WEBVTT

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Please be mindful you will be on muted

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during this presentation therefore we ask

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that you present any questions that you

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have within the chat feature.  If you plan

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to request the optional credit through the

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educational institute please check the

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chat boat checkbox periodically for the

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code.

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It will be provided several times

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throughout the webinar.

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I would like to pass it over to national

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import specialist Lisa Carey yellow?

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>> Lisa Cariello: Hi thank you and good

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afternoon or morning depending on where

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you are.

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I and NIS208 Lisa Carey yellow.

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This will be on section 16 notes, one

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through six.

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During the presentation I will go over

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parts and accessories, composite machines

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and functional units.  There will be

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examples from headings Eddie 8519-8529.

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I ask that you hold your questions to the

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end of today's presentation.

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If you would rather not ask during the

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webinar feel free to e-mail me during so

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you could have any questions and answers. 

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E-mail is on the screen.

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The presentation is being recorded and

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will be posted so if you need to log off

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early you can review the recording at a

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later time.  This is our mission statement

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and our disclaimer the webinar is for

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general information purposes and is

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intended to provide guidance and

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information and is not legally binding and

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is subject to change.  This presentation

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is my opinion about how I interpret these

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notes.

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Keep in mind that this is classified on a

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case-by-case basis.

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This is an audiovisual disclaimer.

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We welcome all request.

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You can easily request a ruling through

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the ruling link on this slide.

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The link confounds on the website.

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If you search on our website for easy

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rulings of the search bar it should come

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up.  One you request rulings for the

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8519-8529 to avoid a rejection please

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provide at a minimum a model or item

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number or a clear picture of the item the

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user's manual jewel manual or installation

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guide, a technical specification sheet and

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a brief description of all of the

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functions that can be performed.

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It is difficult for my office to issue a

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ruling without this information.

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To achieve uniformity in the

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classification of goods CBP has

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classification tools.

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We have a legally binding, GRI's, section

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note at this presentation I will go over

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section 16 oh one through six, chapter

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subheading in additional notes and as most

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of you know or should know the explanatory

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notes are revised re- and are used for

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guidance but they are not legally binding.

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We also have to follow the legally binding

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precedent set in our ruling found and

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crossed our court decisions.

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I referenced here one on the slide as you

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all know, we have six GRI and additional

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US ones.

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As you can see the section notes are used

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for legal purposes I added the slides

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throughout the GRI presentation throughout

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the relative 16 notes.

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You can see the uniqueness of the section

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16 and notes.

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This includes chapters 84 and 85.

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These will be geared towards 85198529

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which include the highlighted portion on

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the screen.

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Section 16 notes one list exclusions from

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Chapter 84 and 85.  Each chapter also has

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a legal note with one exclusions and ends

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for many headings also list specific

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exclusions.

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The exclusions help guide you or something

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should be classified.

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The ones I have highlighted my this refers

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to most often or will be referring to

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later in this presentation.  When

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classifying an article it is important to

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look at the exclusions.

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This is for parts of general use and they

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typically are excluded from section 16.

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Section 16 is also excluded from any other

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chapters and sections as well.

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Sometimes the goods are excluded from each

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other.

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This slide is an example of legal nodes

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excluding each other.  This particular

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exclusion my office runs into

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occasionally.

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Section 16 notes 1M states that section 16

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does not cover articles of chapter 90. 

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Chapter 90 notes specific merchandise

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provided for in Chapter 85 including sound

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recording apparatus with heading 8519,

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cameras of heading 8525, and radar and

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notification aid and radio remote

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controlled apparatus provided for in 8526.

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It does exclude more articles provided for

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in chapter 85 I just shortened it for this

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presentation since I'm gearing it towards

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the merchandise I handle.

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If we leak read the exclusion notes

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together it reads note 1M to section 16

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excludes articles of chapter 90.

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Chapter 90 notes specifically excluding

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certain goods of chapter 85.

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Another way to look at it is, articles of

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chapter 90 are excluded from chapter 85

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except for the goods of 8519, 8525 and

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8526, et cetera.

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CBP considers the totality of the

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circumstances and to make decision on a

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case-by-case basis.

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This is a case study will be used to

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exclusions listed on the previous slide.

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The equipment in this ruling was a GTR

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system that employed radar with 8526 and

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performed some measure and function of

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Chapter 90.

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In this decision CBP determined that even

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though section 16 a note and the excluded

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articles of Chapter 90 classification from

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Chapter 85, the fact that no one age to

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Chapter 90 or excuse me note 182 Chapter

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90 specifically excludes, in pertinent

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part, writer apparatus of heading 8526

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then they were excluded from consideration

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as an article of Chapter 90.

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And in this particular case CBP found the

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device was classified as a radar apparatus

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and heading 852610.

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Section 16 a note to deals with parts.

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It states that the part which are goods

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included in any other heading or chapter

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of 84 and a Chapter 85 other than some

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specific parts headings on the specific

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screen are in all cases to be's classified

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and their respective heading.

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For example, if you've a flat-panel

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display module with heading 852 four,

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which will always be a part of something

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as it is an intermediate article.

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It is classified heading 8524 and not as a

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part.

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Other parts suitable for use solely for

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the principal kind of machine or with a

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number of machines of the same heading are

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to be classified with the machine of that

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kind or in one of the listed part

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headings.

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If the headings includes parts thereof

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than the part or solely or principally

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used with that particular article can be

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classified there.

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Some headings do not include parts thereof

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but instead they have a special part

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heading for those articles.

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Such is the case as the ones listed on the

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slide, a 247 three, 8487, 850 three, 852

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two, 8529, et cetera prepared other parts

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of suitable for solely or principally *

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principal use with any of the articles

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listed in those headings.

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The legal note also states that parts

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which are equally suitable for use

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principally with the goods of heading 8517

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and headings 8525 through 85 two-days will

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be classified and heading 8517.  This

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would come into play when you compare

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parts of 8517 with heading 8529 which

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provides for parts of 8524 through 8528.

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According to this note if that is the case

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for you compare those two headings,

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according to this note is classified in

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heading 8517.  Another thing to consider

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is that a part of a part is more specific

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than a part of a whole.

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For example, a part of a lens is more

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specific than the part of the camera.

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A part of the flat-panel display module is

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more specific than part of the monitor.

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Additional US rules of interpretation: I

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do have a lot of slides on parts and

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accessories.  I do think it is one of the

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areas more difficult to classify.

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Here are additional use of interpretation

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C which also has a part legal note which

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states, a provision for parts of an

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article cover parts solely or principally

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used as a part of such article but a

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provision for parts or parts and

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accessories should not prevail over

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specific provisions to such part or

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accessory.

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Parts are usually classified in their own

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provision if one exists.

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For example, a lens is part of a camera

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but since heading 9902 provides for lenses

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when provided by itself the lens would be

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classified in heading 1902 and not as part

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of the camera.

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Section 1602 says something similar but

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it's specific to chapter 84 and 85.

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I do want to mention there is an exception

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to this, such as the case of Chapter 905. 

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Since Chapter 905 legal note to three says

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subject to note one above, which contains

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all of the exclusions Chapter 905, parts

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and accessories which are suitable for use

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solely or principally with articles and

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this chapter, meaning Chapter 905, or to

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be classified with those articles.

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Section 16 excludes Chapter 95 if an item

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is a part of apparatus in Chapter 95 and

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it is not listed any of the exclusions in

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Chapter 95 it may end up being classified

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with the articles of Chapter 95 and not in

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its own provision in Chapter 85.

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Generally article section 16 articles

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classified in its own heading is a EO

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nominee heading exist if there is no

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provision and it meets the definition of a

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part or accessory it is classified with

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the main article if the heading so

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provides.

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Or parts and accessories can be classified

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in the specific headings or accessory if

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one exists.

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Some headings only provide for parts and

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others provide for parts and accessories.

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Since many provisions only provide for

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parts we need to know the difference

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between a part and an accessory.  We have

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some court cases that we use to help

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decide for a parts from an accessory. 

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This is an old case but it is still

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referenced often.

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The question was whether a tripod can be

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classified as part of the camera the court

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said it is well established rule that a

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parts of an article is something necessary

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to the completion of the article.

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It is an integral constituent components

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part without which the article to which it

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is a joy and could not function as such an

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article.

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The mere fact that two articles are

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designed and constructed to be used

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together does not necessarily make either

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a part of the other.

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This case determines that a tripod was not

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a part of the camera, it was an accessory.

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 For years tripods were classified as an

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accessory.  If an accessory provision

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existed such as the film camera case and

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9906.  In the case of digital cameras and

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8525, which does not contain an accessory

275
00:13:28.774 --> 00:13:31.264
was classified as an article of

276
00:13:31.264 --> 00:13:33.264
constituent material.

277
00:13:33.264 --> 00:13:35.757
Just a little fun fact as we mentioned a

278
00:13:35.759 --> 00:13:38.608
few slides back to additional GRI states

279
00:13:38.609 --> 00:13:41.458
that a provision for parts or accessories

280
00:13:41.459 --> 00:13:43.901
should not prevail over specific provision

281
00:13:43.902 --> 00:13:45.937
of such part or accessory.

282
00:13:45.938 --> 00:13:50.159
As of the 2017 tariff, a tripod is no

283
00:13:50.159 --> 00:13:53.432
longer classified as an accessory or an

284
00:13:53.437 --> 00:13:56.247
article if it's constituent material since

285
00:13:56.248 --> 00:14:00.468
it now has its own EO nominee provision in

286
00:14:00.468 --> 00:14:02.468
9620.

287
00:14:02.468 --> 00:14:05.035
As indicated on an earlier slide, section

288
00:14:05.035 --> 00:14:07.035
16 note to one excludes articles of

289
00:14:07.035 --> 00:14:09.399
section 9620.  I want to point out that

290
00:14:09.399 --> 00:14:12.343
when it comes to new provisions it's not

291
00:14:12.343 --> 00:14:14.551
always flagged and crossed as being

292
00:14:14.551 --> 00:14:16.551
revoked by operation of law.

