CLA-2 RR:CR:GC 963674 GOB
Port Director
U.S. Customs Service
3600 E. Paisano, Bldg. B
El Paso, TX 79905
RE: Protest 2402-99-100044; Cassette module tape decks
Dear Sir:
This is our decision with respect to Protest 2402-99-100044 filed on behalf of Philips Automotive Electronics (“protestant”) concerning the classification of certain cassette module tape decks under the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
Numerous entries were filed between March 5, 1998 and December 19, 1998. All of the subject entries were liquidated on September 24, 1999. The protest was filed on December 9, 1999.
The cassette module tape decks were entered under subheading 8519.93.40, HTSUS, and treatment under the North American Free Trade Agreement (“NAFTA”) was claimed. Customs denied NAFTA treatment and liquidated the entries under the entered subheading.
The protestant now claims that the cassette module tape decks are classified under subheading 8519.93.80, HTSUS.
The protestant describes the subject merchandise as follows:
The cassette module ... has been given the designation SCA 4.4 and is a sub-assembly for an auto entertainment system. The module contains the mechanism to drive the cassette tape and an unprogrammed Printed Circuit Board (hereafter “PCB”). It cannot reproduce sound in its condition as imported. It cannot function without an external power supply (12 – 14 voltsystem) and the software operating instructions found on the PCB of the AM/FM radio to which it is attached. The controlling mechanism for the module is programmed into the radio’s PCB, not the PCB attached to the module.
...
The module is designed for use in an AM/FM radio to be installed in boats, aircraft and automobiles. There are no
special design features that limit the module for installation and use solely in an automobile. The module is designed for rugged, heavy-duty use. It is weighted to balance the capstans which reduce flutter (vibration from the operation of the conveyance). The chassis is made of metal that is tested to meet demanding use in a vibrating environment such as watercraft, small aircraft and automobiles. In order to function, the module must be connected to an AM/FM radio containing a specially programmed PCB. Additionally, the vessel, aircraft or automobile must generate its own source of electrical power. Hooking the module to a battery will result in neither a sound-reproducing, nor functioning cassette deck.
[Emphasis in original.]
ISSUE:
What is the classification under the HTSUS of the cassette module tape decks?
LAW AND ANALYSIS:
We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied.
GRI 2(a) provides in pertinent part: “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.”
GRI 6 provides in pertinent part: “For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at any level are comparable.”
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
The HTSUS provisions under consideration are as follows:
8519 Turntables, record players, cassette players and other sound recording apparatus, not incorporating a sound recording device:
Other sound reproducing apparatus:
8519.93 Other, cassette type:
8519.93.40 Designed exclusively for motor-vehicle installation
* * * * *
8519.93.80 Other
The protestant claims that the cassette module tape decks are classified in subheading 8519.93.80, HTSUS, because they are not designed exclusively for motor vehicle installation.
In support of this claim, it has submitted the following. In an undated letter from the Philips Components division of Philips to Customs (which on its face is in response to Customs request for information of April 21, 1999), the application development manager of Philips states: “The Philips Playback Modules are designed and manufactured using raw materials selected to endure severe environmental conditions . . . The Philips mechanisms are designed to meet and exceed [certain] requirements thus allowing their use in various markets and not limited to automotive applications.” In a letter of August 12, 1999, the vice president, engineering of Audio International states: “. . . Audio International’s sole . . . use for the Philips playback mechanisms . . . is that of aviation use only.“ In a letter of August 11, 1999 from Audiovox Specialized Applications (ASA) to Philips Components, a product development official stated: “. . . ASA does provide radios for the marine industry. Based upon our experience and knowledge of Philips APM cassette mechanisms, we would consider your product to be qualified for marine applications.”
The protestant has also submitted copies of brochures from aircraft and marine suppliers which depict finished cassette decks into which the subject modules could be assembled.
There is no documentation in the file which would support the fact that the subject cassette module tape decks are designed exclusively for installation in motor vehicles. As the protestant points out, the phrase “designed exclusively for” is not the same as sole or principal use. “Designed exclusively for motor-vehicle installation” indicates that the good was manufactured with the specific, sole intention of being used in automobiles, and with no other intention. As indicated above, the subject cassette module tape decks are not designed exclusively for motor-vehicle installation.
After a careful consideration of the evidence of record, we conclude that GRI 2(a) is applicable to the classification of the goods, i.e., while the cassette module tape decks are incomplete or unfinished, they have the essential character of complete or finished cassette module tape decks. Previously, in HQ 085399 dated December 20, 1989, we found that certain cassette modules possessed the essential character of cassette tape players.
We further conclude that the subject cassette module tape decks are not designed exclusively for motor vehicle installation. Accordingly, by virtue of GRI 6, they are classified in subheading 8519.93.80, HTSUS, as: “Turntables, record players, cassette players and other sound recording apparatus, not incorporating a sound recording device: . . . Other sound reproducing apparatus: . . . Other, cassette type: . . . Other.”
HOLDING:
The subject cassette module tape decks are classified in subheading 8519.93.80, HTSUS, as: “Turntables, record players, cassette players and other sound recording apparatus, not incorporating a sound recording device: . . . Other sound reproducing apparatus: . . . Other, cassette type: . . . Other.”
You are instructed to GRANT the protest.
In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations
and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.treas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division