CLA 2 CO:R:C:G 084703 AJS
TARIFF NO: 8537.10.00; 8543.80.90
Mr. Sal Della Ventura
Manager
Classification and Compliance
Sony Corporation of America
Sony Drive
Park Ridge, New Jersey 07656
RE: Video special effect unit (SYX 124 system) from Japan
Mr. Ventura:
Your letter of May 3, 1989, on behalf of the Sony Corporation of America, requesting a tariff classification under the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) has been referred to this office for reply.
FACTS:
The article in question is the SYX 124, which is designed to be used in broadcast stations or production houses. The SYX 124 performs video editing and creates special effects on video images such as enlarging, reducing, or applying the images to
spheres and cylinders.
The SYX 124 is imported with three components. The first is the processor, which is the main unit where the image manipulation takes place. The processor incorporates a portion
of a Sony SMC 3000G computer which is removed from its own cabinet and placed into a metal housing. In sum, the processor is a composite of electronic printed circuit boards in a metal box.
The second component is the interface unit. It also incorporates a portion of the Sony SMC 3000G which has been removed from its original cabinet and incorporated into the unit.
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The interface unit functions by allowing the transfer of commands originating in the control panel to be sent through it to the processor.
The third component is the control panel. It operates the video image and consists mainly of controls and switches.
All three of the above components are used in conjunction with a video monitor (PVM 1320), which in this case will not be incorporated into the SYX 124 upon importation.
ISSUE:
Whether video special effects units previously classified in item 685.08, TSUS (no new corresponding HTSUSA number), as television apparatus are properly classifiable within subheading 8543.80.90, HTSUSA, which provides for "[e]lectrical machines and
apparatus, having individual functions, not specified or included elsewhere in this chapter . . . parts . . . [o]ther machines and apparatus . . . [o]ther."; or are they properly classifiable
within subheading 8529.90.10, HTSUSA, which provides for "[p]arts suitable for use solely or principally with the apparatus of headings 8525 to 8528 . . . [o]ther . . . [o]f television
apparatus . . . [o]ther."
LAW AND ANALYSIS:
Classification 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.
The articles in question were previously classified in item 685.08, TSUS, as television apparatus. However, a similar provision was not reenacted in the HTSUSA. Heading 8529 is
somewhat similar because it does provide for television apparatus, but its scope is limited to only parts which must also be solely or principally used with the apparatus of heading 8525
to 8528. However, these c omponents are not parts of any of the apparatus of these headings.
Heading 8525 provides for "[t]ransmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television . . . " These components do not transmit video signals so they cannot be considered transmission apparatus.
Heading 8526 provides for "[r]adar apparatus, radio navigational aid apparatus and radio remote control apparatus . . . "
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These components also do not fit within this heading because they are not used with radar or radio apparatus.
Heading 8527 provides for “[r]eception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, . . . ." These components do not receive a radio signal so they cannot be
considered radio reception apparatus.
Heading 8528 provides for "[t]elevision receivers (including video monitors and video projection television receivers), . . ." These components do not receive a television signal, and
eventhough they do work in conjunction with a video monitor they could not be considered as a part of this type of apparatus.
Heading 8543 provides for electrical machines and apparatus which possess an individual function and which are not included elsewhere in this chapter. The Explanatory Notes to this heading state, "[t]his heading covers all electrical appliances and apparatus, not falling in any other heading of this Chapter, nor covered more specifically by a heading of any other Chapter of the Nomenclature, nor excluded by the operation of a Legal Note to Section XVI or this Chapter." These components are electrical apparatus which do not fall within any other provisions nor are they excluded by any legal note.
The Explanatory Notes also state that "[t]he electrical appliances and apparatus of this heading must have individual functions." Individual function is defined in the Explanatory
Notes to heading 8479. Section (A) states that the following have an individual function: "[m]echanical devices, with or without motors or other driving force, whose function can be
performed distinctly from and independently of any other machine or appliance." The SYX 124 is a device whose function is performed distinctly from and independently of any other appliance. The processor is where the video image is edited and the interface unit acts as a transfer station for commands sent from the control panel to the processor. These functions are distinct and independent from the operation of the monitor which is used to view the video image.
In conclusion, the three components of SYX 124 system are electrical machines that possess an individual function. They are devices whose function is performed distinctly from and independently of any other machines. Therefore, they are classifiable under heading 8543.
HOLDING:
The components of the SYX 124 system are properly classifiable within subheading 8543.80.90, HTSUSA, which provides
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for electrical machines possessing an individual function, properly dutiable at the rate of 3.9 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division