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HQ 950596


August 24, 1992

CLA-2 CO:R:C:M 950596 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8527.31.50

Mr. Douglas W. Sirinek
Sharp Electronics Corporation
Sharp Plaza
P.O. Box 650
Mahwah, N.J. 07430-2135

RE: Nonportable radio combinations; GRI 6; 8527.11.20; 8527.11.40; 8527.11.60; 8527.31.40; 8527.31.60; HQ 085971; HQ 087179; HQ 089395

Dear Mr. Sirinek:

This is in response to your letter of October 21, 1991, requesting the classification of nonportable radio combinations under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The articles in question are combination radio/dual cassette/compact disc [CD] players, incapable of operating without an external source of power (i.e., "nonportable"), from Japan, Korea and Malaysia. Models CDC900, CMS980CD and CMSR300CD each incorporate a radio, a dual cassette deck and a compact disc player in the same housing.

ISSUE:

What is the proper classification for the nonportable, combination radio/dual cassette/CD players under the HTSUS?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI

1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

Heading 8527, HTSUS, in part describes reception apparatus for radiobroadcasting, whether or not combined in the same housing with sound recording or reproducing apparatus. The three models of nonportable, radio combinations under consideration are described by this heading.

GRI 6 governs the classification of goods in the subheadings of a heading. GRI 6 provides in pertinent part that the classification of goods in the subheadings of a heading is determined according to the terms of the subheadings. In the instant case, the relevant subheadings are as follows:

8527.31.40 Combinations ["[c]ombined with sound recording or reproducing apparatus"] incorporating tape players which are incapable of recording

8527.31.50 Other combinations incorporating tape recorders

8527.31.60 Other

Subheading 8527.31.40, HTSUS, is inapplicable in this instance because the dual cassette decks incorporated into the systems are capable of recording. The systems do not incorporate tape players which are incapable of recording. See HQ 087179, dated May 31, 1991.

Unlike subheading 8527.31.40, HTSUS, which restricts the tape players described to those which are incapable of recording, subheading 8527.31.50, HTSUS, does not restrict the tape recorders described to those which are incapable of playing. Because the three combinations under consideration incorporate tape recorders, they are classifiable under subheading 8527.31.50, HTSUS.

Sharp argues that the units are classifiable under 8527.31.60, HTSUS. The two factors which they state led them to this conclusion are as follows: (1) although each model combines a radio with a tape recorder, the tape recorder is actually part of a dual cassette deck that incorporates a nonrecording playback well; and (2) the presence of a CD player makes each model more than a simple combination of radio and tape player. In support of these contentions, Sharp cites HQ 085971, dated March 9,

1990, and HQ 089395, dated August 26, 1991. Both of these rulings concerned the classification of stereo combinations, which were capable of operating without an external source of power (i.e., "portable").

In HQ 085971, the classification of three models of portable radiobroadcast receiver combinations was considered. The models were single cassette tape recorders (with the capability to record), with AM/FM radios and CD players. These models were all classified under subheading 8527.11.60, HTSUS, which provides for "[r]adiobroadcast receivers capable of operating without an external source of power . . . [c]ombined with sound recording or reproducing apparatus . . . [o]ther . . . [o]ther."

In HQ 089395, the classification of a portable radiobroadcast receiver combined in the same housing with a dual cassette deck was considered. This combination was also classified under subheading 8527.11.60, HTSUS.

The subheadings at issue in these cases were as follows:

8527.11.20 Radio-tape recorder combinations

8527.11.40 Radio-phonograph combinations

8527.11.60 Other

Sharp contends that the reasoning of these rulings should apply with equal force to the classification of similar, nonportable units. However, while the units themselves may or may not be similar, the provisions for these portable and nonportable radiobroadcast receiver combinations are clearly quite different. The subheadings listed above that apply to portable radiobroadcast receiver combinations are far more restrictive than the article descriptions for nonportable radiobroadcast receiver combinations.

In HQ 085971, this office stated that the provisions for portable "radio-tape recorder combinations" and "radio-phonograph combinations" were intended to include only those combinations that were specified, eo nomine, in those particular subheadings. Thus, combinations which include a CD player and combinations incorporating a dual cassette deck cannot be classified under 8527.11.20, HTSUS, or 8527.11.40, HTSUS.

The same, however, does not hold true for nonportable combinations. Subheading 8527.31.50, HTSUS, provides for combinations incorporating tape recorders. The instant merchandise is classifiable under this subheading because the
systems are "combinations incorporating tape recorders," and the fact that these "combinations" include CD players does not take them beyond the scope of this subheading. Similarly, the fact that a combination incorporating a dual cassette deck would not be classified as a "radio-tape recorder combination" under subheading 8527.11.20, HTSUS, does not mean that these combinations are beyond the scope of subheading 8527.31.50, HTSUS.

HOLDING:

The Sharp Model CDC900, CMS980CD and CMSR300CD nonportable, radio combinations are classifiable under subheading 8527.31.50, HTSUS, which provides for "[r]eception apparatus for . . . radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus . . . [o]ther radiobroadcast receivers . . . [c]ombined with sound recording or reproducing apparatus . . . [o]ther . . . [o]ther combinations incorporating tape recorders." The corresponding rate of duty for articles of this subheading is 4.9% ad valorem.

Sincerely,

John Durant, Director

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