293
00:14:16.551 --> 00:14:19.359
Since the ruling was correct at the time

294
00:14:19.362 --> 00:14:22.701
it was issued.  The case of something like

295
00:14:22.704 --> 00:14:25.301
tripods it's also the case with panel

296
00:14:25.304 --> 00:14:27.530
display modules, LED backlight and other

297
00:14:27.532 --> 00:14:30.871
cases I'm not aware of, now that they all

298
00:14:30.875 --> 00:14:33.843
provided for in the tariff we will no

299
00:14:33.846 --> 00:14:36.443
longer classify them as a part or

300
00:14:36.446 --> 00:14:38.446
accessory.

301
00:14:38.446 --> 00:14:40.826
When you look at an older ruling,

302
00:14:40.826 --> 00:14:42.826
especially when you classify something as

303
00:14:42.826 --> 00:14:44.826
a part or accessory you may want to check

304
00:14:44.826 --> 00:14:47.176
if there is a new heading created or if it

305
00:14:47.703 --> 00:14:50.083
was added to a heading before classifying

306
00:14:50.084 --> 00:14:52.124
to something as part or accessory.

307
00:14:52.125 --> 00:14:54.924
Sometimes we will add this as part of the

308
00:14:54.924 --> 00:14:57.400
exclusion and other times we might put a

309
00:14:57.405 --> 00:14:59.405
legal note that it belongs in.

310
00:14:59.405 --> 00:15:05.440
So, this is something to look into.

311
00:15:05.443 --> 00:15:07.743
Another significant case regarding parts

312
00:15:07.743 --> 00:15:09.743
is the Poppy okay's.

313
00:15:09.743 --> 00:15:13.062
It's often cited together with the camera

314
00:15:13.062 --> 00:15:15.062
case.

315
00:15:15.062 --> 00:15:17.453
The way that CBP interpreted this decision

316
00:15:17.453 --> 00:15:19.453
as an item may be part of an article as

317
00:15:19.453 --> 00:15:21.725
long as the article is solely dedicated

318
00:15:21.790 --> 00:15:24.531
for use with that product and when applied

319
00:15:24.532 --> 00:15:26.933
to that use the article cannot function

320
00:15:26.933 --> 00:15:28.933
without the article at issue.

321
00:15:28.933 --> 00:15:32.783
This particular court case combined the

322
00:15:32.786 --> 00:15:38.306
foundations of the other two court cases I

323
00:15:38.308 --> 00:15:43.828
just mentioned and it resulted in a two

324
00:15:43.829 --> 00:15:47.969
distinct test to determine whether a

325
00:15:47.970 --> 00:15:52.800
particular item qualifies as a part for

326
00:15:52.802 --> 00:15:54.872
tariff classification purposes.

327
00:15:54.872 --> 00:15:58.872
So, that's a court case gave us this

328
00:15:58.872 --> 00:16:00.872
two-part test.

329
00:16:00.872 --> 00:16:03.860
It basically reads as an order.  It does

330
00:16:03.860 --> 00:16:05.866
not have to meet about that just has to

331
00:16:05.873 --> 00:16:08.870
meet one of a two-part test.  The first

332
00:16:08.874 --> 00:16:11.538
part to being a part is an integral

333
00:16:11.542 --> 00:16:13.873
component or part without the article to

334
00:16:13.877 --> 00:16:16.541
which it is joint cannot function as such

335
00:16:16.545 --> 00:16:19.542
an article without kids.  Or it can meet

336
00:16:19.546 --> 00:16:22.210
the second part of the test, imported item

337
00:16:22.214 --> 00:16:24.878
is dedicated solely for use with that item

338
00:16:24.882 --> 00:16:28.545
and it is claimed to be a part of.  When

339
00:16:28.551 --> 00:16:30.551
applied to that used article cannot

340
00:16:30.552 --> 00:16:32.552
function without the article at issue.

341
00:16:32.553 --> 00:16:36.106
At both tests and imported item is not a

342
00:16:36.112 --> 00:16:38.877
part of it is a separate, distinct

343
00:16:38.880 --> 00:16:40.880
commercial entity.

344
00:16:40.880 --> 00:16:43.477
If something hasn't EO nominee provision

345
00:16:43.477 --> 00:16:45.477
it is usually classified in that provision

346
00:16:45.477 --> 00:16:47.477
and not as a part.

347
00:16:47.477 --> 00:16:51.952
These are two-part to provisions that I

348
00:16:51.969 --> 00:16:53.969
handle.

349
00:16:53.969 --> 00:16:57.082
They are examples of specialized part

350
00:16:57.082 --> 00:16:59.371
headings as we discussed in section 16.

351
00:16:59.374 --> 00:17:03.286
Heading 8522 provides for parts and

352
00:17:03.286 --> 00:17:05.286
accessories.

353
00:17:05.286 --> 00:17:07.730
Heading 8529 only provides for parts.

354
00:17:07.731 --> 00:17:11.331
Heading 8529 does not provide for

355
00:17:11.331 --> 00:17:13.331
accessories.

356
00:17:13.331 --> 00:17:15.858
It's very important to know how the

357
00:17:15.858 --> 00:17:17.858
headings should read especially when you

358
00:17:17.858 --> 00:17:19.858
have plans for parts and accessories.

359
00:17:19.858 --> 00:17:22.392
Also notice that neither of these headings

360
00:17:22.392 --> 00:17:25.471
provide for ports parts and/or accessories

361
00:17:25.475 --> 00:17:27.474
in articles 8523.

362
00:17:27.474 --> 00:17:31.012
Heading 8522 provides for parts and

363
00:17:31.019 --> 00:17:34.349
accessories sound and video recording

364
00:17:34.352 --> 00:17:37.682
video reproducing apparatus of 852921.

365
00:17:37.684 --> 00:17:41.110
Heading 8529 provides for parts, flat

366
00:17:41.110 --> 00:17:45.671
panel display module at 852 four, parts of

367
00:17:45.673 --> 00:17:47.956
radio and television transmitting

368
00:17:47.958 --> 00:17:51.382
apparatus and 8525, parts of television

369
00:17:51.382 --> 00:17:54.235
cameras, digital cameras individual camera

370
00:17:54.235 --> 00:17:58.230
recorders and 8525, parts of the radio

371
00:17:58.230 --> 00:18:01.654
apparatus, radio need apparatus and radio

372
00:18:01.655 --> 00:18:04.506
remote control apparatus of 8526.

373
00:18:04.508 --> 00:18:07.916
Parts of reception apparatus for radio

374
00:18:07.916 --> 00:18:11.321
broadcasting of 8527 and parts of

375
00:18:11.322 --> 00:18:13.593
monitors, projectors, reception apparatus

376
00:18:13.594 --> 00:18:18.138
for television provided for an 852E.  As

377
00:18:18.138 --> 00:18:22.678
you can imagine heading 8529 is pages long

378
00:18:22.679 --> 00:18:27.223
and it's provides for parts and only parts

379
00:18:27.223 --> 00:18:31.765
of a lot of different articles.  Each

380
00:18:31.766 --> 00:18:34.604
article has its own breakouts.

381
00:18:34.605 --> 00:18:37.601
This is a case study of parts.

382
00:18:37.603 --> 00:18:41.275
This is a new CIT decision that came out

383
00:18:41.275 --> 00:18:44.939
about a month ago.  The question of the

384
00:18:44.942 --> 00:18:47.388
litigation is, of these housings were

385
00:18:47.390 --> 00:18:51.062
parts of a camera provided by a 8529 or

386
00:18:51.062 --> 00:18:53.098
cases of heading for 202?

387
00:18:53.099 --> 00:18:55.787
This court case is aligned with the

388
00:18:55.788 --> 00:18:58.860
previous court case on parts.  The camera

389
00:18:58.860 --> 00:19:01.548
has essentially no utility in the absence

390
00:19:01.549 --> 00:19:04.621
of the camera if they encapsulate and the

391
00:19:04.621 --> 00:19:07.309
camera housings are not sold for use

392
00:19:07.310 --> 00:19:09.310
independent of the cameras.

393
00:19:09.310 --> 00:19:12.182
They are dedicated for use solely with the

394
00:19:12.182 --> 00:19:15.504
cameras.  Once they are on the cameras,

395
00:19:15.509 --> 00:19:18.007
the cameras could not function without

396
00:19:18.009 --> 00:19:20.009
these houses.

397
00:19:20.009 --> 00:19:22.033
The subject housing has features to

398
00:19:22.033 --> 00:19:24.033
activate the camera and allow the lens of

399
00:19:24.033 --> 00:19:26.033
the camera to operate as intended.

400
00:19:26.033 --> 00:19:29.383
So, in addition to being housings for the

401
00:19:29.815 --> 00:19:33.497
camera, they had actual buttons to control

402
00:19:33.499 --> 00:19:37.181
parts of the camera.  These specialized

403
00:19:37.184 --> 00:19:40.866
camera housings were concluded to be parts

404
00:19:40.868 --> 00:19:45.076
of the cameras and then were classified in

405
00:19:45.079 --> 00:19:47.079
8529.

406
00:19:47.079 --> 00:19:49.942
This court case defined what CBP considers

407
00:19:49.942 --> 00:19:52.145
to be an accessory.  We saw earlier that

408
00:19:52.145 --> 00:19:54.598
heading 8522 provides for parts and

409
00:19:54.599 --> 00:19:56.599
accessories.

410
00:19:56.599 --> 00:19:59.501
There's also many other provisions in the

411
00:19:59.501 --> 00:20:01.501
tariff that provide for both parts and

412
00:20:01.501 --> 00:20:03.501
accessories.

413
00:20:03.501 --> 00:20:05.522
It's also important to know what CBP

414
00:20:05.522 --> 00:20:07.522
considers to be an accessory.

415
00:20:07.522 --> 00:20:09.522
In this case protective gear had no

416
00:20:09.522 --> 00:20:11.522
physical connection to the skates, nor did

417
00:20:11.522 --> 00:20:13.522
the gear directly affect the skates

418
00:20:13.522 --> 00:20:15.522
operation.

419
00:20:15.522 --> 00:20:18.443
The gear did not in any way change or

420
00:20:18.488 --> 00:20:21.053
improve the skates and physical

421
00:20:21.055 --> 00:20:23.107
characteristics, functionality, or use.

