# HQ 966307

June 6, 2003

# CLA-2 RR:CR:GC 966307 DBS

**CATEGORY:** Classification

**TARIFF NO.:** 8525.30.90

Port Director

Bureau of Customs and Border Protection

111 W. Huron Street, Room 603

Buffalo, NY 14202

**RE:** Protest 0901-02-100144; personal computer video cameras

Dear Port Director:

This is our decision on Protest 0901-02-100144 filed against your
classification, under the Harmonized Tariff Schedule of the United
States (HTSUS), of 3 types of personal computer video cameras. The
entries were liquidated on February 22, 2002 and the protest was timely
filed on May 20, 2002.

**FACTS:**

This protest concerns the classification of the "IBM PC Camera Pro
(model \# 995334) ("Camera Pro"), the "IBM PC Camera Pro Max (model \#
995333) ("Pro Max"), and the "Pyro 1394 WebCam (model \# 209509) ("Pyro
Cam"). All three "PC cameras" are designed for direct connection to an
automatic data processing (ADP) machine -- the Camera Pro and Pro Max
through USB ports, and the Pyro Cam through IEE 1394 FireWire. They are
intended for use with desktop or notebook personal computers. The
cameras utilize CCD (charge-coupled device) image sensors which convert
light into electrons that are then converted into digital signals,
compressed and transmitted to the ADP machine. The resulting images may
be processed by a variety of software programs. All models come with
bundled software to enable the user to utilize the different functions,
such as creating videomails, sending still images via e-mail, Internet
conferencing, video and still image editing, etc. However, we believe
that most, if not all devices attached to an ADP machine require

the installation of software that will allow the device to be recognized
and to function with the ADP machine.

The Camera Pro is essentially a rectangular box shape attached to a
base, with an adjustable focus lens protruding from one end, and
measures 5.3 cm x 10.2 cm x 5.6 cm (W x D x H). The camera has a
push-button positioned on the top for taking still-frame pictures. The
camera's still image resolution is 640 x 480 pixels (VGA), digital video
resolution is 352 x 288 pixels, and streaming video capture is at 30
frames per second (fps). The technical specifications state there is no
internal memory. The camera is sold with mounting clips, CD-ROM with
bundled software and drivers, and user's guide.

The Pro Max has the same shape, dimensions, push-button, resolutions and
streaming video capture rate as the Camera Pro. The technical
specifications state there is no internal memory. The difference between
the two cameras is that the Pro Max has National Television System
Committee (NTSC) input capability, enabling users to capture and
download video directly from a camcorder, VR or VCD/DVD into the ADP
machine. The camera is sold with a tripod mount, CD-Rom of bundled
software and drivers and user's guide.

The Pyro Cam is an ovoid attached to a base, with an adjustable focus
lens protruding from the middle. This camera has a ¼-inch CCD with a
square pixel array of progressive 330K effective pixels. The camera's
still image resolution and digital video resolution are up to 640 x 480
pixels (VGA), and streaming video capture is at 30 fps. It has an
electronic shutter with variable charge-storage time. The technical
specifications state there is no internal memory. The Pyro Cam is sold
with an attached 1394 cable (FireWire), CD-ROM with bundled software and
drivers, and a user's manual.

The PC cameras have no internal memory for retrieval of images
subsequent to the time they are captured. None can operate independently
from an ADP machine. And none of the cameras have viewfinders or LCDs
(liquid crystal displays).

You classified the PC cameras as other television cameras of subheading
8525.30.90, HTSUS. Protestant claims the PC cameras are classifiable in
subheading 8525.40.40 as digital still image video cameras.

**ISSUE:**

Whether the instant cameras are classifiable as television cameras of
subheading 8525.30.90, HTSUS, or as still image digital cameras of
subheading 8525.40.40, HTSUS.

**LAW AND ANALYSIS:**

Classification under the HTSUS is made in accordance with the General
Rules of Interpretation (GRIs). GRI 1 provides that the classification
of goods shall be determined according to the terms of the headings of
the tariff schedule and any relative Section or Chapter Notes. In the
event that the goods cannot be classified solely on the basis of GRI 1,
and if the headings and legal notes do not otherwise require, the
remaining GRIs may then be applied.

