[Federal Register Volume 59, Number 137 (Tuesday, July 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17548]
[[Page Unknown]]
[Federal Register: July 19, 1994]
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DEPARTMENT OF THE TREASURY
U.S. Customs Service
[T.D. 94-59]
Tariff Classification of Camera Lenses Imported in Same Shipment
With Camera Bodies
AGENCY: U.S. Customs Service, Department of Treasury.
ACTION: Final interpretive rule.
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SUMMARY: This document gives notice of a change of position regarding
the classification of different sized camera lenses imported in the
same shipment with an equal number of 35mm camera bodies under the
Harmonized Tariff Schedule of the United States (HTSUS). Pursuant to
rulings on such shipments, Customs has classified as a single tariff
entity each camera body and ``normal'' lens which could be matched
together. Camera bodies and lenses, if they are imported in the same
shipment but are not packaged together for retail sale as cameras and
lenses, are now presumed to retain their separate commercial identities
and are separately classifiable under the HTSUS. The result of this
change of position under the HTSUS is an increase in the rate of duty
on lenses not put up together for retail sale with matched camera
bodies at the time of entry, because the lenses will no longer be
classifiable together with camera bodies as cameras, but will be
separately classifiable as lenses. This change of position does not
apply to lenses and camera bodies, imported together in the same
shipment in equal numbers, which are put up together for retail sale at
the time of entry into the U.S. Comments received in response to the
notice proposing this change were carefully considered prior to
determining that our previous position needed to be changed.
DATES: The change in tariff classification resulting from this decision
will be effective as to merchandise entered for consumption or
withdrawn from warehouse on or after October 17, 1994.
FOR FURTHER INFORMATION CONTACT: David W. Spence, Office of Regulations
and Rulings (202) 482-7030.
SUPPLEMENTARY INFORMATION:
Background
In a ruling dated May 2, 1988 (HQ 076497), it was determined by
Customs that, under the Tariff Schedules of the United States (TSUS),
the precursor to the Harmonized Tariff Schedule of the United States
(HTSUS), a 35mm camera body matched up with a ``normal'' lens in the
same shipment was a single tariff entity. Specifically, it was held
that a 35mm single lens reflex camera body imported with a 50-55mm lens
was a single article subject to classification under item 722.16, TSUS,
as a camera. It was also determined that zoom lenses with a focal
length of 35mm to 70mm had also become ``normal'' lenses when imported
with the 35mm camera bodies.
The position of classifying a 35mm camera body imported with a
``normal'' lens in the same shipment as a single entity continued after
the transition from the TSUS to the HTSUS on January 1, 1989.
Under the HTSUS, the subheadings under consideration are as
follows:
9006.51.00: [o]ther cameras: [w]ith through-the-lens viewfinder (single
lens reflex (SLR)), for roll film of a width not exceeding 35mm.
The general, column one rate of duty is 3 percent ad valorem.
9002.11.80: [o]bjective lenses and parts and accessories thereof: [f]or
cameras, projectors or photographic enlargers or reducers: [o]ther.
The general, column one rate of duty is 6.6 percent ad valorem.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, should be
consulted for guidance in determining the proper interpretation of the
HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In
part, Explanatory Note 90.06(I) (p.1465) provides that heading 9006,
HTSUS, covers all kinds of photographic cameras (other than
cinematographic cameras), whether for professional or amateur use, and
whether or not presented with their optical elements (objective lenses,
viewfinders, etc.). It further states that there are many different
types of cameras, but the conventional types consist essentially of a
light-tight chamber, a lens, a shutter, a diaphragm, a holder for a
photographic plate or film, and a viewfinder.
Explanatory Note 90.06(I) states that a camera body with a lens
constitutes a camera. Therefore, a lens and a camera body, imported in
the same shipment and put up together for retail sale at the time of
entry into the U.S., are classifiable under subheading 9006.51.00,
HTSUS, as a camera. However, the note also states that a camera body is
classifiable as a camera whether or not presented with the optical
element. The issue, then, is whether camera bodies, imported with
numerous camera lenses in the same shipment and not put up together for
retail sale once entered into the U.S., constitute complete and
unassembled cameras.
It is noted that imported merchandise must be classified under the
HTSUS with reference to its condition as imported.
