OT:RR:CTF:EMAIN H346387 DSR

Port Director
Area Port of Dallas
U.S. Customs & Border Protection
P.O. Box 619050
DFW Airport, TX 75261-9050

Lisa Murrin
Senior Consultant
Expeditors Tradewin LLC
795 Jubilee Drive
Peabody, MA 01960

Port Director
Service Port of Los Angeles/Long Beach Seaport
U.S. Customs and Border Protection
301 E. Ocean Blvd.
Long Beach, CA 90802

RE: Tariff classification of a wireless stereo headset with microphone and a USB dongle transceiver from China; mobile phone handsets, batteries, and wireless earphones imported together; wireless earbuds from China; revocation of HQ H251033 and NY N308565; modification of HQ H245902

Dear Port Directors and Ms. Murrin,

This letter is in reference to the tariff classification of certain wireless headphones and earphones. U.S. Customs and Border Protection (CBP) has identified three published rulings that need to be reconsidered so that CBP does not have in force rulings that may be inconsistent with CBP’s current views.

Each of the rulings classified the relevant merchandise in subheading 8517.62.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.” After reviewing the rulings, CBP has determined that the classifications of the subject articles are incorrect, and CBP is therefore revoking them for the reasons set forth herein. A notice proposing to revoke HQ H251033 and NY N308565, and modify HQ H245902 was published on July 2, 2025, in Volume 59, No. 27 of the Customs Bulletin. No comments were received in response to the proposed action.

FACTS:

The merchandise considered in Headquarters Ruling Letter (HQ) H251033 (July 31, 2014) is described as follows:

The merchandise at issue is SCEA’s Model No. 98085, “Wireless Stereo Headset for Playstation®3,” a wireless stereo headset with microphone and a USB dongle transceiver (“the Headset”; picture below at Fig. 1). The Headset consists of a pair of dual (circumaural) full size earphones combined in the same housing with a microphone, a radio transceiver, a rechargeable lithium polymer battery, a power input, and LED (light emitting diode) indicator, and controls. The Headset has controls for powering the device on and off, adjusting the main volume, balancing audio and voice levels, and displaying battery power. The adjustable microphone attached to the left earphone possesses a multi-color LED indicator light that provides information on the transmission/reception status and state of battery charge. The Headset is presented in a box for retail sale.

When the USB dongle transceiver is connected to a Playstation®3 videogame console or other automatic data processing (ADP) machine, the Headset transceiver utilizes a wireless connection via 2.4GHz radio frequency with the USB transceiver to transmit voice and audio content between the videogame console and the Headset, thereby allowing a user to listen to audio content from the videogame console or ADP machine and communicate with fellow gamers via the Headset’s incorporated microphone. Additionally, when connected to a Playstation®3 videogame console, the Headset also transmits battery information and audio settings to the console, which displays the information on-screen.

Fig. 1: SCEA’s Model No. 98085, “Wireless Stereo Headset for Playstation®3”

2 The merchandise considered in HQ H245902 (January 28, 2015) is described as follows:

… shipments of equal numbers of mobile phone handsets, batteries, and Bluetooth wireless earphones that are imported in the same shipping container but segregated in separate shipping boxes by kind. In their condition as imported, the articles are not packaged for retail sale.

The merchandise considered in New York Ruling Letter (NY) N308565 (January 16, 2020) is described as follows:

The items concerned are wireless earbuds referred to as the IFrogz® Airtime Premier, model number IFIETWS43B. The earbuds are imported in retail packaging along with a charging case, and a USB-C charging cable. The earbuds provide the essential character to this set.

The IFrogz® Airtime Premier earbuds use Bluetooth 5.0 to wirelessly connect to an audio source. They feature an integrated microphone on each earbud for hands-free phone calls and execute remote control and navigation of the source device through tap sequences on both earbuds (i.e. tap right ear bud to decrease volume, or answer phone).

ISSUE:

Whether the merchandise at issue is classified under heading 8517, HTSUS, which provides for, in pertinent part, apparatus for the reception, conversion and transmission or regeneration of voice, images or other data, or under heading 8518, HTSUS, which provides for, in pertinent part, headphones and earphones, whether or not combined with a microphone.

LAW AND ANALYSIS:

Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.

The HTSUS provisions under consideration in this ruling are as follows:

8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: * * * 8518 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof:

3 In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).

With regard to the merchandise of HQ H245902, this ruling only concerns the classification of the wireless headphones – the classifications of the mobile phone handsets and batteries remain unchanged.

