CLA-2 CO:R:C:G: 083967 BPM
Ms. Deborah A. Gross
North American Philips Corporation
100 East 42 Street
New York, N.Y. 10017-5699
RE: Digital to analog converter
Dear Ms. Gross:
By letter dated February 22, 1989, you requested a tariff
classification ruling for the DAC 960 digital to analog converter
imported from Japan under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) on behalf of Philips Consumer
Electronics Company, Knoxville, Tennessee. You proposed as the
proper classification subheading 8518.40.2000, HTSUSA. Your
request has been forwarded to this office for a reply.
FACTS:
The DAC 960 is an electronic device that converts digital
data to an analog signal. Various input devices can provide the
digital input for the converter. These include digital sound
reproducing apparatus such as digital audio tape players and
compact disk players, as well as musical instruments which
produce digital output. The DAC 960 contains amplifying
equipment for direct personal listening or source monitoring by
headphone. The principal output can be adjusted to the precise
level required by the power amplifier or other equipment to which
the output is sent, but the principal output is not amplified.
The documentation submitted with the ruling request states that
the converter operates within the audio frequency range of 20 Hz
to 20,000 Hz with respect to both the amplified headphone output
and the unamplified principal output.
ISSUE:
Is a digital to analog converter which contains a headphone
amplifier for direct personal listening or source monitoring
classifiable as an audio-frequency electric amplifier under
heading 8518, HTSUSA, or under subheading 8543, HTSUSA, covering
electrical machines and apparatus, having individual functions,
not specified or included elsewhere in Chapter 85?
LAW AND ANALYSIS:
Classification under subheading 8518, HTSUSA, as an audio-
frequency electrical amplifier is inappropriate since the
amplification is a secondary function of the converter included
merely to aid the user in monitoring the primary function of the
converter. The primary function of the converter is the
translation of digital data into an audio signal. The essential
character of the converter is therefore provided by the
components which convert digital data to an analog signal and the
converter must be classified under the provision for machines
with that function.
Since no specific provision of the HTSUSA covers machines
which function to convert digital data to an analog signal, the
converters are classified under subheading 8543.80.9080, HTSUSA,
as other electrical machines and apparatus, having individual
functions, not specified or included elsewhere in Chapter 85.
HOLDING:
A digital to analog converter which contains a headphone
amplifier for direct personal listening or source monitoring is
classified under subheading 8543.80.9080, HTSUSA, covering other
electrical machines and apparatus, having individual functions,
not specified or included elsewhere in Chapter 85.
Sincerely,
John Durant, Director
Commercial Rulings Division