CLA-2 CO:R:C:M 954412 KCC
Mr. Warren E. Coe
Amway Corporation
7575 E. Fulton Road - Dept. 52-2A
Ada, Michigan 49355
RE: AM/FM clock radio with cassette player and telephone;
heading 8517; NY 832099; 8527.32.00; Note 3, Section XVI;
composite machine; principal function; HRL 086939; General
EN (VI); GRI 3(c)
Dear Mr. Coe:
This is in reference to your letter dated May 17, 1993, to
Customs in New York, concerning the tariff classification of an
AM/FM clock radio with cassette player and telephone under the
Harmonized Tariff Schedule of the United States (HTSUS). Your
letter was forwarded to this office for a response.
FACTS:
The article under consideration is an AM/FM clock radio with
cassette player and telephone. The cassette player is incapable
of recording. You contend that this article is properly
classified under subheading 8527.32.00, HTSUS, which provides for
"Reception apparatus for radiotelephony, radiotelegraphy or
radiobroadcasting, whether or not combined, in the same housing,
with sound recording or reproducing apparatus or a clock...Other
radiobroadcast receivers, including apparatus capable of
receiving also radiotelephony or radiotelegraphy...Not combined
with sound recording or reproducing apparatus but combined with a
clock...."
ISSUE:
How is the AM/FM clock radio with cassette player and
telephone classified under the HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states, in part, that "for legal purposes classification
shall be determined according to the terms of the headings and
any relative section or chapter notes."
As stated above, the article is a combination AM/FM clock
radio with cassette player and telephone. The article is prima
facie classifiable under two headings of the HTSUS. It is
classifiable under heading 8517, HTSUS, which provides for
telephones and heading 8527, HTSUS, which provides for reception
apparatus combinations incorporating tape players incapable of
recording (see, New York (NY) 832099 dated September 29, 1988).
Headings 8517 and 8527, HTSUS, fall within Section XVI,
HTSUS, making the Section XVI notes applicable to this
classification. Note 3, Section XVI, HTSUS, provides that:
Unless the context otherwise require, composite machines
consisting of two or more machines fitted together to form a
whole and other machines adapted for the purpose of
performing two or more complementary or alternative
functions are to be classified as if consisting only of that
component or as being that machine which performs the
principal function.
The machine at issue satisfies this description. It consists of
two separate machines adapted together for the purpose of
performing telephone communications and radio reception/sound
reproducing functions. These types of machines are to be
classified as if consisting only of the component or as being
that machine which performs the principal function of the
machine.
We are of the opinion that neither of the components here
(telephone or clock radio with cassette player), by itself,
imparts the principal function. Each function performed by the
article is of equal importance in the overall operation of the
device. See, Headquarters Ruling Letter (HRL) 086939 dated
August 9, 1990, which classified a telephone/clock/radio pursuant
to GRI 3(c), HTSUS, under subheading 8527.32.00, HTSUS.
General Explanatory Note (EN) (VI) MULTI-FUNCTION MACHINES
AND COMPOSITE MACHINES of the Harmonized Commodity Description
and Coding System (HCDCS) (pg. 1132-1133), states that where it
is not possible to determine the principal function, and the
context does not otherwise require, it is necessary to apply GRI
3(c), HTSUS, to resolve the classification issue. The
Explanatory Notes, although not dispositive, are to be looked to
for the interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128
(Aug. 23, 1989). GRI 3(c), HTSUS, states that:
When goods cannot be classified by reference to 3(a) or
3(b), they shall be classified under the heading which
occurs last in numerical order among those which
equally merit consideration.
The heading that occurs last in numerical order is heading
8527, HTSUS. Therefore, the article is classified under
subheading 8527.31.40, HTSUS, which provides for "...Combined
with sound recording or reproducing
apparatus...Other...Combinations incorporating tape players which
are incapable of recording."
Classification of the clock radio with cassette player under
subheading 8527.32.00, HTSUS, is not appropriate. Subheading
8527.32.00, HTSUS, provides for a radio "[n]ot combined with
sound recording or reproducing apparatus but combined with a
clock (emphasis added)." The article under consideration is a
clock radio combined with sound reproducing apparatus (cassette
player). Therefore, the clock radio with cassette player does
not meet the terms of the subheading.
HOLDING:
The AM/FM clock radio with cassette player and telephone is
classified under subheading 8527.31.40, HTSUS, as reception
apparatus combinations incorporating tape players incapable of
recording which is dutiable at the Column 1 rate of 3.7 percent
ad valorem.
Sincerely,
John Durant, Director Commercial Rulings Division