HQ 954390: Call Display Unit; Signalling Apparatus; Telephonic

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 954390
                                                               
                        October 7, 1993

CLA-2 CO:R:C:M  954390 MBR

CATEGORY:  Classification

TARIFF NO.:  8531.20.00

Mr. Roger Silvestri
Assistant Area Director
National Import Specialist Division
U.S. Customs Service
6 World Trade Center
New York, N.Y. 10048

       RE:     Call Display Unit; Signalling Apparatus; Telephonic
       Apparatus; NEC America, Inc. v. United States; 8531;
       8517; NY 858341; HQ 088520; HQ 952779; HQ 952406; HQ
       953366; HQ 953444 
       
  Dear Mr. Silvestri:
  
     This is in reply to your memorandum of June 4, 1993,
  (CLA-2-85:S:N:N1B 112-953366), requesting reconsideration of
  HQ 953366, dated April 5, 1993, regarding the classification
  of a Call Display Unit, under the Harmonized Tariff Schedule
  of the United States (HTSUS).
  
  FACTS:
  
     The telephone "Call Display" unit is a device that
  displays the telephone number of a calling party on a liquid
  crystal display (LCD).  A coded representation of the calling
  party's telephone number is sent on the telephone line to the
  unit, which plugs into a standard modular wall jack.  The
  caller's number is stored in chip memory so that the user can
  review the information at a later date.  The Call Display also
  records the time and date of call.  The unit does not require
  the attachment of a telephone in order to operate properly.
  
  ISSUE:
  
     Is the Call Display Unit classifiable under heading 8531,
  HTSUS, as electric sound or visual signalling apparatus, or
  under heading 8517, HTSUS, as electrical apparatus for line
  telephony? 
  
  
  
  
                             -2-
                                
  LAW AND ANALYSIS:
  
     The General Rules of Interpretation (GRI's) to the HTSUS
  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...
  
     In NY 858341, dated December 11, 1990, it was held that
  the Caller ID Unit was classifiable in heading 8517, HTSUS,
  which provides for electrical apparatus for line telephony.
  
     Subsequently, in HQ 088520, dated September 10, 1991, we
  revoked NY 858341, and classified a similar telephone "Caller
  ID" unit in heading 8531, HTSUS, which provides for signalling
  apparatus.
  
     In HQ 952779, dated October 31, 1992, we reconsidered HQ
  088520, and held that the Caller ID Unit was classifiable as
  electrical apparatus for line telephony in heading 8517,
  HTSUS.
  
     Similarly, in HQ 952406, dated October 31, 1992, we held
  that a Caller ID Unit was classifiable as electrical apparatus
  for line telephony in heading 8517, HTSUS.
  
     However, in HQ 953366, dated April 5, 1993, we revoked HQ
  952779, and held that the Caller ID Unit was classifiable in
  heading 8531, HTSUS, which provides for signalling apparatus.
  Additionally, HQ 953444, also dated April 5, 1993, revoked HQ
  952406.
  
     You now request reconsideration of HQ 953366, based upon
  the following principle:
  
  "If we were to follow Headquarters decision 953366 all
       types of apparatus or instruments that incorporate a
       digital readout panel such as thermometers, blood
       pressure machines, volt, ampere, and watt meters,
       odometers, speedometers, clocks, calculators and other
       similar devices would have to be considered signalling
       apparatus under heading 8531."
       
     However, the court in NEC America, Inc. v. United States,
  11 CIT 934 (1987), held that battery operated paging receivers
  were classifiable under item 685.24, TSUS, which provides for
  "other solid-state (tubeless) radio receivers."  Item 685.70,
  TSUS, is the predecessor provision to heading 8531, HTSUS. 
  The court in NEC America, citing the prior NEC America, Inc.
  v. United States, 8 CIT 184, 596 F. Supp. 466 (1984), stated: 
  
  
  
  
                             -3-
                                
  After examining prior case law, the court indicated that
       classification under item 685.70, TSUS, was "limited to
       those articles whose sole purpose and function is merely
       signalling." Hence, the court concluded that the superior
       capabilities of the display pagers in issue, with their 
       ability to display information in digital form and to
       retain it for later recall, clearly "transcend merely
       signalling."  (Emphasis added).
       
     Therefore, as the court has interpreted the "signalling"
  provision to be "limited to those articles whose sole purpose
  and function is merely signalling," we do not anticipate that
  all other apparatus with a liquid crystal display will be
  classifiable in heading 8531, HTSUS.  In fact, the court found
  that a radio display pager "transcended merely signalling." 
  Thus, similarly, the apparatus enumerated (thermometers, blood
  pressure machines, volt, ampere, and watt meters, odometers,
  speedometers, clocks, calculators and other similar devices)
  would also transcend merely signalling. 
  
     In HQ 953366, which provides the current precedent for
  the classification of Caller ID Units, we stated:
  
  A consideration of the distinctions between the
       merchandise at issue under the TSUS provisions in NEC,
       and the Caller I.D. devices at issue under the legal
       principles of the HTSUS, leads to a finding that NEC is
       not analogous to the instant matter.  At issue in NEC was
       the classification of radio receiver pagers which
       received and stored coded messages, stock quotations and
       telephone numbers.  The instant matter involves Caller
       I.D. devices which must be classified under the governing
       principles of the HTSUS.
       
     In HQ 953366 we also relied heavily on the Harmonized
  Commodity Description and Coding System Explanatory Notes
  {"ENs") regarding heading 85.31, page 1382, which state that
  signalling apparatus includes:
  
  Number indicators.  The signals appear as illuminated
       figures on the face of a small box; in some apparatus of
       this kind the calling mechanism is operated by the dial
       of a telephone.
       
     Although not dispositive, the ENs are to be used for
  guidance in determining the proper interpretation of the
  HTSUS.  54 Fed. Reg. 35128 (August 23, 1989).
  
     The court in NEC did not have the benefit of an EN such
  as the one above, in which the imported merchandise squarely
  fits.  Thus, under the guidance of the ENs and the judicial
  decisions, HQ 953366 is affirmed.
  
  
  
                             -4-
                                
     You also request reconsideration of HQ 953366, based upon
  the following principle:
  
  "Following GRI 3(b) we have a problem accepting the above
       decision.  GRI 3(c) only comes into play when the
       essential character/function of a composite item cannot
       be established."
       
     However, in HQ 953366 we did not resort to GRI 3(b) or
  GRI 3(c) in our analysis.  In HQ 953366 we stated the
  following: "[a]lthough the devices appear to be prima facie
  described by heading 8517, HTSUS, they are still classified in
  heading 8531, HTSUS, where they are more specifically provided
  for pursuant to GRI 3."  Thus, we relied on GRI 3(a), which
  provides that: "[t]he heading which provides the most specific
  description shall be preferred to headings providing a more
  general description."
  
  HOLDING:
  
     Signalling apparatus whose sole purpose and function is
  merely signalling, and particularly apparatus which is
  enumerated in the ENs in heading 85.31, is properly
  classifiable in heading 8531, HTSUS.  The Call Display Unit is
  classifiable in subheading 8531.20.00, HTSUS, which provides
  for signalling apparatus.  HQ 953366, dated April 5, 1993, is
  hereby affirmed.  
  
                                Sincerely,
  
  
  
  
  
                                John Durant, Director
                                Commercial Rulings Division