchandise is properly classified in heading 8525, HTSUS, which provides for, inter alia, transmission apparatus for television because they contain electrical circuitry and components which modify an incoming TV signal for further transmission by isolating, filtering and impedance matching. EN 85.25(B) explains that, among other things, heading 8525, HTSUS, includes transmitters of all kinds. The Computer Glossary, 6th ed. (Freedman, ed.) defines a transmitter as “a device that generates signals”. CBP has consistently found that equipment that aids in the transmission of an RF signal is “transmission apparatus” of heading 8525, HTSUS. See Headquarters Ruling Letter (“HQ”) 950866, dated March 18, 1992, and HQ 958318, dated December 8, 1995. We consider the nature of the merchandise before us. As earlier stated, the Lindsay Electronics website (www.lindsayelec.com), describes some models of the LHI, LHS, LHC, and LDC series. The LHI100 is described as a power inserter; the LHS102 as a 2 way line splitter, the LHS103 and the LHS103B as 3 way line splitters; the LHC108, LHC112, and the LHC116 as directional couplers; the LHI108, LHI112, and the LHI116 as status pickers/power inserters; the LHI 100D as a dual power inserter; and the LDC108S and the LDC112S as directional couplers – 2 way splitters. Although there is no specific discussion of the LTC series, the LGTP series data sheet describes the LTC series as “standard couplers”. The LHR100 series data sheet states:

The LHR100 Series uses a standard platform (housing) with a series of couplers that can be installed or plugged into the housing to produce the various values in the series. In addition, the system is designed to allow the coupler to be installed 6 different ways producing all possible port combinations. This flexibility allows the levels and signal direction [to] be updated without removal of the housing (no connector change out). The unit is simply opened and the internal coupler is replaced with a proper value and orientation.

Generally, a directional coupler separates signals based on the direction of signal propagation and is used to unequally split the signal flowing in the mainline and to fully pass the signal flowing in the opposite direction. RF Directional Couplers, Michael G. Ellis, Ph.D., members.tripod.com/michaelgellis/ direct.html. A “power inserter” is “a passive device used to add ac [alternating current] power to the centre conductor of a coaxial cable for the purpose of powering active devices.” (www.voiceanddata.com.au/vd/admin/glossary.asp.) We note that it may also be used to add DC (direct current) power via an AC adapter. See http://www.quintechelectronics.com/dcp2150-dc-inserter.php. According to our research, power inserters are typically used to power line amplifiers for RF signals. See, for example, www.accessorywarehouse.com and http://www.xm-radio-satellite.com/index.asp?PageAction=VIEWPROD &ProdID=2046. Finally, a “splitter” is “a passive device (that is, it has no active electronic components and thus requires no power) which allows one signal to be sent over multiple paths.” (www.satellite-tv-hq.com/telecom-glossary-s.htm.)

The data sheets for the LGTP and LGT series describe these devices as “multi-taps”. A “tap” is: “(1) An electrical connection permitting signals to be transmitted onto or off a bus; (2) the link between the bus and the drop cable that connects the workstation to the bus; and (3) a device used on CATV cables for matching impedance or connecting subscriber drops.” (http://www.e-ratecentral.com/resources/help/glossary/t.asp.) “Impedance” is “[a] term in electronics which measures the amount of opposition a device has to an AC current (such as an audio signal). Technically speaking, it is the combined effect of capacitance, inductance, and resistance on a signal.” (http:// www.media college.com/glossary/i/.) In other words, impedance is a measure of how hard a signal has to work to get through a cable, speaker or piece of equipment; the higher the impedance, the harder it is for the signal to get through. The LGTP data sheet explains that these multi-taps are “the ultimate in power-passing flexibility”, and feature “signal flow reversal without disturbing connections”, and “plug in tap value change without loss of RF or AC”, among other things.

Based on all of the foregoing, we find that the splitters, couplers, and multi-taps discussed above are provided for in heading 8525, HTSUS, as transmission apparatus for television, because they redirect, split, and continue broadcast signals for cable television. We note that CBP has consistently found that splitters, which are designed to further transmit a television broadcast signal for an antenna to either a VCR or more than one television broadcast receivers, are properly classified in heading 8525, HTSUS. See New York Ruling Letter (“NY”) E86253, dated Aug. 26, 1999, and NY I85916, dated Sept. 13, 2002. We note that in NY I85916 a coaxial cable connector was classified under heading 8536, HTSUS, but we point out that it was described as an “F” to “F” jack that merely extended the cable length between the antenna/VCR and the television.

