HQ 951797: Automotive Burglar Alarm Systems; Incomplete; Essential Character

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 951797
                                                               
                         August 17, 1992

CLA-2 CO:R:C:M  951797 MBR

CATEGORY:  Classification

TARIFF NO.:  8531.10.00
 
Joe A. Dahm
Therm Technology Corporation
2879 Remico
Grandville, Michigan
49418

RE:  Automotive Burglar Alarm Systems; Incomplete; Essential
     Character

Dear Mr. Dahm:

     This is in response to your letter of March 25, 1992, on
behalf of the Therm Technology Corporation, regarding the
classification of an incomplete automotive burglar alarm system,
imported from Hong Kong, under the Harmonized Tariff Schedule of
the United States (HTSUS).

FACTS:

     The instant merchandise consists of an incomplete automotive
burglar alarm.  The importation consists of a printed circuit
board with microcomputer chips, diodes, capacitors, relays,
transistors, and amplifiers.  After importation the following
will be added: wiring, a switch, terminals, an instruction sheet,
and packaging.  The system operates by sensing a change in the
electrical current usage from the battery, which would be caused
by opening a door and triggering the dome light, starting the
car, or turning on the radio.

ISSUE:

     What is the classification of an incomplete automotive
burglar alarm consisting of a printed circuit board containing
all of the necessary electronics, under the Harmonized Tariff
Schedule of the United States (HTSUS)?






                               -2-

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRIs) to the HTSUSA
govern the classification of goods in the tariff schedule.  GRI 1
states, in pertinent part:

     ...classification shall be determined according to the terms 
    of the headings and any relative section or chapter notes...

     The alarm system component is prima facie classifiable under
the following headings/subheadings:

     8531 Electric sound or visual signalling apparatus (for
          example, bells, sirens, indicator panels, burglar or
          fire alarms), other than those of heading 8512 or 8530;
          parts thereof:

*    *    *    *    *    *    *    *    *    *    *    *    *

     8531.10.00     Burglar or fire alarms and similar apparatus.

*    *    *    *    *    *    *    *    *    *    *    *    *

     8531.90.00     Parts

*    *    *    *    *    *    *    *    *    *    *    *    *

     8537 Boards, panels (including numerical control panels),
          consoles, desks, cabinets and other bases equipped with
          two or more apparatus of heading 8535 or 8536, for
          electric control or the distribution of electricity,
          including those incorporating instruments or apparatus
          of chapter 90, other than switching apparatus of
          heading 8517:

*    *    *    *    *    *    *    *    *    *    *    *    *

     8537.10.00     For a voltage not exceeding 1,000 v

*    *    *    *    *    *    *    *    *    *    *    *    *

     In HQ 088595 (September 12, 1991), HQ 087876 (December 27
1991), HQ 086460 (July 18, 1990), and HQ 071612 (July 25, 1985),
Customs addressed the classification of the central components of
a burglar alarm system.  In those decisions we stated:

     In HQ Ruling 071612 (July 25, 1985), the central components
     of a burglar alarm system were entered without the remote
     sensors, bells and sirens.  Various indicator light panels
     were incorporated in the front of each component.  The
     merchandise was found to be "more than" control panels and
     was classified as burglar alarms and parts thereof in item
     685.70.

                               -3-

     HQ Ruling 071612 found that the articles were more than
     control panels because they incorporated a substantial
     proportion of the operating part of the machine controlled,
     and in fact were the very essence of the burglar alarm
     systems.

          Like the burglar alarm components in HQ Ruling 071612,
     the fire alarm components under consideration (in HQ 086460
     dated July 18, 1990) incorporate a substantial proportion of
     the operating part of the machine controlled.  The articles
     incorporate the power supply for the remote sensors and
     alarms controlled.  The central cabinets of all three models
     incorporate indicator light panels.  The Basic Integrated
     System includes an amplifier which provides a speaker source
     for various alarm messages.  The Basic Multiplex System
     incorporates a Serial Link Controller which interfaces the
     system's CPU and emergency Satellite communicator (ESAC).

     Therefore, we held that the "Edwards 8500" series fire alarm
systems, when entered without the remote sensors and sound
signalling apparatus, were classified as "[b]ells, sirens,
indicator panels, burglar and fire alarms...and parts thereof" in
item 685.70, TSUS. 

     Furthermore, in HQ 088464, dated September 11, 1991, we
addressed the scope of heading 8537.  Heading 8537, HTSUSA,
provides for "[b]oards, panels . . . consoles, desks, cabinets
and other bases, equipped with two or more apparatus of heading
8535 or 8536, for electric control or the distribution of
electricity . . ."  In HQ 088595, and HQ 088464, we held that
these systems did not satisfy this description.  We stated: 

     It is not used merely for the electric control or the
     distribution of electricity.  As discussed above, the system
     is used to perform multiple tasks described in heading 8471,
     HTSUSA (and 8531, HTSUSA).  Accordingly, the subject system
     does not satisfy the terms of this heading and is not
     properly classifiable therein.

     In the instant case, the imported component is
electronically complete and contains microcomputer chips which
are the heart of the system since they detect the minute
variations in electrical current and trigger the alarm.

     The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) to heading 8537, HTSUS, page 1391,
describe: "Programmable controllers" which are digital apparatus
using a programmable memory for the storage of instructions for
implementing specific functions such as logic, sequencing,
timing, counting and arithmetic, to control, through digital or
analog input/output modules, various types of machines."  


                               -4-

     However, as in HQ 088464, the instant merchandise is not
merely a programmable controller.  Furthermore, the automotive
burglar alarm component is not "programmable through digital or
analog input/output modules."  

     The instant automotive alarm system component is not
complete at importation.  Therefore, reference must be made to
GRI 2(a), which states:

     2.   (a)  Any reference in a heading to an article shall be
               taken to include a reference to that article
               incomplete or unfinished, provided that, as
               entered, the incomplete or unfinished article has
               the essential character of the complete or
               finished article.  It shall also include a
               reference to that article complete or finished (or
               falling to be classified as complete or finished
               by virtue of this rule), entered unassembled or
               disassembled.

     The ENs to Section XVI, chapter 85 (which include heading
8537, HTSUS), further delineate the following, page 1132:

                    (IV) Incomplete Machines

          Throughout the section any reference to a machine or
     apparatus covers not only the complete machine, but also an
     incomplete machine (i.e., an assembly of parts so far
     advanced that it already has the main essential features of
     the complete machine).  Thus a machine lacking only a
     flywheel, a bed plate, calendar rolls, tool holders, etc.,
     is classified in the same heading as the machine, and not in
     any separate heading providing for parts.  Similarly a
     machine or apparatus normally incorporating an electric
     motor (e.g., electro-mechanical hand tools of heading 85.08)
     is classified in the same heading as the corresponding
     complete machine even if presented without that motor.

     Therefore, it is Customs position that the instant
automotive burglar alarm system component has the main essential
features of the complete machine, and consequently, meets the
terms of subheading 8531.10.00, HTSUS, which provides for:
"[b]urglar or fire alarms and similar apparatus."  

HOLDING:

     The instant automotive burglar alarm system component meets
the terms of subheading 8531.10.00, HTSUS, which provides for: 






                               -5-

"[e]lectric sound or visual signaling apparatus...: [b]urglar or
fire alarms and similar apparatus."  The rate of duty is 2.7% ad
valorem.   

                              Sincerely,




                              John Durant, Director