422
00:20:23.109 --> 00:20:25.937
It was determined that the protective gear

423
00:20:25.937 --> 00:20:29.161
was not an accessory or part of the

424
00:20:29.164 --> 00:20:31.586
Vygotsky because the protective gear did

425
00:20:31.588 --> 00:20:34.012
not directly act or contact the

426
00:20:34.012 --> 00:20:36.012
rollerskate in any way.

427
00:20:36.012 --> 00:20:38.091
This decision use dictionary definitions

428
00:20:38.091 --> 00:20:40.198
and determines an accessory must relate

429
00:20:40.198 --> 00:20:43.524
directly to the thing in excess arises to

430
00:20:43.524 --> 00:20:46.017
be scattered considered an accessory the

431
00:20:46.018 --> 00:20:49.346
item must bear a direct relation to the

432
00:20:49.346 --> 00:20:51.417
primary article that excess arises.

433
00:20:51.423 --> 00:20:53.911
An accessory is secondary important bus

434
00:20:53.911 --> 00:20:55.978
must however contribute to the

435
00:20:55.982 --> 00:20:58.054
effectiveness of the principal article.

436
00:20:58.055 --> 00:21:02.033
I do want to mention based on our new CIT

437
00:21:02.033 --> 00:21:05.207
decision CBP can no longer rely on what

438
00:21:05.212 --> 00:21:07.212
the ruling decisions analysis is.

439
00:21:07.212 --> 00:21:11.110
Please keep that in mind when you provide

440
00:21:11.110 --> 00:21:14.532
an argument and the ruling request or

441
00:21:14.533 --> 00:21:18.443
protest that CBP is not supposed to use

442
00:21:18.443 --> 00:21:21.376
Wikipedia any longer in our analysis.

443
00:21:21.377 --> 00:21:25.813
This is a case study on accessories.

444
00:21:25.816 --> 00:21:29.416
In this case the issues were whether the

445
00:21:29.416 --> 00:21:32.557
camera mount and Bacillus con skins were

446
00:21:32.561 --> 00:21:35.708
classified under 8529 as part of the

447
00:21:35.709 --> 00:21:39.759
television cameras.  I saw in one of the

448
00:21:39.760 --> 00:21:42.904
previous slides there is no accessory for

449
00:21:42.904 --> 00:21:46.048
cameras and 8525, this heading 8529 only

450
00:21:46.052 --> 00:21:50.099
provides for parts.  Thus we needed to use

451
00:21:50.099 --> 00:21:52.099
two-step part analysis.

452
00:21:52.100 --> 00:21:54.103
In this case, the camera mounts and skins

453
00:21:54.108 --> 00:21:56.432
were not integral constituent parts of the

454
00:21:56.435 --> 00:21:59.091
camera.  The mounts and skins were not

455
00:21:59.095 --> 00:22:02.083
necessary for the use of the camera as the

456
00:22:02.088 --> 00:22:04.412
camera can operate and function as a

457
00:22:04.415 --> 00:22:06.415
camera without them.

458
00:22:06.415 --> 00:22:09.513
Therefore, they were not considered to be

459
00:22:09.518 --> 00:22:13.034
part of the camera of 8529.

460
00:22:13.036 --> 00:22:15.874
This ruling could determined that the

461
00:22:15.875 --> 00:22:18.240
camera mounts were classified under

462
00:22:18.241 --> 00:22:22.025
heading 8302 as a adult mount.  Section

463
00:22:22.027 --> 00:22:25.811
notes 16 and zero one excludes chapter 83.

464
00:22:25.812 --> 00:22:30.012
Even if we had an accessory provision

465
00:22:30.012 --> 00:22:33.006
dismounting would not be classified.

466
00:22:33.010 --> 00:22:35.799
Silicon skins were classified and heading

467
00:22:35.802 --> 00:22:39.056
8529 as an article of their constituents

468
00:22:39.061 --> 00:22:42.316
material which was an article of plastic.

469
00:22:42.319 --> 00:22:44.319
Where do we classify parts when there are

470
00:22:44.319 --> 00:22:46.319
no parts provision?

471
00:22:46.319 --> 00:22:49.607
I basically gave this question away in a

472
00:22:49.607 --> 00:22:51.607
couple of my previous slides.  Notice that

473
00:22:51.607 --> 00:22:54.697
heading 8523 up on the screen does not

474
00:22:54.797 --> 00:22:56.797
provide for parts thereof.

475
00:22:56.797 --> 00:23:00.865
As I mentioned earlier and as you saw

476
00:23:00.865 --> 00:23:04.181
earlier, heading 8529 and also heading

477
00:23:04.182 --> 00:23:08.051
8522 both do not include articles of

478
00:23:08.051 --> 00:23:10.051
heading 8523.

479
00:23:10.051 --> 00:23:12.550
Typically if there is no specific

480
00:23:12.550 --> 00:23:14.992
provision for an item and there are no

481
00:23:14.993 --> 00:23:17.911
parts nor accessory provision, it ends up

482
00:23:17.911 --> 00:23:20.830
being classified as an article of its

483
00:23:20.830 --> 00:23:24.163
constituents material.  We saw this on the

484
00:23:24.164 --> 00:23:27.081
previous slide with the silicon skin. 

485
00:23:27.082 --> 00:23:29.999
Since there was no accessory provision for

486
00:23:29.999 --> 00:23:33.335
cameras it was classified as an article of

487
00:23:33.335 --> 00:23:35.335
plastic.

488
00:23:35.335 --> 00:23:38.184
For articles section 16 in Albany

489
00:23:38.184 --> 00:23:40.184
provision would take precedence over parts

490
00:23:40.184 --> 00:23:42.799
or parts and accessory provision.  Parts

491
00:23:42.801 --> 00:23:45.657
and parts accessory provision would take

492
00:23:45.659 --> 00:23:48.515
precedence over an article of its

493
00:23:48.516 --> 00:23:50.516
components material.

494
00:23:50.516 --> 00:23:53.158
Here is a case study on parts of the

495
00:23:53.158 --> 00:23:56.428
apparatus of 8523.  As I mentioned, 8520

496
00:23:56.433 --> 00:23:59.707
does not have a parts provision.  Since

497
00:23:59.709 --> 00:24:03.399
there is no parts provision we use CBP had

498
00:24:03.399 --> 00:24:06.254
to find another analysis used to classify

499
00:24:06.259 --> 00:24:08.258
these.

500
00:24:08.258 --> 00:24:11.709
The first ruling was for an antenna solely

501
00:24:11.709 --> 00:24:13.709
used with the smart card of heading 8523.

502
00:24:13.709 --> 00:24:16.779
When imported alone it was found to be a

503
00:24:16.904 --> 00:24:19.480
transfuse and classified in heading 8543. 

504
00:24:19.483 --> 00:24:22.795
We applied at section 6G note here.  This

505
00:24:22.799 --> 00:24:25.375
does not mean that all antennas are

506
00:24:25.378 --> 00:24:27.378
classified in 8543.

507
00:24:27.378 --> 00:24:30.865
This is one thing I want to point out.

508
00:24:30.868 --> 00:24:33.572
This was a very unique case where CBP

509
00:24:33.574 --> 00:24:36.616
found it to be a function of a transducer.

510
00:24:36.618 --> 00:24:40.032
We classify electronics based on the

511
00:24:40.032 --> 00:24:43.442
functions they perform, not their name.

512
00:24:43.444 --> 00:24:47.148
In the second's ruling on the slide we

513
00:24:47.148 --> 00:24:50.382
mostly apply TR one to each chapter.

514
00:24:50.386 --> 00:24:52.779
For example, it was determined that

515
00:24:52.779 --> 00:24:55.970
chapter 39 note 21 says this chapter does

516
00:24:55.971 --> 00:24:58.365
not cover articles of section 16.

517
00:24:58.365 --> 00:25:03.963
Ha 8523 i provided for in section 16. 

518
00:25:03.963 --> 00:25:09.553
Since the parts of the flash drive or not

519
00:25:09.555 --> 00:25:13.285
classifiable under heading 8523 the parts

520
00:25:13.287 --> 00:25:18.263
of the flash drive made of plastic or

521
00:25:18.264 --> 00:25:20.746
classified under heading 3926.

522
00:25:20.748 --> 00:25:23.471
Likewise note 1L to chapter 44 provides

523
00:25:23.472 --> 00:25:26.584
that this chapter does not cover goods in

524
00:25:26.585 --> 00:25:30.086
section 16.  Since the parts of the flash

525
00:25:30.087 --> 00:25:32.421
drive or not classifiable under 8523

526
00:25:32.422 --> 00:25:35.145
because there are no parts provisions, the

527
00:25:35.146 --> 00:25:38.647
parts of the flash drive made of bamboo or

528
00:25:38.649 --> 00:25:41.761
other wood were able to be classified in

529
00:25:41.762 --> 00:25:43.762
heading 4421.

530
00:25:43.762 --> 00:25:46.308
The same with note 1F2 section 15 this

531
00:25:46.309 --> 00:25:49.135
provides the section does not cover

532
00:25:49.136 --> 00:25:51.136
articles of section 16.

533
00:25:51.136 --> 00:25:55.212
Since not provided for in section 16 the

534
00:25:55.214 --> 00:25:59.930
parts of the flash drive made of iron or

535
00:25:59.931 --> 00:26:03.599
steel were able to be classified in

536
00:26:03.601 --> 00:26:07.793
heading 7326.  So without the GRI section

537
00:26:07.794 --> 00:26:11.462
notes there would be analysis that could

538
00:26:11.464 --> 00:26:13.464
be used.

539
00:26:13.464 --> 00:26:16.136
The EN for section 16 notes describe what

540
00:26:16.136 --> 00:26:18.853
is considered an incomplete or unassembled

541
00:26:18.853 --> 00:26:20.853
machine for section 16?

542
00:26:20.853 --> 00:26:24.374
This is an E and not a legal notes which

543
00:26:24.374 --> 00:26:27.341
states the route section of any machine or

544
00:26:27.341 --> 00:26:29.565
apparatus comes not only the complete

545
00:26:29.566 --> 00:26:32.162
machine but also an incompletes machine. 

