CLA-2 CO:R:C:M 955108 DWS
Ms. Carma Randall
Robert E. Landweer & Co., Inc.
Customhouse Brokers
911 Western Avenue, Suite 208
Seattle, WA 98104
RE: Reconsideration of NY 885954; "SoundXchange"; Modification of
HQ 953383; "Audioman"; Explanatory Note 85.17; Section XVI,
Note 4; GRI 3(a); 8471.92.10; 8518.50.00; 8520.90.00
Dear Ms. Randall:
This is in response to your letters dated March 17, April 17,
June 30, and August 27, 1993, on behalf of Interactive, Inc., to
the Area Director of Customs, New York Seaport, requesting
reconsideration of NY 885954, dated June 1, 1993, which involved
the classification of models of the "SoundXchange" under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of the "SoundXchange" (model nos. A
and B). It is used for communication on a computer network, and
it provides voice recording and playback capabilities for personal
computers. Model A is designed for computers which already contain
a sound board or for computers with built-in sound. Model B
includes a sound board for installation into a personal computer.
Each model contains an amplified speaker, a microphone, a
telephone handset, volume control, and an 1/8 inch jack for an
optional headset. The amplified speaker allows for hands-free
listening when the handset is hanging in its cradle, and it allows
for audio notification of an important event or message. The
built-in microphone is sensitive for hands-free use in a large
office or a small cubicle. The telephone-style handset
automatically turns off the amplified speaker and provides privacy
when it is used. The optional headset allows for private hands-
free communication. A bracket is supplied with each model so the
"SoundXchange" may be mounted on the side of a personal computer
monitor.
The base unit, the handset, the handset cord, the mounting
bracket, the audio cable, and the AC power adapter of model A are
imported from Taiwan. In the U.S., these components are combined
with a user's manual, a mounting template, and final packaging.
The base unit, the handset, the handset cord, the mounting
bracket, the small parallel cable, and the AC power adapter are
imported from Taiwan. In the U.S., these components are combined
with a user's manual, a floppy disk, a mounting template, and final
packaging.
The subheadings under consideration are as follows:
8471.92.10: [a]utomatic data processing machines and units
thereof; magnetic or optical readers, machines
for transcribing data onto data media in coded
form and machines for processing such data, not
elsewhere specified or included: [o]ther:
[i]nput or output units, whether or not entered
with the
rest of a system and whether or not containing
storage units in the same housing: [c]ombined
input/output units.
The general, column one rate of duty for goods classifiable
under this provision is 3.7 percent ad valorem.
8518.50.00: [e]lectric sound amplifier sets.
The general, column one rate of duty for goods classifiable
under this provision is 4.9 percent ad valorem.
8520.90.00: [m]agnetic tape recorders and other sound
recording apparatus, whether or not incorporating
a sound reproducing device: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 3.9 percent ad valorem.
8517.81.00: [e]lectrical apparatus for line telephony or
telegraphy, including such apparatus for carrier-
current line systems; parts thereof: [o]ther
apparatus: [t]elephonic.
The general, column one rate of duty for goods classifiable
under this provision is 8.5 percent ad valorem.
ISSUE:
Whether the model A "SoundXchange" is classifiable under
subheading 8471.92.10, HTSUS, as a combined input/output unit,
under subheading 8518.50.00, HTSUS, as an electric sound amplifier
set, or under subheading 8517.81.00, HTSUS, as an other telephonic
apparatus.
Whether the model B "SoundXchange" is classifiable under
subheading 8471.92.10, HTSUS, as a combined input/output unit,
under subheading 8520.90.00, HTSUS, as an other sound recording
apparatus, HTSUS, or under subheading 8517.81.00, HTSUS, as an
other telephonic apparatus.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 85.17 (p. 1360) states that:
[t]he term "electrical apparatus for line telephony or line
telegraphy" means apparatus for the transmission between two
points of speech or other sounds (or of symbols representing
written messages, images or other data), by variation of an
electric current or of an optical wave flowing in a metallic
or dielectric (copper, optical fibres, combination cable,
etc.) circuit connecting the transmitting station to the
receiving station.
The heading covers all such electrical apparatus designed for
this purpose, including the special apparatus used for
carrier-current line systems. (emphasis supplied).
Section XVI, note 4, HTSUS, states that:
[w]here a machine (including a combination of machines)
consists of individual components (whether separate or
interconnected by piping, by transmission devices, by electric
cables or by other devices) intended to contribute together
to
a clearly defined function covered by one of the headings in
chapter 84 or chapter 85, then the whole falls to be
classified in the heading appropriate to that function.
Based upon the description given in Explanatory Note 85.17,
it is our position that both models of the "SoundXchange" are
described under heading 8517, HTSUS. Although the merchandise is
not a telephone, it is an "apparatus for the transmission between
two points of speech or other sounds (or of symbols representing
written messages, images or other data), by variation of an
electric current . . . connecting the transmission station to the
receiving station." As is stated in literature provided by the
importer, the "SoundXchange" is designed for both the transmission
and reception of voice communications through the use of a personal
computer.
Also, both models of the "SoundXchange" are functional units
as defined by section XVI, note 4, HTSUS. All of the components
which are imported together to form the "SoundXchange" are intended
to contribute together to the function of communication as defined
under heading 8517, HTSUS.
In part, GRI 3(a) states that:
[t]he heading which provides the most specific description
shall be preferred to headings with a more general
description. . .
As is directed by GRI 3(a) and Explanatory Note 85.17, it is
our position that both models of the "SoundXchange" are
classifiable under heading 8517, HTSUS. Even if the merchandise
is described under headings 8518, 8520, or 8471, HTSUS, it is
precluded from classification under those headings, because
Explanatory Note 85.17 states that if the merchandise is described
under heading 8517, HTSUS, the merchandise is to be classified
under that heading.
Consequently, we find that both models of the "SoundXchange"
are classifiable under subheading 8517.81.00, HTSUS.
In HQ 953383, dated February 19, 1993, a similar product
called the "Audioman" was held to be classifiable under subheading
8471.99.90, HTSUS, which provides for: "[a]utomatic data processing
machines and units thereof; magnetic or optical readers, machines
for transcribing data onto data media in coded form and machines
for processing such data, not elsewhere specified or included:
[o]ther: [o]ther: [o]ther: [o]ther."
The "Audioman", which is an external audio device with an
integrated speaker and microphone, attaches to a personal computer
and produces audio (voice, sound, and music) within a sound
compatible application. A user can assign sounds or verbiage to
a file with in the computer by utilizing corresponding software and
inputting sound through the microphone. The user can then send the
file to another user who possesses the "Audioman". That user can
then hear the stored sound through the use of the "Audioman".
Based upon the reasoning in this ruling, it is now our
position that the "Audioman" is classifiable under subheading
8517.81.00, HTSUS. Consequently, HQ 953383 is being modified in
HQ 955232, of this date, a copy of which is enclosed.
HOLDING:
Model A and model B of the "SoundXchange" are classifiable
under subheading 8517.81.00, HTSUS, as other telephonic apparatus.
EFFECT ON OTHER RULINGS
NY 885954 is affirmed.
Based upon the reasoning in this ruling, HQ 953383 is modified
pursuant to section 177.9(d)(1), Customs Regulations
[19 CFR 177.9(d)(1)].
Sincerely,
John Durant, Director
Commercial Rulings Division