CLA-2-85:RR:NC:1:108 F80216

Mr. Michael Zecchino
Hughes Network Systems
11717 Exploration Lane
Germantown, MD 20876

RE: The tariff classification of a settop box from Mexico.

Dear Mr. Zecchino:

In your letter dated November 17, 1999 you requested a tariff classification ruling.

The item in question is denoted as the AOL TV Settop. Based upon the submitted literature the AOL TV Settop is designed to provide integrated Direc TV video services and AOL Terrestrial data services on an NTSC television platform. This item is designed to operate within the Hughes Network System multi-media platform. This platform is to provide a dual satellite tuner solution. That is one tuner is dedicated to digital video and the other for high-speed data delivery.

The AOL TV Settop provides an enhanced multi-media experience including multi-channel audio, video and data services. The audio and video services are provided by such sources as the Direc TV Satellite System. It is anticipated that data may either arrive from a satellite source or through the incorporated 56K-phone modem. It is also anticipated that the AOL TV Settop will provide:

1. Reception and presentation of nearly 200 channels of MPEG digital audio/video broadcasts in the form of Direc TV to the consumer. 2. Reception and presentation of satellite data services broadcast in a Direc TV format. 3. Access via the internal modem for the reception and transmission of AOL TV Internet service. Based upon a telephone conversation with Mr. Davis of your office on November 29, 1999 it was confirmed that the AOL TV Settop does contain a tuner that can demodulate an NTSC broadcast signal.

The applicable subheading for the AOL TV Settop will be 8528.12.9200, Harmonized Tariff Schedule of the United States (HTS), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Other: Other: Set top boxes which have a communications function. The rate of duty will be 1.3 percent ad valorem. The 2000 rate of duty will be free.

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 Michael Contino at 212-637-7039.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division