CLA-2-85:RR:NC:1:108 J84658
Mr. William S. Malian
Delphi
5825 Delphi Drive
Troy, MI 48098
RE: The tariff classification of an XM satellite radio kit from Malaysia.
Dear Mr. Malian:
In your letter dated May 2, 2003, on behalf of Delphi Corporation, you requested a tariff classification ruling.
The item in question is denoted as the SKYFi satellite radiobroadcast receiver kit. The kit, packaged for retail sale at the time of importation, is composed of a SKYFi receiver and an infrared remote control device. The receiver is designed to receive XM satellite radio broadcasts. It is equipped with a tuner for detection and demodulation. The receiver contains an internal digital audio recording and reproducing apparatus. This enables the receiver to record audio from the radio broadcasts. The receiver is designed for connection to either a home or car stereo. The receiver can only operate with an external source of power.
It is indicated that the kit will be imported in its retail packaging without any repackaging taking place after importation.
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 particular need or carry out a specific activity; and
C. Are put up in a manner suitable for sale to users without repackaging (e.g. in boxes or cases or on boards).
All the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to access XM satellite radiobroadcasts. Based upon the information provided the imported condition of the kit will be the retail packaging. Therefore it is the opinion of this office that the SKYFi satellite radio kit constitutes 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 which gives them their essential character.
EN VIII to GRI 3b states that the factor, which determines essential character, will vary as between different kinds of goods. It may for example, be determined by the nature 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 the item that imparts the essential character to this set (kit) is the SKYFi receiver. It is the dominant apparatus contained within the set by value and use.
Based upon the detailed information provided to this office the SKYFi receiver qualifies as a radiobroadcast receiver. It meets the requirements of a radiobroadcast 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 SKIFi receiver has a tuner which selects the XM satellite radiobroadcast signal on the S-band (2332.5-2345 MHz). It amplifies the selected RF signal with amplification of 36 dB for the terrestrial RF signal and 71 dB for the satellite RF signal. The receiver provides additional, user-selectable amplification of the audio signal with an increase of up to 1 dB prior to the line out interface used to connect the receiver to an appropriate sound system. Finally, the SKYFi receiver’s tuner detects, demodulates the amplified RF signal, detecting the audio portion and separating it from the carrier portion of the signal.
This office considers the SKYFi receiver to be a radiobroadcast receiver with recording capability that cannot operate without an external source of power.
The applicable subheading for the SKYFi satellite radio kit will be 8527.31.6080, 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: Other broadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: Combined with sound recording or reproducing apparatus: Other ... Other . The rate of duty will be free.
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