General Rule of Interpretation (GRI) 2(a), HTSUS, provides that
``any reference in a heading to an article shall be taken to include a
reference to that article incomplete or unfinished, provided that, as
entered, the incomplete or unfinished article has the essential
character of the complete or finished article. It shall also include a
reference to that article complete or finished (or falling to be
classified as complete or finished by virtue of this rule), entered
unassembled or disassembled.''
Explanatory Note 2(a)(V) (p. 2) states that the second part of Rule
2(a) provides that complete or finished articles presented unassembled
or disassembled are to be classified in the same heading as the
assembled article. When goods are so presented, it is usually for
reasons such as requirements or convenience of packing, handling or
transport.
In a notice published in the Federal Register on December 7, 1993
(58 FR 64423), Customs furnished notice that the classification of the
subject merchandise was under review and comments from interested
parties were requested. An extension of time to file comments was
published in the Federal Register on February 15, 1994 (59 FR 7297).
Only four submissions were received in response to the notice.
While all four opposed the proposed change of position, only one
provided a substantive discussion of the legal issues involved.
Discussion of Comments
Comment: The continued classification of lenses with their
accompanying camera bodies as cameras is required by GRI 2(a).
Response: Customs disagrees, unless, the lenses and camera bodies,
imported together in the same shipment in equal numbers, are put up
together for retail sale at the time of entry into the U.S. Otherwise,
it is the position of Customs that lenses and camera bodies, not put up
together for retail sale, retain their separate commercial identities
and are separately classifiable under the HTSUS. GRI 2(a) does not
apply in this instance because the lenses and camera bodies are not
entered packaged separately primarily for reasons such as convenience
of packing, handling or transport, but so that the lenses will receive
the lower duty rate for cameras, even if the lenses will not be used
with those camera bodies.
Comment: Lenses and camera bodies, imported in the same shipment
but not put up together for retail sale, are to be classifiable as
cameras because they constitute composite goods under GRI 3(b).
Response: In part, Explanatory Note 3(b)(IX) (p. 4) states that
``[f]or the purposes of this Rule, composite goods made up of different
components shall be taken to mean not only those in which the
components are attached to each other to form a practically inseparable
whole but also those with separable components, provided these
components are adapted one to the other and are mutually complementary
and that together they form a whole which would not normally be offered
for sale in separate parts.''
It is the position of Customs that the lenses and camera bodies
retain their separate commercial identities. Therefore, they cannot
together constitute composite goods, because they do not together form
a whole. Also, the lenses and camera bodies are quite often offered for
sale one without the other.
Comment: The change of position is inconsistent with the Doctrine
of Entireties.
Response: The Doctrine of Entireties, applicable under the TSUS,
has been supplanted by GRI 2(a). As previously noted, GRI 2(a) does not
apply in this instance.
Comment: The change of position should not apply to ``normal''
lenses.
Response: The HTSUS does not distinguish ``normal'' lenses from
other types of camera lenses.
Conclusion
After careful analysis of the comments submitted and further review
of this matter, Customs deems that numerous camera lenses, imported
together with an equal amount of 35mm camera bodies in the same
shipment and not put up together for retail sale at the time of entry
into the U.S., do not constitute complete and unassembled cameras, and
the different sized lenses are separately classifiable under subheading
9002.11.80, HTSUS, as objective lenses for cameras. The camera lenses
and the camera bodies possess separate commercial identities. In the
absence of any evidence to the contrary, Customs is of the opinion that
they lack the degree of commercial integration to be considered as
cameras with lenses, unassembled, for the purposes of GRI 2(a).
The change of position also applies to different sized lenses
imported together with an unequal amount of 35mm camera bodies. Those
lenses and camera bodies put up together for retail sale will be
classifiable under subheading 9006.51.00, HTSUS, as cameras. The
remaining lenses in the shipment, not put up together for retail sale
at the time of entry with corresponding camera bodies, will be
classifiable under subheading 9002.11.80, HTSUS, as objective lenses
for cameras.
Pursuant to section 177.10(e), Customs Regulations [19 CFR
177.10(e)], to allow sufficient time for interested parties to be aware
of this change and to make necessary arrangements, this change in
classification is being delayed 90 days from the date of publication in
the Federal Register.
Michael H. Lane,
Acting Commissioner of Customs.
Approved: June 8, 1994.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-17548 Filed 7-18-94; 8:45 am]
BILLING CODE 4820-02-P