CLA-2-85:RR:NC:1:108 D81814

Mr. Herbert J. Lynch
Sullivan & Lynch, P.C.
156 State Street
Boston, Massachusetts 02109-2508

RE: The tariff classification of a Home Theater System from Mexico.

Dear Mr. Lynch:

In your letter dated August 27, 1998, on behalf of your client Bose Corporation, you requested a tariff classification ruling.

The item is the Lifestyle 12 Home Theater System which will be imported from Mexico.

The system includes a stereo AM/FM tuner with a CD player, five direct/reflecting cube speaker arrays, an acoustimass bass module, videostage steering logic and a radiowave remote control apparatus. The system is designed for all common stereo uses for radio, cd playing and as a home theater stereo in conjunction with television or movies. The stereo AM/FM tuner with the cd player (also called a headunit) and the radio wave remote control apparatus will be made entirely in the United States. The headunit and remote control will be exported to Mexico for inclusion/packaging into the retail carton. The headunit and remote control are products of the United States and will only be packaged for retail in Mexico.

Additionally the amplifiers for the speakers are also products of the United States. These amplifiers will be assembled into the speakers of the Lifestyle 12 Home Theater System. The entire theater system will be imported into the United States in a retail carton from Mexico.

The applicable subheading for the Lifestyle 12 Home Theater System will be 8527.31.6040, 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 radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: Combined with sound recording or reproducing apparatus: Other ... Incorporating optical disc (including compact disc) players or recorders. The rate of duty will be 0.9 percent ad valorem.

The applicable subheading for the stereo AM/FM tuner with cd player (Headunit) and radio wave remote control apparatus, both made in the United States, will be 9801.00.1053, HTS, which provides for Products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad ... Articles provided for in headings 8517, 8520, 8525, 8527 or 8529. The rate of duty will be free.

The applicable subheading for the value of the speaker components made in the United States will be 9802.00.8065, HTS, which provides for Articles , except goods of heading 9802.00.90, assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) are exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting ... Other. The duty rate for the assembled US components 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 212-466-5672.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division