CLA-2-85: RR: NC: 1:108 K83041
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 February 9, 2004, on behalf of your client Sanyo Manufacturing Corporation, you requested a ruling on the status of television parts from Mexico under the NAFTA.
The issue at hand concerns the proper classification and NAFTA eligibility of specified television components, forming a television chassis, model number VB9E H3DAM, imported both separately and as an unassembled unit. The various components are designated as Blocks. They are configured as follows:
- Block A is designated as the A/V unit and NTSC VHF/UHF tuner. This block contains the designated tuner and channel selector, an A/V (audio/video) unit and composite video inputs. As per Additional U.S. Notes 4 and 10, Chapter 85, HTSUS, this block contains the video intermediate (IF) amplifying and detecting systems, some of the synchronizing and deflection circuitry, and a tuner as mentioned in Note 10, as well as the channel selector assembly and the tuner which are listed under Note 4.
- Block B is designated as the Power, Control unit, Degaussing coil and Speaker’s Connector Unit. It contains a control unit (with consumer-operated controls), a switch, a power supply, a degaussing coil connector, an audio amplifier and a speaker connector. As per Additional U.S. Notes 4 and 10, Chapter 85, HTSUS, this particular block incorporates some of the audio detection and amplifications systems (Note 10) as well as the consumer-operated controls (Note 4).
- Block C covers the remainder of the chassis. It includes the Main unit and the CRT socket unit. The Main unit incorporates a digital ATSC tuner, which is placed in a digital module. The Main unit also contains vertical and horizontal deflection circuitry, a CPU, an IF video and audio section, a signal processor, and a deflection yoke connector. The CRT socket unit incorporates the socket for the CRT. As per Additional U.S. Note 4, Chapter 85, HTSUS, Block C includes the digital tuner. Per Additional U.S. Note 10, Chapter 85, HTSUS, it has the video processing and amplification systems, some of the synchronizing and deflection circuitry, the digital tuner and tuner control system, some of the analog tuner control system and some of the audio detection and amplification systems.
It should be noted that the three blocks comprise a television chassis however without the deflection yoke, degaussing coil, picture tube, ground connector and speaker. It is anticipated that Blocks A, B and 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 different types of 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 and NY Ruling K82594 provide guidance for the classification. Based upon the fact that these particular scenarios are quite similar without any distinguishing factors to that described in NY Ruling K82594 classification of the unassembled television chassis, model No. VB9E H3DAM, will be under 8529.90.4300, HTSUSA.
As separate imports, per scenario 3, each Block must be considered individually. Block A is composed of the parts specified in Additional U.S. Note 10 with also the analog tuner and channel selector assembly specified in Additional U.S. Note 4. It also has multiple printed circuit boards since the tuner includes its own board. Block C includes many of the parts specified in Additional U.S. Note 10 as well as the digital tuner of Additional U.S. Note 4, Chapter 85. It also incorporates multiple printed circuit boards. Therefore it is the opinion of this office that Blocks A and C, when individually imported are classifiable in subheading 8529.90.4300, HTSUSA.
Block B only incorporates only one part specified in Additional U.S. Note 10, Chapter 85. Also it only contains one printed circuit board. Therefore it is the opinion of this office that Block B would be considered as a part of television receivers under subheading 8529.90.3900, HTSUSA.
The applicable tariff provision for the parts specified as Blocks A, B and C when imported under scenarios 1 and 2 and for Blocks A and C when imported separately, 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 part specified as Block B, when imported separately, will be 8529.90.3900, 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.
It should be noted that many of the components contained on the three blocks are NAFTA originating articles. However the digital module, various semiconductors, bare printed circuit boards and capacitors used in the production of the three blocks are non-originating articles.
This office has been furnished with detailed information concerning the manufacturing process conducted on these parts specified as Blocks A, B and C. The finished parts specified as such 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 capacitor
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