CLA-2-85:OT:RR:E:NC:1:108

Ms. Carmen V. Guillen
Mitsubishi Motors North America, Inc.
6400 Katella Avenue
Cypress, CA 90630-5208

RE: The tariff classification of in-dash audio receivers with built-in GPS navigation from Japan.

Dear Ms. Guillen:

In your letter dated March 19, 2009, you requested a tariff classification ruling.

The subject merchandise, based on the submitted information, is in-dash audio receivers with built-in GPS navigation, item numbers MZ360151EX and MZ360154EX, which are designed for vehicular use, with each consisting of a radio receiver incorporated within a system having audio, video and navigational capabilities. It is noted that each unit, with a built-in 7-inch LCD display, contains a tuner to receive AM/FM signals, a CD/DVD player, and a GPS receiver for providing signals with location and directional information as well as high-occupancy vehicle (HOV) lane-guidance information. Each unit also contains a hard-disc drive (HDD) that is capable of copying and storing music from CDs and MP3 Players, maintaining map and travel information, and storing up to 20 addresses, as well as being capable of providing maintenance records and reminders when entered by the user. Further, this merchandise, which will be imported with screws and instructional material, is put up in a manner suitable for sale directly to users without repacking.

It is claimed that this merchandise should be properly classified under subheading 8526.91.0020, Harmonized Tariff Schedule of the United States, HTSUS, which provides for Radar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: Radio navigational aid apparatus: Reception only apparatus, because it principally functions as a navigational system.

However, since the determination of a principal function of these composite machines, based on legal note 3 to section XVI, cannot be found, it is then necessary to apply General Interpretative Rule 3 (c). In such cases, based on GRI 3 (c), goods shall be classified under the heading which occurs last in numerical order among those (in this instance, heading 8526, HTSUS, for the GPS receiver and heading 8527, HTSUS, for the radio receiver combined with sound recording and reproducing apparatus) which equally merit consideration.

The applicable subheading for this merchandise will be 8527.21.40, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: Radiobroadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles: Combined with sound recording or reproducing apparatus: Other. 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 Lisa Cariello at (646) 733-3014.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division