546
00:26:32.162 --> 00:26:35.130
It is an assembly apart so far advanced

547
00:26:35.130 --> 00:26:37.353
that already has the main essential

548
00:26:37.354 --> 00:26:40.321
features of the complete machine.  As you

549
00:26:40.321 --> 00:26:43.289
can sleep on the slide to give some

550
00:26:43.290 --> 00:26:46.626
examples.  If it's missing a minor item to

551
00:26:46.626 --> 00:26:49.220
make it a complete machine but has

552
00:26:49.222 --> 00:26:51.448
essential features of a complete machine

553
00:26:51.448 --> 00:26:54.044
we would classified this machine and not

554
00:26:54.044 --> 00:26:57.382
as a parts.  It also refers to machines

555
00:26:57.382 --> 00:26:59.606
transported in an unassembled states for

556
00:26:59.607 --> 00:27:01.832
convenience of transport.  This happens

557
00:27:01.833 --> 00:27:04.799
more in chapter 84 and 85 with large

558
00:27:04.799 --> 00:27:07.396
machineries that are too big to be

559
00:27:07.396 --> 00:27:10.361
transported in one units.  They are too

560
00:27:10.362 --> 00:27:14.442
big to fit on a plane.  They are too big

561
00:27:14.443 --> 00:27:18.522
to fit on a truck.  They're too big to fit

562
00:27:18.523 --> 00:27:20.522
on a boat or ship.

563
00:27:20.523 --> 00:27:24.524
So, they are unassembled for

564
00:27:24.525 --> 00:27:29.503
transportation purposes of course, GRI two

565
00:27:29.503 --> 00:27:32.821
references incompletes or unfinished

566
00:27:32.822 --> 00:27:34.822
machines.

567
00:27:34.822 --> 00:27:37.252
And in GRI two it states any reference in

568
00:27:37.252 --> 00:27:40.848
a heading to an article shall be taking to

569
00:27:40.849 --> 00:27:43.247
include the reference of the article

570
00:27:43.248 --> 00:27:45.648
incomplete or unfinished provided that as

571
00:27:45.649 --> 00:27:48.046
it entered the complete your unfinished

572
00:27:48.046 --> 00:27:50.843
article has the essential character of the

573
00:27:50.845 --> 00:27:53.644
complete or finished article.  It is

574
00:27:53.644 --> 00:27:56.443
similar to section 16, note to explanatory

575
00:27:56.444 --> 00:27:58.446
notes.

576
00:27:58.447 --> 00:28:00.901
Section 16 note to explanatory *

577
00:28:00.901 --> 00:28:02.901
explanatory notes as assembly of parts so

578
00:28:02.901 --> 00:28:05.023
far advanced it already has the main

579
00:28:05.023 --> 00:28:07.477
essential feature of the complete machine,

580
00:28:07.478 --> 00:28:10.750
GRI to states it already has the essential

581
00:28:10.750 --> 00:28:13.204
character of the complete or finished

582
00:28:13.204 --> 00:28:15.204
article.

583
00:28:15.204 --> 00:28:18.767
Notice in both cases it talks about

584
00:28:18.767 --> 00:28:20.767
heading and not the subheading level.

585
00:28:20.767 --> 00:28:23.001
In the second part it's not really used

586
00:28:23.541 --> 00:28:26.859
for electronics but I did put on the

587
00:28:26.859 --> 00:28:30.591
screen for reference.  I was told that the

588
00:28:30.593 --> 00:28:34.740
GRI 280 is very much like GRI one.  As

589
00:28:34.740 --> 00:28:38.467
much as it's not quite its own rule like

590
00:28:38.470 --> 00:28:41.788
GRI 336 a clarifies the scope of the

591
00:28:41.789 --> 00:28:45.108
heading of a GRI one includes goods that

592
00:28:45.108 --> 00:28:47.594
are incomplete or unfinished provided that

593
00:28:47.595 --> 00:28:50.495
the good and its condition as imported

594
00:28:50.497 --> 00:28:52.986
possesses the essential characters of the

595
00:28:52.986 --> 00:28:54.986
assembled complete good.

596
00:28:54.986 --> 00:28:57.518
So, for electronics the question is

597
00:28:57.616 --> 00:29:00.354
regarding how much processing capabilities

598
00:29:00.356 --> 00:29:05.284
are necessary for the product to be so far

599
00:29:05.284 --> 00:29:09.120
advanced that it already has the main

600
00:29:09.121 --> 00:29:12.403
essential feature of the complete machine?

601
00:29:12.404 --> 00:29:15.980
This legal know my office runs into most.

602
00:29:15.980 --> 00:29:19.973
It is common at legal notes that we use in

603
00:29:19.973 --> 00:29:21.973
my office.

604
00:29:21.973 --> 00:29:24.316
It is our composite machine and noticed

605
00:29:24.323 --> 00:29:26.351
section 16 note three.

606
00:29:26.351 --> 00:29:28.715
It reads, unless the context otherwise

607
00:29:28.715 --> 00:29:31.466
requires in the context often does require

608
00:29:31.469 --> 00:29:33.830
which basically means unless the heading

609
00:29:33.831 --> 00:29:35.831
provides otherwise, composite machines

610
00:29:35.831 --> 00:29:38.162
consisting of two or more machines fitted

611
00:29:38.162 --> 00:29:41.310
together to form a whole.  Basically, one

612
00:29:41.311 --> 00:29:43.673
device with different functions that is

613
00:29:43.674 --> 00:29:46.823
fitted together to form a whole as one

614
00:29:46.824 --> 00:29:49.974
units and the machine is designed for the

615
00:29:49.974 --> 00:29:52.330
purpose of forming two or more

616
00:29:52.334 --> 00:29:54.334
complementary or alternative functions.

617
00:29:54.335 --> 00:29:56.805
They are to be classified if consisting

618
00:29:56.809 --> 00:29:59.707
only of that component or that machine

619
00:29:59.708 --> 00:30:02.192
which performs the principal function. 

620
00:30:02.193 --> 00:30:05.091
Chapter 90, note the three refers to

621
00:30:05.093 --> 00:30:07.577
composite machines section 16.  The

622
00:30:07.578 --> 00:30:10.062
composite machine analysis can be provided

623
00:30:10.063 --> 00:30:12.063
to Chapter 90.

624
00:30:12.063 --> 00:30:14.896
It is common in they combine multiple

625
00:30:14.900 --> 00:30:16.952
devices in one housing.

626
00:30:16.953 --> 00:30:19.256
Usually you get smaller except maybe in

627
00:30:19.257 --> 00:30:21.889
the case of monitors or TVs they get

628
00:30:21.889 --> 00:30:24.192
bigger and bigger.  Sometimes a new

629
00:30:24.193 --> 00:30:26.193
heading will arise from popular devices

630
00:30:26.193 --> 00:30:28.193
that are combined together.

631
00:30:28.193 --> 00:30:30.316
When this happens it could be an example

632
00:30:30.316 --> 00:30:32.433
of context otherwise requires.  For

633
00:30:32.436 --> 00:30:34.557
example, a smart phone was originally

634
00:30:34.558 --> 00:30:37.036
thought of as a composite machine that

635
00:30:37.036 --> 00:30:39.157
consisted of a phone, computer, camera,

636
00:30:39.157 --> 00:30:41.276
GPS, sound and video recording apparatus,

637
00:30:41.279 --> 00:30:43.278
et cetera.

638
00:30:43.278 --> 00:30:45.352
Today heading 8517 refers to smart phones.

639
00:30:45.356 --> 00:30:49.684
 We would likely no longer consider it a

640
00:30:49.688 --> 00:30:53.536
composite machine.  The EN tells us note

641
00:30:53.539 --> 00:30:57.387
three, section 16 you not to be invoked

642
00:30:57.390 --> 00:31:01.238
when the composite machine is covered by a

643
00:31:01.241 --> 00:31:04.608
particular heading.  Since the smart phone

644
00:31:04.611 --> 00:31:08.459
tells us that it provides for 8517 section

645
00:31:08.462 --> 00:31:12.310
16 notes three does not need to be

646
00:31:12.313 --> 00:31:14.313
invoked.

647
00:31:14.313 --> 00:31:17.483
And the ends for section 16 notes three is

648
00:31:17.483 --> 00:31:20.598
using the term multifunction machine and

649
00:31:20.602 --> 00:31:22.683
composite machine almost interchangeably.

650
00:31:22.686 --> 00:31:25.020
Some rules use multifunction machines and

651
00:31:25.021 --> 00:31:27.744
some use composite machines and some use

652
00:31:27.745 --> 00:31:30.857
both terms.  This is where the terminology

653
00:31:30.859 --> 00:31:32.859
of multiple and multifunction machines

654
00:31:32.859 --> 00:31:35.527
comes from.  It comes from explanatory

655
00:31:35.529 --> 00:31:37.529
notes.

656
00:31:37.529 --> 00:31:40.707
Where it's not possible to determine a

657
00:31:40.707 --> 00:31:42.707
principal function where as provided in

658
00:31:42.707 --> 00:31:45.457
note three of this section, section 16 the

659
00:31:45.460 --> 00:31:48.638
context is not otherwise required it is

660
00:31:48.640 --> 00:31:52.726
necessary to apply GRI with 3C.  This note

661
00:31:52.729 --> 00:31:56.361
is very important because it allows us to

662
00:31:56.364 --> 00:31:59.542
apply GRI 3C to a composite machine

663
00:31:59.545 --> 00:32:01.545
analysis.

