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Request for Internal Advice; Classification of digital security camera with floodlights; continuous capture still images; motion activated video; flash memory.
HQ H324237 June 21, 2024 OT:RR:CTF:EMAIN H324237 SKK CATEGORY: Classification TARIFF NO.: 8525.89.30 Assistant Center Director Consumer Products and Mass Merchandising Center of Excellence and Expertise U.S. Customs & Border Protection 157 Tradeport Drive, Suite B Atlanta, GA 30354 ATTN: Cody Miller, Import Specialist RE: Request for Internal Advice; Classification of digital security camera with floodlights; continuous capture still images; motion activated video; flash memory. Dear Assistant Center Director: This letter is in response to your request for Internal Advice (IA), dated February 28, 2022, made pursuant to § 177.11(b)(2) of Title 19 of the Code of Federal Regulations (19 CFR §177.11(b)(2)). The IA request was initiated by counsel on behalf of Amazon.com Services, LLC (Amazon) and concerns the tariff classification under the Harmonized Tariff System of the United States (HTSUS) of Amazon’s “Floodlight Camera Wired Plus” (Floodlight Camera). FACTS: The subject “Floodlight Camera Wired Plus” with motion-activated 1080p high definition (HD) video and “Snapshot Capture” technology (Amazon Standard Item Numbers (ASIN) B08F6GPQQ7 and B08F6DWKQP) is a security camera with LED floodlights, 110-decibel siren alarm, and built-in microphone and speakers allowing for two-way talk. It is motion activated with ultra-wide-angle motion sensors and features an analogue/digital converter (ADC) and a wireless output mechanism that streams HD video to the cloud for viewing on external devices (i.e., automatic data processing machines, smartphones, etc.). “Snapshot Capture” is a feature exclusively used with a downloadable Ring® mobile application (app). It continuously captures still frame images (snapshots) at select time intervals and uploads them to the cloud where they are stored for 7 days and then automatically deleted. The Snapshot Capture default settings capture still images at intervals of 2 minutes, 1 minute, or 30 seconds, or at an interval programmed by the user via the app. The images are integrated into the user’s app-exclusive “Event Timeline” with the videos taken during motion events and live view. The subject camera incorporates built-in Electrically Erasable Programmable Read-Only Memory (EEPROM) flash memory (512 MB) that temporarily stores still images whether the device is offline or connected to the cloud. The still images are automatically deleted when the flash memory reaches capacity (between 700 to 1750 images, with the oldest images replaced by newer images) or within 24 hours of the still images having been sent to the cloud. The subject camera does not feature an SD slot for external memory, nor does it internally record video. An application service contract is required for recording functions. ISSUE: What is the proper classification of the subject camera under the HTSUS? LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If 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. Under GRI 6, the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5. The 2024 HTSUS provisions at issue are as follows: 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: * * * * * Television cameras, digital cameras and video camera recorders: * * * * * 8525.89 Other: Television cameras: * * * 8525.89.30 Other… 8528.89.40 Digital still image video cameras… Legal Note 3 to Section XVI (Chapters 84 - 85) provides: 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN to heading 85.25 provides, in pertinent part: (B) TELEVISION CAMERAS, DIGITAL CAMERAS AND VIDEO CAMERA RECORDERS This group covers cameras that capture images and convert them into an electronic signal that is : (1) transmitted as a video image to a location outside the camera for viewing or remote recording (i.e., television cameras); or (2) recorded in the camera as a still image or as a motion picture (i.e., digital cameras and video camera recorders). * * * * * Television cameras may or may not have an incorporated device for remote control of lens and diaphragm as well as for remote control of the horizontal and vertical movement of the camera (e.g., television cameras for television studios or for reporting, those used for industrial or scientific purposes, in closed circuit television (surveillance) or for supervising traffic). These cameras do not have any inbuilt capability of recording images. Some of these cameras may also be used with automatic data processing machines (e.g., webcams). * * * * * In digital cameras and video camera recorders, images are recorded onto an internal storage device or onto media (e.g., magnetic tape, optical media, semiconductor media or other media of heading 85.23). They may include an analogue/digital converter (ADC) and an output terminal which provides the means to send images to units of automatic data processing machines, printers, televisions or other viewing machines. Some digital cameras and video camera recorders include input terminals so that they can internally record analogue or digital image files from such external machines. Generally, the cameras of this group are equipped with an optical viewfinder or a liquid crystal display (LCD), or both. Many cameras equipped with an LCD can employ the display both as a viewfinder when capturing images and as a screen for displaying images received from other sources or for reproducing images already recorded. The subject Floodlight Camera is a composite machine, consisting of a camera, floodlight, alarm, microphone and speakers. There is no dispute that the camera component performs the principal function, with the floodlight and other components serving a subsidiary function to the camera. Accordingly, pursuant to Section XVI Note 3, the subject article is classified under heading 8525, HTSUS, as if consisting only of the camera component. There is also agreement that the subject device is described by subheading 8525.89, HTSUS, which provides for “television cameras, digital cameras and video camera recorders.” Therefore, per GRI 6, the issue before us is classification at the 8-digit level, i.e., whether the subject camera is a “television camera” of subheading 8525.89.30, HTSUS, or a “digital still image video camera” of subheading 8525.89.40, HTSUS. Although EN 85.25(B), set forth supra, provides guidance regarding a category of camera classifiable under heading 8525, i.e., “television cameras, digital cameras and video camera recorders,” it does not pertain to the scope of the phrase “digital still image video c
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If 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. Under GRI 6, the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.The 2024 HTSUS provisions at issue are as follows: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: * * * * * Television cameras, digital cameras and video camera recorders:* * * * *8525.89 Other: Television cameras: * * *8525.89.30 Other…8528.89.40 Digital still image video cameras…Legal Note 3 to Section XVI (Chapters 84 - 85) provides: 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D