CLA-2 CO:R:C:M 950522 MBR
J. Kevin Horgan
Pillsbury, Madison & Sutro
Suite 1100
1667 K Street, N.W.
Washington, D.C. 20001
RE: Alternating Current (AC) Combination Stereos Incorporating a
Radio, a Dual Cassette Deck Tape Player/Recorder, a Record
Player, and a Graphic Equalizer
Dear Mr. Horgan:
This is in reply to your letter of October 9, 1991, on
behalf of Thomson Consumer Electronics, Inc., requesting
classification of AC combination stereos, under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise in question is combination stereos
incorporating an AM/FM radio, a dual cassette deck (with one play
only tape well and one play/record tape well), a record player,
and a graphic equalizer. This stereo system is incapable of
operating without an external source of power (i.e., it is
"nonportable").
The dual cassette deck contains two tape wells. One well
has tape heads for recording and playing, and the other well has
a tape head for playing only. The dual cassette deck features
the ability to record from one tape to another, to record from
the tuner, turntable or other source, and to play.
The dual cassette deck wells are driven by the same motor,
which is incorporated in the cassette deck assembly mounted
behind the tape deck section of the main system housing. The
dual cassette deck wells share the same output and many common
parts, such as a chassis assembly, gears, roller assemblies and
numerous rods, levers and springs. The dual cassette deck wells
also share certain controls such as switches for dubbing speed
and headphones.
ISSUE:
Is the appropriate classification for nonportable,
combination AC stereos under subheading 8527.31.40, HTSUS, which
provides for combination stereos incorporating tape players which
are incapable of recording, or is the proper classification under
subheading 8527.31.50, HTSUS, which provides for other
combinations incorporating tape recorders?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI
1 states in pertinent part that "for legal purposes,
classification shall be determined according to the terms of the
headings and any relative section or chapter notes . . . ."
Heading 8527, HTSUS, in pertinent part, describes reception
apparatus for radiobroadcasting, whether or not combined in the
same housing with sound recording or reproducing apparatus.
There is no dispute that the stereo combinations under
consideration are described by this heading.
GRI 6 governs the classification of goods in the subheadings
of a heading. GRI 6 provides in pertinent part that the
classification of goods in the subheadings of a heading is
determined according to the terms of the subheadings. In the
instant case, the competing subheadings are as follows:
8527.31.40 Combinations incorporating tape players which
are incapable of recording
8527.31.50 Other combinations incorporating tape
recorders
Subheading 8527.31.40, HTSUS, is inapplicable in this
instance because the dual cassette decks incorporated into the
systems are capable of recording. The systems do not incorporate
tape players which are incapable of recording. See HQ 087179,
dated May 31, 1991.
Unlike subheading 8527.31.40, HTSUS, which restricts the
tape players described to those which are incapable of recording,
subheading 8527.31.50, HTSUS, does not restrict the tape
recorders described to those which are incapable of playing.
Because the combinations under consideration incorporate tape
recorders, they are classifiable under subheading 8527.31.50,
HTSUS.
You argue that the units are classifiable under subheading
8527.31.40, HTSUS, which provides for combinations incorporating
tape players which are incapable of recording.
The dual cassette deck physically and functionally
integrates two tape wells to allow the wells to be used together
to record ("dubbing") from one well to the other. One can also
use the dual cassette deck for single well play or record.
However, the "play only" well cannot operate without the motor
and many common tape deck parts it shares with the "record/play"
well. The motor and common parts are clearly not separate or
distinct to either tape well.
If classified separately, the dual cassette deck would be
described by Heading 8520 as a tape recorder incorporating a
sound reproducing (playing) device. The fact that the dual
cassette deck may be housed together with tuner/amplifiers and
other components does not erase its identity as a dual cassette
deck that records as well as plays. The dual cassette deck
component of the audio systems under consideration is not
described in the promotional literature as a separate tape player
and tape recorder, but is identified as a "Dual Cassette with
High Speed Dubbing."
You argue that the legislative intent behind the change in
language of these tariff provisions was to provide for the
instant combination stereos (capable of recording) to be
classifiable in subheading 8527.31.40, HTSUS, which provides for
combinations incorporating tape players which are incapable of
recording. However, our research and discussions with the
International Trade Commission and the Office of the United
States Trade Representative have contradicted that assertion.
Furthermore, the express terms and plain meaning of the article
description for subheading 8527.31.40, HTSUS, do not express the
"intent" you assert. Combinations incorporating a dual cassette
deck (which is capable of recording), simply cannot be described
as combinations incorporating tape players which are incapable of
recording.
Furthermore, as the court has emphatically stated, "it is
not for us to distort the statute to 'fix' what Congress either
intentionally or inadvertently failed to anticipate." Sea-Land
Service, Inc. v. United States, Appeal No. 90-1311 (Decided
November 30, 1990), citing Unimed, Inc. v. Quigg, 888 F.2d 826,
829 (Fed. Cir. 1989); See Crooks v. Harrelson, 282 U.S. 55, 60,
51 S.Ct. 49, 51, 75 L.Ed. 156 (1930) ("Laws enacted with good
intention, when put to the test, frequently, and to the surprise
of the law maker himself, turn out to be mischievous, absurd or
otherwise objectionable. But in such case the remedy lies with
the law making authority, and not with the courts.").
HOLDING:
The Thompson Consumer Electronics, Inc., "General Electric,"
combination stereos are classified as reception apparatus for
radiobroadcasting, combined in the same housing, with sound
recording or reproducing apparatus, other radiobroadcast
receivers, combined with sound recording or reproducing
apparatus, other, other combinations incorporating tape
recorders, in subheading 8527.31.50, HTSUS. The rate of duty is
4.9 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division