664
00:32:01.545 --> 00:32:03.861
If we cannot determine a principal

665
00:32:03.861 --> 00:32:05.861
function we can classify this from a

666
00:32:05.861 --> 00:32:08.110
competing heading.  This EN tells us what

667
00:32:08.114 --> 00:32:11.202
is meant by fitted together to form a

668
00:32:11.205 --> 00:32:13.521
whole, meaning and incorporation of one

669
00:32:13.524 --> 00:32:16.612
into the other and mounted one onto the

670
00:32:16.615 --> 00:32:19.703
other or mounted on a common, base, orb,

671
00:32:19.706 --> 00:32:22.794
and base housing.  This assembly of the

672
00:32:22.798 --> 00:32:25.500
machine should not be fitted together to

673
00:32:25.502 --> 00:32:28.204
form a whole unless the machine is

674
00:32:28.207 --> 00:32:30.523
designed to be permanently attached to

675
00:32:30.526 --> 00:32:33.614
each other to a common base frame housing,

676
00:32:33.617 --> 00:32:35.617
et cetera.

677
00:32:35.617 --> 00:32:38.676
So, I added a bunch of case studies for

678
00:32:38.676 --> 00:32:40.676
composite machines and I chose this

679
00:32:40.676 --> 00:32:42.676
example to let everybody know we are in

680
00:32:42.676 --> 00:32:44.676
court over this ruling.

681
00:32:44.676 --> 00:32:46.984
This ruling determine if the vice was for

682
00:32:46.985 --> 00:32:49.967
a composite machine consisting of a GPS

683
00:32:49.967 --> 00:32:53.375
receiver 8526 and a transmitter of 8517. 

684
00:32:53.375 --> 00:32:56.355
I do not believe they are disputing

685
00:32:56.357 --> 00:32:59.763
whether or not the device is a composite

686
00:32:59.764 --> 00:33:02.320
machine but rather the principal function

687
00:33:02.320 --> 00:33:05.728
of the merchandise.  Since we are in

688
00:33:05.728 --> 00:33:09.562
courts we are not able to issue a ruling

689
00:33:09.562 --> 00:33:11.690
regarding devices containing a GPS

690
00:33:11.692 --> 00:33:14.673
receiver 856 and a transmitter of 8517

691
00:33:14.673 --> 00:33:17.228
until the court case is closed.

692
00:33:17.229 --> 00:33:20.757
The merchandise in this case study was a

693
00:33:20.758 --> 00:33:23.845
telematics device with a cellular modem of

694
00:33:23.846 --> 00:33:28.256
8517, the GPS of a five to six and XL

695
00:33:28.258 --> 00:33:30.463
around her, gyroscope of 8591.

696
00:33:30.464 --> 00:33:33.976
The subject merchandise was found to be a

697
00:33:33.976 --> 00:33:36.597
composite machine and therefore should be

698
00:33:36.603 --> 00:33:38.795
classified according to its principal

699
00:33:38.797 --> 00:33:42.309
function.  In this case CBP applied note

700
00:33:42.310 --> 00:33:45.815
three to section 16, note three to Chapter

701
00:33:45.815 --> 00:33:49.757
90 and GRI 3C.  This determined there was

702
00:33:49.761 --> 00:33:52.831
no principal function of the device since

703
00:33:52.832 --> 00:33:55.461
the GPS accelerometer and gyroscope and

704
00:33:55.462 --> 00:33:58.096
the transmitting of data all performed

705
00:33:58.096 --> 00:34:00.721
functions that are equally important to

706
00:34:00.725 --> 00:34:04.233
the overall function of the device.  The

707
00:34:04.233 --> 00:34:06.865
functions were useless without each other

708
00:34:06.866 --> 00:34:10.812
and in this case 9031 felt less in tariff.

709
00:34:10.812 --> 00:34:14.752
 Something to keep in mind but 8526, parts

710
00:34:14.757 --> 00:34:17.826
and parked it reads radio navigational aid

711
00:34:17.828 --> 00:34:20.459
apparatus and the heading language does

712
00:34:20.460 --> 00:34:22.460
not include GPS receivers.

713
00:34:22.460 --> 00:34:24.846
However, GPS receivers are mentioned in

714
00:34:24.847 --> 00:34:27.918
the EN's as an example or radio

715
00:34:27.921 --> 00:34:30.555
navigational aid apparatus.  This was

716
00:34:30.555 --> 00:34:34.066
added to the EN's for the original TBS

717
00:34:34.066 --> 00:34:36.699
type of device which only provided

718
00:34:36.700 --> 00:34:38.700
directions.

719
00:34:38.700 --> 00:34:40.919
Today they put GPS receiver and a lot of

720
00:34:40.921 --> 00:34:43.441
different types of devices and sometimes

721
00:34:43.443 --> 00:34:46.383
the GPS may perform more than one

722
00:34:46.385 --> 00:34:48.385
function.

723
00:34:48.385 --> 00:34:51.561
The rationale sometimes I like to use in

724
00:34:51.561 --> 00:34:53.561
fact if the GPS receiver is used for

725
00:34:53.561 --> 00:34:55.561
navigational aid apparatus many times it

726
00:34:55.561 --> 00:34:58.288
does perform a principal function of the

727
00:34:58.315 --> 00:35:00.315
device.

728
00:35:00.315 --> 00:35:02.650
If it is used to locate or track and it

729
00:35:02.650 --> 00:35:05.793
may not always be the primary function but

730
00:35:05.797 --> 00:35:09.732
I do like to think in most cases it merits

731
00:35:09.733 --> 00:35:12.096
equal consideration to the other competing

732
00:35:12.096 --> 00:35:14.096
functions.

733
00:35:14.096 --> 00:35:17.698
This ruling took years to be issued.  This

734
00:35:17.698 --> 00:35:21.169
composite machine is used for triple

735
00:35:21.171 --> 00:35:23.486
applied transmission apparatus that

736
00:35:23.487 --> 00:35:25.803
consisted of broadband Internet,

737
00:35:25.803 --> 00:35:28.117
television, and phone transmission

738
00:35:28.117 --> 00:35:30.117
services.

739
00:35:30.117 --> 00:35:33.493
This case concluded that the tell of

740
00:35:33.493 --> 00:35:35.493
communication function of 8517 and the

741
00:35:35.493 --> 00:35:37.493
television transmission function of 8525,

742
00:35:37.493 --> 00:35:40.183
both men are equal consideration in

743
00:35:40.288 --> 00:35:42.702
determining that principal function of

744
00:35:42.702 --> 00:35:45.116
this type of composite machine.

745
00:35:45.217 --> 00:35:50.225
As the EN allows we classify less in

746
00:35:50.225 --> 00:35:53.967
tariff under heading 8525 as the

747
00:35:53.973 --> 00:35:55.973
television transmission apparatus.

748
00:35:55.973 --> 00:36:01.279
So, my office does apply GRI 3C was

749
00:36:01.282 --> 00:36:04.675
section 16 notes when needed.

750
00:36:04.676 --> 00:36:07.588
So, if we determine something is not a

751
00:36:07.591 --> 00:36:10.503
composite machine we can look to see if

752
00:36:10.506 --> 00:36:14.146
GRI three can be applied.  GRI 3A says the

753
00:36:14.150 --> 00:36:16.334
heading which provides the most specific

754
00:36:16.336 --> 00:36:18.884
description shall be referred as the head

755
00:36:18.887 --> 00:36:21.071
and combining a more general description.

756
00:36:21.073 --> 00:36:24.934
This comes up when a good means more than

757
00:36:24.934 --> 00:36:27.929
one heading in the nomenclature.  Neither

758
00:36:27.932 --> 00:36:29.932
excludes each other.

759
00:36:29.932 --> 00:36:33.276
When this occurs and they will tell us as

760
00:36:33.277 --> 00:36:36.884
to classify in a more specific heading. 

761
00:36:36.884 --> 00:36:40.039
GRI 3B provides for deposit of goods

762
00:36:40.040 --> 00:36:42.745
making up the different components in

763
00:36:42.745 --> 00:36:44.745
material.

764
00:36:44.745 --> 00:36:46.867
It also includes the goods cut up in side

765
00:36:46.867 --> 00:36:50.121
for retail sale.  Both composite goods and

766
00:36:50.125 --> 00:36:52.978
such shall be classified as if they

767
00:36:52.980 --> 00:36:55.427
consist of the material component which

768
00:36:55.428 --> 00:36:58.279
gives it to their essential character. 

769
00:36:58.279 --> 00:37:00.721
The composite machine work section 3617

770
00:37:00.725 --> 00:37:03.579
includes articles of Chapter 85, 85, and

771
00:37:03.579 --> 00:37:06.432
possibly Chapter 90 and are classified by

772
00:37:06.433 --> 00:37:08.878
the component which performs the clinical

773
00:37:08.879 --> 00:37:10.879
function.

774
00:37:10.879 --> 00:37:13.269
Possible goods are in the nomenclature and

775
00:37:13.269 --> 00:37:17.252
are classified by the component that in

776
00:37:17.253 --> 00:37:20.098
parts of the essential character.

777
00:37:20.098 --> 00:37:22.786
So, often whether you do composite

778
00:37:22.788 --> 00:37:25.028
machines or essential character analysis,

779
00:37:25.029 --> 00:37:28.613
you may end up with the same ends

780
00:37:28.616 --> 00:37:30.616
classification.

781
00:37:30.616 --> 00:37:33.348
However, I believe it's important to have

782
00:37:33.348 --> 00:37:35.348
the correct analysis.

783
00:37:35.348 --> 00:37:39.707
GRI 3C also states goods cannot be or when

784
00:37:39.715 --> 00:37:43.747
goods cannot be classified by GRI 38 or

785
00:37:43.748 --> 00:37:47.780
GRI 3B they should be classified under the

786
00:37:47.780 --> 00:37:50.804
heading which occurs last in numerical

787
00:37:50.804 --> 00:37:53.828
order among those that merits equal

788
00:37:53.828 --> 00:37:57.356
consideration.  As I mentioned earlier, we

789
00:37:57.357 --> 00:38:01.893
can apply GRI 3C and also use section 16

790
00:38:01.893 --> 00:38:03.893
notes three.

791
00:38:03.893 --> 00:38:07.881
This is a case study as an example of when

792
00:38:07.886 --> 00:38:11.870
C BP classified an article by virtue of

793
00:38:11.873 --> 00:38:16.355
article GR 3A. In this case CBP found a

794
00:38:16.360 --> 00:38:19.348
solid-state drive is provided for into

795
00:38:19.351 --> 00:38:21.351
headings.

