CLA-2 RR:CR:GC 960973 RFA
Port Director
U.S. Customs Service
P.O. Box 2450
San Francisco, CA 94126
RE: Protest 2809-97-101026; PowerSound RadioPlus; Multimedia Printed Circuit Assemblies; Sound/FM Radio Cards; Legal Note 3 to Section XVI; Headings 8473 and 8527; HQ 958643
Dear Port Director:
The following is our decision regarding Protest 2809-97-101026, which concerns the classification of PowerSound Radio Plus printed circuit assemblies (PCAs), under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The PowerSound RadioPlus, model SF 16-FMP, is an internal add-on printed circuit board assembly (“PCA”) for personal computers (PCS). It is a combination 16-bit sound card and FM radio tuner. Once the PCA is attached to the computer, it will allow for up to five external connections labeled: “JOYSTICK/ MIDI,” “Speaker”, “MIC”, “LINE IN” and “ANT”.
The sound card portion of the PCA provides: 16/8 Bit stereo and mono digital sound; Sound Blaster 16, Sound Blaster 2.0, and Sound Blaster Pro compatibility; a CD-ROM drive interface; MIDI (Music-Instrument-Digital-Interface); a game port; analog/digital mixer; and master volume and mixer volume control. The FM radio portion of the PCA: receives radio frequencies from 88Mhz to 108Mhz; 20 user-definable station settings; auto station scanning; manual tuning at 10Khz resolution; alarm and sleep functions.
On November 25 and December 17, 1996, the subject merchandise was entered under subheading 8471.80.40, HTSUS, as other units suitable for physical incorporation into automatic data processing (ADP) machines. The entries were liquidated on April 11, 1997, under subheading 8527.39.00, which provides for other radiobroadcasting receivers. The protest was timely filed on July 10, 1997. Classification under subheading 8473.30.10, HTSUS, as parts and accessories of ADP machines is also under consideration.
ISSUE:
Whether the PowerSound RadioPlus PCAs are classifiable as other units suitable for incorporation into an ADP machine under heading 8471, HTSUS, or as parts and accessories for an ADP machine under heading 8473, or as other radiobroadcasting receivers, under heading 8527, HTSUS?
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 shall be determined according to the terms of the headings and any relative section or chapter notes.
The 1996 HTSUS subheadings under consideration are as follows:
8471.80.40: Automatic data processing machines and units thereof . . .: [o]ther units of automatic data processing machines: [o]ther: [u]nits suitable for physical incorporation into automatic data processing machines. . . .
Goods classifiable under this provision, have a column one, general rate of duty of free.
8473.30.10: Parts and accessories . . . suitable for use solely or principally with machines of headings 8469 to 8472: [p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube: [p]rinted circuit assemblies. . . .
Goods classifiable under this provision, have a column one, general rate of duty of free.
8527.39.00: Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: [o]ther...
Goods classifiable under this provision have a column one, general rate of duty of 4.8 percent ad valorem.
The multimedia cards under consideration are PCAs that contain sound card and radio reception components which had formerly been on separate PCAs. The protestant claims that the subject merchandise is classifiable under heading 8471, HTSUS, as an ADP unit. This classification claim is contrary to a long-line of Customs rulings in which Customs classified the individual functions of the PCA in headings other than in heading 8471, HTSUS. For example, sound cards that do not incorporate a fax/modem are classified as parts and accessories of ADP machines: printed circuit assemblies, under subheading 8473.30, HTSUS. See NY 803937, dated November 8, 1994 (Tropez Sound Board); NY 890485, dated September 27, 1993 (Creative Labs Soundblaster Pro, Media Vision Pro Audio Spectrum 16 and the LaserWave Supra 16). Customs has also determined that radio reception PCAs are classifiable under subheading 8527.39.00, HTSUS. See HQ 959125, dated June 28, 1999; DD 806785, dated March 3, 1995.
Legal Note 3 to Section XVI, HTSUS, which governs the classification of multi-function machines within chapters 84 and 85, HTSUS, provides as follows:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted 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.
The PCAs are configured to perform a variety of "complementary or alternative” functions, including sound and radio reception functions. The complementary or alternative functions of the PCAs are prima facie classifiable separately under headings 8473 and 8527, based upon previous rulings. The PCAs, according to Legal Note 3 to Section XVI, HTSUS, are
classifiable as if consisting only of that component which performs the “principal function.”
The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). General EN (VI) to Section XVI, HTSUS, provides that: “[i]n general, multi function machines are classified according to the principal function of the machine. . . . Where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply General Interpretative Rule 3(c).”
Customs has recently addressed the question of how to classify multimedia PCAs which are capable of performing two or more complementary or alternative functions. In HQ 958643, dated May 19, 1999, Customs determined that multimedia PCAs capable of performing sound, fax/modem, answering machine, and in some models, speaker phone functions, were classifiable under heading 8517 based upon the application of GRI 3(c) as required by Legal Note 3 to Section XVI, HTSUS. Customs reached this conclusion based upon the fact that principal use of these types of goods will be determined by the requirements of the individual user.
In the present case, the sales literature describes in great detail both the radio and sound features of the PowerSound RadioPlus. Based upon the rationale of HQ 958643 in applying GRI 3(c), we find that the subject merchandise is classifiable under heading 8527, HTSUS, as radio reception apparatus.
HOLDING:
The PowerSound RadioPlus PCAs are classifiable, according to Legal Note 3 to Section XVI, HTSUS, under subheading 8527.39.00, HTSUS, which provides for: “[r]eception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: [o]ther...” Goods classifiable under this provision have a column one, general rate of duty of 4.8 percent ad valorem.
The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division