CLA-2-85:RR:NC:1:108 I84878
Ms. Lucy Richardson
Sony
123 Tice Boulevard
Woodcliff Lake, New Jersey 07675
RE: The tariff classification of XM Satellite Radio from Japan.
Dear Ms. Richardson:
In your letter dated August 1, 2002 you requested a tariff classification ruling.
The item in question is an XM Satellite radio kit, designed for use in an automobile. The kits are configured in three different model types.
Model DNR-XM01C is composed of the satellite receiver, antenna, remote control, a cassette adapter/car battery cord and a cradle.
Model DNR-XM01R is composed of the satellite receiver, RF modulator, antenna, remote control and cradle.
Model DNR-XM01H is composed of a satellite receiver, antenna, remote control, cradle and an AC power adapter
Each specific model kit is packaged for retail sale. Samples of the actual packaging, in which the kits will be imported and sold, at retail, have been furnished to this office. Each configured kit is designed to provide satellite radio to a listener while using an automobile. Satellite radio is broadcast radio transmitted via a satellite, directly to the receiver, on the XM frequency band. It is designed to provide 100 channels of subscriber radio to the user.
Explanatory note X to GRI 3b provides for the purpose 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 facie, classifiable in different headings.
B. Consist of products put up together to meet a specific activity; and
C. Are put up in a manner suitable for sale to users without repackaging (e.g. in boxes or cases op on boards).
All of the aforementioned models are composed of items, which are prima facie classified in different headings. Together they enable the user to receive satellite radio broadcasts. Based upon the supplied retail packaging, for each model type, it is evident that the configured items will not be repackaged after importation. Therefore it is the opinion of this office that each configured model type do in fact constitute a set in accordance with Explanatory Note X.
In accordance, in part, with GRI 3b … goods put up in sets for retail sale, which cannot be classified by reference to GRI 3a, shall be classified as if they consisted of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the goods.
It is the opinion of this office, that for each model type, the item which imparts the essential character to these particular sets, is the XM satellite radio receiver. It clearly provides the most important function and dominates each set model in nature and its role with the other constituent components.
Upon review of the descriptive literature and detailed explanation of the function of the XM satellite radio receiver, it is the opinion of this office that it is in fact a radio broadcast receiver. The receiver does meet the requirements of a radio broadcast receiver as defined by Channel Master v. United States; “A radio receiver, as that term is used in the tariff schedules, is an eo nominee designation for an article which has been lexicographically and judicially defined as capable of performing three basic functions; selectivity, amplification and detection”. The XM satellite radio receiver unit accomplishes these three functions. It has a tuner that demodulates and amplifies the satellite radio signal. Therefore this office considers the receiver unit to be a radio broadcast receiver designed for use in a motor vehicle.
The applicable subheading for the XM Satellite Radio sets, models DNR-XM01C, DNR-XM01H and DNR-XM01R will be 8527.29.8060, Harmonized Tariff Schedule of the United States (HTS), 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: Radiobroadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles, including apparatus capable of receiving also radiotelephony or radiotelegraphy : Other: Other … Other. The rate of duty will be 4.4 percent ad valorem.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Michael Contino at 646-733-3014.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division