CLA-2 CO:R:C:M 087179 CMS
8527.31.60
Ms. Gail T. Cumins, Esq.
Sharretts, Paley, Carter & Blauvelt
Sixty-Seven Broad Street
New York, NY 10004
RE: Reception Apparatus For Radiobroadcasting; Same Housing;
Combined With Sound Recording Or Reproducing Apparatus; Rack
Systems; Stereo; Audio; Tape Players Incapable, Capable Of
Recording, Playing; Dual Cassette Decks; Double; HQ Ruling
083065 (August 29, 1989), Revoked
Dear Ms. Cumins:
This is in response to your request on behalf of Sanyo
Fischer (USA) Corporation, dated May 15, 1990, for a
classification ruling on certain audio system components. Our
ruling follows.
FACTS:
The merchandise consists of three Sanyo audio systems
described as the Model GXT858, Model ICS62OA and Model ICS625A.
The systems incorporate an AM/FM tuner and amplifier, equalizer,
dual cassette deck and turntable in the same housing. Separately
housed speakers are also entered with the systems. The Model
GXT858 includes a hand held remote control device. The systems
cannot operate without an external source of power.
The dual cassette deck contains two tape wells. One well
has tape heads for recording and playing, and the other 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. The wells are
also designed to work together so that when the end of the tape
in one well is reached, the pause mechanism of the other well
disengages to allow continuous play.
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The dual cassette deck wells are driven by the same motor,
which is incorporated in the cassette deck assembly mounted
behind the tape deck section of the main system housing. The
dual cassette deck wells share the same output and many common
parts, such as a chassis assembly, gears, roller assemblies and
numerous rods, levers and springs. The dual cassette deck wells
also share certain controls such as switches for noise reduction
and dubbing.
ISSUE:
Are the systems classified in subheading 8527.31.40 as
combinations incorporating tape players which are incapable of
recording, in subheading 8527.31.50 as other combinations
incorporating tape recorders, or in subheading 8527.31.60 as
other combinations?
LAW AND ANALYSIS:,
The Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) superseded the TSUS effective January 1, 1989.
The HTSUSA provides that the classification of articles is
governed by the General Rules of Interpretation (GRI's). GRI 1
states in pertinent part that "...classification shall be
determined according to the terms of the headings and any
relative section or chapter notes...".
Heading 8527 in part describes reception apparatus for
radiobroadcasting, combined in the same housing with sound
recording or reproducing apparatus. The three audio systems
under consideration are described by Heading 8527.
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.
The article descriptions for the subheadings at issue read
as follows:
8527.31.40 Combinations incorporating tape players
which are incapable of recording
8527.31.50 Other combinations incorporating
tape recorders
8527.31.60 Other
-3-
Sanyo argues that the systems are classified in subheading
8527.31.40, on the basis that they incorporate tape players which
are incapable of recording. It is beyond doubt, however, that
the dual cassette deck incorporated in the systems is capable of
recording. The systems do not incorporate tape players which are
incapable of recording.
The dual cassette deck physically and functionally
integrates two tape wells to allow the wells to be used together
to record from one well to the other, or to have continuous play
from one well to the other. Even when utilizing the continuous
play feature, the well with the tape head capable of recording is
used. One can also use the dual cassette deck for single well
play or record; however, the "play only" well cannot operate
without the many common tape deck parts it shares with the
"record/play" well, parts which allow the dual cassette deck to
be capable of recording.
If classified separately, the dual cassette deck would be
described by Heading 8520 as a tape recorder incorporating a
sound reproducing (playing) device. The fact that the dual
cassette deck may be housed together with tuner/amplifiers and
other components does not erase its identity as a dual cassette
deck that records as well as plays. The dual cassette deck
component of the audio systems under consideration is not
described in the promotional literature as a separate tape
player and tape recorder, but is identified as a "Dual Transport
Stereo Cassette Deck", or "double cassette deck". May 15, 1990
submission, Exhibit 1.
The decisions of Montgomery Ward & Co. v. United States, 73
Cust. Ct. 187, CD 4573 (1974), Sears Roebuck & Co. v. United
States, Slip Op. 89-136 (CIT, 1989) and HQ Ruling 553918 (April
18, 1986), cited by Sanyo, are inapposite. The tariff language
in these TSUS decisions is not the same as the relevant HTSUSA
language in Heading 8527. The Court's holding in Montgomery Ward
& Co., supra, that a radio/phonograph/8-track tape player
combination was not classifiable as a radio/phonograph
combination, provides no support for Sanyo's position in this
matter. The Court in Sears Roebuck & Co., supra, held that the
plaintiff failed to rebut the presumption of correctness attached
to Customs classification of certain stereo components as
separate components, and not as an entirety; the Court decided
that the components should be classified as individual
components, but the issue of the correct classification of a dual
cassette deck in particular was not substantively discussed.
Sanyo argues that the intent in the changeover from the TSUS
to the HTSUSA was for combinations incorporating a dual cassette
deck to be classified in 8527.31.40, HTSUSA. The express terms
-4-
and plain meaning of the article description for subheading
8527.31.40, however, do not express this "intent". Combinations
incorporating a dual cassette deck (which is capable of
recording), simply cannot be described as combinations
incorporating tape players which are incapable of recording.
Unlike subheading 8527.31.40, which restricts the tape
players described to those which are incapable of recording,
subheading 8527.31.50 does not restrict the tape recorders
described to those which are incapable of playing. The three
audio systems under consideration are classified as other
combinations incorporating tape recorders, in 8527.31.50, HTSUSA.
On p. 2 of Sanyo's May 15, 1990 submission, it is stated
that the merchandise classified in HQ Ruling 083065 (August 29,
1989) is "identical" to certain of the three audio systems at
issue in this ruling. HQ Ruling 083065 held that the audio
system under consideration was classified in subheading
8527.31.40, HTSUSA. The proper classification of the
merchandise in HQ Ruling 083065, however, could not have been
subheading 8527.31.40, because the audio system incorporated a
dual cassette deck which was capable of recording; the system did
not incorporate a tape player which was incapable of recording.
Accordingly, HQ Ruling 083065 (August 29, 1989) is revoked, and a
letter to this effect will be issued to the requestor of HQ
Ruling 083065, concurrent with the issuance of this ruling. The
proper classification of the system at issue in HQ Ruling 083065
is 8527.31.50, HTSUSA.
HOLDING:
The Sanyo Model GXT858, Model ICS62OA and Model ICS625A
audio systems, and the merchandise at issue in HQ Ruling 083065
(August 29, 1989), are classified as reception apparatus for
radiobroadcasting, combined in the same housing, with sound
recording or reproducing apparatus, other radiobroadcast
receivers, combined with sound recording or reproducing
apparatus, other, other combinations incorporating tape
recorders, in 8527.31.50, HTSUSA.
HQ Ruling 083065 (August 29, 1989) is revoked pursuant to
Customs Regulation 177.9(d), 19 C.F.R. 177.9(d).
Sincerely,
John Durant, Director
Commercial Rulings Division