Infrared Fiber Optic Network Equipment Classifiable as Optical Equipment of Chapter 90, CAFC Says
Fiber optic telecommunications equipment that operates by pulses of infrared light is classifiable as “optical instruments” of Harmonized Tariff Schedule heading 9013, even though it doesn’t work by way of visible light, the U.S. Court of Appeals for the Federal Circuit said in a Feb. 19 decision that affirmed the classification set by CBP and upheld by the Court of International Trade.
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ADC Telecommunications had argued its “value added modules,” including splitters, monitor modules and wavelength division multiplexers for installation in fiber optic telecommunications networks, aren’t optical instruments or appliances because they interact with light that is not visible to humans and do not permit or enhance human vision. Instead they should have been classified in heading 8517 as data transmission equipment, the importer argued.
CIT in 2017 had disagreed, finding in favor of CBP’s classification in heading 9013 because Chapter 90 clearly includes optical fibers, and that includes fibers that transmit non-visible light (see 1710190037).
On appeal, the Federal Circuit court upheld the lower court’s decision, finding the relevant chapter notes and dictionary definitions favor classification as optical equipment. Additional U.S. Note 3 to Chapter 90 requires only that goods classified in heading 9013 incorporate one of more optical elements, and the optical element cannot serve a subsidiary purpose. Dictionary definitions for “optical” indicate only that optical elements have to act on light, regardless of whether that light is visible to humans, CAFC said.
The Explanatory Notes also indicate the visibility of light to humans is not a criterion for classification in heading 9013, CAFC said. The EN for heading 9001 says optical elements classified in that heading must do “more than merely allow light (visible, ultraviolet or infrared) to pass through it.” The EN to subheading 9031.49 says that subheading covers not only instruments that enhance human vision, but also other instruments that use optical elements, CAFC said.
ADC’s value added modules act by means of light, even if that light is invisible to humans, and employ optical elements that are not subsidiary to any other purpose, CAFC said. They are therefore classifiable in heading 9013, it said. The notes to Chapter 85 say goods classifiable in chapter 90 can’t be classified in Chapter 85. As a result, CBP and CIT correctly classified the value added modules in heading 9013, CAFC said.