HQ 0089941 - Recorded video cassettes; GRI 1; EN 85.24 - United States International Trade Commision Rulings

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HQ 089941
October 11, 1991

CLA-2 CO:R:C:M 089941 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8524.23.10

Mr. Juan C. Diaz
Rank Shipping, Inc.
P.O. Box 4841 - Cargo Area
Carolina, Puerto Rico 00628

RE: Recorded video cassettes; GRI 1; EN 85.24

Dear Mr. Diaz:

This is in response to your letter dated July 11, 1991, on behalf of Importaciones YEMIR, Humacao, Puerto Rico, regarding the tariff classification and admissibility into Puerto Rico of video cassettes movies recorded in Spanish. Samples of the video cassettes were submitted for examination.

FACTS:

Importaciones YEMIR of Humacao, Puerto Rico, plans on importing recorded video cassettes from Gran Video in Venezuela. Pursuant to an International Home Video License Agreement between Gran Video and Turner Home Entertainment, Inc. (THE), in Venezuela Gran Video will duplicate video cassettes from THE master tapes dubbing them in Spanish or creating Spanish subtitles.

ISSUE:

What is the proper tariff classification of the recorded video cassettes?

LAW AND ANALYSIS:

The classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...."

The recorded video cassettes are properly classified under subheading 8524.23.10, HTSUSA, which provides for "Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of chapter 37...Magnetic tapes...Of a width exceeding 4 mm but not exceeding 6.5mm...Video tape recordings...In cassettes." Explanatory Note 85.24 of the Harmonized Commodity Description and Coding System (HCDCS), states that heading 8524 "covers magnetic tapes (video tapes), holographic image tapes and discs (video discs), on which are recorded television image and sound." HCDCS, Vol. 4, p. 1373. The Explanatory Notes, although not dispositive, are to be looked to for proper interpretation of the HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989). The recorded video cassettes satisfy the terms of this heading. The recorded video cassettes are magnetic tapes on which image and sound are recorded. The duty rate of this tariff provision is 0.66 cents per linear meter.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940). Enclosed for your information is a copy of Part 134, Customs Regulations (19 CFR Part 134), which implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

HOLDING:

The recorded video cassettes are properly classified under subheading 8524.23.10, HTSUSA, which provides for "Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of chapter 37...Magnetic tapes...Of a width exceeding 4 mm but not exceeding 6.5mm...Video tape recordings...In cassettes." The duty rate of this provision is 0.66 cents per linear meter.

Sincerely,

John Durant, Director
Commercial Rulings Division

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