CLA-2 CO:R:C:G 086939 AJS
Mr. Maurice Lowinger
Chairman of the Board
North American Foreign Trading Corporation
1115 Broadway
New York, N.Y., 10010
RE: Combination telephone/clock/radio. Heading 8517; Subheading
8517.10.00; Section XVI, Note 3; General Rule of Interpretation
3(c); Section XVI, Explanatory Note (VI); Subheading 8527.32.00;
Subheading 9902.85.27.
Dear Mr. Lowinger:
Your letter of April 9, 1990, requesting a tariff
classification under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), has been forwarded to this office for
reply.
FACTS:
The article in question is a combination telephone/clock/
radio. The entire telephone, including the dial pad and hook
switch, is housed in the handset. The telephone is designed to
connect to the telephone line through the clock radio. The
telephone unit and the clock radio can be separated and used to
their full capabilities apart from each other. The clock/radio
possesses a cradle where the telephone unit can be placed and
disconnected when it is not in use.
ISSUE:
Whether the article in question is classifiable within
heading 8517, HTSUSA, which provides for telephone sets; or
classifiable within 8527, HTSUSA, which provides for clock/
radios; or classified as a section XVI, note 3 machine.
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LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's). GRI 1 provides
that classification is determined first in accordance with the
terms of the headings of the tariff and any relative section or
chapter notes.
Heading 8517, HTSUSA, provides for electrical apparatus for
line telegraphy. More specifically, subheading 8517.10.00
provides for telephone sets. While one component of the machine
is a telephone set, the article as a whole does not satisfy the
terms of this subheading. The machine is a combination
telephone/clock/radio, not a telephone set or any other article
described by the terms of this heading.
Heading 8527, HTSUSA, provides for reception apparatus for
radiobroadcasting whether or not combined in the same housing
with a clock. While one component of the machine satisfies this
description, the article as a whole does not satisfy the terms of
this heading. The machine is a combination telephone/clock/
radio, not a radiobroadcasting receiver combined with a clock.
or any other article described by the terms of this heading.
The relative section notes for headings 8517 and 8527
provide for the classification of machines adapted for the
purpose of performing two or more alternative functions. Section
XVI, note 3. The machine at issue satisfies this description.
It consists of two separate machines adapted together for the
purpose of performing telephonic communications and radio
reception functions. These types of machines are to be
classified as if consisting only of that component or as being
that machine which performs the principal function of the
machine. Section XVI, note 3. In this instance, neither the
telephonic nor radio reception functions can be considered the
principal function. Instead, each function performed by the
machine is of equal importance in the overall operation of the
device.
Where it is not possible to determine the principal
function, and the context does not otherwise require, it is
necessary to apply GRI 3(c) to resolve the classification issue.
Section XVI, Explanatory Note (EN) (VI). In this instance, we
find no context which does not require the application of GRI
3(c). This rule requires that goods be classified under the
heading which occurs last in numerical order among those which
equally merit consideration. Both heading 8517 (i.e., electrical
apparatus for line telephony) and heading 8527 (i.e., reception
apparatus for radio broadcasting) equally merit consideration in
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this case because each heading describes a function which the
machine performs. The application of GRI 3(c) requires heading
8527 to govern the classification of the machine at issue because
it is last in numerical order.
Heading 8527, HTSUSA, provides for reception apparatus for
radiobroadcasting whether or not combined in the same housing
with a clock. As stated previously, the clock/radio portion of
the machine satisfies this description. More specifically, the
machine is described by the terms of subheading 8527.32.00,
HTSUSA, which provides for radiobroadcast receivers combined with
a clock. Therefore, the application of section note 3 requires
classification of the machine within this subheading despite the
fact that the machine as a whole is not described by this
subheading.
Certain entertainment broadcast band receivers classifiable
within subheading 8527.32.00, HTSUSA, are subject to a temporary
duty suspension. Subheading 9902.85.27, HTSUSA, provides for
entertainment broadcast receivers valued not over $40 each
(provided for in subheading 8527.32.00) incorporating timekeeping
or time display devices, not combined with any other article,
and not designed for motor vehicle installation. However, the
machine at issue is combined with another article. Thus, it is
not classifiable within this subheading.
HOLDING:
The combination telephone/radio/clock is a machine adapted
for the purpose of performing two or more alternative functions
classifiable within subheading 8527.32.00, HTSUSA, dutiable at
the rate of 6 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division