CLA-2 CO:R:C:M 955055 KCC
Mr. Sal Della Ventura
Sony Electronics Inc.
123 Tice Boulevard
Woodcliff Lake, New Jersey 07675
RE: Visual World-band Receiver; receiver; AC adapter; battery
charger; rechargeable battery; antenna set; 8527.19.00;
8527.32.00; GRI 3(b); set; EN X to GRI 3(b); essential
character; EN Rule 3(b); composite machine; Note 4, Section
XVI; principal function; GRI 3(c); General EN (VI) Multi-
Function Machines and Composite Machines
Dear Mr. Ventura:
This is in response to your letter dated August 25, 1993, to
Customs in New York, regarding the tariff classification of a
visual world-band receiver under the Harmonized Tariff Schedule
of the United States (HTSUS). Your letter, together with the
submitted descriptive literature, was forwarded to this office
for a response.
FACTS:
The visual world-band receiver ("world-band receiver"),
model CRF-V21, is designed to receive FM broadcast, and short
wave, long wave, and medium wave signals. The world-band
receiver is also equipped with a facsimile broadcast receiver and
printer so that weather broadcasts from satellites and stations
can be received and printed out. The world-band receiver
features a clock and is AC/DC operated. Additionally, the world-
band receiver is imported with an AC adapter, rechargeable
battery pack, battery charger, antenna set. The antenna set
includes a bar antenna, a rod antenna, antenna mounting bracket,
antenna cable, antenna winder, antenna cable extension, dust
cover, roll printer paper, and connector cable.
It is your contention that the world-band receiver is a set
classified pursuant to General Rule of Interpretation (GRI) 3(b),
HTSUS. You contend that the receiver component imparts the
essential character to the world-band receiver. Therefore, you
believe that the world-band receiver is classified under
subheading 8527.19.00, HTSUS, as other radiobroadcast receivers
capable of operating without an external source of power
The competing subheadings are as follows:
8527 Reception apparatus for radiotelephony, radiotelegraphy
or radiobroadcasting, whether or not combined, in the
same housing, with sound recording or reproducing
apparatus or a clock...
8527.19.00 Radiobroadcast receivers capable of operating
without an external source of power, including
apparatus capable of receiving also radiotelephony
or radiotelegraphy...Other....
8527.32.00 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....
8527.90.80 Other apparatus...Other....
ISSUE:
Is the visual world-band receiver classified as other
radiobroadcast receivers capable of operating without an external
source of power under subheading 8527.19.00, 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...." When, by application
of GRI 2, HTSUS, goods are prima facie classifiable under two or
more headings, GRI 3, HTSUS, is applicable. In this case,
classification is determined by application of GRI 3(b), HTSUS,
which provides:
Mixtures, composite goods consisting of different materials
or made up of different components, and goods put up in sets
for retail sale, which cannot be classified by reference to
3(a), shall be classified as if they consisted of the
material or component which gives them their essential
character....
To determine what is a "set put up for retail sale" the
Explanatory Notes (EN) of the Harmonized Commodity Description
and Coding System (HCDCS) may be utilized. EN X to GRI 3(b) (pg.
4) provides a three part test for "goods put up in sets for
retail sale":
For the purposes of this Rule, the term 'goods put up in
sets for retail sale' shall be taken to mean goods which:
(a) consist of at least two different articles which are
prima facia, classifiable in different headings....;
(b) consist of products or articles put up together to meet
a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to
users without repackaging (e.g., in boxes or cases or
on boards).
The Explanatory Notes, although not dispositive, are looked to
for the proper interpretation of the HTSUS. 54 Fed. Reg. 35127,
35128 (Aug. 23, 1989).
In the present case, the world-band receiver consists of a
receiver (heading 8527), an AC adapter and battery charger
(heading 8504), a rechargeable battery (heading 8507), and an
antenna set (heading 8529) which are classified under various
tariff provisions. The receiver, AC adapter, battery charger,
rechargeable battery, and antenna set are packaged together in a
retail container for sale directly to the consumer without
repackaging. Additionally, the receiver and accessories are put
up together to meet a particular need or carry out a specific
activity. That activity is to receive broadcast bands including
the weather forecast which can then be printed out via the
facsimile. Therefore, the world-band receiver is a set for
tariff purposes. To determine the proper classification, the
essential character of the world-band receiver needs to be
determined.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, EN Rule 3(b) (pg. 4),
provides further factors which help determine the essential
character of goods. Factors such as bulk, quantity, weight or
value, or the role of a constituent material in relation to the
use of the goods are to be utilized, though the importance of
certain factors will vary between different kind of goods.
We are of the opinion that the essential character of the
world-band receiver is imparted by the receiver. However, the
receiver is a composite machine. A composite machine consists
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.
Note 4, Section XVI, HTSUS. The world-band receiver is a clock
radio with a facsimile receiver. Clock radios are classified
under subheading 8527.32.00, HTSUS, as radiobroadcast receivers
not combined with sound recording or reproducing apparatus
incorporating a digital clock or clock timer, and facsimile
receivers are classified under subheading 8527.90.80, HTSUS, as
other apparatus. We are of the opinion that neither the clock
radio or the facsimile receiver imparts the principal function to
the receiver. Each function performed by the receiver is of
equal importance in the overall operation of the article.
Where it is impossible to determine principal function, it
is necessary to apply GRI 3(c), HTSUS. See General EN (VI)
MULTI-FUNCTION MACHINES AND COMPOSITE MACHINES (pg. 1133). 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.
In this case, the provision which occurs last in numerical order
is subheading 8527.90.80, HTSUS. Therefore, the receiver is
classified as other apparatus under subheading 8527.90.80, HTSUS.
Moreover, as the receiver imparts the essential character to the
world-band receiver, the entire set is classified under this
tariff provision.
HOLDING:
The visual world-band receiver is a set classified pursuant
to GRI 3(b), HTSUS. The essential character of the set is
imparted by the receiver which is classified under subheading
8527.90.80, HTSUS, as other apparatus. This provision is
dutiable at the Column 1 rate of 6 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division