United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 NY Rulings > NY J83627 - NY J83673 > NY J83641

Previous Ruling Next Ruling
NY J83641

April 30, 2003

CLA-2-85: RR: NC: 1:108 J83641


TARIFF NO.: 8527.31.6080

Ms. Nancy A. Fischer
Shaw Pittman LLP.
2300 N Street, NW
Washington, DC 20037-1128

RE: The tariff classification of an XM Satellite radio receiver kit from Malaysia.

Dear Ms. Fischer:

In your letter dated April 15, 2003, on behalf of your client XM Satellite Radio Inc., you requested a tariff classification ruling.

The item in question is denoted as an XM Satellite radio receiver kit. It is composed of a PCR radio receiver, an antenna, USB cable, audio cable and either a CD-ROM or floppy disk containing an associated software program. The radio receiver contains an internal digital audio recording and audio reproducing apparatus that allows the user to record sound from XM radio broadcasts. The kit is designed for attachment to an ADP unit and together with the software program it enables the user to access all of the XM radio broadcast channels. It cannot operate without an external source of power. It is indicated that the entire kit will be imported in its retail packaging without any repackaging occurring after importation.

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 the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to access XM satellite radiobroadcasts via an ADP unit. Based upon the information provided the imported condition will be the retail packaging. The kit will not be repackaged after importation into the United States. Therefore it is the opinion of this office that the XM satellite radio kit 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 the PCR radio receiver. It is the dominant apparatus contained within the set by value and especially use. It is clearly the reason one would purchase the set (kit).

Based upon detailed information provided to this office the PCR radio receiver certainly qualifies as a radio broadcast receiver. The PCR receiver does meet the requirements of a radio broadcast receiver as defined by Channel Master v. United States; “ A radio receiver, as that term is used in the tariff schedules, is an eo nominee designation for an article which has been lexicographically and judicially defined as capable of performing three basic functions; selectivity, amplification and detection”. The PCR receiver accomplishes these three functions. Its tuner circuitry selects the XM satellite radio signal. It amplifies the signal and also the tuner detects (demodulates) the amplified RF signal and separates it from the carrier portion of the signal.

This office considers the PCR receiver to be a radio broadcast receiver with recording capability that cannot operate without an external source of power

The applicable subheading for the XM Satellite Radio kit will be 8527.31.6080, 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 Other. The rate of duty will be free.

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 purpose 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 kit demonstrates that is does not qualify as an “intended” apparatus for the purpose of the CD-ROM software package. Therefore the kit would be considered a “non-intended” apparatus. Therefore Legal Note 6 does not apply to the CD-ROM software package contained within the retail set and it does not have to be classified in the specific heading. The CD-ROM software package will be classified in accordance with Section XVI Chapter 85 General Note B(1), Harmonized tariff Schedule of the United States.

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

Previous Ruling Next Ruling

See also: