us-cbp-cross-rulings-hq-081424•HQ 081424: Facsimile telephone toshiba permanent
HQ 081424: Facsimile telephone toshiba permanent
us-cbp-cross-rulings-hq-081424HQ 081424: Facsimile telephone toshiba permanentGuidance
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 081424
October 31, 1988
CLA-2 CO:R:C:G 081424 LS
CATEGORY: Classification
TARIFF NO.: 8517.82.0040
Ms. Marty Langtry
Castelazo & Associates
5420 West 104th Street
Los Angeles, California 90045
RE: Facsimile telephone toshiba permanent
Dear Ms. Langtry:
This is in response to your letter, written on behalf of
Toshiba America, Inc., in which you requested a classification
ruling on a facsimile machine which includes a telephone.
FACTS:
The facsimile machine is identified in the literature
submitted by Toshiba America, Inc. as model TF-111. It is
described as a device which offers both telephone and facsimile
transmission in a compact, desk-top product. You state that
the only difference between this model and the standard
facsimile machine is that this model contains a permanently
attached telephone with a detachable handset. You further
state that the main purpose of the telephone is to contact the
operator when it is necessary to do so in order to send a
transmission. You have stated in a telephone conversation with
the national import specialist that you did not know whether
the telephone will be used exclusively with the facsimile
machine or whether it will be used for voice communication in
addition to its use with the facsimile machine. You have also
stated that the TF-111 model is sold as a facsimile machine.
The literature you have submitted describes the TF-111
model as an office-capable facsimile unit which can be
programmed with 30 facsimile destinations and 30 pre-set
telephone numbers. It features G2 and G3 transmission modes
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for compatibility with virtually any facsimile, and a
proprietary Toshiba HS high speed transmission mode for
communication with other Toshiba facsimile systems. This model
also can be programmed for Transmit Terminal Identification
(TTI), with the user name and telephone number displayed at the
top of each document page. The facsimile will provide a
detailed report of the last transactions and an automatic
display of transmission, telephone numbers, and operating
status. It also has an auto-receive feature for unassisted
recording of all incoming messages. Some of the other features
of this unit are an automatic document feeder, a digital face,
and polling. The latter feature allows this unit to pick up
transmission activity and problem messages from another
facsimile.
ISSUE:
What are the applicable tariff classification provisions
under the Tariff Schedules of the United States Annotated
(TSUSA) and the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) for the subject facsimile machine, model TF-
111, which includes a telephone?
LAW AND ANALYSIS:
Item 684.66, TSUSA, specifically provides for electrical
telegraph apparatus and instruments: other: terminal
apparatus. The question presented is whether the subject
article is, in character or function, something other than
telegraph terminal apparatus, which includes facsimile
machines, as described in item 684.66, i.e., whether it is more
limited or more diversified. If the difference between the
subject article and the article described in item 684.66 is
significant, the article cannot be classified in that
provision. The subject article would then be considered more
than a facsimile machine. However, if the difference is in the
nature of an improvement or amplification, and the essential
character is preserved or only incidentally altered, the
applicable rule is that an unlimited eo nomine statutory
designation includes all forms of the article in the absence of
a contrary legislative intent or commercial designation.
Robert Bosch Corp. v. United States, 63 Cust. Ct. 96, 103-104,
C.D. 3881 (1969).
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It is necessary, therefore, to determine whether the
permanently attached telephone makes the Toshiba model TF-111
"more than" a facsimile machine or whether the telephone serves
a function which is incidental, subordinate, or secondary to
the function of the facsimile machine. "It is a well settled
principle that where merchandise has a single primary function
and an incidental, subordinate, or secondary function, it is
classifiable on the basis of its primary design, construction,
and function." Ashflash Corp. v. United States, 76 Cust. Ct.
112, 115-116, C.D. 4643 (1976). However, where merchandise
constitutes more than a particular article or has additional
nonsubordinate or coequal functions, it is not classifiable as
that article. Id. at 116.
The purpose of the telephone attached to the facsimile
machine is to facilitate operation of the facsimile machine.
