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NY H88170




February 14, 2002

CLA-2-85:RR:NC:1:108 H88170

CATEGORY: CLASSIFICATION

TARIFF NO.: 8527.31.6040, 8527.32.5010

Mr. Dennis Heck
Yamaha
6600 Orangethorpe Avenue
P.O. Box 6600
Buena Park, CA 90622-6600

RE: The tariff classification of stereo radio component systems from Malaysia.

Dear Mr. Heck:

In your letter dated January 28, 2002 you requested a tariff classification ruling.

The items in question are Micro Component Systems denoted as models CRX-E150 and CRX-E250.

The CRX-E150 system is composed of an AM/FM radio receiver and a CD player housed as one unit. The system can only operate with an external source of power. It is designed to provide the listener with AM/FM radiobroadcasts and the ability to play audio CD’s. The CD player does not have recording capability and the single housed unit does not have a clock or a clock timer.

The CRX-E250 system is composed of two separate sub-components, a Receiver/Amplifier unit (model RX-E200) and a CD player unit (model CDC-E250). The Receiver/Amplifier unit consists of an AM/FM tuner and amplifier with a sleep clock/timer, in one housing and an infrared remote control device. The CD player is designed as a 3 disk CD Player/Changer. The units are boxed together, upon importation without speakers. The speakers will be added after importation when the system is repackaged for sale to the consumer. The sub-components can either be stack mounted or used side by side and in each chosen configuration must be connected using RCA pin cables.

According to the information provided, the components cannot be purchased separately but rather as a complete entity only after the incorporation of the speakers is completed and the item is offered for retail sale.

Based upon HQ Rulings 958914 and 958577 this stereo component system (model CRX-E250) is neither a set nor a functional unit. The receiver/amplifier and CD player are repackaged after importation thus not meeting the third criterion for “goods put in sets for retail sale”. Also since the stereo system is imported without speakers it is considered incomplete and therefore cannot be considered an incomplete functional unit.

The item in question however is considered a composite good. The subject stereo system is composed of separable components, which are adapted to each other through RCA cable connections and are complementary to each other and together form a whole, which is not offered for sale as separate components. The RCA cable connections are necessary for the proper function of the components. Therefore based upon these factors the stereo system, in its imported condition, is a composite good under the application of GRI 3b.

The Yamaha CRX-E250 Micro Component System, consisting of two separate components, is a composite good. The essential character is imparted by the RX-E200 Receiver/Amplifier Unit with a clock timer and valued over $40.

The applicable subheading for the Yamaha CRX-E150 Micro Component System will be 8527.31.6040, Harmonized Tariff Schedule of the United States (HTS), which provides for Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: Other radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: Combined with sound recording or reproducing apparatus: Other: Other ... Incorporating optical disc(including compact disc) players or recorders. The rate of duty will be free.

The applicable subheading for the Yamaha CRX-E250 Micro Component System will be 8527.32.5010, Harmonized Tariff Schedule of the United States (HTS), which provides for Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: 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: Other Incorporating a digital clock or clock-timer. The rate of duty will be 3 percent ad valorem.

This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Michael Contino at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,

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