CLA-2 RR:CR:GC 959832 RFA
Port Director
U.S. Customs Service
300 S. Ferry Street
Terminal Island
Los Angeles, CA 90731
RE: Bandai Pippen PowerPlayer; Game Machine; Video Games of a Kind Used with a Television Receiver; Legal Note 1(p) to Section XVI; Legal Note 3 to chapter 95; HQ 952673; NY 813932
Dear Port Director:
In a letter dated August 27, 1996, to the Area Director of Customs, New York, Bandai Digital Entertainment Corporation requested the tariff classification of the Bandai Pippen PowerPlayer under the Harmonized Tariff Schedule of the United States (HTSUS). Their letter and sample were referred to this office for a response. In preparing this ruling, we also considered the information provided with their letters of January 22, and August 6, 1998.
FACTS:
The merchandise, labeled as Bandai Pippen PowerPlayer (also referred to as the Pippen @World), is an interactive media player designed for connection to a television set or to a computer monitor. The Pippen platform uses an Apple 66-MHz PowerPC 603 microprocessor chip and runs modified Macintosh applications from a CD-ROM player, and has 6 MB of RAM memory, but no hard drive. The Pippen was entered with the following components: a boomerang-shaped hand-held controller with 13 buttons and a trackball; and a keyboard input device which contains a standard keyboard as well as a digitizing stylus pad that works with compatible CD-ROM programs to enable users to draw on the video screen. The Pippen is capable of performing different functions such as running certain fixed CD-ROM games and programs, play audio CDs, playing video and composite audio/video CDs, and with the addition of a separately purchased (and imported) modem and applicable CD-ROM program, the Pippen can also access the Internet.
Since receipt of the ruling request, Bandai has imported the merchandise into the U.S. several times at Los Angeles, from October 11, 1996, through January 9, 1997. Entry Numbers 1,2,4, 5, 6, 7, 8 contained an equal number of Pippen @World Game Players, Pippen @World Controllers, and Pippen @World Keyboards. Entry Number 3 contained modular cables for the Pippen @World Game Player. The merchandise in Entry Number 9 which contained the Pippen @World IR (infrared) Controller Sets, was the only entry in 1997. The IR Controller Sets consist of a wireless transmitter and receiver set with the same functions as that of the @World Controllers. Entry Number 10 contained Pippen @World Game Player Modems. According to the information provided, the modems are compatible with the Pippen PowerPlayer as well as any Macintosh computer system.
ISSUE:
Is the Pippen Player, without a modem, classifiable as sound reproducing apparatus, as video reproducing apparatus, or as video games under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
The 1996 subheadings under consideration are as follows:
8519.99.00: Turntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device:[o]ther sound reproducing apparatus: [o]ther. . . . .
Goods classifiable under this provision have a column one, general rate of duty of 2.3 percent ad valorem.
8521.90.00: Video recording or reproducing apparatus, whether or not incorporating a video tuner: [o]ther. . . .
Goods classifiable under this provision have a column one, general rate of duty of 2.2 percent ad valorem.
9504.10.00: Articles for arcade, table or parlor games, including pinball machines, bagatelle, billiards and special tables for casino games; automatic bowling alley equipment; parts and accessories thereof: [v]ideo games of a kind used with a television receiver and parts and accessories thereof. . . .
Goods classifiable under this provision have a column one, general rate of duty of free.
Legal Note 1(p) to Section XVI, HTSUS, which covers chapters 84 and 85, provides that: “[t]his section does not cover: . . . [a]rticles of chapter 95.” Therefore, if the subject merchandise is classifiable in chapter 95, it is precluded from classification in either chapters 84 or 85, HTSUS.
In HQ 952673, dated February 3, 1993, Customs determined that the “Sega CD”, a CD-ROM machine which is used in conjunction with the Sega Genesis video game system, is a multi-functional machine because it was capable of playing audio, video, and games on CDs. Customs determined that the Sega CD is principally used for it video game function and therefore classifiable under subheading 9504.10.00, HTSUS, which provides for video games of a kind used with a television receiver.
In NY 813932, dated August 23, 1995, Customs determined that the Sony PlayStation which played video games and audio (music) CDs was principally used as a video game. Customs held that the Sony PlayStation was classifiable under subheading 9504.10.00, HTSUS, which provides for video games of a kind used with a television receiver.
In the present situation, the Pippen PowerPlayer was entered with a boomerang-shaped controller and a keyboard. While the marketing literature indicates that with the addition of a modem a user can access the Internet, we find that in its condition as imported, the Pippen is principally used as a video game machine, similar to the type of goods described in HQ 952673 and NY 813932. Therefore, we find that the merchandise in Entry Numbers 1, 2, 4, 5, 6, 7, 8 are classifiable under subheading 9504.10.00, which provides for: “[a]rticles for arcade, table or parlor games, including pinball machines, bagatelle, billiards and special tables for casino games; automatic bowling alley equipment; parts and accessories thereof: [v]ideo games of a kind used with a television receiver and parts and accessories thereof. . . .”
Legal Note 3 to chapter 95, HTSUS, states that: “[s]ubject to note 1 above, parts and accessories which are suitable for use solely or principally with articles of this chapter are to be classified with those articles.” The modular cables in Entry Number 3 are designed to work solely or principally with the Pippen PowerPlayer. The merchandise in Entry Number 9 which contained Pippen @World IR Controller Sets, consisted of a wireless transmitter and receiver set with the same functions as that of the @World Controllers. Based upon the application of Legal Note 3 to chapter 95, we find that the merchandise in Entry Numbers 3 and 9 are classifiable under subheading 9504.10.00, HTSUS, which provides for the parts and accessories of video games of a kind used with a television receiver.
Entry Number 10 contained Pippen @World Game Player Modems which are not dedicate for use with the Pippen PowerPlayer. Because the modems can be used with merchandise other than the Pippen PowerPlayer, we find that Legal Note 3 to Chapter 95 does not apply. The modems in Entry Number 10 are classifiable under subheading 8517.50.10, HTSUS, which provides for: “[e]lectrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier current line systems or for digital line systems. . . : [o]ther apparatus, for carrier current line systems or for digital line systems: [m]odems, of a kind used with data processing machines of heading 8471. . .”
HOLDING:
The Pippen PowerPlayer, modular cables, and the IR Controller Sets are classifiable under subheading 9504.10.00, HTSUS, which provides for: “[a]rticles for arcade, table or parlor games, including pinball machines, bagatelle, billiards and special tables for casino games; automatic bowling alley equipment; parts and accessories thereof: [v]ideo games of a kind used with a television receiver and parts and accessories thereof. . . .” Goods classifiable under this provision have a column one, general rate of duty of free.
The modems in Entry Number 10 are classifiable under subheading 8517.50.10, which provides for: “[e]lectrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier current line systems or for digital line systems. . . : [o]ther apparatus, for carrier current line systems or for digital line systems: [m]odems, of a kind used with data processing machines of heading 8471. . .” Goods classifiable under this provision have a column one, general rate of duty of 3.7 percent ad valorem.
Please advise the internal advice applicant of this decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division