Re: Protest and Application for Further Review No: 5301-17-100394; Classification of video surveillance systems

HQ H302883 July 9, 2026 OT:RR:CTF:EMAIN H302883 TPB CATEGORY: Classification TARIFF NO.: 8525.89.30 Director, Electronics Center of Excellence and Expertise U.S. Customs and Border Protection 301 E. Ocean Blvd., Suite 1400 Long Beach, CA 90802 Attn: Addie Keyes, Import Specialist Re: Protest and Application for Further Review No: 5301-17-100394; Classification of video surveillance systems Dear Center Director: The following is our decision as to Protest and Application for Further Review No. 5301-17-100394, which was filed on behalf of Foscam Digital Technologies (“Foscam” / “Protestant”). The protest pertains to the classification of various video surveillance systems under the Harmonized Tariff Schedule of the United States (“HTSUS”). The subject merchandise was classified by U.S. Customs and Border Protection (CBP) under subheading 8525.80.30, Harmonized Tariff Schedule of the United States (HTSUS/2017), which provided for “Television cameras, digital cameras and video camera recorders: Television cameras: Other”, by application of General Rule of Interpretation (“GRI”) 3 (c). Protestant argues that the systems are properly classified under heading 8521, subheading 8521.90.00, HTSUS, which provides for “Video recording or reproducing apparatus, whether or not incorporating a video tuner: Other” because all of the components in the video security system contribute to a clearly defined function identified in heading 8521, i.e., recording or reproducing video images, pursuant to GRI 1 and Note 4 to Section XVI. Alternatively, Protestant is of the view that the DVR and cameras in each system should be classified separately; specifically, subheading 8521.90.00, HTSUS for the DVRs and subheading 8525.80.30, HTSUS (2017) for the cameras. In support of its position, Protestant cites two CBP rulings in particular: Headquarters Ruling Letter (HQ) H026665 (July 9, 2008), and HQ 087404 (December 7, 1990). FACTS: The merchandise under consideration are kits consisting primarily of multiple analogue cameras, a digital video recorder (“DVR”), and cables. The cameras connect point-to-point directly to the DVR. According to the information provided, the subject Video Security Systems are model numbers: AMDV10818-4B4D-B; AMDV10818-4B-B; AMDV7218-8B; AMDV7218-4B4D-B; AMDV10814-4B; AMN30M8-8B-B; and AMNV40M8-4B-B. ISSUE: What is the classification of the subject video surveillance? LAW AND ANALYSIS: Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protests No. 3004-17-100339 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise. Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 3 provides, in pertinent part: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: … (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the 2 material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading and are thus useful in ascertaining the proper classification of merchandise. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80. The relevant HTSUS headings under consideration are as follows: 8521 Video recording or reproducing apparatus, whether or not incorporating a video tuner: * * * 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: Note 3 to Section XVI, HTSUS provides: Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. Note 4 to Section XVI, HTSUS provides: Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. We first examine the Protestant’s principal argument that the goods are classified under heading 8521, which provides for “Video recording or reproducing apparatus, whether or not incorporating a video tuner” because all of the components in the video security system contribute to a clearly defined function identified in heading 8521, i.e., recording or reproducing video images, pursuant to GRI 1 and Note 4 to Section XVI. The ENs to heading 8521 indicate the following: (A) RECORDING AND COMBINED RECORDING AND REPRODUCING APPARATUS These are apparatus which, when connected to a television camera or a television receiver, record on media electric impulses (analogue signals) or analogue signals converted into 3 digital code (or a combination of these) which correspond to the images and sound captured by a television camera or received by a television receiver. Generally the images and sound are recorded on the same media. The method of recording can be by magnetic or optical means and the recording media is usually tapes or discs. The heading also includes apparatus which record, generally on a magnetic disc, digital code representing video images and sound, by transferring the digital code from an automatic data processing machine (e.g., digital video recorders). In magnetic recording on tape the images and sound are recorded on different tracks on the tape whereas in magnetic recording on disc the images and sound are recorded as magnetic patterns or spots in spiral tracks on the surface of the disc. In optical recording, digital data representing the images and sound are encoded by a laser onto a disc. Video recording apparatus which receive signals from a television receiver also incorporate a tuner which enables selection of the desired signal (or channel) from the frequency band of signals transmitted by the television transmitting station. When used for reproduction, the apparatus convert the recording into video signals. These signals are passed on either to a transmitting station or to a television receiver. When imported by itself the DVR would be classified in heading 8521, HTSUS, as a recording or reproducing apparatus. However, cameras are not considered recording or reproducing apparatus of heading 8521 and are specifically provided for in heading 8525, HTSUS. Per the above EN, heading 8521, HTSUS, provides for apparatus that can connect to cameras of heading 8525, HTSUS. As such, this system is not provided for in its entirety by virtue of GRI 1 in heading 8521, HTSUS. Moreover, given that headings 8521 