H310305

HQ H310305 December 9, 2021 CLA-2 OT:RR:CTF:TCM H310305 EKR CATEGORY: Classification TARIFF NO.: 8525.80.30 Center Director, Electronics Center of Excellence and Expertise U.S. Customs and Border Protection Los Angeles Service Port 301 E. Ocean Blvd. Long Beach, CA 90802 ATTN: Christopher M. Roenbeck RE: Application for Further Review of Protest No. 5301-19-101449; Classification of surveillance kits Dear Center Director: This is in response to the Application for Further Review (“AFR”) of Protest 5301-19-101449, dated November 27, 2019, filed by Sandler, Travis & Rosenberg, P.A. on behalf of Dahua Technology USA, Inc. (“Dahua”), in response to your classification of three models of surveillance kits (“the surveillance kits”) under the Harmonized Tariff Schedule of the United States (“HTSUS”). The surveillance kits were entered on February 27, 2019 and liquidated on May 31, 2019. In reaching the determination below, we have considered information presented in Dahua’s November 27, 2019 protest filing. FACTS: Dahua’s protest concerns two “Network Video Recorder Kits” (Item Nos. N444E42 and N484E62) and one “Digital Video Recorder Kit” (Item No. C542E42). According to Dahua’s product descriptions, Item Nos. N444E42 and N484E62 are Network Security Systems consisting of a network video recorder and four or six network cameras, respectively. Each four megapixel (“MP”) eyeball camera has a 2.8 mm fixed lens, infrared light-emitting diode (“LED”) technology to capture images in low light, and an “Intelligent Video System” that allows the camera to monitor for intrusions, abandoned objects, and tampering. The network video recorder contains an embedded quad-core processor, up to 8 MP resolution for preview and playback, and “plug and play” technology allowing the user to connect multiple cameras on the same network. The network video recorder incorporates motion-detection algorithms, alarm triggers, and customizable recording functions, allowing the user to program the recorder as desired. Both the cameras and the network video recorder conform to the “Open Network Video Interface Forum” specification to ensure interoperability between network video products, regardless of manufacturer. Dahua’s Digital Video Recorder Kit (Item No. C542E42) contains four 1080p High Definition Composite Video Interface (“HDCVI”) eyeball cameras and one 4-channel 1080p HDCVI digital video recorder. The 1080p cameras offer full HD 1080p video, but are designed to accommodate multiple video formats, to ensure compatibility with lower resolution video recorders. Like the cameras included in the network surveillance kits above, each 1080p eyeball camera has a 2.8 mm fixed lens and infrared LED technology to capture images in low light. The digital video recorder contains an embedded processor, and is likewise designed to be compatible with both HDCVI and HD/SD network cameras. Like the network video recorder, the digital video recorder incorporates motion-detection algorithms, alarm triggers, and customizable recording functions, allowing the user to program the recorder as desired. Though the specifications of the components vary, all three surveillance kits are comprised of one video recorder and four to six cameras, with accompanying auxiliary items like cables and user guides. Dahua’s protest states that the surveillance kits are imported and sold as “’bundles’ directly to the consumer without repacking.” (Dahua’s Arguments in Support of Protest, p.3). The cameras capture images in real time, and transmit the images to their respective video recorders. None of the cameras are themselves capable of recording or storing captured images. At entry, Dahua classified all three surveillance kits pursuant to General Rule of Interpretation ("GRI") 3(b) as goods put up in sets for retail sale with the essential character imparted by the video recorder of subheading 8521.90.0000, HTSUS, which provides for video recording or reproducing apparatus. On May 21, 2019, CBP issued a Notice of Action, reclassifying the surveillance kits in subheading 8525.80.30, HTSUS, which provides in pertinent part, for television type cameras. CBP liquidated the entries under subheading 8525.80.30, HTSUS, on May 31, 2019. ISSUE: Whether the surveillance kits are classified in heading 8521, HTSUS, as “[v]ideo recording or reproducing apparatus…” or in heading 8525, HTSUS, as “… television cameras, digital cameras and video camera recorders….” LAW AND ANALYSIS: Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a)(2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 5301-19-101449 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(c) because the decision against which the protest was filed is alleged to involve questions of law or fact not previously considered in previous rulings issued by CBP Classification under the HTSUS is determined 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 2 through 6 may then be applied in order. The 2019 HTSUS provisions under consideration are as follows: 8521 Video recording or reproducing apparatus, whether or not incorporating a video tuner: 8521.90.00 Other. * * * * * 8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: 8525.80 Television cameras, digital cameras and video camera recorders: Television cameras: 8525.80.30 Other. GRI 3 provides as follows: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989). Paragraph (VII) of the ENs to GRI 3(b) states that, “[i]n all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.” Paragraph (VIII) of the ENs to GRI 3(b) stat

Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a)(2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 5301-19-101449 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(c) because the decision against which the protest was filed is alleged to involve questions of law or fact not previously considered in previous rulings issued by CBPClassification under the HTSUS is determined 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 2 through 6 may then be applied in order. The 2019 HTSUS provisions under consideration are as follows: 8521 Video recording or reproducing apparatus, whether or not incorporating a video tuner:8521.90.00 Other. * * * * *8525 Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders:8525.80 Television cameras, digital cameras and video camera recorders: Television cameras:8525.80.30 Other.GRI 3 provides as follows: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each r