CLA-2 RR:CR:GC 960943 DWS

Mr. Robert Mundie
Fritz Companies, Inc.
P.O. Box 280367
San Francisco, CA 94128

RE: Reconsideration of NY 818732; Tapematic 3003 Audio/Video Loading and Duplicating System; 8521.10.60

Dear Mr. Mundie:

This is in reference to NY 818732, issued to you on February 3, 1996, concerning the classification of various audio/video loading machines under the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed this ruling and determined that the classification of the Tapematic 3003 Audio/Video Loading and Duplicating System must be modified.

Pursuant to 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. 103-82, 107 Stat. 2057, 2186 (1993), notice of the proposed modification of NY 818732 was published on October 29, 1997, in the CUSTOMS BULLETIN, Volume 31, Number 44. No comments were received in response to the notice.

FACTS:

The Tapematic 3003 Audio/Video Loading and Duplicating System (Tapematic) is a machine the principal function of which is to unwind blank or pre-recorded video tape from a large reel (pancake), and automatically thread and rewind the tape onto a hub in a videotape cassette, thus completing the assembly of the videotape cassette. The Tapematic is incapable of recording or reproducing a video signal.

ISSUE:

Whether the Tapematic is classifiable under subheading 8479.89.97, HTSUS, as an other machine or mechanical appliance having individual functions, not specified or included elsewhere in chapter 84, HTSUS, or under subheading 8521.10.60, HTSUS, as an other magnetic-type video recording or reproducing apparatus, whether or not incorporating a video tuner.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

The HTSUS provisions under consideration are as follows:

8479.89.97: [m]achines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: [o]ther machines and mechanical appliances: [o]ther: [o]ther: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

8521.10.60: [v]ideo recording or reproducing apparatus, whether or not incorporating a video tuner: [m]agnetic tape-type: [c]olor, cartridge or cassette type: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 1.6 percent ad valorem.

In NY 818732, Customs held that the Tapematic was classifiable under subheading 8521.10.60, HTSUS. However, as stated above, it is our understanding that the Tapematic is incapable of recording or reproducing a video signal. Therefore, by the terms of subheading 8521.10.60, HTSUS, the Tapematic is precluded from classification therein.

Also in NY 818732, the Audio Loader 2002, which functions similarly to the Tapematic except using audio tape, was held to be classifiable under subheading 8479.89.95, HTSUS (the precursor to subheading 8479.89.97, HTSUS). Therefore, as the Tapematic is not specified elsewhere in chapter 84, HTSUS, we find that it is classifiable under subheading 8479.89.97, HTSUS.

HOLDING:

The Tapematic 3003 Audio/Video Loading and Duplicating System is classifiable under subheading 8479.89.97, HTSUS, as an other machine or mechanical appliance having individual functions, not specified or included elsewhere in chapter 84, HTSUS.

NY 818732 is modified to reflect the reasoning stated herein. In accordance with 19 U.S.C. 1625(c)(1), this ruling will become effective 60 days after its 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