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NY I86017




September 6, 2002

CLA-2-85:RR:NC:1:108 I86017

CATEGORY: CLASSIFICATION

TARIFF NO.: 8527.31.6040

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

RE: The tariff classification of a Home Theater Sound System from Malaysia.

Dear Mr. Heck:

In your letter dated September 3, 2002 you requested a tariff classification ruling.

The item in question is a home theater sound system. It is denoted as the Yamaha DVX-S60 Receiver/Home Theater Receiver Sound System. The system is composed of an AM/FM radiobroadcast receiver/amplifier with a built-in DVD/CD player (non-battery operated), a remote control and six surround sound speakers. The speakers are made in China while the other articles are made in Malaysia. The speakers are shipped to Malaysia and packed for retail sale with the stereo unit and remote control device. It has been indicated that the imported condition will be the retail sale condition of the system. There will not be any repackaging after importation. This ruling will be based upon this information.

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 particular need or carry out 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 a prima facie classifiable in different headings. Together each enables the user to enjoy audio/video entertainment. Based upon the information provided the imported condition will be the retail packaging. Therefore it is the opinion of this office that the home theater sound system constitutes a set in accordance with Explanatory Note X.

In accordance, in part, with GRI 3b goods put up insets 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 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 AM/FM receiver/ amplifier with a built-in DVD/CD player. It clearly provides the major value of the set and also provides the means to the audio/video entertainment for the user.

GRI 2b states that if a product is a mixture or combination of materials or substance that are, prima facie, classifiable in two or more headings, then GRI 3 applies. It should be noted that this office considers the AM/FM receiver/amplifier with a built-in DVD/CD player, all in a single housing, to be a composite good. This is based on its ability to function as an audio device providing radiobroadcasts and audio CD playing as well as visual entertainment by use of the DVD player.

GRI 3b provides that mixtures, composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component, which gives them their essential character.

It is the opinion of this office that the AM/FM receiver/amplifier with built-in DVD/CD does not have an essential character. The device is designed to perform two equally viable functions. The user can access sound entertainment, either radiobroadcasts or pre-recorded audio CDs, or visual entertainment by using the DVD player for viewing DVD movies. It should be noted that the system is advertised as a complete home entertainment system. Therefore classification will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States (HTS), which requires, in part, that he item be classified in the heading which occurs last in numerical order among those which merit equal consideration.

The applicable subheading for the Yamaha DVX-S60 Receiver/Home Theater 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.

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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