CLA-2-85:OT:RR:NC:N2:212

Brennan O'Gorman
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
599 Lexington Avenue, Floor 36
New York, NY 10022

RE: The tariff classification and country of origin of electric music interfaces

Dear Ms. O'Gorman:

In your letter dated March 24, 2025, you requested a tariff classification and country of origin determination ruling on behalf of your client, Universal Audio Inc.

There are five items at issue with this request that are each described as versions of the Apollo Twin X Series electric music interfaces. The individual model names and numbers are listed below.

Apollo Twin X Duo, APTXDG2-ESS Apollo Twin X Quad, APTXQG2-ESS Apollo X4, APX4G2-ESS Apollo Twin MKII, APLTWDII Apollo Twin X USB, APLTWDU

We note that, based upon the information provided, the function of each device is substantially similar with the only difference being the various input and outputs that are incorporated. The subject devices are constructed of multiple printed circuit board assemblies (PCBAs) within an enclosure. The PCBAs incorporate signal processors, field programable gate arrays (FPGA), and a central processing unit (CPU) among other electrical components. On the outside of the enclosure is a rotating dial, various buttons, and lighted readouts. On the rear of the device are the various input and output connections including microphone and instrument jacks, optical inputs, stereo outputs, Thunderbolt and USB ports, as well as a power input.

The electric music devices are used within music production installations in order to accept, mix, and convert the analog signals from various inputs (i.e. musical instruments, microphones). The devices are connected to a computer via the Thunderbolt or USB interface in order to allow the user to manipulate the sounds. However, the PCBAs within the device perform the processing and mixing functions through the various electrical components. In your request, you suggest that the correct classification for the subject music interfaces is 8543.70.9100, Harmonized Tariff Schedule of the United States (HTSUS). We agree.

The applicable subheading for the electrical music interfaces, identified as below, will be 8543.70.9100, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Digital signal processing apparatus capable of connecting to a wired or wireless network for the mixing of sound.” The general rate of duty will be free.

Apollo Twin X Duo, APTXDG2-ESS Apollo Twin X Quad, APTXQG2-ESS Apollo X4, APX4G2-ESS Apollo Twin MKII, APLTWDII Apollo Twin X USB, APLTWDU

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 8543.70.9100, HTSUS, listed above.

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 at https://hts.usitc.gov/.

You further request this office to rule on the country of origin of the subject articles. In your request, you state that the manufacturing process begins with the creation of the main digital PCBA. This board is comprised of two digital signal processors, an FPGA, and the CPU processor among other electronic components. Per the information, this PCBA and its components perform the audio routing, mixing and signal processing that are the main functions of the finished device. In either Vietnam or Malaysia, this board is created through surface mount technology (SMT) that places and solders over 400 components. The finished board is then loaded with firmware and tested prior to being sent to China for final assembly.

In China, the main digital board is combined with a top panel board of Chinese origin, which you state controls the switches, rotary dial, and LEDs on the front of the device. The boards are then assembled within the metal housing, which incorporates the various inputs and outputs on the rear. The finished device is then tested and packaged for shipment to the U.S.

When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).

Regarding the origin of the subject music interfaces, it is the opinion of this office that the main digital board imparts the character of the finished device as it is the primary driver of the functionality of the device. Further, the assembly steps performed in China do not substantially transform the devices into new and different articles of commerce. Based on the facts presented, the origin of the electric music interfaces listed below, will be Vietnam or Malaysia, dependent upon the creation of the main digital PCBA. ??????????? Apollo Twin X Duo, APTXDG2-ESS ??????????? Apollo Twin X Quad, APTXQG2-ESS ??????????? Apollo X4, APX4G2-ESS ??????????? Apollo Twin MKII, APLTWDII ??????????? Apollo Twin X USB, APLTWDU

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Luke LePage at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division