HQ 084990: Composite machine; facsimile machine with telephone and answering device

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                        HQ 084990

                                     October 3, 1989

             CLA-2 CO:R:CV:G:  084990 JLV; 842359 NY

             CATEGORY:  Classification

             TARIFF NO.:  8517.82.0040

             Madeline B. Kuflik, Esq.
             Matsushita Electric
               Corporation of America
             One Panasonic Way
             Secaucus, New Jersey 07094

             RE:  Composite machine; facsimile machine with telephone and
                  answering device

             Dear Ms. Kuflik:

                  In a letter of June 5, 1989, on behalf of Panasonic
             Company, a division of Matsushita Electric Corporation of
             America, you requested a ruling on the classification, under
             the Harmonized Tariff Schedule of the United States Annotated
             (HTSUSA), of certain facsimile machines, of which some are
             currently imported and others will soon be imported.  This
             classification decision applies to transactions which were
             prospective at the time of your request.

             FACTS:

                  The Panasonic models are the KX-F80, KX-F100, KX-F120,
             KX-F3500, KX-F220, and KX-F320.  The KX-F80 is a portable
             facsimile (fax) machine; the others are desk-top fax machines.
             All the machines have telephone functions.  The KX-F80 does
             not have a handset but has a hands-free speaker phone
             function.  Concerning the fax function, all models feature two
             transmission modes:  normal mode for regular documents and
             fine mode for detailed documents.  The KX-F220 and KX-F320
             also have a super fine transmission mode which gives a
             resolution that is four times that of normal Group 3 models.

                  Depending on the specific model, a fax machine may have
             one or more of these enhancements:  programmable facsimile
             destinations (numbers), pre-set facsimile numbers, 16-step














                                          - 2 -

             half tones for detection of different shades of gray, polling
             function, reverse polling function, sequential broadcast
             capability, confidential transmission capability, memory
             reception, and others.

                  Each machine also has a telephone voice function with
             features such as automatic dialer, speakerphone, automatic
             redial, pause, mute and answer-back.  Furthermore, each
             machine also has an answering device which records incoming
             messages and provides for an outgoing message.

                  The machines are designed to be connected to telephone
             lines and to transmit and receive through these lines.

             ISSUE:

                  What is the principal function of a machine which is an
             electrical apparatus for line telephone or telegraphy and
             which can function as a facsimile machine, telephone, and
             answering machine?

             LAW AND ANALYSIS:

                  The machines are described in heading 8517, which
             provides in pertinent part for "[e]lectrical apparatus for
             line telephony or telegraphy."  This term is defined in the
             Explanatory Notes (EN) to heading 8517:

                              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 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 competing levels of indentation within 8517 are
             subheading 8517.10 for telephone sets and subheading 8517.82
             for other apparatus:  telegraphic.  Because the competing
             provisions are subheadings at the same level of indentation
             within the same heading, General Rule of Interpretation (GRI)
             6 directs classification according to the terms of the
             subheadings, any related subheading notes, and, mutatis
             mutandis, GRI 1 through 5 and the relative section and chapter
             notes, unless the context requires otherwise.













                                          - 3 -

                  In this case, as directed by GRI 1, note 3 of section XVI
             is a relative section note which, if a principal function can
             be determined, controls classification for composite machines.
             Each model in issue is a composite machine:  a telephone
             handset, a telephone answering device and a facsimile machine,
             all of which are joined together to form a whole which
             performs separate functions, either consecutively or
             simultaneously.  These separate functions are complementary.

                  The Explanatory Notes (EN) to heading 8517 indicate that
             the answering device, when combined with a telephone set into
             an integrated unit, is classified with the telephone as a
             telephone set (subheading 8517.10).  Facsimile machines,
             however, are described in these EN as telegraphic apparatus:
             machines designed for converting texts or images into
             appropriate electrical impulses and for transmitting those
             impulses, and for receiving these impulses and converting them
             into symbols, representations, or the text or image itself.
             Therefore, it appears that the functions to be compared are
             those of a telephone set incorporating an answering device,
             and a facsimile machine.

                  When comparing the functions, percentage of use in this
             case does not control.  The retail price of a telephone set
             with answering device that is comparable in features to the
             telephone and answering device in the KX-F120 is approximately
             $130.00.  The retail price of the KX-F120 is approximately
             $959.00.  Advertising literature indicates that a composite
             machine, such as those in issue, are advertised as facsimile
             machines with the answering device as a built-in feature.  The
             telephone (voice communication) function appears to be a
             standard feature on machines advertised as "fax" machines.

                  The North American Facsimile Guide, No. 5, January, 1989
             (Info-Market, Inc.), a publication "intended to help those
             considering the purchase, lease or rental of a facsimile
             machine," lists the current Panasonic models KX-F100 and KX-
             F120.  In The Guide, summary descriptions of the fax machines
             are in terms related to the fax function:  resolution,
             document input and output, transmission speed, gray scale, and
             memory.  Voice answering devices have become a more common
             function built into fax machines.

                  In view of this information, we conclude that the
             principal function of the composite machines is the facsimile
             function.  Therefore, classification of the machines is in
             subheading 8517.82.0040, HTSUSA, as other telegraphic
             apparatus.














                                          - 4 -

             HOLDING:

                  The Panasonic KX-F80, KX-F100, KX-F120, KX-F3500, KX-
             F220, and KX-F320 are composite machines, the principal
             function being the facsimile function, and are classified in
             subheading 8517.82.0040, HTSUSA.

                                          Sincerely,




                                          John Durant, Director
                                          Commercial Rulings Division




















































































             6cc:  AD NY Seaport
             1cc:  NIS Irwin Josephs
             2cc:  Chief, CIE
             1cc:  Director, Trade OPs
             1cc:  AC, CO
             1cc:  Reading File
             1cc:  Durant

             LIBRARY:   valentin
             FILE NAME: 084990