CLA-2-85:OT:RR:NC:N4:108
Ms. Maria Marisela Ince
HSN
1 HSN Drive
St. Petersburg, FL 33729
RE: The tariff classification of an HD video drone with accessories, and a video drone battery kit from Hong Kong
Dear Ms. Ince:
In your letter dated September 18, 2015, you requested a tariff classification ruling. The provided samples are being returned.
The merchandise under consideration is the HD Video Drone 2.4 GHz Quadrocopter with accessories and the HD Video Drone Battery Kit, both of which are stated to be imported and sold separately from each other.
The HD Video Drone 2.4 GHz Quadrocopter is a composite good consisting of a digital camera and a remote control copter. The camera is an HD camera, used with an SD card reader and a 4GB SD storage card, which can record and capture high-definition video and still images. The remote control copter, with a flight range up to 500 feet, uses the 6 Axis gyro for flight stability and maneuverability. It is noted that the HD Video Drone Quadrocopter with accessories is imported as a set, packaged for retail sale, with a remote control and other related accessories.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI’s) taken in order. GRI 1 provides that classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and, if the heading and legal notes do not otherwise require, the remaining GRI’s are applied, taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) provides that a set or a composite good is to be classified in the heading that provides the most specific description. Since the HD Video Drone with accessories contains components that are equally specific, this merchandise then cannot be classified under GRI 3(a). Accordingly, we must next consider the classification of the item under GRI 3(b) that covers among other things, goods put up in sets for retail sale.
According to GRI 3(b), the HD Video Drone with accessories, as described above, constitutes a good put up in a set for retail sale since the subject merchandise meets the following criteria: it consists of at least two different articles which are, prima facie, classifiable in different headings; it consists of products put up together to meet a particular need or carry out a specific activity; and it is put up in a manner suitable for sale directly to users without repacking. And the HD Video Drone itself, within the set, is considered a composite good, according to GRI 3(b), since it meets the criterion of a good made up of different components, which cannot be classified by reference to GRI 3(a).
In this regard, the subject merchandise, first considered as a set and then a composite good for tariff classification purposes, is to be classified, according to GRI 3(b), as if it consisted of the material or the component which provides the essential character. The primary purpose of the set is for the operation of the HD Video Drone, and the primary purpose of the HD Video Drone is to capture and record still and moving images. Thus, it is the opinion of this office that the essential character of the HD Video Drone with accessories (the set) is imparted by the HD Video Drone, and the essential character of the HD Video Drone (the composite good) is imparted by the digital camera.
The applicable subheading for the HD Video Drone Quadrocopter with accessories will be 8525.80.4000, HTSUS, which provides for “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Digital still image video cameras.” The rate of duty will be Free.
The HD Video Drone Battery Kit consists of two encased lithium polymer batteries with a USB cable. The batteries are rechargeable. The USB cable is fitted with a USB male connector on one end and a micro USB male connector on the other end. In order to charge the battery, the micro USB plug connects to the battery, and the USB male connector is plugged into a battery charging adaptor, which is not included. When used to power the HD Video Drone Quadrocopter, the battery is inserted into the battery compartment of the drone. Each battery allows the drone to have flight for up to 10 minutes.
In your submission, you suggested classification of the battery kit in subheading 9503.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof…Other.” However, the subject video drone is not classified as a toy and, therefore, the subject merchandise is not classifiable in Chapter 95, HTSUS.
The applicable subheading for the HD Video Drone Battery Kit will be 8507.60.0020, HTSUS, which provides for Lithium-ion batteries: Other. The rate of duty is 3.4 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Lisa Cariello at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division