CLA-2 CO:R:C:M 957442 RFA
Mr. Sal Della Ventura
Sony Electronics Inc.
123 Tice Boulevard
Woodcliff Lake, NJ 07675
RE: Dynamic Digital Sound Player System; digital sound track
reader; digital sound decoder/converter; other sound
reproducing apparatus; electrical machines and apparatus not
elsewhere specified; functional unit; legal note 4 to
section XVI; EN 85.19; HQ 083967
Dear Mr. Ventura:
This is in response to your letter dated November 16, 1994,
to the Area Director of Customs in New York, concerning the
tariff classification of the Sony Dynamic Digital Sound (SDDS)
Player System under the Harmonized Tariff Schedule of the United
States (HTSUS). Your letter was forwarded to this office for a
response.
FACTS:
The merchandise, labeled as the Sony DFP-2000 Dynamic
Digital Sound (SDDS) Player System, is comprised of a digital
filter playback reader and digital filter playback decoder which
are used in motion picture theaters. The system has the
capability of reading digital audio data recorded on 35mm film in
DDS format and feed the digital sound to the theaters sound
system through the decoder.
The reader, model DFP-R2000, is a digital sound track
reader, which is mounted on an existing movie projector. It
reads 8 channels of digital audio signals on the sounds of the
35mm film. The digital audio sound tracks are illuminated by LED
arrays (solid state illumination) and the data is captured by two
CCD couplers (cameras).
The decoder, model DFP-D2000, is a digital sound decoder
which converts audio signals received from the reader, via a
cable, into analog signals. It then sends the signals to the
theater sound system into their respective amplifiers or
crossovers.
ISSUE:
Is the Sony DFP-2000 Dynamic Digital Sound (SDDS) Player
System classifiable as other sound reproducing apparatus or as
other electrical machines and apparatus not elsewhere specified
or included under the 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 following subheadings are under consideration:
8519.99.00: Turntables, record players, cassette players
and other sound reproducing apparatus, not
incorporating a sound recording device:
[o]ther sound reproducing apparatus: [o]ther.
. . .
Goods classifiable under this provision have a
column one, general rate of duty of 3.1 percent ad
valorem.
8543.80.98: Electrical machines and apparatus, having
individual functions, not specified or
included else-where in this chapter. . . :
[o]ther machines and apparatus: [o]ther:
[o]ther: [o]ther. . . .
Goods classifiable under this provision have a
column one, general rate of duty of 3.6 percent ad
valorem.
You indicate that when the entire SDDS Player System is
imported, it should be classified under GRI 3(b) as "goods put up
in sets for retail sale". However, we note that Legal Note 4 to
section XVI, HTSUS, provides that:
Where a machine (including a combination of machines)
consist of individual components (whether separate or
interconnected by piping, by transmission devices, by
electric cables or by other devices) intended to
contribute together to a clearly defined function
covered by one of the headings in chapter 84 or chapter
85, then the whole falls to be classified in the
heading appropriate to that function.
According to the information provided, the SDDS Player
System consists of a digital sound reader which reads the sound
track of a 35mm film and sends the digital information through a
cable to the decoder which converts the digital signal into
analog and sends the signals to the theater sound system into
their respective amplifiers or crossovers. We find that the SDDS
Player System meets the definition of a functional unit as set
forth in Legal Note 4, to section XVI, HTSUS, because it consists
of two components interconnected by a cable which contribute
together to the clearly defined function of producing sound for a
movie theater sound system.
Sound reproducing apparatus are provided for under heading
8519, HTSUS. The Harmonized Commodity Description and Coding
System Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, 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). EN 85.19, pages 1366-1367,
states as follows:
This heading covers all sound reproducing
apparatus, whatever the purpose for which it is
intended (for example, educational purposes,
conferences, radio broadcasting, cinema, dictating
mail).
* * * * * * *
The main types of sound reproducing apparatus
classified here use sound-records made by the recorders
mentioned in Explanatory Note 85.20. They include:
* * * * * * *
(4) Cinematographic sound reproducers operating
photoelectrically, whether or not combined with a
magnetic process.
* * * * * * *
We find that the SDDS Player System, when imported as a
functional unit, is provided for under heading 8519, HTSUS,
because it reproduces sound for a movie theater sound system. It
is classifiable under subheading 8519.99.00, HTSUS, as other
sound reproducing apparatus.
In your letter, you also requested the classification of the
component parts when entered separately. In HQ 083967, dated
June 21, 1989, Customs determined that the classification of an
electronic device which converted digital data from sound
reproducing apparatus (i.e., digital audio tape players and
compact disk players, etc.) to an analog signal was under heading
8543, HTSUS, as other electrical machines and apparatus, having
individual functions, not specified or included elsewhere in
chapter 85, HTSUS, because no specific provision covers machines
which function to convert digital data to an analog signal.
We find that the DFP-D2000 decoder, which converts digital
signals into analog signals, is similar to the electronic device
described in HQ 083967. Therefore, the DFP-D2000 decoder is
classifiable under subheading 8543.80.98, HTSUS, as other
electrical machines and apparatus, having individual functions,
not specified or included elsewhere in this chapter.
The DFP-R2000, which is a digital sound track reader, reads
8 channels of digital audio signals on the sounds of the 35mm
film. Because there is no provision for digital audio signal
film readers, we find that the DFP-R2000 player is classifiable
under subheading 8543.80.98, HTSUS, as other electrical machines
and apparatus, having individual functions, not specified or
included elsewhere in this chapter.
HOLDING:
The SDDS Player System is classifiable under subheading
8519.99.00, 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: [o]ther. . . ." The column one, general
rate of duty is 3.1 percent ad valorem.
When imported separately, the DFP-D2000 decoder and the DFP-R2000 player are classifiable under subheading 8543.80.98, HTSUS,
which provides for: "[e]lectrical machines and apparatus, having
individual functions, not specified or included else-where in
this chapter. . . : [o]ther machines and apparatus: [o]ther:
[o]ther: [o]ther. . . . " The column one, general rate of duty is
3.6 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division