CLA-2-85:OT:RR:NC:N2:209
Sergio Langarica
International Trade Director
Sony Electronics Inc.
16535 Via Esprillo
San Diego, CA 92127
RE: The tariff classification of a smart speaker from China
Dear Mr. Langarica:
In your letter dated September 21, 2019, you requested a tariff classification ruling.
The item concerned is the Sony Smart Wireless Speaker with Built-in Voice Assistant (model #SRS-XB402G). This device consists of a single housing that incorporates 2 speakers, Wi-Fi and Bluetooth connectivity components, a microphone, a control panel, an amplifier, voice assistant components, and a decorative speaker light.
The Sony Smart Wireless Speaker with Built-in Voice Assistant is a portable smart speaker that can be used either inside or outside a home. Its angled speaker design keeps the bass sound and the sound pressure in the front and provides a wider listening area.
The built-in Google Assistant allows for voice control of specialized Wi-Fi enabled devices through a joint inter-connectivity with the Wi-Fi network users. It is also capable of accessing and playing audio from multiple internet streaming services. The voice assistant components convert spoken voice commands and transmits these search and/or control requests to the internet or home network. Such spoken commands/requests are used to control network enabled devices such as lighting, or to request a search of internet based cites (i.e. weather forecast, local traffic, how to say a word in another language, etc.).
You have proposed classification of the Sony Smart Wireless Speaker with Built-in Voice Assistant under heading 8517.62.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.”
The Sony Smart Wireless Speaker with Built-in Voice Assistant (model #SRS-XB402G) is a composite machine which performs two or more complementary functions, therefore, Note 3 to Section XVI is applicable. Note 3 to Section XVI, 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.
It is the opinion of CBP that the wireless speaker with Bluetooth and Wi-Fi capability provides the principal function to the Sony Smart Wireless Speaker with Built-in Voice Assistant (model #SRS-XB402G). CBP has consistently classified wireless speakers that operate using RF, Bluetooth and Wi-Fi connectivity within heading 8518, HTSUS. These include speakers that have the ability to wirelessly transmit/receive streaming audio and control commands, and to act as a wireless smart phone interface in regards to receiving and transmitting voice when used to answer and/or make telephone calls. The addition of the voice recognition component is viewed as an enhancement to a modern wireless speaker.
The applicable subheading for the Sony Smart Wireless Speaker with Built-in Voice Assistant (model #SRS-XB402G) will be 8518.22.0000, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures…: Loudspeakers, whether or not mounted in their enclosures: Multiple loudspeakers, mounted in the same enclosure.” The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8518.22.0000, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8518.22.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division