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NY J85092

September 9, 2003

CLA-2-85:RR:NC:1:108 J85092


TARIFF NO.: 8527.31.6040

Mr. Sidney N. Weiss
Sidney N. Weiss
Attorney at Law
675 Third Avenue
New York, NY 10017

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

Dear Mr. Weiss:

In your letter dated August 25, 2003, on behalf of your client Toshiba America Consumer Products, Inc., you requested a tariff classification ruling.

The item in question is a home entertainment system composed of a DVD Audio/Video Receiver, satellite audio speakers, an eight-inch subwoofer, and a unified receiver/DVD player remote control apparatus. The system is denoted as model number SD-43HT. It is indicted that the entire system is packaged for retail sale upon importation.

The system is designed to provide audio and video entertainment to the user. The DVD Audio/video Receiver is a fully functional digital AM/FM radiobroadcast receiver with 30 preset channels for radiobroadcast listening and a progressive scan DVD player, without recording capability, designed to play DVD movies. The DVD Audio /Video Receiver features Dolby Digital, DTS and Dolby ProLogic II processing offering a full bandwidth stereo surround output.

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 entertainment 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 DVD Audio/Video Receiver. 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 DVD Audio/Video receiver to be a composite good. This is based upon its ability to function as both a radiobroadcast receiver and a video-reproducing device (DVD player).

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 DVD Audio/Video Receiver does not have an essential character. The device is designed to perform two equally viable functions. The functions, at any particular time, are at the discretion of the user. The user can access radiobroadcast stations on either the AM or FM band or can use the device for visual entertainment by playing video DVDs. It should be noted that the DVD player will also play audio CDs.

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 DVD Audio/Video receiver, model SD-43HT 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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