CLA-2:RR:CR:GC 960911:AML
Mr. Alan Drake
Fritz Companies, Inc.
1721 West Elfindale, Suite 205
Springfield, Missouri 65807
RE: ReCORD’G Talking Picture Frame/Clock; Revocation of PD Ruling Letter
B86822
Dear Mr. Drake:
In PD B86822, dated July 15, 1997, issued to you on behalf of R. D. Manufacturing Corporation by the Customs Area Port Director, Savannah, Georgia, the ReCORD’G Talking Picture Frame/Clock was classified as a clock with watch movements: electrically operated: with opto-electronic display only, under subheading 9103.10.20 of the Harmonized Tariff Schedule of the United States (HTSUS).
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2186 [1993]), notice of the proposed revocation of PD B86822 was published on October 14, 1998, in the CUSTOMS BULLETIN, Volume 32, Number 41. No comments were received in response to this notice.
FACTS:
The product is a pocket sized, tape recorder/picture frame, which measures 2.55" x 2.5" x .58", with a battery powered clock. For purposes of this description, reference is made to the opened product, with the section on the left being the “cover” or “front” and the section on the right being the “back” or “main body.” The product folds open, like a book, to reveal a 2" square picture frame on the thin cover, and a speaker, electronic recording device and an Liquid Crystal Display (LCD) clock housed in the thicker main body. The speaker for the playback function of the voice recorder occupies the upper left quadrant of the back portion. The LCD clock is situated in the upper right quadrant of this portion and displays time and date. Its functions are controlled by “MODE” and “SET” control buttons situated immediately below the time/date display. The clock has an independent power source; it requires a GB-A(1.5V) battery. In the bottom right quadrant are situated the controls for the voice recorder function: a green, triangular “PLAY” button; a circular, red “RECORD” button with a function light to its immediate left, which is roughly the size of a pencil tip; and a microphone, designated “MIC,” of similar size to the function light, which is located to the left of the display light and in the same quadrant. The recording function requires four AG-13 batteries for operation and is capable of recording and playing back up to a ten second message. The article is packaged in a cardboard box with the declarations “[ten] seconds recording time;” “[p]ocket size: 2.55" x 2.5" x .58";” “[s]olid state (tapeless) recording technology;” “[r]ecorded messages retained for 100 years without battery;” inscribed on the side panels of the package. Neither the device nor its package bear country of origin information, although the inquirer states that the product originates in Switzerland.
ISSUE:
Whether the article is classified as a voice recorder, a picture frame or an electronic clock?
LAW AND ANALYSIS:
Classification of imported products for rate of duty purposes is accomplished pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Classification under the HTSUS is guided by the General Rules of Interpretation of the Harmonized System (GRI’s). GRI 1, HTSUS, states in part that “for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes[.]” The headings under consideration are as follows:
3924 Tableware, kitchenware, other household articles and toilet articles, of plastics:
3924.90 Other:
3924.90.20 Picture frames.
* * *
8520 Magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device:
8520.90.00 Other.
* * *
9103 Clocks with watch movements, excluding clocks of heading 9104:
9103.10 Electrically operated:
9103.10.20 With opto-electronic display only.
While the article can be partly described by all of these headings, it cannot be classified according to GRI 1. Resort must then be made to the remaining GRI’s.
GRI 2 (b) provides in pertinent part that “the classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.”
GRI 3 provides, in pertinent part:
When by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
When interpreting and implementing the HTSUS, the Explanatory Notes (EN’s) of the Harmonized Commodity Description and Coding System may be utilized. The EN’s, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The guidance of the EN’s is necessary in the instant analysis.
EN Rule 3(a)(V), p. 4, states in pertinent part that “when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods . . . those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description than the others. In such cases, the classification shall be determined by Rule 3(b) or 3(c).” In this regard, EN Rule 3(b)(IX), p. 4, states in pertinent part that “composite goods made up of different components shall be taken to mean . . . those in which the components are attached to each other to form a practically inseparable whole[.]”
EN Rule 3(b)(VII), p. 4, states, in reference to GRI 3(b), that in “all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.”
The term “essential character” is not defined within the HTSUS, GRI's or EN's. EN Rule 3(b)(VIII), p. 4, gives guidance, stating that “[t]he 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.”
The function which imparts the essential character of the product in question is that of the message recording device, with the picture frame and LCD clock being secondary and ancillary to the recording function. Consideration of the design features and the factors enumerated in EN Rule 3(b)(VIII) warrants this conclusion.
It is the portable and compact nature of the product which emphasizes the recording function of the product and de-emphasizes the frame and clock functions. The recording function is primary to the picture frame and the clock -- it is the most sophisticated function of the component product and is the function emphasized on the package. It has an independent power source and purportedly is capable of storing a message for a considerable period of time (up to 100 years), even without power. The recorder occupies the bulk of the product, and is the most valuable function, financially from the manufacturer's perspective and in terms of marketability for the importer and utility for the consumer. Easily transportable within the pocket, the recorded message can be a practical reminder for business or social appointments or the sentimental expression of a loved one. This analysis requires the determination that the essential character of this composite product is that of a tape recorder.
The article is classified under subheading 8520.90.00, HTSUS, which provides for magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device; other.
HOLDING:
The article is classified under subheading 8520.90.00, HTSUS, which provides for magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device; other. The column 1, general rate of duty is 0.8% ad valorem.
EFFECT ON OTHER RULINGS:
PD 86822, dated July 15, 1997, is revoked.
In accordance with 19 U.S.C. 1625(c)(1), this ruling will become effective 60 days after publication in the Customs Bulletin. Publication of rulings or decisions pursuant to 19 U.S.C. 1625(c)(1) does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10 (c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division