CLA-2 CO:R:C:M 952398 MBR
Area Director
U.S. Customs
Room 137
110 S. Fourth St.
Minneapolis, MN 55401
RE: Reconsideration of HQ 088629; Talking Book Cassette Player;
Telex TBC
Dear Sir:
This is in reply to your memorandum of August 11, 1992,
requesting reconsideration of HQ 088629, dated May 22, 1991,
regarding the classification of the "Telex TBC" talking book
cassette player, under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The merchandise at issue is the operational mechanism for a
cassette player known as the "Telex TBC" Talking Book Cassette
Player. The operational mechanism is designed by Telex
Communications of Minnesota and is produced in Japan. The
operational mechanism has a rechargeable Ni-Cad battery built-in,
2 speed operation, and a 4 track operation, which allows the unit
to play talking book 4 track cassette tapes or standard 2 track
cassette tapes. Telex installs the operational mechanism into an
outer plastic shell in the United States.
This cassette player mechanism manifests special features not
found in most commercial general purpose cassette recorder/players.
The keys are color coded, over-sized, and are molded with raised
surfaces so that they may be identified solely by touch. The
cassette tape player also has a variable speed control, tone
control, and volume control.
The final completed good is sold exclusively to the Library
of Congress and is not available for retail/commercial sale. The
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sample housing states, in raised lettering, "FOR BLIND OR
HANDICAPPED PERSONS/POUR AVEUGLES OU HANDICAPES."
ISSUE:
Is the "Telex TBC" talking book cassette player classifiable
under subheading 9817.00.94, HTSUS, which provides for: "[a]rticles
specifically designed or adapted for the use or benefit of the
blind or mentally handicapped persons: [a]rticles for the blind:
[b]raille tablets, cubarithms, and special apparatus, machines,
presses, and types for their use or benefit exclusively," or under
subheading 8519.91.00, HTSUS, which provides for: "[t]urntables,
record players, cassette players and other sound reproducing
apparatus, not incorporating a sound recording device: [o]ther
sound reproducing apparatus: [c]assette type"?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
It has been argued that we did not have enough information
when we issued HQ 088629, and that the instant importation should
be classifiable as a "part." As such, it can not be classifiable
in subheading 9817.00.96, HTSUS.
We now have: 1) a sample of the merchandise as imported; 2)
a sample of the merchandise after completion, and; 3) a promotional
brochure. We appreciate the additional information you have
submitted. However, we remain of the view that the instant
importation, missing the housing and some of the controls, still
retains the essential character of the complete or finished
article, as provided for under GRI 2(a). At importation, the
mechanism performs all of the functions it is intended to perform.
T.D. 92-77, regarding the "U.S. Customs Service Implementation of
the Duty-Free Provisions of the Nairobi Protocol, Annex E, to the
Florence Agreement," stated:
The Customs Service, however, has recognized several factors
to be utilized on a case-by-case basis to determine whether
a given article is "specially designed or adapted" within the
meaning of this statute. In HRL 556449, a protest decision
dated May 5, 1992, Customs ruled on whether a wide variety of
articles were "specially designed or adapted" within the
intent of the Nairobi Protocol.
A primary factor to be considered concerns the physical
properties of the article itself, i.e., whether the article
is
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easily distinguishable, by unique design, from articles useful
to non-handicapped individuals...
This article is easily distinguishable, at importation, from
tape players for non-handicapped individuals. Moreover, upon
reconsideration, we conclude that the instant merchandise is a
"machine" specifically designed for the blind, and as such, is
classifiable in subheading 9817.00.94, HTSUS, instead of subheading
9817.00.96, HTSUS, which provides for "other," as stated in HQ
088629.
HOLDING:
The "Telex TBC" Talking Book Cassette Player for the blind is
classifiable in subheading 9817.00.94, HTSUS, which provides for:
"[a]rticles specifically designed or adapted for the use or benefit
of the blind or mentally handicapped persons: [a]rticles for the
blind." The rate of duty is Free.
EFFECT ON OTHER RULINGS:
HQ 088629, dated May 22, 1991, is modified under authority of
Section 177.9(d), Customs Regulations (19 CFR 177.9(d)).
Sincerely,
John Durant, Director
Commercial Rulings Division
CC: Mr. Scott A. Frane
Import Manager
Intertrans Corporation
1325 Eagandale Court, Suite 120