CLA-2-85:OT:RR:NC:N4:108
Mr. Wesley A. Demory
Thomsen and Burke LLP
Two Hamill road
Suite 415
Baltimore, MD 21210
RE: The tariff classification of a camera from China
Dear Mr. Demory:
In your letter dated March 18, 2016, on behalf of Lily Robotics, Inc., you requested a tariff classification ruling.
The merchandise under consideration is the “Lily” camera, which consists of two high definition cameras mounted inside a waterproof housing that also contains electronics for the operation and use of the product. The Lily Camera is a waterproof throw-and-shoot digital camera that flies. This flying camera, which measures approximately 10.29 inches in width, 10.29 inches in depth and 3.22 inches in height and weighs about 2.8 pounds, flies itself through Global Positioning System (GPS) and computer vision technologies. The Lily camera is designed to take still images and video images and comes with about 20 minutes of flight time. Moreover, the camera itself shoots video in 1080p at 60 frames per second or 720p at 120 frames per second, and it can also shoot 12-megapixel still shots. The captured moving and still images are recorded internally onto an included 4GB micro SD card.
At the time of importation, the Lily Camera is packaged for retail sale with a tracking device, a waterproof case for the tracking device, a charger, and a user manual. This would be considered a set for tariff classification purposes with the essential character imparted for the Lily Camera.
According to GRI 3(b), the Lily Camera with accessories, as described above, constitutes a good put up in a set for retail sale since the subject merchandise meets the following criteria: it consists of at least two different articles which are, prima facie, classifiable in different headings; it consists of products put up together to meet a particular need or carry out a specific activity; and it is put up in a manner suitable for sale directly to users without repacking. The Lily Camera itself, within the set, is considered a composite good, according to GRI 3(b), since it meets the criterion of a good made up of different components, which cannot be classified by reference to GRI 3(a). In this regard, the subject merchandise, first considered as a set and then a composite good for tariff classification purposes, is to be classified, according to GRI 3(b), as if it consisted of the material or the component which provides the essential character. The primary purpose of the set is for the operation of the camera, and the primary purpose of the Lily Camera is to capture and record still and moving images. Thus, it is the opinion of this office that the essential character of the Lily Camera with accessories (the set) is imparted by the Lily Camera, and the essential character of the Lily Camera (the composite good) is imparted by the digital camera.
The applicable subheading for the Lily Camera will be 8525.80.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Digital still image video cameras.” 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 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 Lisa Cariello at [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division