In understanding the language of the HTSUS, the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs) may be utilized.
ENs, though not dispositive or legally binding, provide commentary on
the scope of each heading of the HTSUS, and are the official
interpretation of the Harmonized System at the international level.
Customs believes the ENs should always be consulted. See T.D. 89-80, 54
Fed. Reg. 35127, 35128 (August 23, 1989).

The 2001 HTSUS provisions under consideration are as follows:

> 8525 Transmission apparatus, for radiotelephony, radiotelegraphy,
> radiobroadcasting or television, whether or not incorporating
> reception apparatus or sound recording or reproducing apparatus;
> television cameras; still image video cameras or other video
> recorders:

8525.30 Television cameras:

8525.30.90 Other

\* \* \*

8525.40 Still image video cameras and other video camera recorders:

8525.40.40 Digital still image video cameras

\* \* \*

The classification of PC cameras designed to be connected to ADP
machines, used for videoconferencing, and for the capture of still
images and moving images is not new. Customs has classified similar PC
cameras as television cameras of subheading 8525.30.90, HTSUS. *See* HQ
964973, dated July 17, 2002, HQ 965097, dated July 19, 2002; HQ 958632,
dated January 25, 1996; NY A84032, dated May 31, 1996; NY B81818, dated
February 13, 1997; NY A81240 dated March 18, 18, 1996; NY F88315, dated
June 29, 2000.

However, we will reiterate here Customs position. Protestant claims the
PC cameras are classifiable in subheading 8525.40.40, HTSUS. In order to
address the claim, we employ GRI 6, which permits the comparison of
same-level subheadings within a heading, in part by application of Rules
1 through 5, applied by the appropriate substitution of terms. As only
subheadings at the same level are comparable, we must first address the
6-digit level: subheading 8525.30, HTSUS, "television cameras" and
subheading 8525.40, HTSUS, "still image video cameras and other video
camera recorders."

The legal text to subheading 8525.40, HTSUS, describes the cameras of
the subheading as \"recorders.\" ENs 85.25(D)(1) and (2) (3^rd^ Edition,
2002)[^1] indicate that the cameras of this category \"record images\"
or \"record sequential images.\" Cameras of subheading 8525.40, HTSUS,
are cameras which have the ability to record and store still images or
video on permanent or removable media within the camera (e.g., random
access memory (RAM), flash memory cards, memory sticks or magnetic tape,
as with certain camcorders), such that the images can be retrieved and
viewed at a time subsequent to the time they are captured.

The instant PC cameras do not incorporate their own storage media or use
removable storage media so the captured images or video cannot be
retrieve at a subsequent time. Accordingly, the cameras do not "record."
Rather, the captured images or video are stored by the ADP machine to
which the cameras are attached in the ADP machine's internal memory
(e.g., hard drive) or on removable media of heading 8523, HTSUS (e.g.
floppy disk). The images can be retrieved from the ADP machine, not the
camera's memory.

Television cameras, on the other hand, are typically designed and used
for the transmission of video images. EN 85.25(C) states that television
cameras of the heading include "television cameras for television
studios or for reporting, those used for industrial or scientific
purposes or for supervising traffic." As with the cameras that are the
subject of HQ 964973, *supra*, the instant cameras capture and transmit
video images to the ADP machine for processing or for direct
transmission over the Internet (videoconferencing). Whether a camera
transmits video images to a television, a video monitor for surveillance
or to an ADP machine for display or processing, it performs the function
of a category of cameras that are within the scope of "television
cameras" of subheading 8525.30, HTSUS, because it transmits live images
as television cameras do. *See* HQ 964973; *see also* HQ 965097 July 19,
2002; HQ 958632, dated January 25, 1996; NY A84032, dated May 31, 1996;
NY B81818, dated February 13, 1997; NY A81240 dated March 18, 18, 1996;
NY F88315, dated June 29, 2000.

