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HQ 958236




November 28, 1995

CLA-2 RR:TC:TE 958236 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.9025; 8527.11.1180

Mr. William A. Vollmerhausen
Kmart Corporation
3100 West Big Beaver Road
Troy, Michigan 48084-3163

RE: Reconsideration of NYRL 809459; AM/FM Radio Cassette Player with Headphone and Carrying Case; Not Set; Not GRI 5(a) Container

Dear Mr. Vollmerhausen:

This letter is in response to your request of June 1, 1995, for reconsideration of New York Ruling Letter (NYRL) 809459, issued May 11, 1995, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of an am/fm radio cassette player combination with headphone and nylon carrying case, imported in a blister package from China. A sample was submitted with the request.

FACTS:

In NYRL 809459, Customs separately classified the articles in the subheadings applicable to the carrying case and the receiver/recording apparatus. The radio/cassette player with headphone was classified in subheading 8527.11.1180, HTSUSA, the provision for "Reception apparatus for radiotelephony...: Radiobroadcast receivers...: Combined with sound recording or reproducing apparatus: Combinations incorporating tape players which are incapable of recording, Other," with an applicable duty rate of 3 percent ad valorem. The nylon carrying case was classified in subheading 4202.92.9025, HTSUSA, textile category 670, the provision for "Trunks, suitcases, vanity cases...: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other, With outer surface of textile materials: Other: Of man-made fibers," with an applicable duty rate of 19.8 percent ad valorem. -2-

The sample consists of a headphone, an am/fm radio cassette player measuring approximately 5-1/2 inches in length by 4 inches in width by 2 inches in depth, and a nylon carrying case that measures only slightly larger than the radio/cassette player. The case has a zippered opening, an adjustable waist strap, and is similar in design to a waist bag for carrying generic am/fm sport radios and/or cassette players. The complete article is imported suitable for direct retail sale without repacking.

ISSUE:

Whether the article is properly classified as a set, or as individual, separately classifiable components.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRI.

The complete article cannot be classified by reference to GRI 1 because it consists of three individual components that are classifiable in two different headings, i.e., 4202 and 8527, HTSUS.

In pertinent part, GRI 2(b) states that:

[t]he classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

GRI 3(a) directs that the headings are regarded as equally specific when each of the separate headings refers to part only of the items in a set put up for retail sale. Whether the separate headings in this case are regarded as equally specific depends upon whether the individual components comprise a set put up for retail sale. We look to GRI 3(b), which states in part that: -3-
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, insofar as this criterion is applicable.

As with GRI 3(a) above, the applicability of GRI 3(b) is dependent upon whether these individual items are deemed to comprise a set. Explanatory Note X(b) to GRI 3(b) provides the following guidance:

For the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which:
consist of products or articles put up together to meet a particular need or carry out a specific activity.... (emphasis added)

The am/fm radio cassette player and headphone are designed to provide users with sound (e.g., music, news, etc.). The nylon carrying case is designed to carry, protect, and/or store a radio and/or cassette player. In light of these divergent designs and uses, we find that the individual components are not put up to meet a particular need or carry out a specific activity. Thus, the goods do not comprise a set.

We next note that certain containers may be classified with the articles they are designed to hold if the requirements of GRI 5(a) are met. In pertinent part, GRI 5(a) states that:

Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith.

Although in this instance, a nylon carrying case is imported to be sold at retail with an article it is able to contain, we find that such cases are not normally sold with am/fm radio cassette players and are usually sold separately. Therefore, GRI 5(a) does not operate to make the carrying case classifiable with the other components. The case and am/fm radio cassette player with headphone are separately classifiable. -4-

HOLDING:

The individual components packaged together for retail sale are separately classified as follows:

The nylon carrying case is properly classified in subheading 4202.92.9025, HTSUSA, textile category 670, the provision for "Trunks, suitcases, vanity cases...: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other, With outer surface of textile materials: Other: Of man-made fibers." The applicable duty rate is 19.8 percent ad valorem.

The am/fm radio cassette player and headphone are properly classified in subheading 8527.11.1180, HTSUSA, the provision for "Reception apparatus for radiotelephony...: Radiobroadcast receivers...: Combined with sound recording or reproducing apparatus: Combinations incorporating tape players which are incapable of recording, Other." The applicable duty rate is 3 percent ad valorem.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

NYRL 809459, issued May 11, 1995, is hereby affirmed.

Sincerely,

John Durant, Director

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