796
00:38:21.351 --> 00:38:23.796
The solid-state drive was classifiable

797
00:38:23.796 --> 00:38:25.796
under both headings 8471 and 8523. 

798
00:38:25.796 --> 00:38:28.578
Neither heading excluded the other. 

799
00:38:28.656 --> 00:38:32.568
Therefore we had to resort to GRI three

800
00:38:32.570 --> 00:38:35.993
aid to determine which heading was more

801
00:38:35.995 --> 00:38:39.907
specific.  In this case, CBP determine the

802
00:38:39.909 --> 00:38:42.354
heading person description provided by

803
00:38:42.355 --> 00:38:44.800
heading 8523 solid-state and volatile

804
00:38:44.801 --> 00:38:48.224
storage devices was more specific than the

805
00:38:48.226 --> 00:38:51.160
heading description provided for in 8471,

806
00:38:51.161 --> 00:38:53.161
units thereof.

807
00:38:53.161 --> 00:38:55.365
So, in this case we compared it at the

808
00:38:55.365 --> 00:38:57.365
heading level.

809
00:38:57.365 --> 00:38:59.392
It was decided that heading 8523 which are

810
00:38:59.392 --> 00:39:02.812
provisions with requirement to have awards

811
00:39:02.813 --> 00:39:06.233
difficult to satisfy and describe the

812
00:39:06.233 --> 00:39:09.653
article with the greatest degree of

813
00:39:09.653 --> 00:39:11.653
accuracy and certainty.

814
00:39:11.653 --> 00:39:13.655
So this particular piece both had a

815
00:39:13.655 --> 00:39:15.655
specific legal notes in the headings that

816
00:39:15.655 --> 00:39:17.655
could be considered difficult to meets.

817
00:39:17.655 --> 00:39:20.192
In this case we looked at how the headings

818
00:39:20.486 --> 00:39:22.758
read in which heading was more

819
00:39:22.759 --> 00:39:24.759
specifically described as an article.

820
00:39:24.759 --> 00:39:27.540
I know some don't agree with this analysis

821
00:39:27.541 --> 00:39:30.068
and this decision but it is legally

822
00:39:30.069 --> 00:39:33.679
binding and as far as I know it has not

823
00:39:33.679 --> 00:39:35.679
been officially challenged.

824
00:39:35.679 --> 00:39:38.242
This is our infamous case that gave us

825
00:39:38.242 --> 00:39:40.413
seven presidential carbon random factors

826
00:39:40.415 --> 00:39:43.458
which are frequently applied by the courts

827
00:39:43.459 --> 00:39:46.938
in CBP to determine whether part of the

828
00:39:46.938 --> 00:39:49.111
merchandise falls within a particular

829
00:39:49.111 --> 00:39:52.588
class or kind of good.  These seven

830
00:39:52.590 --> 00:39:55.199
factors which are helpful roadmaps for

831
00:39:55.200 --> 00:39:57.372
conducting a principal use analysis.

832
00:39:57.373 --> 00:39:59.373
They are generally physical

833
00:39:59.373 --> 00:40:01.373
characteristics of the merchandise, what

834
00:40:01.373 --> 00:40:03.373
are the characteristics of the

835
00:40:03.373 --> 00:40:05.816
merchandise?  X completion or the ultimate

836
00:40:05.816 --> 00:40:07.816
user houses how would the ultimate user

837
00:40:07.816 --> 00:40:09.816
use the merchandise?

838
00:40:09.816 --> 00:40:11.816
The channels classified and trade in which

839
00:40:11.816 --> 00:40:13.816
the merchandise moves and wears a

840
00:40:13.816 --> 00:40:15.816
merchandise being sold?  The environment

841
00:40:15.816 --> 00:40:18.906
of sale and the use of any of the same

842
00:40:19.274 --> 00:40:21.566
manner of merchandise which defines the

843
00:40:21.568 --> 00:40:23.860
class, the economic practicality of using

844
00:40:23.862 --> 00:40:26.536
the imports and the recognition in the

845
00:40:26.539 --> 00:40:28.539
trade of this use.

846
00:40:28.539 --> 00:40:31.325
So, it's not uncommon for an ISP to use

847
00:40:31.326 --> 00:40:33.498
these without even realizing or talking

848
00:40:33.498 --> 00:40:35.498
about the comment random factors.

849
00:40:35.498 --> 00:40:39.220
The courts seem to use these factors often

850
00:40:39.222 --> 00:40:42.156
when comparing two headings and comparing

851
00:40:42.157 --> 00:40:44.157
which is more specific.

852
00:40:44.157 --> 00:40:47.641
We sometimes use these subconsciously to

853
00:40:47.641 --> 00:40:51.755
help determine a principal function or an

854
00:40:51.755 --> 00:40:54.693
essential character of an article.

855
00:40:54.694 --> 00:40:58.078
Section 16, note four:  This is our

856
00:40:58.082 --> 00:41:01.043
functional units note and this happens to

857
00:41:01.046 --> 00:41:04.853
be my favorite two notes.  It reads: Where

858
00:41:04.857 --> 00:41:07.395
a machine including a combination of

859
00:41:07.398 --> 00:41:09.398
machines, consist of individual

860
00:41:09.398 --> 00:41:11.398
components.

861
00:41:11.398 --> 00:41:14.219
It is more than one components whether

862
00:41:14.219 --> 00:41:16.219
separate or interconnected by piping,

863
00:41:16.219 --> 00:41:18.219
transmission device, electric cables, or

864
00:41:18.219 --> 00:41:20.219
other devices.  It could even be a

865
00:41:20.219 --> 00:41:22.219
wireless connection are intended to

866
00:41:22.219 --> 00:41:24.219
contribute together are a clearly defined

867
00:41:24.219 --> 00:41:26.678
function covered by one of the headings

868
00:41:26.861 --> 00:41:30.488
and chapter 84 or 85 ants the whole thing

869
00:41:30.492 --> 00:41:32.910
should be classified in the heading

870
00:41:32.913 --> 00:41:34.928
appropriate to that's clearly defined

871
00:41:34.930 --> 00:41:36.930
function.

872
00:41:36.930 --> 00:41:38.930
This note provides for different

873
00:41:38.930 --> 00:41:40.930
components being imported together which

874
00:41:40.930 --> 00:41:43.387
will be connected by cable or wirelessly

875
00:41:43.387 --> 00:41:45.387
via Bluetooth et cetera which contribute

876
00:41:45.387 --> 00:41:47.387
together in the clearly defined function

877
00:41:47.387 --> 00:41:49.387
covered by one of the headings in chapter

878
00:41:49.387 --> 00:41:51.840
84 or 85 or Chapter 90.  Chapter 90, note

879
00:41:51.842 --> 00:41:54.299
three states that the provisions for notes

880
00:41:54.301 --> 00:41:57.460
three and four to section 16 also apply to

881
00:41:57.462 --> 00:41:59.462
this chapter.

882
00:41:59.462 --> 00:42:02.210
A functional units analysis can also be

883
00:42:02.211 --> 00:42:05.679
used for articles of Chapter 90.

884
00:42:05.679 --> 00:42:10.429
This is a case study of an example of a

885
00:42:10.430 --> 00:42:12.430
functional unit.

886
00:42:12.430 --> 00:42:14.444
This ruling has gotten a lot of attention.

887
00:42:14.445 --> 00:42:16.743
 This ruling the display controller,

888
00:42:16.744 --> 00:42:19.042
multiple display can't but it's Ann's

889
00:42:19.043 --> 00:42:21.341
cables were imported together.  After

890
00:42:21.343 --> 00:42:23.641
importation the display cabinets and the

891
00:42:23.642 --> 00:42:25.940
controller were connected together by the

892
00:42:25.941 --> 00:42:29.005
cables to display images on a large scale.

893
00:42:29.006 --> 00:42:32.494
CBP found that in this case the display

894
00:42:32.494 --> 00:42:35.531
cabinets and the display controller were a

895
00:42:35.537 --> 00:42:37.714
functional units connected by cables

896
00:42:37.716 --> 00:42:39.895
contributing together a clearly defined

897
00:42:39.897 --> 00:42:42.506
function of a a DP monitor.

898
00:42:42.507 --> 00:42:45.891
And in this rule we also apply GRI sixes

899
00:42:45.892 --> 00:42:48.900
we also played notes section 416 at the

900
00:42:48.901 --> 00:42:50.901
section level.

901
00:42:50.901 --> 00:42:53.421
This is only the case when the display

902
00:42:53.421 --> 00:42:55.421
tiles or cabinets were imported together

903
00:42:55.421 --> 00:42:57.421
with the controller processor sending box,

904
00:42:57.421 --> 00:42:59.421
whatever you want to call the box which is

905
00:42:59.421 --> 00:43:01.421
directly connected to and designed for use

906
00:43:01.421 --> 00:43:03.821
within a DP machine.  This would not apply

907
00:43:03.821 --> 00:43:06.022
to the display cabinets or tiles when

908
00:43:06.024 --> 00:43:08.022
imported by themselves.

909
00:43:08.023 --> 00:43:10.095
When imported alone it would not be

910
00:43:10.100 --> 00:43:12.782
considered a functional unit as per

911
00:43:12.785 --> 00:43:14.785
section 16, note for.

912
00:43:14.785 --> 00:43:17.590
So, this issue happens to be currently

913
00:43:17.593 --> 00:43:20.179
pending at headquarters and is definitely

914
00:43:20.180 --> 00:43:22.180
subject to change.

915
00:43:22.180 --> 00:43:25.229
The classification of the display wall

916
00:43:25.231 --> 00:43:29.613
cabinets and tile when imported alone is

917
00:43:29.614 --> 00:43:33.996
also cutting in headquarters and is being

918
00:43:33.997 --> 00:43:36.501
discussed at the HSC.

