HQ 086196: "SecuriCrypto" data security devices

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 086196


                          April 2, 1990


CLA-2 CO:R:C:G  086196 MBR

CATEGORY:  Classification

TARIFF NO.:  8517.82.00

Mr. John Vanden Hoek
Triangle Industrial Center
P.O. Box 67
Medford, New Jersey 08055

RE:  "SecuriCrypto" data security devices

Dear Mr. Vanden Hoek:

  This is in reply to your letter of November 9, 1989, on behalf
of the GRIM Corporation, requesting classification of
SecuriCrypto data security devices, under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).

FACTS:

   The SecuriCrypto device is intended to guard data
communications systems against unauthorized access or monitoring.
The SecuriCrypto is an encryption system for data communications
that utilizes a key of 1,000,000 bits.  Typical applications
include: between front-end computers, terminal controller to
mainframe computer, between PC's, communication with peripherals
and multipoint local area networks.  The methods of communication
include: fixed cables, modem (leased lines), modem (dial-up
communication), high-speed digital links and satellite
transmissions.

ISSUE:

  What is the classification of the SecuriCrypto data
communication security device under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

  The General Rules of Interpretation (GRI's) 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...

  Heading 8517, HTSUSA, provides for: "[e]lectrical apparatus for
line telephony or telegraphy...."  The Harmonized Commodity
Description and Coding System Explanatory Notes (EN) to heading
8517 of the HTSUSA, page 1360, state:

     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 fibers, combination cable,
     etc.) circuit connecting the transmitting station to the
     receiving station.

  Clearly, the SecuriCrypto is apparatus designed for the
transmission of data between two points, by variation of an
electric current connecting the transmitting station to the
receiving station.  Therefore, it is Customs position that the
SecuriCrypto is properly classifiable under subheading
8517.82.00, which provides for: "[e]lectrical apparatus for line
telephony or telegraphy...: [o]ther apparatus: [t]elegraphic."
See HQ 058516 (October 5, 1978).

HOLDING:

  The SecuriCrypto is classifiable under subheading 8517.82.00,
HTSUSA, which provides for: "[e]lectrical apparatus for line
telephony or telegraphy...: [o]ther apparatus: [t]elegraphic.
The rate of duty is 4.7% ad valorem.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division