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NY I84955





August 22, 2002

CLA-2-85:RR:NC:108:I84955

CATEGORY: CLASSIFICATION

TARIFF NO: 8525.40.8085
Ms. Debbie Kassebaum
Largan Inc.
2432 West Peoria Avenue
Building 9, Suites 1165 & 1166
Phoenix, Arizona 85029

RE: The tariff classification of a digital camera from Taiwan and China.

Dear Ms. Kassenbaum:

In your letter dated August 7, 2002 you requested a tariff classification ruling.

The sample you have submitted is a Chameleon Mega 1.3 megapixel digital camera. This is a digital still camera with 16 MB of internal storage capability. The camera stores up to 120 photos on high resolution and up to 228 photos on good resolution. The camera operates independent of a computer. You state that the camera is also capable of recording 35-90 second video clips and can be used for teleconferencing at a video refresh rate of 10 frames per second. It is packaged for retail sale as a set together a USB cable, CD-ROM software, 2 AAA batteries, a camera case, a tripod, TV cable, quick start guide, users manual, and dell picture Studio information card. It should be noted that this office considers this camera to be a composite good. This is based upon its ability to function as both a television type camera, capturing live images in real time, and as a digital still image camera with storage capability.

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 fully operate the digital camera. Based upon the attached packaging it is evident that the configured goods will not be repackaged upon importation. Therefore it is the opinion of this office that the digital camera and accompanying articles do in fact 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 the 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 digital camera. It is clearly the reason why one would buy the set and it clearly dominates the set in terms of value and function.

It should be noted that this office considers this camera to be a composite good. This is based upon its ability to function as both a television type camera, capturing live images in real time, and as a digital still image camera with storage capability.

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 digital camera neither demonstrates a principal function. Therefore classification of the Chamelon Mega 1.3 megalpixel digital camera will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States, which requires, in part that the item be classified in the heading which occurs last in numerical order among those which merit equal consideration.

The applicable subheading for the Chameleon Mega 1.3 megapixel digital camera set will be 8525.40.8085, 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: Still image video cameras and other video camera recorders; Other Other. The rate of duty will be 2.1 percent ad valorem.

Legal Note 6 of Chapter 85 will not be applied to the CD-ROM software program. The CD-ROM software program (recorded media) will be classified in accordance with Section XVI, Chapter 85, General Note B1 because the recorded media is presented with apparatus for which it is not-intended.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19C.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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