Classification opinions of the Harmonized System Committee (HSC) of the
World Customs Organization (WCO) may provide assistance in understanding
the international agreement, the Harmonized System, on which the HTSUS
is based. At its 27^th^ session in May 2001, the HSC amended the
Compendium of Classification Opinions to include the classification of
camera apparatus presented in a box for retail sale, which included a
camera similar to those at issue, camera stand, a cable to connect to an
ADP machine, installation diskette, and instruction manual, in
subheading 8525.30, HTSUS. Annex Q/17 to Doc. NC0430B2 and Annex to Doc.
NC0381B1 (HSC/27/May 01). The opinion states that "\[t\]he apparatus is
used for capturing video or still images, converting them into digital
signals and sending the signals directly to the ADP machine where the
data can be recorded, reworked, edited, etc. with appropriate
software...\[O\]ne can produce videos and still images, hold video
conferences and produce illustrated documents." It stated the camera had
no internal memory. The HSC relied on the application of GRIs 1 and 6,
and Note 5(E) to Section XVI (to exclude the provisions of Chapter
84).[^2]

The three cameras are imported with theirs stands, manuals and CD-ROMs.
In product literature, they appear to be packaged for direct sale. GRI
3(b) provides for "goods put up in sets for retail sale." EN (X) to GRI
3(b) sets for the criteria for classification as a set. It states that
the merchandise must: (a) consist of at least two different articles
which are, *prima facie*, classifiable in different headings, (b)
consist of products or articles put up together to meet a particular
need or carry out a specific activity; and, (c) are put up in a manner
suitable for sale directly to users without repacking.

All of the components would be individually classified in different
headings (e.g. camera is 8525, CD-ROM is 8524). Each component
contributes to the use of the PC cameras, and they are packaged for
direct sale. Thus, the components are classifiable as a set for retail
sale. As such, they are classifiable in the heading that provides for
the components which impart the essential character of the set.

EN VIII to GRI 3(b) explains that \"\[t\]he factor which determines
essential character will vary as between different kinds of goods. It
may, for example, be determined by the nature of the material or
component, its bulk, quantity, weight or value, or by the role of the
constituent material in relation to the use of the goods.\" All of the
components contribute to the use of the PC camera and have no
independent uses. Accordingly, the PC cameras represent the essential
character of the sets.

**HOLDING:**

The "IBM PC Camera Pro (model \# 995334), the "IBM PC Camera Pro Max
(model \# 995333) and the "Pyro 1394 WebCam (model \# 209509) are
classified in subheading 8525.30.90, HTSUS, which provides for
"Transmission apparatus, for radiotelephony, radiotelegraphy,
radiobroadcasting or television, whether or not incorporating reception
apparatus or sound recording or reproducing apparatus; television
cameras; still image video cameras or other video recorders: television
cameras: other."

The protest should be DENIED.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065,
dated August 4, 1993, Subject: Revised Protest Directive, you are to
mail this decision, together with the Customs Form 19, to the protestant
no later than 60 days from the date of this letter. Any reliquidation of
the entry or entries in accordance with the decision must be
accomplished prior to mailing the decision.

Sixty days from the date of the decision the Office of Regulations and
Rulings will make the decision available to Customs personnel, and to
the public on the Bureau of Customs and Border Protection Home Page on
the World Wide Web at www.cbp.gov, by means of the Freedom of
Information Act, and other methods of public distribution.

> Sincerely,

Myles B. Harmon, Director

Commercial Rulings Division

[^1]: Effective January 10, 2002, the United States implemented the 2002
    Harmonized System. Among several changes, the term "digital cameras"
    was added to the heading text of heading 8525. There is no
    indication that the scope of subheadings 8525.30 and 8525.40 changed
    in any way. *See* HQ 964973.

[^2]: At its 24^tth^ session in October, 1999 (Annex G/19 to Doc.
    NC0160E2), the HSC determined the classification of a similar camera
    that captured both video and still images, for use with an ADP
    machine to be in heading 85.25 by virtue of Note 5(E) to Section
    XVI. Classification opinions of the HSC may provide assistance in
    understanding the international agreement, the Harmonized System, on
    which the HTSUS is based. The HSC decision is consistent with our
    decision here.