CLA-2-85:OT:RR:NC:N2:209
Jean-Claude Excoffier
Trade Consultant
HP Inc.
150 Route du Nant d'Avril
Meyrin, CH1217
Switzerland
RE: The tariff classification of an audio headset/microphone set from China
Dear Mr. Excoffier:
In your letter dated September 24, 2021, you requested a tariff classification ruling.
The item concerned is referred to as the HP HyperX Streamer Headset and Microphone Set (PN 56R60AA). The HP HyperX Streamer Headset and Microphone is a set put up for retail sale, composed of a wired headset and a USB microphone with its stand. They connect to PCs and other devices through USB 2.0 (microphone) and mini stereo jack 3.5 mm (headset) cables.
The headset is equipped with a detachable noise-cancelling microphone. The separate USB microphone is intended for video editors, streamers, and gamers looking for a microphone with great sound quality.
Both items are designed for streamers (people recording themselves playing games and commenting to a live audience online) and gamers. The headset and the microphone are
compatibles with many devices such as PCs, PS4 and PS5 consoles.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRI's), taken in order. The term "sets" is discussed in GRI 3(a). GRI 3(a) provides that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods. The term "heading" is not defined in the nomenclature, but it is clear it refers to the four-digit level. In the instant case, we have audio headsets and microphones that are packaged together for retail sale. Both of these items are classifiable within tariff heading 8518, HTSUS. Relying on GRI 3, no guidance is given as to how goods are to be classified together or separately below the four-digit level. GRI 6 provides that for legal purposes, classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. GRI 6 thus incorporates GRIs 1 through 5 in classifying goods at the subheading level. Since GRI 6 uses the phrase "for legal purposes" the preceding GRIs are to be applied at the level necessary for the final legal classification of the goods for tariff purposes. GRI 6 requires the use of GRI 3 at the eight-digit level in the HTSUS, since it is that level at which the classification of the merchandise is ultimately determined. Thus, in order to be classifiable as a "set", the components must be classifiable in at least two different subheadings. The microphone and its stand are provided for within subheading 8518.10, HTSUS, and the headphones are provided for in subheading 8518.30, HTSUS, as such we have two competing subheadings.
The above-described headset and microphone set is considered to be a set for tariff classification purposes. No single component imparts the essential character, so the set will be classified in accordance with GRI 3(c). In this set, the subheading for the headset appears last in numerical order among the competing headings which equally merit consideration.
The applicable subheading for the HP HyperX Streamer Headset and Microphone Set (PN 56R60AA) will be 8518.30.2000, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: Other”. The general 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 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