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NY I86730





October 22, 2002

CLA-2-85:RR:NC:1:108 I86730

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.40.4000, 8525.40.8085

Ms. Valerie M. Suchor
Spectra Merchandising International, Inc. 4230 North Normandy Avenue
Chicago, Illinois 60634

RE: The tariff classification of digital cameras from China.

Dear Ms. Suchor:

In your letter dated September 25, 2002 you requested a tariff classification ruling.

The items in question are three types of digital cameras that are packaged for sale at the retail level. They are denoted as the Cool iCam CIC-50A model, the Cool iCam CIC-80A model and the Cool iCam CIC-175A model. Samples of each model, their package contents and descriptive literature of the proposed retail packaging have been furnished to this office. It is indicated that the various models are to be imported for retail sale in their immediate packaging. This office will base this ruling on those specific facts as indicated in the inquiry.

The CIC-50A model is packaged with a USB cable, a camera stand, batteries and a CD-ROM software package. The CIC-80A model is packaged with a USB cable, a camera stand, a non-textile wrist strap, batteries and a CD-ROM software package. The CIC-175A model is packaged with a USB cable, a non-textile pouch, non-textile neck and wrist straps, batteries and a CD-ROM software package.

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:

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).

In the case of all three specific models of digital cameras, their respective configurations are made up of articles, which are prima facie classified, in different headings. Together each model configuration is designed to enable the user to take digital pictures, store them and transmit them via the Internet. Based upon the information provided there is no evidence that these particular model configurations will be repackaged after importation into the commerce of the United States. It is therefore the opinion of this office that each particular model configuration of the iCam digital cameras constitutes 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 iCam digital camera set is the digital camera. It is clearly the most valuable of the items and is the dominant constituent item by use. It is clearly the reason why one would purchase the individual set.

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 should be noted that this office considers each particular model of digital camera to be a composite good.

The iCam CIC –50A and iCam CIC-80A each combine Web-Cam capability, that of capturing live images in real time, with that of digital still image production with storage. The iCam CIC-175A combines Web-Cam, digital still image with storage and video clip capability all in one unit. Based upon the multi-functional capability of each particular model this office is of the opinion that no single function for each camera imparts a principal function. Therefore classification of each 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 iCam CIC-50A and iCam CIC-80A model sets will be 8525.40.4000, 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: Still image video cameras and other video camera recorders; digital cameras: Digital still image cameras. The rate of duty will be free.

The applicable subheading for the iCam CIC-175A model 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; digital cameras: Other Other. The rate of duty will be 2.1 percent ad valorem.

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 each iCam camera demonstrates that they do not qualify as “intended” apparatus for the purpose of the CD-ROM software package. Therefore each camera would be considered a “non-intended” apparatus. Therefore legal Note 6 does not apply to the CD-ROM software contained in each set and they do not have to be classified in the specific heading. The CD-ROM software package will be classified in accordance with Section XVI Chapter 85 General Note B (1), Harmonized Tariff Schedule of the United States.

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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