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NY R01790

April 15, 2005

CLA-2-85: RR: NC: 1:108 R01790


TARIFF NO.: 8527.31.6040

Mr. Dennis Heck
6600 Orangethorpe Avenue
P.O. Box 6600
Buena Park, CA 90622-6600

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

Dear Mr. Heck:

In your letter dated April 11, 2005 you requested a tariff classification ruling.

The item in question is a home theater system composed of an AM/FM radio receiver /amplifier, surround sound speakers and a remote control. The AM/FM radio receiver incorporates a video DVD player and an audio CD player. It does not have any recording capability. The system is denoted as model DVX-C300. It should be noted that this particular model was the subject of NY Ruling R01317. Yamaha has informed this office that this model has been modified to now include an AM/FM radio receiver. Classification will be accordingly.

It is indicated that the home theater system, model DVX-C300 will be packaged for retail sale in its imported condition as a set.

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 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 classified in different headings. Together each provides the user with audio/visual 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 AM/FM radio receiver with a CD and DVD player. It is the dominant apparatus contained within the set by value and use. It is the means that provides the audio/visual entertainment for the user and the reason one would purchase the set.

Legal Note 3 to Section XVI, HTSUS, provides “Unless the context otherwise requires, machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be 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 neither the function of audio entertainment nor the function of visual entertainment provides a principal function. Each will be chosen at the discretion of the user. 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 Theater System, model DVX-C300 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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