CIT Rules on Classification of Weather Measurement Devices & Clocks
The Court of International Trade has ruled that the proper classification of various imported weather measurement devices and clocks is made according to their essential character. In consideration of the devices' primary functionality and marketing, the CIT ruled that those with predominantly weather-related features are properly classified as other thermometers under heading 9025 or other meteorological instruments under 9015. The CIT found those devices with predominantly clock-related features are other clocks under 9105.
La Crosse Said Goods Are Electrical Instruments & Clocks, CBP Said Just Clocks
La Crosse Technology, Ltd. imports electronic devices which can measure, display and/or record various atmospheric and weather conditions. In addition, the devices at issue function as clocks, displaying time, date and other temporal information. La Crosse classified the subject merchandise under subheadings (i) 9025.80.10 (1.7%) as other electrical thermometers, (ii) 9026.10.20 (duty-free) as electrical instruments for measuring or checking the flow or level of liquids, (iii) 9105.21.40 (3.9% movement and case + 5.3% battery) as electrically operated wall clocks with opto-electronic display only, and (iv) 9105.91.40 (3.9% movement and case + 5.3% battery) as other electrically operated clocks with opto-electronic display only. U.S. Customs and Border Protection reclassified all of the merchandise at liquidation under 9105.91.40.
The CIT stated that the merchandise can be categorized generally according to the design, features, and marketing which distinguish each category, as follows: (1) "Weather Stations," which typically show time, date, temperature, weather forecast, etc.; (2) "Professional Series," which include features of the Weather Stations, but also include wind and/or rain sensors, etc; and (3) "Clock models," which include digital clocks, some of which project the time and temperature on a wall or ceiling. All of the models at issue include an LCD display and a microprocessor.
CIT Said Goods Cannot Be Classified via GRI 1 nor GRI 3(a) Relative Specificity
La Crosse argued that its merchandise is prima facie classifiable using GRI 11, claiming that if a heading describes the subject merchandise; they should be classified under that heading. However, La Crosse admitted that its preferred heading 9015 (meteorological instruments) only covers part of the goods involved. In this case, where goods can be classified under more than one heading, the CIT stated GRI 1 is not suitable and GRI 32 applies.
La Crosse then argued that its merchandise is classifiable according to GRI 3(a)'s relative specificity analysis. However, the CIT stated that because the base units (a barometer and a microprocessor) could be classified in two combinations of headings (9015/9105 or 9025/9105), the competing headings are deemed equally specific and, therefore, GRI 3(b) analysis is appropriate as the Weather Stations are considered "composite goods" and the Professional and Clock models are "retail sets".
Goods Have to Be Classified According to Their Essential Character
CIT then resorted to GRI 3(c)'s essential character rule to classify each of the categories of models by their primary functionality and marketing, as follows:
Weather Stations are other thermometers. The Weather Stations can be classified as GRI 3(b) composite goods despite the inclusion of wireless components that do not attach to the base unit because those components constitute accessories to the base units and are separately classifiable in the same subheading as the base units. Specifically, the Weather Stations are properly classified under subheading 9025.80.10 (1.7%) as other electrical hydrometer and thermometer instruments as they have a concentration of weather-related features which predominate in number and display space over the clock functions and because they are marketed as "Wireless Temperature/Weather Stations".
Professional models are other meteorological instruments. The Professional models are considered "retail sets" instead of composite goods because they include sensors that don't attach to the base units and which are separately classifiable in a different subheading than the base units. However, the models' essential character is also given by their weather-related functions because they overwhelmingly predominate over the clock functions. They include additional meteorological functions through wind and rain sensors and the ability to download data to a computer for further analysis but only include one additional clock feature. Therefore, they are properly classified in subheading 9015.80.80 (duty-free) as other meteorological instruments.
Clock models are other electronic clocks. The Clock models are also considered "retail sets" and are distinguished by their numerous and predominant clock-related functions and marketing. They display time in larger type size than weather information and the forecasting function is insufficient to give them the character of heading 9015 meteorological equipment. Thus they are properly classified in subheading 9105.91.401 as other electrically operated clocks with opto-electronic display only.
1Classification by application of General Rule of Interpretation (GRI) 1 is made according to the terms of the headings of the tariff schedule and any relevant Section or Chapter Notes.
2GRI 3 provides that when goods are prima facie classifiable under two or more headings (a) classification shall be made according to the heading which provides the most specific description; however, when two more headings each refer to only part of the materials in the composite goods or retail set, those headings are to be regarded as equally specific; (b) mixtures, composite goods, and goods put up in retail sets should be classified as if they consisted of the material or component which gives them their essential character; or (c) if goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
(Slip Op 12-26, dated 02/29/12, Judge Musgrave)