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NY I89167




January 9, 2003

CLA-2-85: RR: NC: 1:108 I89167

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.40.4000

Mr. John F. Jager
Toyota Tsusho America, Inc.
702 Triport Road
Georgetown, KY 40324

RE: The tariff classification of a combination digital camera/ audio recording device from Korea.

Dear Mr. Jager:

In your letter dated December 18, 2002 you requested a tariff classification ruling.

The item in question is denoted as a combination digital camera/ audio recording device, which based upon the attached literature will be imported packaged for sale with accessories. The accessories are a USB cable, stereo earphone, telephone adapter, telephone cord, audio cable, alkaline battery, neck string, printed manual, application CD-ROM software, and a pin microphone.

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 the aforementioned articles are prima facie classifiable in different headings. Together each enables the user to perform recording of images and sound. Based upon the information provided the imported condition will be the retail packaging. The item will not be repackaged after importation into the United States. Therefore it is the opinion of this office that the device with all accessories 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 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 still image camera/audio recording device. It is the dominant apparatus contained within the set by value and use. It clearly is the reason why one would purchase the set.

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 digital still image camera/ audio recording device, in a single housing, to be a composite good. This is based upon its ability to function as a digital still image camera, as a voice recorder and as an MP 3 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 multi-functional digital still image camera/audio-recording device does not have an essential character. This device is designed to perform three distinct functions. It can be used, at the discretion of the user, as a digital still image camera, as an MP 3 player for the purpose of music recordation and playback and as a voice recording device. The production information describes this as the “ New generation all in one system”. Therefore classification will be in accordance with GRI 3c, Harmonized Tariff Schedule of the United States (HTS), 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 digital still image camera/audio recorder 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 and 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.

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 this device demonstrates that it does not qualify as an “intended” apparatus for the purpose of the CD-ROM software package. Therefore the device would be considered a “non-intended” apparatus. Therefore legal note 6 does not apply to the CD-ROM software package contained within the retail set and it does 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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