HQ 955309
December 21, 1993
CLA-2 CO:R:C:M DWS
CATEGORY: Classification
TARIFF NO.: 8525.10.20
Ms. Cinda Hermann
Thomson Consumer Electronics, Inc.
600 N. Sherman Drive
P.O. Box 1976
Indianapolis, IN 46206-1976
RE: Integrated Receiver/Decoder Unit; HQ 953369; HQ 088255;
HQ 953370; HQ 952791; HQ 087724; 8528.10.60
Dear Ms. Hermann:
This is in response to your letter dated October 18, 1993,
concerning the classification of an integrated receiver/decoder
unit under the Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The integrated receiver/decoder (IRD)unit, once entered into
the U.S., will be a part of a "Digital Satellite System" (DSS),
which is comprised of the subject unit, an 18-inch dish antenna,
and an infra-red remote control device. The DSS will allow users
to receive cable services, premium channels, pay-per-view movies,
sports, and special interest programming.
Signals from the IRD unit can cause the dish antenna to rotate
to those positions in which it optimizes its collection of
television signals broadcast from satellites in the atmosphere.
The receiver transforms these signals into an NTSC (standard
television broadcast signal) signal. The NTSC signal is then
transmitted to a television (TV) receiver, either as RF signals
which may be received on Channel 3 or 4 of a standard TV set.
Once the user of the IRD unit programs it with the required
information, the user can change channels on a TV or VCR merely by
pressing a few buttons on a corresponding wireless remote control
unit. The receiver responds by positioning the satellite dish
accordingly, processing the signal from the antenna, and relaying
it to the TV or VCR receiver to which it is connected for further
processing.
The subheadings under consideration are as follows:
8528.10.60: [t]elevision receivers . . . whether or not
incorporating radiobroadcast receivers or
sound or video recording or reproducing
apparatus: [c]olor: [o]ther television
receivers.
The general, column one rate of duty for goods classifiable
under this provision is 5 percent ad valorem.
8525.10.20: [t]ransmission apparatus for radiotelephony,
radiotelegraphy, radiobroadcasting or
television, whether or not incorporating
reception apparatus or sound recording
apparatus . . . : [t]ransmission apparatus:
[t]elevision.
The general, column one rate of duty for goods classifiable
under this provision is 3.7 percent ad valorem.
ISSUE:
Whether the IRD unit is classifiable under subheading
8528.10.60, HTSUS, as a television receiver, or under subheading
8525.10.20, HTSUS, as a television transmission apparatus.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In HQ 953369, dated February 10, 1993, we dealt with the
classification of a similar IRD unit under the HTSUS. In that
ruling, we quoted from HQ 088255, dated December 17, 1990, wherein
we stated that:
[t]he IRD is in the transmission path, but it is not at the
end of the transmission path where final reception and
viewing takes place. Its function is to receive and decode
a scrambled signal that is subsequently transmitted or
relayed, in the form of a NTSC signal, to be received and
displayed at the end of the transmission path. Therefore,
the IRD cannot be considered a "television receiver", as
provided for under heading 8528, HTSUS.
In HQ 088255 and HQ 953369, because the subject IRD unit
operated as a transmission apparatus, we held that it was
classifiable under subheading 8525.10.20, HTSUS. Likewise, it is
our position that the IRD unit, to be used in the DSS, is
classifiable under subheading 8525.10.20, HTSUS. See also HQ
953370, dated February 10, 1993, HQ 952791, dated February 8, 1993,
and HQ 087724, dated April 2, 1991, for other rulings on similar
goods.
HOLDING:
The integrated receiver/decoder unit is classifiable under
subheading 8525.10.20, HTSUS, as a television transmission
apparatus.
Sincerely,
John Durant, Director