H312223

HQ H312223 November 9, 2021 OT:RR:CTF:EMAIN H312223 SKK CATEGORY: Classification TARIFF NOs: 8526.91.00; 9013.80.80 Eric Segal Panasonic Corporation of North America Two Riverfront Plaza Newark, NJ 07102 Re: Revocation of NY N304264; NY N213872; NY N108329, NY N300201, NY N301862, NY N201495, NY N108330, and NY N148555; Modification of NY N168766; Telematics device; Telemetry device; Fleet management device; Fleet tracker; Asset tracker; Cargo tracker. This ruling is in reference to New York Ruling Letter (NY) N304264, dated May 22, 2019, in which U.S. Customs and Border Protection (CBP) classified a telematics device under heading 8517, Harmonized Tariff Schedule of the United States (HTSUS), specifically subheading 8517.62.00, HTSUS, which provides for “[T]elephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus:.” Upon reconsideration, we have determined that the tariff classification of the merchandise at issue in NY N304264 is incorrect. CBP has also reviewed NY N213872, dated May 16, 2012, NY N108329, dated June 28, 2010, NY N300201, dated September 11, 2018, and NY N301862, dated December 11, 2018, which also involve the classification of telemetry devices in heading 8517.62.00, HTSUS. CBP has also undertaken the review of telemetry devices classified in NY N201495, dated February 14, 2012, NY N168766, dated June 21, 2011, NY N108330, dated June 22, 2010, and NY N148555, dated March 3, 2011, under heading 8526, HTSUS, specifically subheading 8526.91.00, HTSUS, which provides for “[R]adar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: Radio navigational aid apparatus.” We have also determined that the tariff classification of the merchandise at issue in these rulings is incorrect. Upon reconsideration, we have determined that the tariff classification of the subject merchandise at issue in the above rulings is incorrect or partially incorrect. Accordingly, pursuant to the analysis set forth below, CBP is revoking NY N304264, NY N213872, NY N108329, NY N300201, NY N301862, NY N201495, NY N108330, and NY N148555 and modifying NY N168766. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI, a notice proposing to revoke NY N304264, NY N213872, NY N108329, NY N300201, NY N301862, NY N201495, NY N108330, and NY N148555, and to modify NY N168766, was published on September 29, 2021, in Volume 58, Number 38 of the Customs Bulletin. No comments were received in response to the proposed action. FACTS: CBP rulings classifying telematics devices in heading 8517, HTSUS: NY N304264: The subject articles are identified as "Telematic Control Units," referenced item numbers 51986538 and 519865390. The devices are designed for installation in vehicles and connect to a Controller Area Network (CAN bus). They communicate vehicle data to a backend server. They feature an internal battery, BLE 4.2 connectivity, LTE/4G/3G/2G cell modem, GPS/GLOANASS functionality, and internal cellular and GPS antennas. The GPS functionality provides mobile phone access via the device to a vehicle’s position and routes the phone to that vehicle. The GPS functions to provide location data. NY N213872: The subject article is a telemetry device, identified as the “XT6000G.” The device mounts on a refrigerated ship container. It collects GPS location data and transmits/receives data (i.e., alarms, changes in power or environmental conditions) between the container’s microcontroller and the external server. The device features an integrated 3G modem and GPS to provide location data. NY N108329: The subject articles are identified as the “Communicator 500” and “Communicator 1000.” Both items are used for fleet management telemetry communications. The “Communicator 500” is a cellular CDMA/EvDO (transmission and reception) communications platform for vehicle fleets and includes an integrated GPS for location tracking. The unit mounts inside a vehicle and offers multiple input and output ports for monitoring vehicle functions and status. The “Communicator 1000” is a high speed, secure mobile hotspot available with GSM of CDMA cellular (transmission and reception) technology. This device integrates a 3G cellular modem, GPS, and wireless LAN technologies in a single vehicle-mounted platform. The “Communicator 1000” reduces fleet operational costs by tracking and improving vehicle-centric metrics, such as driver performance and safety behavior. NY N300201: The subject articles are identified as the “Flex OBD-II asset tracker,” the “TT600 solar powered asset tracker with Cat-M,” and the “TT603 solar powered asset tracker with Cat-M.” These devices enhance fleet management by collecting, recording and transmitting/receiving location and other data pertaining to vehicles, trailers or containers. All three models feature a cellular modem. The “Flex OBD-II” also features an OBD-II code reader. Although NY N300201 does not specify whether the subject devices feature a GPS component, internet research on these products indicates that they possess a GPS component that collects location data. CBP classified the subject articles in subheading 8517.62.00, HTSUS. NY N301862: The articles at issue consist of two externally mounted asset management/tracking devices, identified as the “Falcon GXT5002C” and the “GXT5002.” They are used to track/report various data elements from (generally) a tractor-trailer. They perform remote data collection that provides location information of assets and cargo status. They operate on a battery pack that recharges from an integrated solar panel. The devices feature a LTE network cellular modem. The ruling requester submitted to CBP that the subject devices do not feature a GPS. However, the product installation specifications for the “Falcon GXT5002C” describe the model as follows: “[T]he GXT5002C is a SkyBitz GPS tracking device used to determine the location as well as the loaded status of a trailer. It communicates via cellular technology and has a wireless interface capability for connectivity to other SkyBitz wireless devices.” The product specifications for the “Falcon GXT5002” do not reference a GPS and indicate that it features an accelerometer to collect start/stop data. CBP classified both products under subheading 8517.12.00, HTSUS. CBP rulings classifying telematics devices in heading 8526, HTSUS: NY N201495: The article at issue is a Micro-Electro-Mechanical device, identified as item “CTDOBD1.” The device is designed for installation in a vehicle and contains a cellular modem, GPS, accelerometer, gyroscope, and magnetometer. It transmits the data from the GPS and sensors via a cellular modem to company servers. The device is used to assist in fleet management. Pursuant to Note 3 to Section XVI and Note 3 to Chapter 90, HTS, CBP determined that the subject article was classified under subheading 8526.91.00, HTSUS, on the basis that the GPS imparted the article’s principal function. NY N168766: Two articles were classified in this ruling, “GPS Personal Trackers” (referenced item numbers CR-GT80MT, CR-GT30GT, CR-GT30XGT, and CR-GT60GT), and “GPS Vehicle Trackers,” (referenced item numbers CR-GT300VT, CR-GT310VT, and CR-GT400MVT). Only the “GPS Vehicle Trackers” are subject to this reconsideration. The “GPS Vehicle Tra

Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 2 through 6 will then be applied in order. GRI 3(a) provides that “the heading which provides the most specific description shall be preferred to headings providing a more general description.” GRI 3(b) states, in pertinent part, that composite goods that cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings that equally merit consideration. The articles in the rulings identified above feature cellular modems, described by heading 8517, HTSUS, which provides for, inter alia, apparatus for the wireless transmission or reception of data. All of the articles, with the exception of the “GXT5002” model the subject of NY N301862, also feature a GPS component for collecting location data, described by heading 8526, HTSUS. Some of the articles also feature measuring devices such as an OBD-II code reader (the “Flex OBD-II asset tracker” at issue in NY N300201) and accelerometer (NY N201495 and NY N301862), described by heading 9031, HTSUS. Therefore, the following HTSUS headings are under consideration for all the rulings the subject of this reconsideration:8517 Telephone sets, including telephones for cellular networks or for other wirelessnetworks; other apparatus for the transmission or reception of voice, images orother data, including apparatus for communication in