919
00:43:36.601 --> 00:43:39.849
This is another case study example of a

920
00:43:39.852 --> 00:43:43.100
functional units.  It was a remote keyless

921
00:43:43.103 --> 00:43:45.945
entry system which consisted of a receiver

922
00:43:45.947 --> 00:43:47.977
and two transmitters imported together

923
00:43:47.979 --> 00:43:50.821
which use radio waves to perform several

924
00:43:50.824 --> 00:43:52.854
functions, including unlocking the vehicle

925
00:43:52.856 --> 00:43:54.886
stores, locking the vehicle stores,

926
00:43:54.887 --> 00:43:57.729
turning on the lights and releasing the

927
00:43:57.732 --> 00:43:59.732
rear trunk lid.

928
00:43:59.732 --> 00:44:02.774
In this case it was determined that the

929
00:44:02.774 --> 00:44:05.163
receiver and transmitter once connected

930
00:44:05.164 --> 00:44:07.553
together contributed a clearly defined

931
00:44:07.553 --> 00:44:10.421
function of a radio remote control

932
00:44:10.421 --> 00:44:13.766
apparatus described in heading 85 to seven

933
00:44:13.766 --> 00:44:16.155
excuse me in heading 8526.

934
00:44:16.155 --> 00:44:19.125
The EN also provides several different

935
00:44:19.128 --> 00:44:22.098
examples of functional units and some

936
00:44:22.101 --> 00:44:26.556
examples happen to be quite old.  There is

937
00:44:26.560 --> 00:44:29.530
an example of a satellite television

938
00:44:29.533 --> 00:44:33.493
system but then the EN indicates that the

939
00:44:33.497 --> 00:44:36.962
parts not complying with the terms in

940
00:44:36.966 --> 00:44:40.431
section 16 fall into their own appropriate

941
00:44:40.434 --> 00:44:43.404
heading.  This applies for a

942
00:44:43.407 --> 00:44:45.407
closed-circuit balanced system consisting

943
00:44:45.407 --> 00:44:48.852
of a combination one connected by cables,

944
00:44:48.858 --> 00:44:51.828
controller * controller, switch and or

945
00:44:51.831 --> 00:44:55.296
video recorder.  Since no heading provides

946
00:44:55.299 --> 00:44:57.774
for surveillance systems or security

947
00:44:57.777 --> 00:45:01.242
systems they are usually not considered to

948
00:45:01.245 --> 00:45:03.245
be a functional units.

949
00:45:03.245 --> 00:45:06.116
CBP has consistently followed this EN and

950
00:45:06.117 --> 00:45:09.007
has not classified them as a functional

951
00:45:09.007 --> 00:45:11.483
units.  When different articles are

952
00:45:11.485 --> 00:45:13.961
imported together and we determined they

953
00:45:13.961 --> 00:45:16.852
cannot be considered a functional units we

954
00:45:16.852 --> 00:45:20.979
next to see if they are imported as a GRI

955
00:45:20.979 --> 00:45:22.979
three be set.

956
00:45:22.980 --> 00:45:25.384
We look at section 16 notes first since

957
00:45:25.386 --> 00:45:28.158
technically it keeps us in GRI one.

958
00:45:28.160 --> 00:45:30.296
Similarly, with both functional unit and

959
00:45:30.299 --> 00:45:33.147
set it consist of at least two different

960
00:45:33.151 --> 00:45:35.151
articles which are classifiable in

961
00:45:35.151 --> 00:45:37.285
different headings and imported together. 

962
00:45:37.285 --> 00:45:39.285
One difference is a functional unit

963
00:45:39.285 --> 00:45:41.285
consists of a functional component

964
00:45:41.285 --> 00:45:43.345
intended to have a clearly defined

965
00:45:43.345 --> 00:45:45.767
function covered by one of the headings of

966
00:45:45.984 --> 00:45:49.188
chapter 84 or 85 or possibly Chapter 90. 

967
00:45:49.192 --> 00:45:52.040
A set consist of products or articles or

968
00:45:52.044 --> 00:45:54.892
put it together to meet a particular need

969
00:45:54.896 --> 00:45:58.100
or carry out a specific activity.  If an

970
00:45:58.104 --> 00:46:00.104
imported package for retail and/or

971
00:46:00.104 --> 00:46:02.104
imported package retail sale without

972
00:46:02.104 --> 00:46:04.161
repacking.  The functional unit needs to

973
00:46:04.164 --> 00:46:07.368
be imported in the same shipments.  It is

974
00:46:07.372 --> 00:46:10.220
not being imported as a package for retail

975
00:46:10.224 --> 00:46:13.072
sale, although it can buy.  A functional

976
00:46:13.076 --> 00:46:15.924
unit is classified in a heading unit to

977
00:46:15.928 --> 00:46:17.928
the appropriate clearly defined function.

978
00:46:17.928 --> 00:46:20.831
I said is classified if it consists of the

979
00:46:20.831 --> 00:46:22.905
material components which give it its

980
00:46:22.908 --> 00:46:25.333
essential character.  If it is determined

981
00:46:25.334 --> 00:46:28.457
to something is not a set and not a

982
00:46:28.459 --> 00:46:30.532
functioning unit they need to classify

983
00:46:30.532 --> 00:46:32.607
each component separately in its own

984
00:46:32.612 --> 00:46:34.612
appropriate heading.

985
00:46:34.612 --> 00:46:37.581
So of course, we have a case study on a

986
00:46:37.582 --> 00:46:40.577
surveillance system.  In this case the

987
00:46:40.580 --> 00:46:43.576
recorder of heading 8521 and the cameras

988
00:46:43.576 --> 00:46:46.570
of 8525 were imported together and package

989
00:46:46.572 --> 00:46:49.994
for retail sale as a surveillance kit. 

990
00:46:49.994 --> 00:46:52.560
These components are not fitted together

991
00:46:52.562 --> 00:46:55.558
to form a whole they are separate

992
00:46:55.558 --> 00:46:58.552
components of a recorder and a camera.

993
00:46:58.554 --> 00:47:00.728
Rather the separate components function

994
00:47:00.728 --> 00:47:02.899
together as a security system.

995
00:47:02.901 --> 00:47:06.117
As such the surveillance kit does not meet

996
00:47:06.118 --> 00:47:09.736
the terms and notes three section 16 as a

997
00:47:09.738 --> 00:47:12.150
composite machine.  The surveillance also

998
00:47:12.151 --> 00:47:14.563
cannot be classified according to note

999
00:47:14.564 --> 00:47:17.378
four-section 16 as a functional units. 

1000
00:47:17.379 --> 00:47:19.791
While the system does consist of

1001
00:47:19.792 --> 00:47:21.802
individual components and enter connected

1002
00:47:21.803 --> 00:47:23.813
wirelessly, they do not contribute

1003
00:47:23.814 --> 00:47:25.824
together a clearly defined function

1004
00:47:25.824 --> 00:47:29.040
covered by one of the headings in chapter

1005
00:47:29.042 --> 00:47:32.258
84 or Chapter 85 or even Chapter 90.

1006
00:47:32.259 --> 00:47:34.644
The EN clearly excludes surveillance

1007
00:47:34.645 --> 00:47:37.507
systems from being considered a functional

1008
00:47:37.508 --> 00:47:39.508
units.

1009
00:47:39.508 --> 00:47:41.793
This surveillance system was imported

1010
00:47:41.793 --> 00:47:43.793
together and packaged for retail sale and

1011
00:47:43.793 --> 00:47:45.873
scary at the specific activity of

1012
00:47:46.203 --> 00:47:48.202
surveillance.

1013
00:47:48.202 --> 00:47:50.214
Therefore it was considered for

1014
00:47:50.214 --> 00:47:52.214
verification purposes.  In this case CBP

1015
00:47:52.214 --> 00:47:54.214
determined the camera and the recorder

1016
00:47:54.214 --> 00:47:56.832
played equal roles in the use of the

1017
00:47:57.133 --> 00:47:59.146
entire surveillance system.  Without

1018
00:47:59.147 --> 00:48:01.966
cameras there were no images to be

1019
00:48:01.967 --> 00:48:04.385
recorded and without the recording you

1020
00:48:04.385 --> 00:48:07.608
cannot view images at a later time. 

1021
00:48:07.608 --> 00:48:10.422
Reportedly, it was necessary to apply GRI

1022
00:48:10.426 --> 00:48:13.245
3C and classify in the heading which

1023
00:48:13.245 --> 00:48:16.065
incurs last in numerical order among those

1024
00:48:16.065 --> 00:48:18.884
that equally merit consideration.  In this

1025
00:48:18.885 --> 00:48:21.703
case they were the cameras of heading

1026
00:48:21.704 --> 00:48:23.704
8525.

1027
00:48:23.704 --> 00:48:26.519
Section 16 notes five defines what machine

1028
00:48:26.524 --> 00:48:30.941
it means and to be referenced discussion

1029
00:48:30.941 --> 00:48:34.096
16 notes three and four.

1030
00:48:34.096 --> 00:48:36.694
This legal note defines the expression

1031
00:48:36.697 --> 00:48:39.728
machine to mean any machine or machinery,

1032
00:48:39.731 --> 00:48:41.896
plants, equipment, apparatus, or appliance

1033
00:48:41.898 --> 00:48:45.362
cited in the headings of chapter 84 or

1034
00:48:45.366 --> 00:48:48.397
Chapter 85.  For example, a flat-panel

1035
00:48:48.400 --> 00:48:51.864
display module of heading 8524 may not be

1036
00:48:51.868 --> 00:48:54.033
thought of as a machine.

1037
00:48:54.035 --> 00:48:57.000
Heading 8524 provides for intermediate

1038
00:48:57.002 --> 00:48:59.002
article.

1039
00:48:59.002 --> 00:49:02.033
However, based on this note I would

1040
00:49:02.033 --> 00:49:04.033
consider a machine for the purposes of

1041
00:49:04.033 --> 00:49:06.742
section 16 notes three and four.  This

1042
00:49:07.120 --> 00:49:10.584
note is also the reason why I believe

1043
00:49:10.584 --> 00:49:13.179
machines and composite machine notes in

1044
00:49:13.181 --> 00:49:16.644
three to section 16 means that any article

1045
00:49:16.644 --> 00:49:18.809
of chapter 84 or 85.

