CLA-2 CO:R:C:M 954412 KCC

Mr. Warren E. Coe
Amway Corporation
7575 E. Fulton Road - Dept. 52-2A
Ada, Michigan 49355

RE: AM/FM clock radio with cassette player and telephone; heading 8517; NY 832099; 8527.32.00; Note 3, Section XVI; composite machine; principal function; HRL 086939; General EN (VI); GRI 3(c)

Dear Mr. Coe:

This is in reference to your letter dated May 17, 1993, to Customs in New York, concerning the tariff classification of an AM/FM clock radio with cassette player and telephone under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was forwarded to this office for a response.

FACTS:

The article under consideration is an AM/FM clock radio with cassette player and telephone. The cassette player is incapable of recording. You contend that this article is properly classified under subheading 8527.32.00, HTSUS, which provides for "Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock...Other radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy...Not combined with sound recording or reproducing apparatus but combined with a clock...."

ISSUE:

How is the AM/FM clock radio with cassette player and telephone classified under the HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (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."

As stated above, the article is a combination AM/FM clock radio with cassette player and telephone. The article is prima facie classifiable under two headings of the HTSUS. It is classifiable under heading 8517, HTSUS, which provides for telephones and heading 8527, HTSUS, which provides for reception apparatus combinations incorporating tape players incapable of recording (see, New York (NY) 832099 dated September 29, 1988).

Headings 8517 and 8527, HTSUS, fall within Section XVI, HTSUS, making the Section XVI notes applicable to this classification. Note 3, Section XVI, HTSUS, provides that:

Unless the context otherwise require, 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 machine at issue satisfies this description. It consists of two separate machines adapted together for the purpose of performing telephone communications and radio reception/sound reproducing functions. These types of machines are to be classified as if consisting only of the component or as being that machine which performs the principal function of the machine.

We are of the opinion that neither of the components here (telephone or clock radio with cassette player), by itself, imparts the principal function. Each function performed by the article is of equal importance in the overall operation of the device. See, Headquarters Ruling Letter (HRL) 086939 dated August 9, 1990, which classified a telephone/clock/radio pursuant to GRI 3(c), HTSUS, under subheading 8527.32.00, HTSUS.

General Explanatory Note (EN) (VI) MULTI-FUNCTION MACHINES AND COMPOSITE MACHINES of the Harmonized Commodity Description and Coding System (HCDCS) (pg. 1132-1133), states that where it is not possible to determine the principal function, and the context does not otherwise require, it is necessary to apply GRI 3(c), HTSUS, to resolve the classification issue. The Explanatory Notes, although not dispositive, are to be looked to for the interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). GRI 3(c), HTSUS, states that:

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

The heading that occurs last in numerical order is heading 8527, HTSUS. Therefore, the article is classified under subheading 8527.31.40, HTSUS, which provides for "...Combined with sound recording or reproducing apparatus...Other...Combinations incorporating tape players which are incapable of recording."

Classification of the clock radio with cassette player under subheading 8527.32.00, HTSUS, is not appropriate. Subheading 8527.32.00, HTSUS, provides for a radio "[n]ot combined with sound recording or reproducing apparatus but combined with a clock (emphasis added)." The article under consideration is a clock radio combined with sound reproducing apparatus (cassette player). Therefore, the clock radio with cassette player does not meet the terms of the subheading.

HOLDING:

The AM/FM clock radio with cassette player and telephone is classified under subheading 8527.31.40, HTSUS, as reception apparatus combinations incorporating tape players incapable of recording which is dutiable at the Column 1 rate of 3.7 percent ad valorem.

Sincerely,

John Durant, Director Commercial Rulings Division