CLA-2-85: RR:NC:1:08 F86942
Mr. Don M. Obert
Follick and Bessich
33 Walt Whitman Road Suite 204
Huntington Station, NY 11746
RE: The tariff classification of a portable video player from China.
Dear Mr. Obert:
In your letter dated May 3, 2000, on behalf of your client Audiovox you requested a tariff classification ruling.
The item in question is denoted as the Audiovox Rampage VBP 1000 Portable Video Cassette Player. It is indicated that this item will be imported as a set. Based upon the descriptive literature the set is composed of the video cassette player with a 4” LCD screen, the nylon carrying case, mounting straps, AC/DC power adapter and power cables. All of the items will be packaged for sale at the retail level. It is important to note that based upon the descriptive literature the video cassette player is so designed as to enable the user to view the video images, generated by the video cassette player, on a television receiver as well as the incorporated LCD pop-up 4”screen.
The question of classification concerns whether or not the VBP 1000 portable cassette player and accompanied items are to be considered as goods put up in sets for retail sale and whether the nylon carrying case is classified according to GRI 5. 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 or articles put up together to meet 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).
The VBP 1000 portable video cassette player with the nylon carrying case, mounting straps, AC/DC power adapter and power cables which are packaged together for retail sale does meet the definition of a set. There are at least two articles, which are, prima facie, classifiable in different headings. The video cassette player is classified under HTS provision 8521.10 and the nylon carrying case is classified under HTS provision 4202.92. The articles are put up together to meet the specific activity of portable video cassette viewing and based upon the information provided the entire package will be offered for sale at the retail level without repackaging. Since the articles constitute a set and classification cannot be made in accordance with GRI 3a, the essential character of the set must be determined in accordance with GRI 3b. 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 a constituent material in relation to the use of the goods. After consideration it is the opinion of this office that the VBP 1000 portable video cassette player imparts the essential character of the set.
The applicable subheading for the VBP 1000 portable cassette player set will be 8521.10.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for Video recording or reproducing apparatus, whether or not incorporating a video tuner: Magnetic tape type, color, cartridge or cassette type: Not capable of recording. The rate of duty will be free.
The Informed Compliance Publication of the U.S. Customs Service, September 1999, covers the appropriateness of GRI 5 in relation to holders, cases and other containers as well as quota/visa requirements for textile articles within a set. It is stated; “Nowhere in GRI 3b or in the corresponding ENs does it state that GRI 5 should apply to any holders, containers, etc., of a proposed set. Therefore, with regard to determining whether a proposed set which includes a holder, case or other container constitutes a set, we do not believe that the use of GRI 5, or its embodied principals, is appropriate”. Furthermore, “Where a textile article is part of a set found to be a GRI 3b set put up for retail sale, the textile article remains subject to quota and/or visa requirements, regardless of where the set is classified” (Note 54 F.R. 35223, 1989 and HQ Ruling 087180 dated January 11, 1991).
Therefore this office concludes that the textile carrying case is to be classified separately and subject to quota/visa requirements whether it is imported with the set or individually.
The applicable subheading for the textile carrying case will be 4202.92.9026, Harmonized Tariff Schedule of the United States (HTS), which provides for Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map case, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber, or of paperboard, or wholly or mainly covered with such materials or with paper: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other … Other: Of man-made fibers (670). The rate of duty will be 18.6 percent ad valorem. Articles so classified are subject to textile quota/visa restrictions under category 670.
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 212-637-7039.
Robert B. Swierupski