CLA-2-85: RR: NC: 1:108 K87747
Mr. John A. Bessich
Follick & Bessich
Attorneys at Law
33 Walt Whitman Road, Suite 204
Huntington Station, NY 11746
RE: The tariff classification of satellite radios from Korea
Dear Mr. Bessich:
In your letter dated July 6, 2004, on behalf of your client Audiovox Corporation, you requested a tariff classification ruling.
The items in question are satellite radios. They are denoted as the Sirius Satellite Radio Receiver/Tuners, models PNP1 and PNP2. Each satellite radio is designed to receive satellite radio broadcasts on the S-band that encompasses 2320.0 through 2332.5 MHz. Each model satellite radio has internal digital recording capability. They can be used in various settings such as the home or an automobile. In their imported condition each model is packaged for retail sale with a battery operated remote control, batteries and a user’s manual.
Explanatory Note X to GRI 3b provides for the purpose of this rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:
A. Consist of at least two articles which are, prima facie, classifiable in different headings.
B. Consist of products put up together to meet a particular need or carry out a specific activity; and
C. Are put up in a manner suitable for sale to users without repackaging (e.g. in boxes or cases or on boards).
All the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to receive and listen to satellite radio broadcasts. Based upon the supplied information the imported packaging represents the retail packaging. The satellite radio kits will not be repackaged prior to retail sale. Therefore it is the opinion of this office that the satellite radio kits are sets in accordance with Explanatory Note X.
In accordance, in part, with GRI 3b … goods put up in sets for retail sale, which cannot be classified by reference to GRI 3a, shall be classified as if they consisted of the material or component which gives them their essential character.
EN VIII to GRI 3b states that the factor, which determines essential character, will vary as between different kinds of goods. It may for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the goods.
It is the opinion of this office that for each kit the essential character is imparted by the satellite radios models PNP1 and PNP2. These radios are the reason one would purchase the kit. The radios clearly provide the dominant feature for each kit. It should be noted that each satellite radio model, based upon detailed information provided with this ruling request, meets the requirements of a radio broadcast receiver as defined by Channel Master v. United States. Each model performs the function of selectivity, amplification and detection.
It should be noted that model PNP1 was the subject of NY Ruling J89049. It should be noted that this ruling was based upon, as now stated by the requestor, on information that was both incomplete and erroneous. Therefore this ruling will address the classification of model PNP1 based upon the now correct and complete information as well as the classification for model PNP2. It should be noted that model PNP2 varies from model PNP1 not in function but rather in some external features such as the backlighting of the LCD screen and on the control buttons and some user time based features.
The applicable subheading for the satellite radio kits, models PNP1 and PNP2 will be 8527.31.6080, Harmonized Tariff Schedule of the United States (HTS), 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: Combined with sound recording or reproducing apparatus: Other: Other … Other. The rate of duty will be free.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Michael Contino at 646-733-3014.
Robert B. Swierupski