Tariff Classification of Camera Lenses Imported in Same Shipment With Camera Bodies

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withdrawn from warehouse on or after October 17, 1994.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