CLA-2 CO:R:C:M 950882 MBR
Mr. Wray Hiser
Government Affairs Council
Electronic Industries Association
2001 Pennsylvania Avenue, NW
Washington, D.C. 20006-1813
RE: Revocation of HQ 087179; Alternating Current (AC)
Combination Stereos Incorporating a Radio, a Dual Cassette
Deck, a Record Player, and a Graphic Equalizer
Dear Mr. Hiser:
This is in reply to your letter of December 10, 1991, and
subsequent meeting of July 13, 1992, on behalf of the Electronic
Industries Association (EIA), requesting reconsideration of HQ
087179, dated May 31, 1991, regarding the classification of dual
tape cassette combination stereos, under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
You have requested reconsideration of HQ 087179, dated May
31, 1991, regarding the classification of combination stereos
incorporating an AM/FM radio, a dual cassette deck, a record
player, and a graphic equalizer. These stereo systems are
incapable of operating without an external source of power (i.e.,
they are "nonportable").
The dual cassette deck at issue contains two tape wells.
One of the tape wells has tape heads for both recording and
playing, while the other tape well has a tape head for playing
only. The dual cassette deck features the ability to record from
one tape to another, to record from the tuner, turntable or other
source, and to play.
ISSUE:
Is the appropriate classification for nonportable,
combination AC stereos with dual cassette tape players under
subheading 8527.31.40, HTSUS, which provides for combination
stereos incorporating tape players which are incapable of
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recording, or is the proper classification under subheading
8527.31.50, HTSUS, which provides for other combinations
incorporating tape recorders?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI
1 states in pertinent part that:
for legal purposes, classification shall be determined
according to the terms of the headings and any relative
section or chapter notes . . . .
Heading 8527, HTSUS, in pertinent part, describes reception
apparatus for radiobroadcasting, whether or not combined in the
same housing with sound recording or reproducing apparatus.
There is no dispute that the stereo combinations under
consideration are described by this heading.
GRI 6 governs the classification of goods in the subheadings
of a heading. GRI 6 provides in pertinent part that the
classification of goods in the subheadings of a heading is
determined according to the terms of the subheadings. In the
instant case, the competing subheadings are as follows:
8527.31.40 Combinations incorporating tape players which
are incapable of recording
8527.31.50 Other combinations incorporating tape
recorders
The issue before us specifically is whether a "dual cassette
tape player" incorporates tape players which are incapable of
recording. In fact, the dual cassette deck features both a tape
recorder and a tape player. While the tape recorder can both
play and record, the tape player is only capable of playing. In
our previous ruling we took the view that the dual cassette deck
should be considered a single entity which was capable of
recording. However, upon further review, we believe that the
tariff provision contemplates that we consider the respective
functions of the tape player and recorder separately. The dual
cassette deck therefore incorporates a tape player that is
incapable of recording. For this reason, we conclude that the
instant merchandise is classifiable under subheading 8527.31.40,
HTSUS, which provides for combinations incorporating tape players
which are incapable of recording.
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HOLDING:
Combination stereos with AM/FM radio, incorporating dual
cassette decks, are classifiable under subheading 8527.31.40,
HTSUS, which provides for: "[r]eception apparatus
for...radiobroadcasting, whether or not combined, in the same
housing, with sound recording or reproducing apparatus...:
[o]ther radiobroadcast receivers...: [c]ombined with sound
recording or reproducing apparatus: [o]ther: [c]ombinations
incorporating tape players which are incapable of recording."
EFFECT ON OTHER RULINGS:
HQ 087179, dated May 31, 1991, is revoked for the above
stated reasons, under authority of section 177.9(d), Customs
Regulations [19 CFR 177.9(d)].
Sincerely,
Harvey Fox, Director