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NY I80300




April 29, 2002

CLA-2-85:RR:NC:1:108 I80300

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.20.9080, 8504.40.8500, 8518.30.2000

Mr. Jeff Satterlee
Russell A. Farrow (U.S.) Inc.
27221 Northline Road
Taylor, Michigan 48180-4400

RE: The tariff classification of a wireless device from Canada.

Dear Mr. Satterlee:

In your letter dated April 5, 2002, on behalf of your client Research in Motion Limited, you requested a tariff classification ruling.

The item in question is denoted as the RIM Blackberry Wireless Handheld. A sample of the retail packaging and its contents has been furnished to this office. The RIM Blackberry is packaged with a docking/charging cradle, a power adapter a headset an instruction manual and CD-ROM software. It has been indicated that the entire set and also individual components are to be imported into the commerce of the United States. This ruling will cover the classification of the entire retail set and also the individual classification of the docking/charging cradle, the power adapter and the headset.

Explanatory Note X to GRI 3b provides for the purpose 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 facie, classifiable in different headings.

B. Consist of products put up together to meet a specific activity; and

C. Are put up in a manner suitable for sale to users without repackaging (e.g. in boxes or cases or on boards).

All of the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to conduct both wireless Internet activity and radiotelephony. The enclosed retail packaging sample is clear evidence that the product will be sold to the user without any repackaging. It is the opinion of this office that the RIM Blackberry Wireless Handheld and its accompanied items do constitute a set in accordance with Explanatory Note X.

In accordance, in part, with GRI 3b goods put up in sets for retail sale, which cannot be classified by reference to GRI 3a, shall be classified as if they consisted of the material or component which gives them their essential character.

EN VIII to GRI 3b states that the factor, which determines essential character, will vary as between different kinds of goods. It may for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the goods.

It is the opinion of this office that the item which imparts the essential character to this particular set is that of the RIM Blackberry Wireless Handheld device. It is the dominant component apparatus, by use and cost in relation to the other constituent components. Also it is the reason why one would purchase the set. It is to be noted that this office considers the Blackberry device to be a composite good. The device is designed to provide wireless ADP functions and also radiotelephonic functions.

Note 3 to Section XVI of the Harmonized Tariff Schedule of the United States (HTS) provides, in pertinent part, that unless the context requires otherwise, machines adapted for the purpose of performing two or more complimentary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. It is the opinion of this office that based upon the dual functionality of this device neither clearly demonstrates a principal function. Therefore classification of the RIM Blackberry Wireless Handheld device will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States.

Legal Note 6 to chapter 85 requires, in part, that records, tapes and other media of heading 8523 or 8524 remain classified in those headings when entered with the apparatus for which they are intended. For the purpose of this note, the term “apparatus for which they are intended” refers to apparatus which reads or plays the media or which records or writes on the media. The functioning of the Blackberry Wireless device demonstrates that it does not qualify as an “intended” apparatus for it does not read nor play the media and it does not record nor write on the media. Therefore this device would be considered a “non-intended” apparatus. Therefore Legal Note 6 does not apply to the CD-ROM software program and it does not have to be classified in its specific heading. The CD-ROM software program will be classified in accordance with Section XVI Chapter 85 General Note B (1), Harmonized Tariff Schedule of the United States.

The applicable subheading for the RIM Blackberry Wireless Handheld set will be 8525.20.9080, Harmonized Tariff Schedule of the United States (HTS), which provides for Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video camera recorders; digital cameras: Transmission apparatus incorporating reception apparatus: Other Other. The rate of duty will be free. The applicable subheading for the docking/charging cradle and power adapter, when imported separately, will be 8504.40.8500, Harmonized Tariff Schedule of the United States (HTS), which provides for telecommunications apparatus. The rate of duty will be free.

The applicable subheading for the headset, when imported separately, will be 8518.30.2000, Harmonized Tariff Schedule of the United States (HTS), which provides for headphones, earphones. The rate of duty will be 4.9 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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