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HQ W968349




February 8, 2007

CLA-2 RR:CTF:TCM W968349 ADK

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.80.30

Lucy Richardson
Manager, Trade Strategy and Compliance
Sony Electronics Inc.
1 Sony Drive, Park Ridge,
New Jersey, 07656

RE: Classification of the High Definition Camera Module

Dear Ms. Richardson:

This is in response to your letter dated July 3, 2006, to United States Customs and Border Protection (CBP) in New York, in which you requested a binding ruling pertaining to classification of the Sony High Definition Camera Module (camera module), Model MXC-SN10, under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response.

FACTS:

The subject article is a camera module, Model MXC-SN10, which is produced by Sony Electronics Inc. (Sony) for use with an endoscopy system. Endoscopes are instruments that are generally used for visualizing the interior of a hollow organ, such as the urethra. Upon entry, the camera module is comprised of an optical prism which is bonded to three units of black and white high definition television charged couple devices (CCDs), a capacitive discharge synced, a timing generator, an analog/digital converter (ADC) and a microcomputer mounted on a hinged circuit board with an interface connector. After entry, the importer’s customer will add a lens, an autoclavable housing, and a cable for connection to a camera control unit (CCU). The autoclavable housing is a protective covering which is built to withstand the action of an autoclave, an apparatus in which pressurized steam effects sterilization.

Sony argues that the camera module is classifiable under subheading 9018.19.40, HTSUS, which provides for “instruments and appliances used in medical, surgicalsciencesparts and accessories thereof: Electro-diagnostic apparatusparts and accessories thereof: Other: Apparatus for functional exploratory examination, and parts and accessories thereof.” Alternatively, Sony argues that the camera module is classifiable under subheading 8529.90.81, HTSUS, which provides for: “Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Other parts of articles of headings 8525 and 8527: Of televisions apparatus: For television cameras: Other.”

ISSUE:

Is the camera module classifiable as an endoscope, under heading 9018, HTSUS, as a camera part, under heading 8529, HTSUS, or as a camera under heading 8525, HTSUS?

LAW AND ANALYSIS:

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.

At issue is whether the camera module is properly classified under chapter 85 or chapter 95 of the HTSUS. The HTSUS provisions under consideration are as follows:

8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders.

8525.80 Television cameras, digital cameras and video camera recorders: Television cameras:

8525.80.30 Other:

8529 Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528:

8529.90 Other:
Other parts of articles 8525 and 8527:
Of televisions apparatus:
For television cameras:

Other

9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof:

9018.19 Other:

9018.19.40 Apparatus for functional exploratory examination, and parts and accessories thereof

Chapter 90, note 2 (a) provides, in pertinent part:

Subject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules:

(a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings. (Emphasis added)

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. The relevant ENs are as follows:

EN to chapter 90:

(III) PARTS AND ACCESSORIES
(Chapter Note 2)

Subject to Chapter Note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instruments or apparatus of this Chapter are classified with those machines, appliances, etc.

This general rule does not, however, apply to:

(1) Parts or accessories which in themselves constitute articles falling in any particular heading of this Chapter or of Chapter 84, 85. (Emphasis in original).

As a threshold matter, we note that the subject camera module is a “part” of an endoscope. The definition of “part” was first articulated by the United States Court of Customs and Patent Appeals (CCPA) and later adopted by the Court of International Trade (CIT). In United States v. Willoughby Camera, the CCPA stated that “a ‘part’ of an article is something necessary to the completion of that article. It is an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article” 21 C.C.P.A., 322 (1933); Ludvig Svensson v. United States, 23 C.I.T. 573 (1999). The camera module is an integral part of the endoscope, without which, the endoscope could not function as an article. As such, the module is potentially classifiable in chapter 90, which provides for medical or surgical equipment “and partsthereof.” At issue is whether the camera module is nonetheless excluded from Chapter 90 by chapter note 2(a).

With certain exceptions, note 2(a) states that parts of machines which are goods included in any of the headings of chapter 84 or chapter 85 are in all cases to be classified in their respective headings. See Headquarters Ruling (HQ) 966732, dated August 13, 2004. This is applicable because the camera module, classifiable in chapter 85, is a part of a good classifiable in chapter 90. Accordingly, classification requires a threshold analysis of chapter 85. If the camera module falls under any chapter 85 heading, note 2(a) mandates its exclusion from chapter 90.

