CLA-2-85:OT:RR:NC:N1:109
Mr. David Lim
Senior Director, Supply Chain Division
LG Electronics MobileComm U.S.A., Inc.
10101 Old Grove Road
San Diego, CA 92131
RE: The tariff classification of mobile phone kits from Korea
Dear Mr. Lim:
In your letter dated January 8, 2009 you requested a tariff classification ruling.
The merchandise subject to this ruling is mobile phone kits. You indicate in your letter that the mobile phone kits will be imported in a single shipment with each of the components, accessories, and point of sale packing material imported in bulk in separate shipping boxes at the time of entry and subsequently assembled together into retail mobile phone kits immediately after entry into the United States.
The items that comprise the mobile phone kits are mobile phone handsets, mobile phone batteries, mobile phone battery covers, mobile phone chargers, and mobile phone instruction manuals. Each of these items will be packaged with several other identical items in cardboard shipping cartons, i.e., one carton containing batteries, another carton containing handsets, etc. Each of the shipping cartons will be placed on separate pallets with several other shipping cartons containing identical items and shrink-wrapped, i.e., one pallet containing several shipping cartons full of batteries, another pallet containing several cartons full of handsets, etc. All of the pallets will be imported within the same shipment in proportionate quantities, i.e., 1,000 batteries, 1,000 handsets, etc. All of the five items will be imported in this manner for convenience of packing, handling, and transport. However, after importation the merchandise will only be sold as mobile phone kits each consisting of a handset, battery, battery cover, charger, and instruction manual.
It is the opinion of this office that the mobile phone imparts the essential character of the imported merchandise, as an unassembled mobile phone kit. The kit, in its unassembled condition, is classified as a telephone for cellular networks in accordance with General Rule of Interpretation (GRI) 2(a) which states:
“Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”
As referenced in HQ 951511, dated June 1, 1992, goods do not have to be in “kit” form, nor do they have to be shipped in the same packing container, to be unassembled for tariff purposes. As such, the merchandise imported in bulk in an unassembled fashion as a mobile phone kit is classified upon importation as mobile phone kits in accordance with GRI 2(a).
The applicable subheading for the mobile phone kits will be 8517.12.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephones for cellular networks or for other wireless networks: Other radio telephones designed for the public cellular Radiotelecommunication service”. The rate of duty will be 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 on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Linda M. Hackett at (646) 733-3015.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division