FXD-10 facsimile demonstration device

HQ 085578 January 10, 1990 CLA-2 CO:R:C:G 085578 MBR CATEGORY: Classification TARIFF NO.: 8517.82.00 Mr. C. David Freeman High-Tech Resources, Inc. 230 Main Street Ellsworth, Maine 04605 RE: FXD-10 facsimile demonstration device Dear Mr. Freeman: This is in reply to your letter of September 5, 1989, requesting classification of the FXD-10 facsimile demonstration device, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). FACTS: The descriptive literature notes that facsimile machines may be demonstrated to prospective buyers who have single line telephone sets and/or PBX telephone systems by simply plugging the line cord of the facsimile machine into a wall jack. However, this is not the case with "key" telephone systems. In the "key" system, only specific makes and models of station units (desk telephone sets) may be used since the signals passing between the station unit and the KSU (key system central unit) are not industry standard telephone units. The FXD-10 enables the sales representative to interface a facsimile machine with any key system station unit in order to access a telephone line and send/receive facsimiles. The FXD-10 is battery powered, has a four wire/four pin mini-connector enabling the device to interface with a station unit handset cord as well as a four wire/six position RJ11 jack for connection to a facsimile. The FXD-10 also enables the demonstration of other devices similarly requiring the connection to a telephone line. ISSUE: What is the classification of the FXD-10 facsimile demonstration 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 electrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems. The Harmonized Commodity Description and Coding System Explanatory Notes to heading 8517, HTSUSA, page 1360, state: The term "electrical apparatus for 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 section to the receiving section. The heading covers all such electrical apparatus designed for this purpose, including the special apparatus used for carrier-current line systems. Clearly, the FXD-10 is "electrical apparatus" "for the transmission between two points" "of speech or other sounds or of symbols representing written messages, images or other data." There are no competing provisions for classification of the FXD-10, as described. Therefore, The FXD-10 is properly classifiable under subheading 8517.82.00, HTSUSA, which provides for other apparatus: telegraphic. HOLDING: The FXD-10 is classifiable under subheading 8517.82,00, HTSUSA, which provides for other apparatus: telegraphic. Since the merchandise at issue is imported from Canada, it is eligible for the "Special" rate of duty of 2.8% ad valorem, upon compliance with all applicable regulations. Sincerely, John Durant, Director Commercial Rulings Division