CLA-2-85:RR:NC:1:108: H87532
Mr. Craig M. Schau
Emery Customs Brokers
6940 Engle Road, Suite A
Middleburg Heights, OH 44130
RE: The tariff classification of an audio/video recorder from Singapore.
Dear Mr. Schau:
In your letter dated January 16, 2002, on behalf of your client Teraoptix, LP, you requested a tariff classification ruling.
The item in question is denoted as the Terapin CD Audio Video Recorder. It is denoted as model TX-0002. It is packaged for retail sale with a remote control device, connection cables, blank recording media (CDR and CDR/W), an operation manual and printed product literature (sample enclosed).
The item is designed to record either video or audio from sources such as a camcorder, broadcast television programming, a VCR, a DVD player, a CD player, an audio DVD player, a radio tuner, and a cassette tape player, directly onto either CD-R or CD-RW discs placed within the apparatus. These discs can be played on a variety of devices such as DVD player, a VCD player a CD player or a multi-media PC for both audio and video reproduction. The apparatus is configured with all the necessary video/audio input and output jacks for connection to any chosen apparatus source.
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 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 of the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to record both audio and video, from various sources, onto the latest technology of compact discs. The enclosed retail sample is clear evidence that the product will be sold to the user without any repackaging. It is the opinion of this office that the Audio/Video Recorder, model TX-0002, and its accompanied items constitute 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 a constituent material in relation to the goods.
It is the opinion of this office that the item which imparts the essential character of this particular set is that of the Audio/Video Recorder. It is the dominant component apparatus, by use and cost of the set and the reason why one would purchase the entire set. It is to be noted that this office considers the Audio/Video Recorder, model TX-0002 to be a composite good. The apparatus is designed to record both audio entertainment and video entertainment from primary sources for both forms of entertainment.
Note 3 to Section XVI of the Harmonized Tariff Schedule of the United states (HTS) provides, in pertinent part, that unless the context requires otherwise, machines adapted for the purpose of performing two or more complimentary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. It is the opinion of this office that based upon the dual functioning capacity of this device, that neither demonstrates a principal function. Therefore classification of the Audio/Video recorder will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States, (HTS).
Legal Note 6 to chapter 85 requires, in part, that records, tapes and other media of heading 8523 or 8524 remain classified in those headings when entered with the apparatus for which they are intended. For the purposes of this note, the term “apparatus for which they are intended” refers to apparatus which reads or plays the media or which records or writes on the media. The functioning of the Audio/Video Recorder clearly demonstrates that it qualifies as an intended apparatus for the purpose of Legal Note 6 to chapter 85. Therefore the contained prepared unrecorded discs will remain classified in their particular heading.
The applicable subheading for the Audio/Video Recorder, model TX-0002, packaged for retail sale as a set will be 8521.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for Video recording or reproducing apparatus, whether or not incorporating a video tuner: Other. The rate of duty will be free.
The applicable subheading for the CD-R and CD-RW, prepared unrecorded discs, will be 8523.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for Prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of chapter 37: 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