CLA-2 CO:R:C:M 957143 LTO

Mr. Kevin M. Smith
General Motors Corporation
3044 West Grand Boulevard, Room 15-136
Detroit, Michigan 48202

RE: Remote Keyless Entry; HQ 953013; heading 8525, 8527; EN 85.25, 85.26, 85.27; Section XVI, note 4

Dear Mr. Smith:

This is in response to your letter of October 7, 1994, requesting the classification of the Remote Keyless Entry under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The device in question is referred to as the "Remote Keyless Entry" (RKE), which is used exclusively in GM motor vehicles. The RKE uses radio waves to perform several functions, including, but not limited to, unlocking a vehicle's doors, turning on lights and releasing the rear trunk lid.

The RKE consists of a receiver assembled in Singapore and two transmitters assembled in Japan. After assembly, the receiver and two transmitters have their radio frequencies programmed to match one another. The matched receiver and transmitters are taped together, placed in a plastic bag and then packaged for shipment to the U.S.

ISSUE:

Whether the RKE is classifiable, according to section XVI, note 4, as radio remote control apparatus under heading 8526, HTSUS.

LAW AND ANALYSIS: The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 - 2 -

states, in pertinent part, that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Co-operation Council's official interpretation of the Harmonized System. While not legally binding, the ENs provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

Heading 8526, HTSUS, provides for radio remote control apparatus. EN 85.26, pg. 1376, states that the heading covers radio apparatus for the remote control of machines.

In HQ 953013, dated April 15, 1993, Customs classified transmitters for a similar device, also referred to as a Remote Keyless Entry, under subheading 8526.92.00, HTSUS, which provides for other radio remote control apparatus. The transmitters were used to transmit a radio signal which controlled various functions in an automobile, such as, the trunks and doors. We held that the transmitters, when imported by themselves (without receivers), were covered by heading 8526, HTSUS.

In HQ 953013, we determined that the transmitters were not classifiable under heading 8525, HTSUS, which provides for transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television. We stated that the transmitters were not for radiotelephony or radiotelegraphy, as they were not used for the "transmission of signals (representing speech, messages or still pictures)," nor were they for television or radiobroadcasting. See EN 85.25, pg. 1374. Similarly, the RKE cannot be classified under heading 8525, HTSUS, nor can it be classified under heading 8527, HTSUS, which provides for reception apparatus for radiotelphony, radiotelegraphy or radiobroadcasting. See EN 85.27, pg. 1377.

The RKE at issue consists of a separate receiver and two transmitters. The RKE's components use radio waves to perform several functions, including unlocking a vehicle's doors, turning on lights and releasing the rear trunk lid.

Note 4 to section XVI, HTSUS, provides that:

Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or - 3 -

chapter 85, then the whole falls to be classified in the heading appropriate to that function.

The RKE consists of individual components, a receiver and two transmitters, that contribute together to a clearly defined function described by heading 8526, HTSUS. Thus, the RKE is a "functional unit," and the receiver and transmitters are classifiable together under subheading 8526.92.00, HTSUS.

HOLDING:

The Remote Keyless Entry is classifiable under subheading 8526.92.00, HTSUS, which provides for other radio remote control apparatus. The corresponding rate of duty for articles of this subheading is 4.9% ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division