With regard to the power inserters at issue, classification under heading 8504, HTSUS, which provides for, among other things, static converters, must be considered. EN 85.04 (II) explains, with regard to electrical static converters, that:

The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors.

The fact that these apparatus often incorporate auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage or current regulators.

This group includes:

Rectifiers by which alternating current (single or polyphase) is converted to direct current, generally accompanied by a voltage change. Inverters by which direct current is converted to alternating current. Alternating current converters and cycle converters by which alternating current (single or polyphase) is converted to a different frequency or voltage.

Based on the fact that the power inserters under consideration add AC power, or DC power via an AC adapter, to line amplifiers, among other things, we find that they are properly classified in heading 8504, HTSUS, as static converters, and are specifically provided for in subheading 8504.40.95, HTSUS. Classification at the 10-digit level will depend on the specific characteristics of each type of power inserter.

The scope of review in a protest filed under 19 U.S.C. §1514 is limited to the administrative record. CBP will consider all relevant allegations that are supported by competent evidence. In acting on a protest, however, CBP lacks the legal authority to assume facts and arguments that are not presented and, therefore, not in the official record. HQ 965469, August 6, 2002.

We were unable to find a description of the LAC series on the Lindsay Electronics website or in documents provided by Protestant to CBP. We note the existence of the LACS100 “Central Node Power Inserter” but are unable to ascertain whether this is a part of the LAC series. Due to the lack of factual specificity for this device, we are unable to determine its classification. Therefore, we must deny the protest with respect to the LAC series. See 19 CFR 174.13(a)(5).

Finally, we address Protestant’s contention that the proper classification of the subject merchandise is under heading 8536, HTSUS, which provides for, inter alia, electrical apparatus for making connections to or in electrical circuits. EN 85.36(III) explains that apparatus for making connections to or in electrical circuits is used to connect together the various parts of an electrical circuit and includes:

Plugs, sockets and other contacts for connecting a moveable lead or apparatus to an installation which is usually fixed. This category includes:

Plugs and sockets (including those for connecting two moveable leads). A plug may have one or more pins or side contacts which may match corresponding holes or contacts in the socket. The rim or one of the pins may be used for earthing purposes.

The Court of International Trade (CIT) has stated that the canon of construction ejusdem generis, which means literally, “of the same class or kind,” teaches that “where particular words of description are followed by general terms, the latter will be regarded as referring to things of a like class with those particularly described.” Nissho-Iwai American Corp. v. United States (Nissho), 10 CIT 154, 156 (1986). “As applicable to classification cases, ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine in order to be classified under the general terms.” Id. at 157. A “lead” is “an insulated electrical conductor connected to an electrical device”. Merriam Webster Collegiate Dictionary, 10th ed. The essential characteristic or purpose of the above listed exemplars is that they are used to connect insulated electrical wire or other conductor apparatus to a fixed installation or to other electrical wire. They have no other purpose. Because the subject merchandise aids in the transmission of an RF signal by connecting insulated electric wire to a fixed installation or to other insulated electric wire, redirects, splits and continues electrical signals, and adds power to transmission apparatus, we do not consider them to be mere connectors. The subject merchandise is not ejusdem generis with the exemplars of EN 85.36 and, accordingly, we find that they are not provided for in heading 8536, HTSUS.

HOLDING:

By application of GRI 1, we find that the splitters, couplers, and multi-taps at issue are correctly classified in heading 8525, HTSUS, and are specifically provided for in subheading 8525.10.3035, HTSUS, which provides for: “Transmission apparatus for television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; : Transmission apparatus: Television: Other: Other: ; directional couplers and other couplers; all of the foregoing designed for cable or closed-circuit television applications.” The general, column one rate of duty is 1.8% ad valorem.

By application of GRI 1, we find that the power inserters are properly classified in heading 8504, HTSUS, and are specifically provided for in subheading 8504.40.95, HTSUS, which provides for: “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other.” The general, column one rate of duty is 1.5% ad valorem.

You are instructed to deny the protest, except to the extent reclassification of the merchandise as indicated above results in a net duty reduction and partial allowance. In accordance with Section IV of the Customs Protest/Petition Processing Handbook (CIS HB, January 2002, pp.18 and 21), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter.

No later than 60 days from the date of this letter, the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP homepage on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

Myles B. Harmon, Director

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