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NY I87339

October 29, 2002

CLA-2-85:RR:NC:1:108 I87339


TARIFF NO.: 8527.31.6040

Mr. Tom Wolfman
EGL Eagle Global Logistics, Inc.
55 Johnson Road
Lawrence, NY 11559

RE: The tariff classification of a home entertainment system from China.

Dear Mr. Wolfman:

In your letter dated October 10, 2002, on behalf of your client Tera Optix, LP of Carrollton, TX, you requested a tariff classification ruling.

The item in question is a home entertainment system denoted as model TT-100HTS. The system is comprised of an AM/FM radio with a video DVD player, combined in a single housing, a bass sub-woofer speaker, a 5-speaker array and an infrared remote control. It is indicated that the system will be sold at retail in its imported packaging.

The system is designed to provide complete audio and video entertainment to the retail user in one’s own home. The DVD component does not record and is only designed to play video DVDs on an appropriate television or video monitor. The AM/FM radio provides radiobroadcasts and the speaker arrays provide complete surround sound of both the radio broadcasts and of DVD video movies.

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 particular need or carry out 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 access audio/video entertainment. Based upon the information provided the imported condition will be the retail packaging. Therefore it is the opinion of this office that the home theater system constitutes 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 the constituent material in relation to the goods.

It is the opinion of this office that the item which imparts the essential character to this particular set is that of the AM/FM Radio with a built-in video DVD player. It is the dominant apparatus contained within the set by value and use. It is the means that provides the choice of entertainment for the user and it is the reason why one would purchase the set.

GRI 2b states that if a product is a mixture or combination of materials or substance that are, prima facie, classifiable in two or more headings, then GRI 3 applies. It should be noted that this office considers the AM/FM radio with a built-in video DVD player, all in a single housing, to be a composite good. This is based upon its ability to function as a radio broadcast receiver and a video-reproducing device.

GRI 3b provides that mixtures, composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component, which gives them their essential character.

It is the opinion of this office that the AM/FM radio combined with a video DVD player does not have an essential character. The device is clearly designed to perform two equally viable functions. The functions are clearly at the discretion of the user. The user can access radiobroadcast stations on either the AM or FM band or for visual entertainment by playing video DVDs. It should be noted that the system is advertised as a complete home entertainment system. Therefore classification will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States (HTS), which requires, in part, that the item be classified in the heading which occurs last in numerical order among those which merit equal consideration.

The applicable subheading for the Home entertainment system, model TT-100HTS 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: Other Incorporating optical disc (including compact disc) players or recorders. 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.


Robert B. Swierupski

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