CLA-2-85: RR: NC: 1:108 K82594
Ms. Gail T. Cumins
Sharretts, Paley, Carter & Blauvelt, P.C.
Seventy-five Broad Street
New York, NY 10004
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of television parts from Mexico; Article 509
Dear Ms. Cumins:
In your letter dated January 22, 2004, on behalf of your client Sanyo Manufacturing Corporation, you requested a ruling on the status of television components from Mexico under the NAFTA.
The issue at hand concerns both the proper classification and NAFTA eligibility of specified television components, forming a television chassis, imported both separately and as an unassembled unit. The various components are designated as Blocks. They are configured as follows:
- Block A is denoted as the Power, Vertical and Horizontal Deflection Unit. It is a printed circuit board populated with the vertical and horizontal deflection circuitry and the deflection yoke connector. It also has some synchronizing and deflection circuitry per Additional U.S. Note 10 but does not have any components specified in Additional U.S. Note 4.
- Block B is denoted as the Front Panel Unit. It is a printed circuit board populated with a control unit (with consumers-operated controls), a switch, a power supply, a degaussing coil connector, an audio amplifier, and a speaker connector. It also has some of the audio detection and amplification systems per Additional U.S. Note 10 and the consumer-operated controls per Additional U.S. Note 4.
- Block C covers the rest of the chassis. This includes the main chassis unit, the velocity modulator unit and the CRT socket unit. The main chassis unit has two tuners, an analog VHF/UHF tuner and a digital ATSC tuner. The digital tuner is placed inside a digital module. This block also contains an A/V selector unit, a video processor unit, a CPU, an IF Video and Audio section and a signal processor. The velocity modulator unit contains the velocity modulator, and the CRT socket unit incorporates the socket for the CRT. Pertaining to Additional U.S Note 10 Block C has the video intermediate (IF) amplifying and detecting systems, the video processing and amplification systems, some of the synchronizing and deflection circuitry, the tuners and tuner control systems and some of the audio detection and amplification systems. Pertaining to Additional U.S. Note 4 Block C includes the two tuners and a channel selector assembly.
It should be noted that all three Blocks comprise the television chassis without the deflection yoke. It is anticipated that the three blocks (A, B & C) will be imported in three different scenarios. They are specified as follows:
Scenario 1 calls for the importation of the blocks in separately packed sets, so that each carton in a given shipment would contain one of each of the three blocks (e.g., a shipment of 100 cartons with each carton containing Blocks A, B and C).
Scenario 2 calls for the importation of the blocks in cartons segregated by type of block, with the entire shipment containing the same number of all three blocks (e.g., a shipment consisting of 2 cartons with 50 Block A’s, 1 carton with 100 Block B’s and 4 cartons with 25 Block C’s apiece).
Scenario 3 calls for the importation of separate blocks or in non-matching numbers.
It should be noted that for scenarios 1 and 2 GRI 2(a), HTSUS, and HQ Ruling 955743 provide guidance for the classification.
It is the opinion of this office that when imported under scenarios I and 2 Blocks A, B and C constitute unassembled versions of the television chassis denoted as model VBIB H3ELM. Accordingly, per GRI 2(a), HTSUS, they are classified together in the same manner as the assembled television chassis. Thus together these Blocks include most but not all of the parts specified in Additional U.S. Note 10, Chapter 85, HTSUS. The deflection yoke, among some others, is a part that is not present. It serves as an integral part of the deflection circuitry. Therefore based upon HQ Ruling 955743 the unassembled chassis cannot be considered as an incomplete television receiver per subheadings 8528.12.04 or 8528.12.08, HTSUS. However it is the opinion of this office that the present configuration of components, per the unassembled Blocks, are parts specified in Additional U.S. Note 10, Chapter 85 and as such are quite similar to that specified in NY Ruling K80303. In particular, Additional U.S. Note 4(a), Chapter 85, provides that for the purposes of subheadings 8529.90.43 and 8529.90.46, each subassembly that contains as a component, or is covered in the same entry with, inter alia, a tuner, a channel selector assembly, or consumer operated controls. Also since the unassembled chassis contains the components specified in Additional U.S. Note 4(a), Chapter 85 the unassembled chassis is classified, when imported under scenarios 1 and 2, under subheading 8529.90.4300, HTSUSA.
As separate imports, per scenario 3, each Block must be considered individually. Blocks A and B only incorporate one part specified in Additional U.S. Note 10, chapter 85. Also they only contain one printed circuit board. It is the opinion of this office that Blocks A and B would be considered parts of television receivers under subheading 8529.90.39, HTSUS.
Block C incorporates many of the parts specified in Additional U.S. Note 10, Chapter 85, HTSUS. It also contains the tuners and the channel selector assembly, which are components specified in Additional U.S. Note 4, Chapter 85, HTSUS. Finally Block C incorporates multiple printed circuit boards. Therefore it is the opinion of this office that Block C, imported separately would be classified under subheading 8529.90.43, HTSUS.
The applicable tariff provision for the parts specified as Blocks A, B and C when imported under scenarios 1 and 2 will be 8529.90.4300, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Combinations of parts specified in additional U.S. note 10 to this chapter: Subassemblies, for color television receivers, containing two or more printed circuit boards or ceramic substrates with components assembled thereon, except tuners or convergence assemblies: Entered with components enumerated in additional U.S. note 4 to this chapter. The general rate of duty will be 4 percent ad valorem.
The applicable tariff provision for the parts specified as Blocks A, and B, when imported separately under scenario 3 will be 8529.90.3900 for Blocks A and B, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for parts suitable for use solely or principally with the apparatus of heading 8525 to 8528: Other: Parts of television receivers specified in additional U.S. note 10 to this chapter, other than printed circuit assemblies: Other. The general rate of duty will be 2.9 percent ad valorem.
The applicable tariff provision for the part specified as Block C, when imported separately under scenario 3 will be 8529.90.4300, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Combinations of parts specified in additional U.S. note 10 to this chapter: Subassemblies, for color television receivers, containing two or more printed circuit boards or ceramic substrates with components assembled thereon, except tuners or convergence assemblies: Entered with components enumerated in additional U.S. note 4 to this chapter. The general rate of duty will be 4 percent ad valorem.
It should be noted that many of the components contained on the three blocks are NAFTA originating articles. However the digital module, many of the semiconductors, bare printed circuit boards and capacitors are non-originating articles.
Detailed information as been provided to this office concerning the manufacturing process conducted on these parts specified as Blocks A, B and C.
The finished parts specified as Blocks A, B and C are not wholly obtained or produced entirely in Canada, Mexico or the United States, nor produced in such countries exclusively from originating materials. It is the opinion of this office that they have met the applicable “tariff shift” rules for goods of subheadings 8529.90.39 and 8529.90.43, HTSUS. The Blocks are manufactured from bare printed circuit boards, semiconductors and capacitors.
Each of the non-originating materials used to make the parts specified as Blocks A, B and C has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/96 and 97. The enumerated parts will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
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