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NY H88989

March 22, 2002

CLA-2-85:RR:NC:MM:109 H88989


TARIFF NO.: 8518.21.0000

Mr. Dave Pentland
Carson Customs Brokers (USA) Inc.
Unit 8 1-14 TH Street
P.O. Box #653
Blaine, WA 88231

RE: The tariff classification of Compact Amplified Speakers from Canada

Dear Mr. Pentland:

In your letter dated February 27, 2002, you requested a tariff classification ruling on behalf of Seanix Technology, Ltd. of Richmond, BC, Canada.

The merchandise is described in your letter as CA-2015 Compact Amplified Stereo Speakers. They are a set of 2 single speakers each enclosed in their own separate housing. These speakers have a USB connector that can be inserted into a USB port on a computer.

You claim that the speakers should be classified in Chapter 84, HTSUS. Chapter 84 Note 5 states in part as follows:

(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets the following conditions:

(a) It is a kind solely or principally used in an automatic data processing system; (b) It is connectable to the central processing unit either directly or through one or more other units; and

(c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.

(C) Separately presented units of automatic data processing machine are to be classified in heading 8471.

(E) Machines performing a specific function other than data processing and incorporating of working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective function or, failing that, in residual headings.

Pursuant to Note 5 (B), automatic data processing machines may be a “system” composed of separate components or “units.” For a component to be considered part of a “system” of an automatic data processing machine, it must meet the requirements of Note 5(B)(a), (b) and (c). However, even if it meets those requirements, a component cannot be considered part of the automatic data processing system if Note 5(E) applies. Pursuant to Note 5(E), if a component has a specific function other than data processing, even though incorporated in or working with an automatic data processing machine, it must still be classified as a separate component according to its function. The instant speakers meet the terms of Note 5(E) and therefore, cannot be part of a system pursuant to Note 5(B). See chapter 8, general EN (E)(2).

A sample of the Compact Amplified Speakers was submitted to this office and has been returned to you.

The applicable subheading for the Compact Amplified Stereo Speakers will be 8518.21.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Loudspeakers, whether or not mounted in their enclosures: Single loudspeakers, mounted in their enclosures. The general rate of duty will be 4.9 percent ad valorem.

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 Linda M. Hackett at 646-733-3015.


Robert B. Swierupski

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