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HQ 087179


May 31, 1991

CLA-2 CO:R:C:M 087179 CMS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8527.31.40, 8527.31.50
8527.31.60

Ms. Gail T. Cumins, Esq.
Sharretts, Paley, Carter & Blauvelt
Sixty-Seven Broad Street
New York, NY 10004

RE: Reception Apparatus For Radiobroadcasting; Same Housing; Combined With Sound Recording Or Reproducing Apparatus; Rack Systems; Stereo; Audio; Tape Players Incapable, Capable Of Recording, Playing; Dual Cassette Decks; Double; HQ Ruling 083065 (August 29, 1989), Revoked

Dear Ms. Cumins:

This is in response to your request on behalf of Sanyo Fischer (USA) Corporation, dated May 15, 1990, for a classification ruling on certain audio system components. Our ruling follows.

FACTS:

The merchandise consists of three Sanyo audio systems described as the Model GXT858, Model ICS62OA and Model ICS625A. The systems incorporate an AM/FM tuner and amplifier, equalizer, dual cassette deck and turntable in the same housing. Separately housed speakers are also entered with the systems. The Model GXT858 includes a hand held remote control device. The systems cannot operate without an external source of power.

The dual cassette deck contains two tape wells. One well has tape heads for recording and playing, and the other well has a tape head for playing only. The dual cassette deck features the ability to record from one tape to another, to record from the tuner, turntable or other source, and to play. The wells are also designed to work together so that when the end of the tape in one well is reached, the pause mechanism of the other well disengages to allow continuous play.

The dual cassette deck wells are driven by the same motor, which is incorporated in the cassette deck assembly mounted behind the tape deck section of the main system housing. The dual cassette deck wells share the same output and many common parts, such as a chassis assembly, gears, roller assemblies and numerous rods, levers and springs. The dual cassette deck wells also share certain controls such as switches for noise reduction and dubbing.

ISSUE:

Are the systems classified in subheading 8527.31.40 as combinations incorporating tape players which are incapable of recording, in subheading 8527.31.50 as other combinations incorporating tape recorders, or in subheading 8527.31.60 as other combinations?

LAW AND ANALYSIS:,

The Harmonized Tariff Schedule of the United States Annotated (HTSUSA) superseded the TSUS effective January 1, 1989. The HTSUSA provides that the classification of articles is governed by the General Rules of Interpretation (GRI's). GRI 1 states in pertinent part that "...classification shall be determined according to the terms of the headings and any relative section or chapter notes...".

Heading 8527 in part describes reception apparatus for radiobroadcasting, combined in the same housing with sound recording or reproducing apparatus. The three audio systems under consideration are described by Heading 8527.

GRI 6 governs the classification of goods in the subheadings of a heading. GRI 6 provides in pertinent part that the classification of goods in the subheadings of a heading is determined according to the terms of the subheadings.

The article descriptions for the subheadings at issue read as follows:

8527.31.40 Combinations incorporating tape players which are incapable of recording

8527.31.50 Other combinations incorporating tape recorders

8527.31.60 Other

Sanyo argues that the systems are classified in subheading 8527.31.40, on the basis that they incorporate tape players which are incapable of recording. It is beyond doubt, however, that the dual cassette deck incorporated in the systems is capable of recording. The systems do not incorporate tape players which are incapable of recording.

The dual cassette deck physically and functionally integrates two tape wells to allow the wells to be used together to record from one well to the other, or to have continuous play from one well to the other. Even when utilizing the continuous play feature, the well with the tape head capable of recording is used. One can also use the dual cassette deck for single well play or record; however, the "play only" well cannot operate without the many common tape deck parts it shares with the "record/play" well, parts which allow the dual cassette deck to be capable of recording.

If classified separately, the dual cassette deck would be described by Heading 8520 as a tape recorder incorporating a sound reproducing (playing) device. The fact that the dual cassette deck may be housed together with tuner/amplifiers and other components does not erase its identity as a dual cassette deck that records as well as plays. The dual cassette deck component of the audio systems under consideration is not described in the promotional literature as a separate tape player and tape recorder, but is identified as a "Dual Transport Stereo Cassette Deck", or "double cassette deck". May 15, 1990 submission, Exhibit 1.

The decisions of Montgomery Ward & Co. v. United States, 73 Cust. Ct. 187, CD 4573 (1974), Sears Roebuck & Co. v. United States, Slip Op. 89-136 (CIT, 1989) and HQ Ruling 553918 (April 18, 1986), cited by Sanyo, are inapposite. The tariff language in these TSUS decisions is not the same as the relevant HTSUSA language in Heading 8527. The Court's holding in Montgomery Ward & Co., supra, that a radio/phonograph/8-track tape player combination was not classifiable as a radio/phonograph combination, provides no support for Sanyo's position in this matter. The Court in Sears Roebuck & Co., supra, held that the plaintiff failed to rebut the presumption of correctness attached to Customs classification of certain stereo components as separate components, and not as an entirety; the Court decided that the components should be classified as individual components, but the issue of the correct classification of a dual cassette deck in particular was not substantively discussed.

Sanyo argues that the intent in the changeover from the TSUS to the HTSUSA was for combinations incorporating a dual cassette deck to be classified in 8527.31.40, HTSUSA. The express terms
and plain meaning of the article description for subheading 8527.31.40, however, do not express this "intent". Combinations incorporating a dual cassette deck (which is capable of recording), simply cannot be described as combinations incorporating tape players which are incapable of recording.

Unlike subheading 8527.31.40, which restricts the tape players described to those which are incapable of recording, subheading 8527.31.50 does not restrict the tape recorders described to those which are incapable of playing. The three audio systems under consideration are classified as other combinations incorporating tape recorders, in 8527.31.50, HTSUSA.

On p. 2 of Sanyo's May 15, 1990 submission, it is stated that the merchandise classified in HQ Ruling 083065 (August 29, 1989) is "identical" to certain of the three audio systems at issue in this ruling. HQ Ruling 083065 held that the audio system under consideration was classified in subheading 8527.31.40, HTSUSA. The proper classification of the merchandise in HQ Ruling 083065, however, could not have been subheading 8527.31.40, because the audio system incorporated a dual cassette deck which was capable of recording; the system did not incorporate a tape player which was incapable of recording. Accordingly, HQ Ruling 083065 (August 29, 1989) is revoked, and a letter to this effect will be issued to the requestor of HQ Ruling 083065, concurrent with the issuance of this ruling. The proper classification of the system at issue in HQ Ruling 083065 is 8527.31.50, HTSUSA.

HOLDING:

The Sanyo Model GXT858, Model ICS62OA and Model ICS625A audio systems, and the merchandise at issue in HQ Ruling 083065 (August 29, 1989), are classified as reception apparatus for radiobroadcasting, combined in the same housing, with sound recording or reproducing apparatus, other radiobroadcast receivers, combined with sound recording or reproducing apparatus, other, other combinations incorporating tape recorders, in 8527.31.50, HTSUSA.

HQ Ruling 083065 (August 29, 1989) is revoked pursuant to Customs Regulation 177.9(d), 19 C.F.R. 177.9(d).

Sincerely,


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