Whether or not the telephone is used exclusively with the
facsimile machine or is also used independently for voice
communication, we find that the telephone serves a function
which is incidental and subordinate to that of the facsimile
machine. Its function relates primarily to the function of the
facsimile machine. The telephone can be viewed as an added
feature which improves the capability of the facsimile machine
in an auxiliary manner. Following the standard set forth in
Robert Bosch Corp., supra, the article's essential character as
a facsimile machine is not altered more than incidentally by
the addition of the telephone. Therefore, the subject article
is classifiable on the basis of its primary function, i.e., as
a facsimile machine. See Trans-Atlantic Co. v. United States,
60 CCPA 100, C.A.D. 1088 (1973); Ashflash Corp., supra. The
addition of the telephone does not render the subject article
more than a facsimile machine.
The added feature of a telephone built into a facsimile
machine is considered to be in the nature of an improvement.
It has been held that an eo nomine designation covers all forms
of the article subsequently created which fairly come within
its scope, including improved models originating since the
statutory enactment. See Hoyt, Shepston & Sciaroni, S.
Blondheim & Co. v. United States, 52 CCPA 101, 103-104 (1965);
A.J. Arango, Inc. v. United States, 1 CIT 271, 274-275 (1981).
A technological advancement which allows the incorporation of a
telephone into the same unit as a facsimile machine does not
preclude the classification of the TF-11 model as a facsimile
machine under item 684.66.
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In Phone-Mate, Inc. v. United States, Slip Op. 88-79 (Ct.
Int'l. Trade, decided June 17, 1988), the Court of
International Trade held that a combination telephone and
answering machine device was properly classified by Customs
under item 684.58, TSUSA, which provides for "telephone sets
and other terminal equipment and parts thereof." The court
noted that in light of current developments in telecomunica-
tions technology, the U.S. International Trade Commission,
which drafted the revisions to the Tariff Schedules, considered
the term "telephone" to have a broad enough scope to include
articles which combine a telephone with other instruments or
devices. The court found that "the answering machine serves a
secondary function which relates to the predominant use of the
article as a means of transmitting and receiving telephonic
messages." Slip Op. at 14.
Likewise, we find that the provision for telegraph
terminal apparatus, including facsimile machines, item 684.66,
includes the Toshiba TF-111 unit which is a facsimile machine
with a built-in telephone. The telephone serves a secondary
function which relates to the predominant use of the article as
a means of transmitting and receiving documents. The
applicable duty rate is 4.7 percent ad valorem if the article
is imported from a column 1 country.
Under the HTSUSA, General Rule of Interpretation (GRI) 1
provides that classification is determined first according to
the terms of the headings and any relative section or chapter
notes. Note 3 to Section XVI provides:
Unless the context otherwise requires, composite
machines consisting of two or more machines fitted
together to form a whole and other machines adapted
for the purpose of performing two or more comple-
mentary or alternative functions are to be classified
as if consisting only of that component or as being
that machine which performs the principal function.
Applying Note 3, the subject article which performs two
complementary functions is classifiable as other telegraphic
apparatus under subheading 8517.82.00 because the facsimile is
the component of the article which performs the principal
function. Subheading 8517.82.00 provides for "Electrical
apparatus for line telephony or telegraphy, including such
apparatus for carrier-current line systems: Other apparatus:
Telegraphic. The duty rate is 4.7 percent ad valorem if the
merchandise is imported from a "Column 1 General" country.
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HOLDING:
In view of the foregoing, the Toshiba facsimile machine
with the built in telephone is classifiable in item 684.66,
TSUSA, which provides for electrical telegraph apparatus and
instruments: other: terminal apparatus, dutiable at the rate
of 4.7 percent ad valorem if imported from a column 1 country.
The applicable provision under the HTSUSA is subheading
8517.82.00, which provides for "Electrical apparatus for line
telephony or telegraphy, including such apparatus for carrier-
current line systems: Other apparatus: Telegraphic." The
duty rate for this provision is also 4.7 percent ad valorem if
it is imported from a "Column 1 General" country. The
classification under the HTSUSA, effective January 1, 1989, is
subject to changes made in the HTSUS prior to the effective
date.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: Area Director, New York Seaport
LSchreiber:jaj:10/12/88
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