CLA-2-85:OT:RR:NC:N2:220
George R. Tuttle, III
Tuttlelaw
1100 Larkspur Landing Circle Suite 385
Larkspur, CA 94939
RE: The tariff classification of the Singtrix Party Bundle from China
Dear Mr. Tuttle:
In your letter dated December 10, 2018 you requested a tariff classification ruling on behalf of your client, Singtrix LLC.
The merchandise under consideration is identified as the Singtrix Party Bundle which consists of an Effects Console, an amplified 40 W speaker, a microphone with stand, faceplate inserts, power adapters, and cables. You state that the Singtrix Party Bundle is imported and sold as a retail packaged set.
The Effects Console receives its inputs from two microphone jacks and from a music source, such as a smart device, an instrument, or a digital player. The Effects Console has two stereo output jacks that can be connected to headphones, amplifiers, or speakers. The user interface for the Effects Console consists of an LCD display, 4 sound editing and effects knobs (including amplification levels), and a pushbutton switch that initiates a preprogrammed sound effect. In use, a digital music source is connected to the Effects Console, allowing the user to edit their voice for pitch correction or add effects to the mixed sound output. The microphone is connected to one of the microphone inputs and the amplified speaker is connected to one of the audio outputs. As it is imported, the Singtrix Party Bundle consists of all the components necessary to perform its intended function of audio sound effects and loudspeaker amplification of audio.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3.
GRI 3 (a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3. GRI 3(b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character
The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3 (b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles 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 directly to users without re-packing. Goods classifiable under GRI 3 (b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
The Singtrix Party Bundle consists of two or more articles that are, prima facie, classifiable in different headings. The Singtrix Party Bundle also consists of articles put up together to carry out a specific activity (i.e., sound mixing, alteration, amplification, and producing via the speakers). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the set in question is described within the meaning of "goods put up in sets for retail sale."
In accordance with GRI 3 (b), which states in part that goods put up in sets for retail sale, that cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component which gives them their essential character. In your request you suggest, and we agree, that the Effects Console is the article which imparts the Singtrix Party Bundle with its essential character.
Also in your request you suggest the studio effects console should be classified as a music synthesizer under 9207.10.0005, HTSUS. However, it is the view of this office that the Effects Console does not meet the terms of heading 9207. Based on the information provided, the Effects Console analyzes music audio signals using its digital signal processors and sophisticated algorithms to determine song key and harmony structures that can be applied to live vocal effects. It then takes the digital signal of the music and passes it to the audio speaker output. As such, the Effects Console is not classifiable as a musical instrument of chapter 92 as it is incapable of producing sound, but rather functions to mix and edit preexisting audio which have been generated form an external source.
The applicable subheading for the Singtrix Party Bundle will be 8543.70.9960, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus; …Other”. The rate of duty will be 2.6 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division