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NY L81523

December 23, 2004

CLA-2-85: RR: NC: 1:108 L81523


TARIFF NO.: 8525.40.4000

Mr. Steven Draffen
Olympus America Inc.
Two Corporate Center Drive
P.O. Box 9058
Melville, New York 11747-9058

RE: The tariff classification of a music player/ digital camera from China.

Dear Mr. Draffen:

In your letter dated December 16, 2004 you requested a tariff classification ruling.

The item in question is denoted as the Olympus m: 500 music player (sample provided). It is packaged for retail sale with headphones, a remote control, cradle, USB download cable, AC adapter, AV stereo cable, carrying pouch, m:trip software (CD-ROM), printed manual, printed quick start guide.

Explanatory Note X to GRI 3b provides that 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 specific activity; and

C. Are put up in a manner suitable for sale directly to users without repackaging (e.g. in boxes or cases or on boards).

The Olympus m:robe 500 music player/digital camera, packaged for retail sale meets the three-part criteria test for a set. It consists of at least two different articles that are prima facie classified in different headings. The articles are put up together to enable the music player/digital camera to operate as a complete article and it is imported in its retail packaging. Therefore it is the opinion of this office that the aforementioned articles comprise 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 article that imparts the essential character to this particular set is the m:robe 500 music player/digital camera. It is the dominant article in terms of value and use. It is the reason why one would purchase the set.

Upon examination of the music player/camera it is apparent, from the user manual and marketing advertisement, that the item performs differing functions. It is equipped with a 20GB hard drive for the storage of 5000 downloaded songs and 20,000 digital still images. It has a touch screen for a “no-button” user interface. The varying functions allow the user to download music files, take digital still pictures, view music track names, album cover art, elapsed time tracking, length of such tracks, lyrics, photos, slideshows and remixing of sound tracks. The device also enables the user to fully integrate the music with the digital photos for a musically enhanced photo slide show. It connects both to a PC and a television/monitor for the music and photo downloading and to view the slide show and or re-mixes.

Note 3 to section XVI of the Harmonized Tariff Schedule of the United States (HTS) provides, in pertinent part, that unless the context requires otherwise, machines adapted for the purpose of performing two or more complimentary or alternative functions are to classified as if consisting only of that component or as being that machine which performs the principal function. It is the opinion of this office that the m:robe 500 music player/digital camera is a composite machine in accordance with Note 3 to Section XVI.

Upon review of a principal function determination HQ 953453 offers guidance in this situation. The device is designed to perform the equal functions of downloading and playing music as well as capturing digital still images. The 20GB hard drive provides a large memory capacity for full utilization of both functions. The device also enables the user to fully integrate each function in a complementary manner by mixing selected music with selected photos for an enhanced digital slide show. Therefore it is the opinion of this office that this device does not have a significant solely emphasized function. Therefore since there isn’t a principal function the device, and set, will be classified in accordance with GRI 3 ©, HTSUS, under the last subheading among the subheadings which equally merit consideration.

It should be noted that since the recorded media (CD-ROM) is imported with an item(s) for which it is not intended then classification is in accordance with Section XVI, Chapter 85, General Explanatory Note (B). Therefore Legal Note 6 to Chapter 85, Harmonized Tariff Schedule of the United States is satisfied.

The applicable subheading for the m:robe 500 music player/digital camera set will be 8525.40.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for Still image video camera and other video camera recorders; digital cameras: Digital still image cameras. 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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