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NY L84968

May 23, 2005

CLA-2-85: RR: NC: 1:108 L84968


TARIFF NO.: 8527.31.6080

Mr. James F. O’Hara
Stein Shostak Shostak Pollack & O’Hara, LLP 865 South Figueroa Street
Los Angeles, CA 90017

RE: The tariff classification of satellite radio from Malaysia

Dear Mr. O’Hara:

In your letter dated May 10, 2005, on behalf of Pioneer Electronics, you requested a tariff classification ruling.

The item in question is the Pioneer XM Satellite Radio Receiver denoted as the AirWare model. It will be packaged for retail with a remote control, headphones, vehicle and home antennas, docking stations, and power adaptors, swivel, flush and vent mounts, protective case, cassette adaptor, audio cables, belt clip, Velcro and cleaning pads and a rechargeable lithium ion battery.

The AirWare XM Satellite radio receiver is a fully function radiobroadcast receiver per Channel Master v. the United States. It is capable of operating as such in the individual modes of a portable battery operated radio, as a car radio and in the home. The included items enable it to operate equally within each specific mode at the discretion of the user without any mode having a dominant role.

It is indicated that the retail packaged kit will not be repackaged 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 of the aforementioned articles are prima facie classifiable in different headings. Together each enables the satellite radio receiver to operate in various modes and receive and play satellite radio broadcasted programming. Based upon the information provided the imported condition will be the retail packaging. Therefore it is the opinion of this office the AirWare 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 essential character of this set is clearly imparted by the satellite radio receiver. It is the dominant item by value and use and clearly the reason one would purchase the set.

It should be noted that HQ Ruling 966675 and NY ruling J84658 provide guidance on the classification of this item.

The applicable subheading for the AirWare satellite radio set 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.

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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