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Application for Further Review of Protest No. 5501-21-105519; Classification of Optical Protection Switch Modules
H323634 June 10, 2025 OT:RR:CTF:EMAIN H323634 MFT CATEGORY: Classification TARIFF NO.: 8517.69.00 Center Director Service Port of Dallas-Ft. Worth U.S. Customs and Border Protection 7501 Esters Blvd., Suite 160 Irving, TX 75063 ATTN: David Pulkrabek, Import Specialist RE: Application for Further Review of Protest No. 5501-21-105519; Classification of Optical Protection Switch Modules Dear Center Director: This letter concerns an Application for Further Review (AFR) of Protest No. 5501-21- 105519, filed on June 10, 2021, by Coriant North America, LLC (protestant). The protestant submitted the AFR regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of certain optical protection switch modules (OPSMs) by U.S. Customs and Border Protection (CBP). In reaching the determination below, CBP has considered information submitted with the Protest and AFR. The Protestant withdrew its request for an oral discussion of the matter per 19 CFR § 177.4 by email on September 9, 2024. FACTS: The subject optical protection switch modules (OPSMs) are devices used in fiber optic communication networks. Essentially, the OPSMs’ function is to protect a network’s connectivity during service disruptions by automatically rerouting optical signals carrying pulses of light. The OPSMs execute this function by diverting the paths optical signals may travel across two fiber optic cables. Each OPSM consists of (1) a two-way splitter, (2) network tap detectors, and (3) an optical protection switch. An OPSM is installed at each end of a fiber optic cable connection: one on the transmitting end of the connection and another on the receiving end. On the transmitting OPSM, an optical signal carrying pulses of light enters the OPSM’s two-way splitter. The two-way splitter duplicates the pulses into two signals: a “working” optical signal and a “protective” (i.e., a backup) optical signal. Both signals retain the same characteristics as the original optical signal. After the two-way splitter duplicates the original signal, the working and protective signals travel on separate fiber optic cables toward the receiving OPSM. On the receiving OPSM, the working signal and the protective signal enter separate network tap detectors. The network tap detectors analyze and compare the strength of each signal. If the working signal’s strength is weaker than the protective signal’s strength, a disruption to network connectivity may have occurred (e.g., outages, equipment repairs, and other service interruptions). Upon sensing a possible disruption, the optical protection switch on the OPSM activates. The optical protection switch disconnects the working signal’s transmission path and connects the protective signal’s transmission path. Switching the transmission paths maintains the fiber optic network’s connectivity: the protective signal can continue traveling down the fiber optic cable and reach its destination despite the working signal’s lower strength. The protestant entered the subject merchandise on June 13, 2020, and June 26, 2020, under subheading 8517.62.00, HTSUS. The protestant argues that the “OPS Modules do not modify the bit stream nor interprets [sic] data from the bit stream,” and that “OPS Modules merely transparently [sic] transmit the signal from input to output.” ISSUE: Whether the subject optical protection switch modules (OPSMs) constitute “Machines for the reception, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus” under subheading 8517.62, HTSUS. LAW AND ANALYSIS: A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. § 1514(a)(2). The subject protest was timely filed on June 10, 2021, within 180 days of liquidation, pursuant to 19 U.S.C § 1514(c)(3). Further review of Protest No. 5501-21-105519 is properly accorded to the protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed “[i]s alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise.” Specifically, the protestant points to New York Ruling Letter (NY) N022695 as indication that the “[o]ptical protection switching devices and similar devices (generally) were previously classified under [statistical reporting number] 8517.62.0050,” HTSUS Annotated (HTSUSA).1 Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). General Rule of Interpretation 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order. 1 See New York Ruling Letter (NY) N022695 (dated Feb. 28, 2008). 2 General Rule of Interpretation 6 provides that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.” For purposes of GRI 6, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires. The following heading and subheadings of the HTSUS are under consideration: 8517 Telephone sets, including smartphones and other 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): 8517.62 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: * * * * * 8517.69 Other. Per GRIs 1 and 6, the terms of the heading and subheadings under consideration will govern the disposition of the subject merchandise. There is no dispute that the subject OPSMs constitute apparatuses “for the transmission or reception of voice, images or other data,” in accordance with the terms of heading 8517, HTSUS. The OPSMs are clearly designed to facilitate and preserve the connectivity of a fiber optic network, along which voice, images, and other data are transmitted and received. As such, this matter turns on whether the subject merchandise meets the terms of subheading 8517.62, HTSUS. The plain terms of subheading 8517.62, HTSUS, indicate that a machine classifiable therein must be used for certain functions, namely “reception, conversion and transmission or regeneration.” The term “and” typically joins a conjunctive list and connects ideas together, while the term “or” typically joins a disjunctive list and presents nonexclusive alternatives. As such, subheading 8517.62 requires that a covered machine be used for at least three functions: (1) “reception”; (2) “conversion”; and (3) “transmission,” “regeneration,” or both. Further, the object of these functions must be “voice, images or other data.” The term “including” in this subheading is presumptively nonexclusive and simply provides an illustrative application – here, a “switching and routing apparatus,” but potentially other undescribed machines. 3 Particularly as it relates to the subheadings under consideration, our interpretation of
A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. § 1514(a)(2). The subject protest was timely filed on June 10, 2021, within 180 days of liquidation, pursuant to 19 U.S.C § 1514(c)(3). Further review of Protest No. 5501-21-105519 is properly accorded to the protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed “[i]s alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise.” Specifically, the protestant points to New York Ruling Letter (NY) N022695 as indication that the “[o]ptical protection switching devices and similar devices (generally) were previously classified under [statistical reporting number] 8517.62.0050,” HTSUS Annotated (HTSUSA).1 Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). General Rule of Interpretation 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order. 1 See New York Ruling Letter (NY) N022695 (dated Feb. 28, 2008). 2 General Rule of Interpretation 6 provides that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.” For purposes of GRI 6, the relative section, chapter and subchapter notes also apply, unless the context otherwis