1046
00:49:18.809 --> 00:49:21.865
GRI six.  It's important to mention that

1047
00:49:21.867 --> 00:49:24.923
we classify at a subheading level we are

1048
00:49:24.924 --> 00:49:26.924
also applying GRI six.

1049
00:49:26.924 --> 00:49:29.540
They issue rulings at the eight or ten

1050
00:49:29.544 --> 00:49:32.246
digit classification.  So, we are also

1051
00:49:32.248 --> 00:49:35.336
always applying GRI six to get to the

1052
00:49:35.339 --> 00:49:37.339
subheading level.

1053
00:49:37.339 --> 00:49:39.783
The way I interpret the last part of GRI

1054
00:49:39.783 --> 00:49:43.445
six is that we can also apply the section

1055
00:49:43.448 --> 00:49:46.300
of chapter and subchapter notes at the

1056
00:49:46.303 --> 00:49:48.303
subheading level.

1057
00:49:48.303 --> 00:49:51.386
I believe this allows us to use GRI and I

1058
00:49:51.386 --> 00:49:54.796
believe this allows us to use notes three

1059
00:49:54.799 --> 00:49:58.213
and four to section 16 at the subheading

1060
00:49:58.214 --> 00:50:02.481
level.  GRI six does not state that we can

1061
00:50:02.482 --> 00:50:05.469
use GRI one-five at the subheading level.

1062
00:50:05.469 --> 00:50:10.099
The theme to this year's webinar is green

1063
00:50:10.099 --> 00:50:14.143
trade and this is extremely important to

1064
00:50:14.147 --> 00:50:17.619
CBP. Monitoring the trade of green

1065
00:50:17.619 --> 00:50:20.514
technologies is important for the

1066
00:50:20.516 --> 00:50:22.516
environmental protection.

1067
00:50:22.516 --> 00:50:24.623
Section 16 notes six refers to electrical

1068
00:50:24.624 --> 00:50:27.578
and electronic waste and scrap known as

1069
00:50:27.579 --> 00:50:30.533
e-waste.  We added heading 8549 which

1070
00:50:30.534 --> 00:50:32.644
provides for electrical and electronic

1071
00:50:32.644 --> 00:50:36.020
waste and scrap to the 2026 tariff for

1072
00:50:36.021 --> 00:50:38.021
Green circular economy.

1073
00:50:38.021 --> 00:50:40.535
Based on this note, simply being a used

1074
00:50:40.535 --> 00:50:43.783
good is not sufficient to render a good

1075
00:50:43.783 --> 00:50:47.029
e-waste.  As you can see, the note

1076
00:50:47.031 --> 00:50:49.465
indicates that e-waste is unusable for

1077
00:50:49.466 --> 00:50:51.495
their original purposes by breakers

1078
00:50:51.496 --> 00:50:54.338
cutting up or other processes and/or goods

1079
00:50:54.338 --> 00:50:56.368
suitable for recovery recyclable and

1080
00:50:56.368 --> 00:50:59.208
disposable.  They are not for repair,

1081
00:50:59.209 --> 00:51:01.209
refurbishment, renovation, or repurpose

1082
00:51:01.209 --> 00:51:03.209
them.

1083
00:51:03.209 --> 00:51:08.015
E-waste is not intended to be reused as

1084
00:51:08.018 --> 00:51:10.018
individual articles.

1085
00:51:10.018 --> 00:51:13.568
The package is shipped in a matter not

1086
00:51:13.571 --> 00:51:16.463
intended to be protected from damage

1087
00:51:16.465 --> 00:51:19.357
and/or generally shipped and traded in

1088
00:51:19.358 --> 00:51:21.358
weights rather than quantity.

1089
00:51:21.358 --> 00:51:25.248
To date, the tariff does not distinguish

1090
00:51:25.249 --> 00:51:28.079
between new, used, or refurbished

1091
00:51:28.079 --> 00:51:30.079
electronics.

1092
00:51:30.079 --> 00:51:33.133
However, something meets the definition of

1093
00:51:33.133 --> 00:51:35.770
e-waste we would not classify this as a

1094
00:51:35.770 --> 00:51:40.350
parts but as per section 16 note to it

1095
00:51:40.350 --> 00:51:43.404
would likely fall into heading 8549.

1096
00:51:43.405 --> 00:51:46.500
That concludes my seminar for today.  I'm

1097
00:51:46.500 --> 00:51:49.972
sorry I mean webinar.  Thank you all for

1098
00:51:49.976 --> 00:51:53.068
attending.  If you have any questions feel

1099
00:51:53.069 --> 00:51:56.550
free to type them into the comments box. 

1100
00:51:56.550 --> 00:51:59.642
If you prefer to e-mail questions you can

1101
00:51:59.642 --> 00:52:03.501
do that.  My e-mail is Lisa .-dot ADOT CAR

1102
00:52:03.504 --> 00:52:06.597
i.e. LLO@CBP .-dot DHS .-dot GOP. I did

1103
00:52:06.598 --> 00:52:10.079
add the links on this screen for the code

1104
00:52:10.081 --> 00:52:12.781
that you can see on the bottom.

1105
00:52:12.783 --> 00:52:19.643
Also for where the recording will be

1106
00:52:19.643 --> 00:52:21.643
posted.

1107
00:52:21.643 --> 00:52:24.190
That concludes I think if there are any

1108
00:52:24.190 --> 00:52:26.190
questions they're going to be read to me.

1109
00:52:26.190 --> 00:52:28.858
>>: You do have a few questions I will

1110
00:52:29.319 --> 00:52:31.319
call them out to you.

1111
00:52:31.319 --> 00:52:35.549
In the case of LED screen floors imported

1112
00:52:35.549 --> 00:52:38.727
with processes, cables, wood boxes to

1113
00:52:38.728 --> 00:52:41.906
practice the units in, screens, power

1114
00:52:41.907 --> 00:52:46.147
supply et cetera, is the entire unit other

1115
00:52:46.147 --> 00:52:49.323
than the cabinets classified under one

1116
00:52:49.323 --> 00:52:53.032
number?  Such as possibly a 52859?

1117
00:52:53.033 --> 00:52:55.696
>> Lisa Cariello: It depends you had to

1118
00:52:55.696 --> 00:52:58.353
submit that for a ruling request he could

1119
00:52:58.355 --> 00:53:00.683
possibly be a functional unit becomes an

1120
00:53:00.684 --> 00:53:02.683
altogether or they could possibly be

1121
00:53:02.683 --> 00:53:05.008
separate or it could maybe meet the

1122
00:53:05.008 --> 00:53:07.008
definition of a set.

1123
00:53:07.008 --> 00:53:09.586
If you do have something in specific I

1124
00:53:09.588 --> 00:53:13.241
suggest that you put it in for a request

1125
00:53:13.241 --> 00:53:16.894
but remember a lot of this is pending in

1126
00:53:16.895 --> 00:53:20.549
headquarters.  So we may not be able to

1127
00:53:20.549 --> 00:53:22.549
issue one.

1128
00:53:22.549 --> 00:53:28.206
>>: If 8517 takes presence over 8525.

1129
00:53:28.206 --> 00:53:32.639
>> Lisa Cariello: It should be 8529 but go

1130
00:53:32.639 --> 00:53:34.639
ahead.

1131
00:53:34.639 --> 00:53:36.721
>> Sandra Walia: Okay, if it expresses

1132
00:53:36.721 --> 00:53:38.721
over a five to five what short of

1133
00:53:38.721 --> 00:53:40.721
transceiver would still fall under a five

1134
00:53:40.721 --> 00:53:42.721
to five?  What is meant by radio

1135
00:53:42.721 --> 00:53:44.721
broadcasting?

1136
00:53:44.721 --> 00:53:46.806
>> Lisa Cariello: Heading 8517 does not

1137
00:53:46.806 --> 00:53:48.806
take precedence over a five to five.

1138
00:53:48.806 --> 00:53:51.665
Heading 8517 specifically excludes heading

1139
00:53:51.667 --> 00:53:53.667
8525.

1140
00:53:53.667 --> 00:53:56.545
Heading 8525 is for radio broadcasting and

1141
00:53:56.549 --> 00:53:59.484
television transmission.  It is

1142
00:53:59.485 --> 00:54:02.420
transmitting a radio broadcasting signal

1143
00:54:02.422 --> 00:54:06.531
and a sound signal without any line

1144
00:54:06.534 --> 00:54:08.534
connection.

1145
00:54:08.534 --> 00:54:12.881
It would be considered an article of 8525.

1146
00:54:12.884 --> 00:54:14.884
Same with television transmission

1147
00:54:14.884 --> 00:54:17.394
apparatus.  The television could be

1148
00:54:17.396 --> 00:54:20.553
through the ether without adding a line

1149
00:54:20.554 --> 00:54:23.711
connection could be a line like IPTV.

1150
00:54:23.712 --> 00:54:25.770
>> Sandra Walia: Okay great, thank you.

1151
00:54:25.772 --> 00:54:27.772
One last question which I think you

1152
00:54:27.772 --> 00:54:29.772
answered.

1153
00:54:29.772 --> 00:54:33.073
This is when you were discussing composite

1154
00:54:33.073 --> 00:54:35.073
machines the question was what if all

1155
00:54:35.073 --> 00:54:37.073
functions are equally important?

1156
00:54:37.073 --> 00:54:39.073
>> Lisa Cariello: We can and we are

1157
00:54:39.073 --> 00:54:41.073
allowed to apply GRI 3C and classify less

1158
00:54:41.073 --> 00:54:43.073
and tariff.

1159
00:54:43.073 --> 00:54:45.116
>> Sandra Walia: You went on to discuss

1160
00:54:45.116 --> 00:54:47.116
that in the next slide.

1161
00:54:47.116 --> 00:54:49.625
I think that is all of the questions that

1162
00:54:49.631 --> 00:54:51.631
we have.

1163
00:54:51.631 --> 00:54:53.631
>> Lisa Cariello: Okay, I want to thank

1164
00:54:53.631 --> 00:54:55.631
you all I appreciate everybody attending

1165
00:54:55.631 --> 00:54:57.631
today and I hope everybody has a great

1166
00:54:57.631 --> 00:54:59.636
day.