HQ 0955055 - Visual World-band Receiver; receiver; AC adapter; battery charger; rechargeable battery; antenna set; 8527.19.00; 8527.32.00; GRI 3(b); set; EN X to GRI 3(b); essential character; EN Rule 3(b); composite machine; Note 4, Section XVI; principal function; GRI 3(c); General EN (VI) Multi- Function Machines and Composite Machines - United States International Trade Commision Rulings

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HQ 955055

October 5, 1993

CLA-2 CO:R:C:M 955055 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8527.90.80

Mr. Sal Della Ventura
Sony Electronics Inc.
123 Tice Boulevard
Woodcliff Lake, New Jersey 07675

RE: Visual World-band Receiver; receiver; AC adapter; battery charger; rechargeable battery; antenna set; 8527.19.00; 8527.32.00; GRI 3(b); set; EN X to GRI 3(b); essential character; EN Rule 3(b); composite machine; Note 4, Section XVI; principal function; GRI 3(c); General EN (VI) Multi- Function Machines and Composite Machines

Dear Mr. Ventura:

This is in response to your letter dated August 25, 1993, to Customs in New York, regarding the tariff classification of a visual world-band receiver under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter, together with the submitted descriptive literature, was forwarded to this office for a response.

FACTS:

The visual world-band receiver ("world-band receiver"), model CRF-V21, is designed to receive FM broadcast, and short wave, long wave, and medium wave signals. The world-band receiver is also equipped with a facsimile broadcast receiver and printer so that weather broadcasts from satellites and stations can be received and printed out. The world-band receiver features a clock and is AC/DC operated. Additionally, the world- band receiver is imported with an AC adapter, rechargeable battery pack, battery charger, antenna set. The antenna set includes a bar antenna, a rod antenna, antenna mounting bracket, antenna cable, antenna winder, antenna cable extension, dust cover, roll printer paper, and connector cable.

It is your contention that the world-band receiver is a set classified pursuant to General Rule of Interpretation (GRI) 3(b), HTSUS. You contend that the receiver component imparts the essential character to the world-band receiver. Therefore, you believe that the world-band receiver is classified under subheading 8527.19.00, HTSUS, as other radiobroadcast receivers capable of operating without an external source of power

The competing subheadings are as follows:

8527 Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock...

8527.19.00 Radiobroadcast receivers capable of operating without an external source of power, including apparatus capable of receiving also radiotelephony or radiotelegraphy...Other....

8527.32.00 Other radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy...Not combined with sound recording or reproducing apparatus but combined with a clock....

8527.90.80 Other apparatus...Other....

ISSUE:

Is the visual world-band receiver classified as other radiobroadcast receivers capable of operating without an external source of power under subheading 8527.19.00, HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, 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...." When, by application of GRI 2, HTSUS, goods are prima facie classifiable under two or more headings, GRI 3, HTSUS, is applicable. In this case, classification is determined by application of GRI 3(b), HTSUS, which provides:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character....

To determine what is a "set put up for retail sale" the Explanatory Notes (EN) of the Harmonized Commodity Description and Coding System (HCDCS) may be utilized. EN X to GRI 3(b) (pg. 4) provides a three part test for "goods put up in sets for retail sale":

For the purposes of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean goods which:

(a) consist of at least two different articles which are prima facia, classifiable in different headings....;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repackaging (e.g., in boxes or cases or on boards).

The Explanatory Notes, although not dispositive, are looked to for the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

In the present case, the world-band receiver consists of a receiver (heading 8527), an AC adapter and battery charger (heading 8504), a rechargeable battery (heading 8507), and an antenna set (heading 8529) which are classified under various tariff provisions. The receiver, AC adapter, battery charger, rechargeable battery, and antenna set are packaged together in a retail container for sale directly to the consumer without repackaging. Additionally, the receiver and accessories are put up together to meet a particular need or carry out a specific activity. That activity is to receive broadcast bands including the weather forecast which can then be printed out via the facsimile. Therefore, the world-band receiver is a set for tariff purposes. To determine the proper classification, the essential character of the world-band receiver needs to be determined.

In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the article. In addition, EN Rule 3(b) (pg. 4), provides further factors which help determine the essential character of goods. Factors such as bulk, quantity, weight or value, or the role of a constituent material in relation to the use of the goods are to be utilized, though the importance of certain factors will vary between different kind of goods.

We are of the opinion that the essential character of the world-band receiver is imparted by the receiver. However, the receiver is a composite machine. A composite machine consists of:

...two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.

Note 4, Section XVI, HTSUS. The world-band receiver is a clock radio with a facsimile receiver. Clock radios are classified under subheading 8527.32.00, HTSUS, as radiobroadcast receivers not combined with sound recording or reproducing apparatus incorporating a digital clock or clock timer, and facsimile receivers are classified under subheading 8527.90.80, HTSUS, as other apparatus. We are of the opinion that neither the clock radio or the facsimile receiver imparts the principal function to the receiver. Each function performed by the receiver is of equal importance in the overall operation of the article.

Where it is impossible to determine principal function, it is necessary to apply GRI 3(c), HTSUS. See General EN (VI) MULTI-FUNCTION MACHINES AND COMPOSITE MACHINES (pg. 1133). GRI 3(c), HTSUS, states that:

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

In this case, the provision which occurs last in numerical order is subheading 8527.90.80, HTSUS. Therefore, the receiver is classified as other apparatus under subheading 8527.90.80, HTSUS. Moreover, as the receiver imparts the essential character to the world-band receiver, the entire set is classified under this tariff provision.

HOLDING:

The visual world-band receiver is a set classified pursuant to GRI 3(b), HTSUS. The essential character of the set is imparted by the receiver which is classified under subheading 8527.90.80, HTSUS, as other apparatus. This provision is dutiable at the Column 1 rate of 6 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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