HQ 084742: Telephone dialer

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 084742

                      September 12, 1989

CLA-2 CO:R:CV:G:  084742 JLV

CATEGORY:  Classification

TARIFF NO.:  8517.81.00

Peter J. Fitch, Esq.
Fitch, King and Caffentzis
116 John Street
New York, New York 10038

RE:  Telephone dialer

Dear Mr. Fitch:

In a letter of May 10, 1989, on behalf of your client,Tele-Art
Marketing USA, you request a ruling on the classification of an
article known as the TD-5 Index Dialer. The ruling that follows
is our decision on the classification under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).

FACTS:

     The Tele-Art ID 300, model TD-5, is an electrical device
which operates in-line with a telephone set.  It is designed to
be connected between the incoming line and the telephone set. 
The device is manufactured in Hong Kong.

     The TD-5 consists of a tone/pulse telephone dialer with a
memory capacity of 2050 digits, a flip-open alphabetical index
for names and other information, and a 7-digit LCD display. It
connects directly to the telephone set using an electrical
conductor with standard modular connectors.  The flip-open index
provides 15 pages, each of which provides for 24 lines of
hand-written entries (names, numbers).  Next to each entry line
on a page is a button for automatic recall and dialing of the
number stored as indicated on the index line.

     You conclude that the model TD-5 is classifiable under
subheading 8543.80.60, HTSUSA, on the basis of a ruling dated
March 8, 1988 (file 081681), and the fact that the TD-5,unlike
the article in 081681, is designed to be connected to telephonic
apparatus.

ISSUE:

     Is the index dialer more specifically provided for in
heading 8543, HTSUSA, than in heading 8517, HTSUSA?

LAW AND ANALYSIS:

     While subheading 8543.80.60, HTSUSA, appears to be a
specific provision for the article in issue, the fundamental
rules for classification under the HTS require that the General
Rules of Interpretation (GRIs) be applied.  GRI 1 states, in
part, that "classification shall be determined according to the
terms of the headings [emphasis added] and any relative section
or chapter notes and, provided such headings or notes do not
otherwise require, according to the following provisions * * * ." 
It is argued that heading 8543,which provides for "electrical
machines and apparatus, having individual functions, not
specified or included elsewhere in this chapter [85]," is
applicable.  It is also apparent that heading 8517, which
provides for "electrical apparatus for line telephony or
telegraphy * * * and parts thereof," could apply to the index
dialer.

     The design of the index dialer, the supporting documentation
and descriptive literature, and the function of the index dialer
are all clear evidence of the fact that it is an apparatus for
line telephony.  The stored information is for use in automatic
dialing of telephone numbers "to simplify dialing procedures and
help save time."  The hard copy pages are simply a means by which
the stored information can be located and retrieved.  The
built-in audio line monitor supports the efficient use of the
automatic dialer.

     Although the letter of May 10, 1989, does not set forth the
rationale upon which the claimed classification is based,it
appears that the underlying argument is based on the multiple
functions performed by the index dialer. 

     It is arguable that the index dialer is a composite machine
(dialer and flip-open index) within the meaning ofnote 3, section
XVI.  If so, then classification would be based on the component
or machine that performs the principal function.  In this case,
the telephonic dialer is that component.  Inasmuch as there are,
prima facie, two applicable headings, GRI 3(a) directs us to
classify under the more specific provision.  Heading 8517 clearly
describes the article (i.e., according to the component that
performs the principal function).  Heading 8543 would only be
considered if the article was not "specified or included
elsewhere" in chapter 85.

     It is also arguable that the index dialer is not a machine
of the type described in note 3, section XVI, but that it is,
nevertheless, a composite good consisting of different components
and, therefore, subject to GRI 3(b).  In this case,the dialer
gives the article its essential character.  Because the dialer is
electrical apparatus for line telephony, heading 8517 applies.

     However, all the features of the index dialer serve the
single function, that of a telephone dialer.  The "index" is
merely the means by which a person can access the information
stored in the dialer.  This article has a single function and
design, and that is to operate as an in-line device for use with
a telephone set.  Heading 8517 specifically describes this
article.  The Explanatory Notes to heading 8517 elaborate on the
types of apparatus that are considered to be "telephonic
apparatus."  Under GRI 3 (a), the index dialer is classifiable in
heading 8517, the heading which provides the most specific
description, specifically, subheading 8517.81.00, HTSUSA.

HOLDING:

     The TD-5 index dialer is classified as other telephonic
apparatus in subheading 8517.81.0000, HTSUSA, and dutiable at 8.5
percent ad valorem.

                    Sincerely,




                    John Durant, Director
                    Commercial Rulings Division