When classifying CCD cameras or camera modules, CBP looks to the functionality of the item upon entry to the United States. Even when incomplete, if the CCD module is capable of “converting or processing image data” at the time of entry, it is classifiable under the heading 8525, HTSUS, as a television camera. See New York Ruling (NY) E86557, dated September 23, 1999. See also HQ 953116, dated October 6, 1993 (Incomplete MicroImager digital camera classified under subheading 8525.30, HTSUS). The CCD is an image sensor which transforms light into electrical charges. These electrical charges are passed to the ADC which converts each charge into a digital value and then into binary code. The image data, which enters the subject module as light, is exported in the form of binary code as a result of the combined actions of the CCD and ADC. The module is therefore capable of “converting or processing image data,” and falls under heading 8525, HTSUS. As a “part,” classifiable in chapter 85, the camera module is prima facie excluded from chapter 90

Counsel for Sony cites to HQ 953652, dated April 13, 1994, as evidence that the subject camera module is classifiable under heading 9018, HTSUS. In that case, the United States Customs Services (now CBP) classified an endoscope with a multi channel insertion under subheading 9018.19.40, HTSUS, and a video camera head that was attached to a fiberscope under subheading 9018.90.20, HTSUS. Both articles are distinguishable from the subject camera module because they were substantially completed endoscopes in their imported conditions. The CCD camera module before us, on the other hand, is imported separately from the rest of the endoscope. HQ 935625, while correct, has no bearing on the subject matter..

Classification in heading 8525, HTSUS, is consistent with HQ 953116. In that ruling, CBP classified a MicroImager Digital Camera under heading 8525, HTSUS. Like Sony’s module, the MicroImager was also a “part” which was easily attached to different optical systems. Also like the subject article, the MicroImager was capable of “converting or processing image data” at the time of entry. According to documents submitted by the importer, the MicroImager utilized “high performance scientific charge-coupled devices (CCD’s)and analog-to-digital convertersTo minimize electronic noise, the analog output of the MicroImager’s CCD image sensor is digitizedwithin the camera.” (Emphasis added). See MicroImager 1400 Manual. According to HQ 953116, the subject camera module is a television camera, classifiable in heading 8525, HTSUS.

Sony’s alternative argument asks that we rely upon NY E86557 when making our determination. In that ruling, CBP classified a color CCD camera module under heading 8529, HTSUS. The camera module, which consisted only of a CCD board and lens, was incapable of converting or processing image data. Accordingly, the module in NY E86557 is distinguishable from that in the present matter.

We note that in NY F84302, dated March 20, 2000, CBP also classified a CCD camera module under heading 8529, HTSUS. According to that ruling, the camera module was “not capable of converting or processing image data” upon entry. However, NY F84302 does not provide enough information to ascertain the article’s physical construction. Furthermore, the file was stored in our former 6 World Trade Center office in New York City and was destroyed as a result of the terrorist incident on September 11, 2001. Because it contains little information as to the exact construction of the camera module, we cannot determine whether it is distinguishable from the case at hand. It is therefore inconclusive and does not serve as authority in the instant case. See HQ 967974, dated February 17, 2006; HQ 965350, Dated July 10, 2002.

HOLDING:

By application of GRI 1, the Sony High Definition Camera Module, Model MXC-SN10 is classifiable in heading 8525, HTSUS. The camera modules entered during the calendar year of 2006 are classifiable under subheading 8525.30.90, which provides for “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 and other video camera recorders; digital cameras: Television Cameras: Other.” The 2006 column one, general rate of duty is 3.3 percent ad valorem.

Pursuant to title 19 U.S.C. §3005, the HTSUS was amended to reflect changes recommended by the World Customs Organization. The proclaimed changes to the HTSUS were made effective for goods entered or withdrawn from a warehouse for consumption on or after February 3, 2007. These amendments affected the classification of your merchandise. Therefore, the camera modules entered between January 1, 2007 and February 2, 2007 are classifiable under the preliminary 2007 subheading of 8525.30.90, which provides for “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 and other video camera recorders; digital cameras: Television Cameras: Other.” The preliminary 2007 column one, general rate of duty is 3.3 percent ad valorem.

The camera modules entered or withdrawn from a warehouse for consumption on or after February 3, 2007 are classifiable under subheading 8525.80.30, HTSUS, which provides for: “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Television cameras: Other: Color.” The 2007 column one, general rate of duty is 2.1 percent ad valorem.

Sincerely,

Gail A. Hamill, Chief
Tariff Classification and Marking Branch

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