Mr. Lars-Erik A. Hjelm
Akin Grump Strauss Hauer & Feld LLP
Robert S. Strauss Building
1333 New Hampshire Avenue, NW
Washington, DC 20036-1564
RE: The tariff classification of a Hi-Fi home-entertainment sound system from China
Dear Mr. Hjelm:
In your letter dated May 15, 2013, on behalf of Samsung Electronics America, Inc., you requested a tariff classification ruling.
The merchandise under consideration is the “Giga Sound System,” model MX-FS9000, which is always sold as a system consisting of an AM/FM receiver and two speakers. The receiver, which is powered from an external source, contains an AM/FM tuner and houses all of the control functions and ports to connect various other devices. However, it does not contain a speaker and requires connection of the speakers to emit sound. In addition, the receiver incorporates a compact disc player and also has the ability to reproduce sound from and record sound onto a USB memory device.
The speakers, which are connected to the receiver by cables, contain 15-inch dual subwoofers, a horn tweeter, Giga sound beats, and LED flash lights. At the time of importation, the speakers and the receiver are packaged in their own retail boxes; however, the speakers and the receiver’s packages are imported together on the same shipment and invoiced as a complete unit. Accordingly, the box containing the speakers and the box containing the receiver are banded together and are always sold together as a Hi-Fi Audio System and may not be sold or purchased separately.
By virtue of Legal Note 4 to Section XVI, Harmonized Tariff Schedule of the United States (HTSUS), the receiver and speakers interconnected by a cable are considered to be a functional unit intended to contribute together to the clearly defined function of reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus, which is provided in heading 8527, HTSUS.
The applicable subheading for this home entertainment sound system will be 8527.91.6040, 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: Other: Combined with sound recording or reproducing apparatus: Other: Other: Incorporating optical disc (including compact disc) players or recorders. 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.
Thomas J. Russo
National Commodity Specialist Division