CLA-2-85:RR:NC:1:108: H86014
Mr. Mitch Breyfogle
KWE
4041 MacArthur Boulevard, Suite 240
Newport Beach, CA 92660
RE: The tariff classification of a Global Positioning Device.
Dear Breyfogle:
In your letter dated August 9, 2001, and received in this office on December 5, 2001, on behalf of your client Alpine Electronics of America, you requested a tariff classification ruling.
The item in question is denoted as a navigational unit to be installed in automobiles. The unit incorporates, in a single housing a Global Positioning System, a Digital VideoDisk player, a monitor and an AM/FM radio.
The Global Positioning System is designed to operate from satellite signals and provide the user with location and directional information. The Digital VideoDisk Player is capable of playing compact audio disks and only navigational DVD’s. It is not capable of recording CD-R disks nor playing or viewing DVD videos. The monitor is designed to only display the images from the navigational disk programs and the radio functions as a complete radiobroadcast receiver.
Legal Note 3 to section XVI states that: “unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.”
The item in question consists of at least two machines, which perform two alternative functions. The GPS device performs radio navigational aid for a driver of an automobile and the AM/FM radio provides for audio entertainment for the passengers of the vehicle. Therefore this office considers this item to be composite good. It is also the opinion of this office that the principal function of this apparatus is that of the Global Positioning Device. This is based upon the descriptive literature, which shows this device to be the predominant aspect for use, by the purchaser. The Global Positioning Device is of primary importance in the operation of the Navigation unit.
The applicable subheading for the Navigation unit will be 8526.91.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for: Radar apparatus, radio navigational aid apparatus and radio remote control apparatus; Other: Radio navigational aid apparatus … Reception only apparatus. 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