Classification of an Acappella multi-format router

HQ H030204 September 8, 2008 CLA-2: OT:RR:CTF:TCM H030204 KSH CATEGORY: Classification TARIFF NO.: 8525.50.30 Mr. Joseph H. Heckendorn, Esq. Bryan Cave LLP 161 North Clark Street Suite 4300 Chicago, IL 60601-3315 RE: Classification of an Acappella multi-format router Dear Mr. Heckendorn: This is in reply to your letter dated December 5, 2007, on behalf of your client, Grass Valley, in which you request a binding ruling pertaining to the classification of an Acappella multi-format router under the Harmonized Tariff Schedule of the United States (HTSUS). Your request was forwarded from the National Commodity Specialist Division in New York to our office for direct reply. FACTS: The merchandise at issue is identified as the Acappella multi-format router. The router is designed to receive and distribute HD digital video, SD digital video, analog video, AES/EBU audio and ASI data in real time to components such as video editing boards, monitors and digital video recorders within a broadcast television network environment such as small television studios, sports arenas and space constrained production trucks as part of a television network to connect with different production components. It utilizes an Ethernet interface to connect remote control panels and matrices. ISSUE: Whether the Acappella multi-format router is classified in heading 8525, HTSUS, as apparatus for the transmission of television signals, or heading 8517, HTSUS, as other apparatus for the reception or transmission of voice, images or other data.LAW AND ANALSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation. GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.  In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The HTSUS headings at issue are as follows:8517   Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof:  *      *      * * 8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: The exclusionary EN to heading 85.17, HTSUS, reads in relevant part: The heading also excludes: * * * Apparatus for the transmission or reception of radio-broadcasting or television signals (headings 85.25, 85.27 or 85.28). The EN’s to heading 8525, HTSUS, describe transmission apparatus for radio-broadcasting or television as having to be for the transmission of signals by means of electro-magnetic waves transmitted through the ether without any line connection, but that television apparatus falls here whether the transmission is by electro-magnetic waves or by line. The exclusionary EN to heading 8525, HTSUS, states, in part, that the heading does not cover apparatus of heading 8517, HTSUS. In accordance with the terms of the legal text of heading 8517, HTSUS, the Acappella multi-format router must be excluded from heading 8525, HTSUS, before consideration can be given to classification in heading 8517, HTSUS. You argue that the merchandise at issue cannot be classified in heading 8525, HTSUS, because it does not transmit a signal either by electro-magnetic waves or by line. Instead, you state that it merely directs or connects the signal to one or more components internally within the production network system. In support of your position, you cite to New York Ruling Letter (NY) 857098, dated November 2, 1990 and Headquarters Ruling Letter (HQ) 965047, dated June 19, 2002, in which a control routing switcher and a “SDS 2+ PC Control Routing Switcher” were classified in heading 8517, HTSUS, respectively. The Acapella multi-format router is used principally in broadcast and productions settings. It receives and distributes television signals through the ether. As such, it is prima facie classified in heading 8525, HTSUS. Consequently, it is excluded from classification in heading 8517, HTSUS. It is distinguishable from NY 857098, in which it was stated that it was not clear where and how the device was used and how it operated. It is undisputed that the principal use of the Acappella router is for the transmission of television signals through the ether. Likewise the Broadband Switch Router of HQ 965047 functioned as an apparatus which transmitted voice, video and data over public or private telephone lines. It was not principally used to transmit television signals nor was it used in a broadcast television network environment. Our decision is consistent however, with HQ 088255, dated December 17, 1990 and HQ 087724, dated April 2, 1991. In HQ 088255, an integrated receiver/decoder for scrambled cable and closed circuit video/audio transmissions, was held to be merchandise for the transmission of video signals and classifiable in heading 8525, HTSUS. In HQ 087724, we held that a satellite cable television headend receiver/descrambler was classifiable in heading 8525, HTSUS, because it was in the television transmission path. Similarly, our decision is also consistent with HQ 954697, dated February 9, 1994, in which we determined that optical transmission and reception modules used in the cable television industry for the transmission and reception of video visual and audio signals was classified in heading 8525, HTSUS, since it was principally used for the transmission of television signals. HOLDING: The Acappella multi-format router, is classified in heading 8525, HTSUS. It is specifically provided for in subheading 8525.50.30, HTSUS, as "Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Transmission apparatus: Television: Other…." The general column one rate of duty is 1.8% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.      Sincerely,                           Gail A. Hamill, Chief Tariff Classification and Marking Branch