and 8525 clearly describe their respective functions, Note 4 to Section XVI, supra, does not require the subject DVRs and cameras together under a single heading, as neither heading clearly describes the function of the subject surveillance systems. This conclusion is supported by the EN to Note 4 to Section XVI, which states: It should be noted that component parts not complying with the terms of Note 4 to Section XVI fall in their own appropriate headings. This applies, for example, to closed circuit video- surveillance systems, consisting of a combination of a variable number of television cameras and video monitors connected by coaxial cables to a controller, switchers, audio board/receivers and possibly automatic data processing machines (for saving data) and/or video recorders (for recording pictures). In conclusion, we find that the surveillance system cannot be classified according to Note 4 to Section XVI, HTSUS, as a functional unit. While the system does consist of individual components, interconnected by electric cables or other devices, the components do not “contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85.” The subject video security system contains components that are classified in different headings: a DVR of heading 8521, HTSUS, and video cameras of heading 8525, HTSUS. These components are not fitted together to form a whole. Rather, they 4 are separately presented components, which function together as a security surveillance system. As such, the security surveillance system does not meet the terms of Note 3 to Section XVI, HTSUS, supra, i.e., it is not a composite machine. Explanatory Note (X) to GRI 3 (b) provides that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two 2 different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. The subject video surveillance systems consist of at least two different articles, which are, prima facie, classifiable in different headings. The subject items are put up together to meet the particular need for surveillance. Hence, when imported packed together for retail sale the subject surveillance systems would meet the tariff definition of a set. CBP has followed this analysis for a number of years with respect to similar goods. In New York Ruling Letter (NY) N012061, dated June 19, 2007, CBP determined that “the individual components [of the system] function in a cohesive, seamless manner to complete this task” of video surveillance and that, no single component could be viewed as imparting the essential character of the set. This decision was in accordance with a long line of CBP’s prior rulings that examined similar security systems that all incorporated video monitors, a recording device, and security cameras. In each of these prior rulings, CBP found that no single component determined the system’s essential character, and, using GRI 3 (c), classified the item under Heading 85.28, because it was the last numerical heading. See also, e.g., NY H83230 (7/17/2001); and NY H82259 (6/15/2001). HQ H020455, dated March 2, 2010, affirmed N012061 and determined that a video security surveillance system, which consisted of a video monitor with a built-in digital video recorder (“DVR”) and hard disk drive (“HDD”); four color charge-coupled device (“CCD”) cameras with cables; an Ethernet 3M cable; and a remote control, should be classified by virtue of GRI 3 (c). See also, e.g., HQ 957992 (12/4/1995); HQ 1 957743 (9/6/1995); HQ 958082 (9/6/1995); and HQ 957722 (5/12/1995). In the present case, the security system combines multiple activities, allowing purchasers to conduct surveillance by capturing videos and recording the moving images. Neither the cameras nor the DVR can function independently of one another to achieve the surveillance function. As a result, both the cameras and the DVR contribute equally to the system’s function and both the DVR and the cameras equally impart the 1 Protestant cites to two rulings, HQ H026665 (July 9, 2008) and HQ 087404 (December 7, 1990), to support the view of classifying its goods under heading 8521, HTSUS. These rulings are distinguishable from the present case in that unlike the rulings cited above, neither of these cases dealt with surveillance equipment. HQ H026665 dealt with medical imaging equipment and HQ 087404 pertained to a compact VHS modular component video system. The specific facts to these cases required their own analysis. 5 essential character of the set. Accordingly, the subject security systems would be classified, in accordance with GRI 3 (c), in heading 8525, HTSUS. In conclusion, CBP finds that the video surveillance systems at issue are classified by application of GRI 3 (c) in heading 8525, HTSUS, They are specifically provided for under subheading 8525.80.30, HTSUS (2017), which provides for “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: Television cameras, digital cameras and video camera recorders: Other.” HOLDING: By application of GRIs 1, 3 (c), and 6, the subject video surveillance systems at 2 issue are classified in heading 8525, HTSUS, subheading 8525.80.30, HTSUS (2017), which provides for “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: Television cameras, digital cameras and video camera recorders: Other.” The column one rate of duty is “Free”. This ruling does not address the applicability of any additional duties that may apply to the goods discussed herein. Likewise, 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 at www.usitc.gov. You are instructed to deny the protest. You are instructed to notify the protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public distribution. Sincerely, for Yuliya A. Gulis, Director Commercial and Trade Facilitation Division 2 In January 2022, the subheadings for subheading 8525.80 were further subdivided at the international (six-digit) level to account for several other types of television cameras, digital cameras, and video camera recorders. If entered today, such cameras would be classified under subheading 8525.89.30, HTSUS. 6