Positioning Technology Company Fights HTS Classification of Laser Levels at CIT

CBP erroneously classified importer Topcon Positioning System's rotating laser levels under Harmonized Tariff Schedule subheading 9031, the importer argued in a Sept. 29 complaint at the Court of International Trade. By failing to analyze the principal use of the laser levels, CBP neglected to properly classify the products under HTS subheading 9015,the complaint said (Topcon Positioning Systems, Inc. v. United States, CIT #14-00189).

Topcon, a positioning technology developer, imported surveying instruments consisting of various models of rotating and field beam utility (pipe) laser levels under HTS subheading 9015.30.4000. This subheading describes "Surveying (including photogrammetrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders; parts and accessories thereof: Levels: Electrical," and comes without an import duty.

Topcon also entered the parts and accessories of the laser levels under subheading 9015.90.0030, which describes "Surveying … instruments and appliances; … parts and accessories thereof: Parts and Accessories: Of Levels" -- and also provides for duty-free treatment.

But, CBP classified these goods under subheading 9031.49.9000, which provides for "Measuring or checking instruments, appliances and machines, not specified or included elsewhere in the chapter; profile projectors; parts and accessories thereof: Other optical instruments and appliances: Other: Other," dutiable at 3.5%. The laser level parts were reclassified under subheading 9031.90.5800, also dutiable at 3.5%.

CBP, in responding to Topcon's protest, held that the primary use of the laser levels was in "large construction projects" and that the instruments could not fall under subheading 9015 since they must be able to perform all aspects of a survey to fit the description for this heading. This contention is contradicted by the World Customs Organization Explanatory Notes on heading 9015, Topcon said, which defines the "surveying" portion of the heading as tools that are "generally intended for use in the field ... in determining heights above or below some horizontal reference level; and for all similar measurements in constructional work in mining, in military operations, etc."

Topcon's laser levels fit this description, the complaint said, and should therefore fit under subheading 9015 since it is the most specific provision. CBP erred when it ignored evidence showing that the laser levels are used as surveying instruments on large construction projects and ignored explanatory notes that say pipe lasers are to be included under heading 9015, the complaint said.