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HQ 966976





April 29, 2004

CLA-2 RR:CR:GC 966976 KBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8543.89.96

Ms. Cheryl Santos
CVS
One CVS Drive
Woonsocket, RI 02895

RE: Reconsideration of NY I85746; Karaoke Machine

Dear Ms. Santos:

This is in reference to New York Ruling Letter (NY) I85746, issued to you by the Customs National Commodity Specialist Division, New York, on September 5, 2002. That ruling concerned the classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of a karaoke machine imported from China. We have reviewed NY I85746 and determined that the classification provided for the karaoke machine is incorrect.

Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published on March 10, 2004, Vol. 38, No. 11 of the Customs Bulletin, proposing to revoke NY I85746. Two comments were received in response to this notice.

FACTS:

NY I85746 concerned Nu-Tronix Karaoke for Kids Machine model 159678, imported from China. The karaoke machine is a device that allows the user to sing along with background music, either alone or with a group of people, for entertainment. The karaoke machine is battery operated and is configured in the same housing with a cassette player/recorder. It is packaged for retail sale along with two pre-recorded audiocassette tapes, lyric sheets, instruction booklet and a microphone. Only the karaoke machine is subject to this ruling. The recording device allows the user both to play and record cassette tapes separate from the sing-a-long capability. The device has a volume control, separate controls for each function and internal speakers.

In NY I85746, it was determined that the karaoke machine was classified in subheading 8520.33.00, HTSUS, as magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device, other magnetic tape recorders incorporating sound reproducing apparatus, other, cassette type. We have reviewed that ruling and determined that the classification is incorrect. This ruling sets forth the correct classification.

ISSUE:

What is the classification under the HTSUS of the subject karaoke machine?

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). Under GRI 1, merchandise is classifiable according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.

In interpreting the headings and subheadings, Customs looks to the Harmonized Commodity Description and Coding System Explanatory Notes (ENs). Although not legally binding, they provide a commentary on the scope of each heading of the HTSUS. It is Customs practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS provisions under consideration are as follows:

8519 Turntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device:

Other sound reproducing apparatus:

8519.99.00 Other

8520 Magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device:

Other magnetic tape recorders incorporating sound reproducing apparatus:

8520.33.00 Other, cassette type

8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:

Other machines and apparatus:

Other:

Other:

Other:

8543.89.96 Other

The article at issue is a karaoke machine model 159678. The device is intended to allow the user to sing along with background music. There is a microphone which allows the user’s voice to be transmitted and amplified to play through the device’s speakers along with the background music. The karaoke machine contains a cassette player/recorder which allows the user to record his performance. Taken individually, the different functions of the components of the karaoke machine would be classified in different headings of Chapter 85, HTSUS.

Because of the machine’s multiple components, NY I87338 cited GRI 3 to determine the classification of the karaoke machine. However, we must first consider classification of this multi-function article of Chapter 85, HTSUS, pursuant to GRI 1. See HQ 966530 (September 4, 2003), HQ 966531 (September 4, 2003) and HQ 966072 (September 4, 2003). To classify the article according to GRI 1, we must first look to the relevant section and chapter notes. HTSUS Section XVI, Note 3 provides:

Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.

We find that the principal function of the instant karaoke machine is as a sound reproduction device. The reason a person would use the instant karaoke machine is to reproduce sounds to sing along to. The additional feature of a cassette deck to record the performance is ancillary to the main function of allowing a person to sing to reproduced music. A person could, and conceivably would, fully use the instant machine for its intended purpose without using the additional feature.

Customs has previously found that a basic karaoke machine (one without a cassette recorder, a monitor, or a built-in video camera) is classified in subheading 8519.99.00, HTSUS. See NY C88162 (June 9, 1998) and NY J82864 (April 3, 2003) (involving another model of “Singing Machine”). Customs also classified karaoke machines in this same provision when they included components such as cassette players, monitors or cameras. See NY J84858 (June 4, 2003) (karaoke machine with a cassette player), NY J88831 (September 22, 2003) (karaoke machine with a monitor) and NY I83939 (July 11, 2002) (karaoke machine with a video camera). In NY I85748 (September 5, 2002), although determined under GRI 3, Customs ruled that the most important component of a karaoke machine with a live action camera was determined by the sound reproducing equipment of the karaoke machine, not the accessory feature of the live action camera.

Conversely, in NY H80326 (May 3, 2001) (involving karaoke machines with several additional components notably an AM/FM radio) and NY J80054 (January 21, 2003) (involving a combination karaoke machine, color television and VCR (video cassette recorder)), Customs found that the articles were not classified pursuant to GRI 3(b) under heading 8519, HTSUS, but were classified pursuant to GRI 3(c). See NY F82080 (February 2, 2000) (classifying karaoke machines, AM/FM radio and cassette player/recorder similarly but without GRI 3 analysis). GRI 3(c) states that when a composite good cannot be classified pursuant to GRI 3(a) or (b) it must be classified under the heading which occurs last in numerical order among those headings which equally merit consideration. With respect to the goods in NY H80326, NY J80054, and NY F82080, the AM/FM radio feature and the color television/VCR allow a user to use the device for a purpose other than as a karaoke machine – simply as a radio or television or video player. This is distinguishable from the instant karaoke machine because there is not one principal function for these other articles. The instant karaoke machine will realistically only be used for its karaoke ability.

Therefore, pursuant to GRI 1 and Section XVI, Note 3, we find that the principal function of the instant karaoke machine is determined by its sound reproducing function. Therefore, a basic karaoke machine would be classified under subheading 8519.99.00, HTSUS, as turntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device, other sound reproducing apparatus, other. However, heading 8519, HTSUS, specifically excludes articles with a sound recording device. Therefore, because it has recording capability, the instant karaoke machine, model 159678, is not classified under heading 8519, HTSUS.

NY I85746 ruled that the instant karaoke machine was classified in heading 8520, HTSUS. However, heading 8520, HTSUS, which involves magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound reproducing device, is also not appropriate for the model 159678 karaoke machine. Although one component of the karaoke machine may be classified in heading 8520, HTSUS, as we have stated above, the principal function of the article is as a sound reproducing apparatus. To classify the article in heading 8520, HTSUS, would be to classify the article as if its principal function was that of a recording device, which is not the case here. Because there is no heading which eo nomine provides for sound reproducing apparatus with recording capability, model 159678 is classified in subheading 8543.89.96, HTSUS, as electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter, other machines and apparatus, other, other, other, other.

HOLDING:

Karaoke machine Model 159678 is classified in subheading 8543.89.96, HTSUS, as electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter, other machines and apparatus, other, other, other, other. The 2004 tariff General duty rate is 2.6% ad valorum. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.

EFFECT ON OTHER RULINGS:

NY I85746 dated September 5, 2002, is REVOKED. In accordance with 19 U.S.C. §1625(c), this ruling will become effective sixty (60) days after publication in the Customs Bulletin.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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