With regard to NY N308565, CBP’s position remains unchanged that the earbuds in the set of considered goods provide the essential character to the set. To that end, we now re- examine the classification of the earbuds.

In HQ H251033, CBP determined that the subject headset integrates components that together perform functions in combination with a separate USB transceiver dongle, and applied Note 3 to Section XVI, HTSUS. CBP concluded that the headset is a “composite machine” consisting of earphones that are combined in the same housing with a microphone and a radio transceiver microchip, and that those components perform separate but complementary functions described in different headings of Section XVI, HTSUS. The issue presently before us is to determine the principal function of the wireless headset in accordance with Note 3 to Section XVI, HTSUS.

The EN to heading 85.17 states, in pertinent part, the following:

This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks. … (II) OTHER APPARATUS FOR TRANSMISSION OR RECEPTION OF VOICE, IMAGES OR OTHER DATA, INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK) …

(F) Transmitting and receiving apparatus for radio-telephony and radio-telegraphy.

This group includes:

(1) Fixed apparatus for radio-telephony and radio-telegraphy (transmitters, receivers and transmitter-receivers) . . ..

The EN to heading 85.18 provides, in pertinent part, the following:

This heading covers microphones, loudspeakers, headphones, earphones and audio- frequency electric amplifiers of all kinds presented separately, regardless of the particular

4 purpose for which such apparatus may be designed (e.g., telephone microphones, headphones and earphones, and radio receiver loudspeakers).

The heading also covers electric sound amplifier sets. ...

(C) HEADPHONES AND EARPHONES, WHETHER OR NOT COMBINED WITH A MICROPHONE, AND SETS CONSISTING OF A MICROPHONE AND ONE OR MORE LOUDSPEAKERS

Headphones and earphones are electroacoustic receivers used to produce low-intensity sound signals. Like loudspeakers, described above, they transform an electrical effect into an acoustic effect; the means used are the same in both cases, the only difference being in the powers involved.

The heading covers headphones and earphones, whether or not combined with a microphone, for telephony or telegraphy; headsets consisting of a special throat microphone and permanently-fixed earphones (used, for example, in aviation); line telephone handsets which are combined microphone/speaker sets for telephony and which are generally used by telephone operators; headphones and earphones for plugging into radio or television receivers, sound reproducing apparatus or automatic data processing machines….

The wireless earphones that are the subject of HQ H251033, HQ H245902 and NY N308565 are composite machines as described in Note 3 to Section XVI, HTSUS, and are therefore classified according to the principal function of the headphones. Specifically, Note 3 states the following:

Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed 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 subject articles incorporate a transceiver that allows the articles to wirelessly interface with other devices. For example, users can use them to wirelessly receive and control audio from external devices, and also adjust features such as incoming audio volume, audio track control and two-way voice communication.

Applying the legal text of Note 3 to Section XVI, we find that the wireless transmission and reception functions executed by the transceivers in the subject headphones are not indicative of a principal function of “the reception or transmission of voice, images, or other data.” Rather, the wireless connectivity facilitated by the transceivers is directly analogous to the connectivity found in wired headphones. See NY N302512, dated February 9, 2019 (where CBP classified wired headphones with similar control functionality under heading 8518, HTSUS). The wireless headphones and earphones each incorporate a primary component (the speaker/microphone assembly) and support components such as the wireless transceiver modules. All components work together to facilitate the principal function of sound reproduction. Notably, there is no exclusionary language in heading 8518, HTSUS, that limits the heading to headphones and

5 earphones of the wired variety. Therefore, we find that the headphones and earphones of HQ H251033, HQ H245902 and NY N308565 are properly classified as headphones of heading 8518, HTSUS.

HOLDING:

By application of GRIs 1 (Note 3 to Section XVI) and 6 1, the subject earphones or earbuds are classified in heading 8518, HTSUS, specifically in subheading 8518.30.20, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: Other.” The column one, general rate of duty is free.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.

EFFECT ON OTHER RULINGS:

HQ H251033 and NY N308565 are revoked, and HQ H245902 is modified, in accordance with this decision.

In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.


Sincerely,

Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division

1
The retail set at issue in NY N308565, the essential character of which is imparted by the wireless earbuds, is
classified by application of GRIs 1 (Note 3 to Section XVI), 3(b), and 6.

6