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NY K89505





September 24, 2004

CLA-2-85:RR:NC:1:108 K89505

CATEGORY: CLASSIFICATION

TARIFF NO.: 8525.40.80

Mr. Armando Rivas
Customs Import Coordinator
One Geoffrey Way
Wayne, NJ 07470-2030

RE: The tariff classification of a video camera set from Hong Kong.

Dear Mr. Rivas:

In your letter dated August 23, 2004, you requested a tariff classification ruling. Sample is being returned as requested.

The submitted sample, referred to as the “Digital Movie Creator/Computer Video Camera,” is a video camera set with digital capacity, item number 527354, that consists of the following components: a six-inch long battery-operated hand-held digital video camera, with a wrist strap, that is composed of a viewfinder, snapshot button, an eyepiece, a small display screen, a built-in microphone, a camera lens, a self-timer button, a delete button, an image-quality button, and a video-record button; a camera base, with an incorporated USB cable, for file downloading that also doubles as a camera stand; an editing CD-ROM software; and a quick-start guide.

It is stated that this video camera can capture four minutes of video with audio apart from the PC, in addition to its subsidiary function of capturing still image pictures. The camera is then inserted into the downloading camera base and fitted with the USB cable for attachment to the USB port of the computer. The CD-ROM software, which is installed in the computer, functions to download the video and still image pictures where they can be edited and mixed, as well as personalized with such features as special effects and animations to the user’s specifications for creating personal movies.

Explanatory Note X to General Rule of Interpretation 3 (b) provides for the purpose of this rule that 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;
consist of products or articles put up together to meet a particular need or carry out a specific activity; and
are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

All of the aforementioned articles within the described set are prima facie classifiable in different headings. Together each article enables the user to fully operate the video camera. Further, it is noted that the merchandise will be imported in a condition for direct sale to users without repacking. Therefore, it is the opinion of this office that the video camera with accompanying articles constitute a set for tariff purpose in accordance with Explanatory Note X.

Explanatory Note VIII to GRI 3(b) provides that the characteristic which gives a set its "essential character" 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 use of the goods.

It is clear that the video camera is the most important article in the set. The video camera is the most valuable article in terms of marketability, for the importer, and in terms of utility, for the consumer. As such, we conclude that the video camera imparts the "essential character" of the set.

In regard to the CD-ROM software, Legal Note 6 of Chapter 85, HTSUS, provides that, "[r]ecords, tapes, and other media of heading 8523 or 8524 remain classified in those headings when entered with the apparatus for which they are intended." However, the note "does not apply to such media when they are entered with articles other than the apparatus for which they are intended." The CD-ROM installation software is used in a computer, not in the camera. However, it is part of this video camera set. General Explanatory Note (B)(1) to Chapter 85, HTSUS, directs that if recorded media presented with apparatus for which it is not intended is part of a set for retail sale, it is classified pursuant to GRI 3(b). Therefore, the instant CD-ROM need not be classified separately; it is subsumed in the set.

The applicable subheading for this video camera set will be 8525.40.80, 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 camerasStill image video cameras and other video camera recorders; digital cameras: Other. The rate of duty will be 2.1 percent ad valorem.

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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