United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2006 NY Rulings > NY M80026 - NY M80071 > NY M80060

Previous Ruling Next Ruling
NY M80060




January 26, 2006

CLA-2-85: RR: NC: 1:108 M80060

CATEGORY: CLASSIFICATION

TARIFF NO.: 8524.39.4000

Ms. Helen I. Sugar
BCB International
1010 Niagara Street
Buffalo, NY 14213-1501

RE: The tariff classification of a CD-ROM from Canada and status under the North American Free Trade Agreement (NAFTA).

Dear Ms. Sugar:

In your letter dated January 17, 2006 you requested a tariff classification ruling.

The item in question is a CD-ROM video game (2 discs) designed for use on an ADP machine (sample provided). It is entitled Dungeon Lords and is packaged with a fitted metal case, a printed manual and a printed game map depicting a region specified in the game. The video game depicts the inherent characteristics of instructions, data, sound, image and interactivity. All the aforementioned articles are packaged for retail sale in the metal fitted case.

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 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 play the CD-ROM video game on an ADP machine. Based upon the supplied sample it is evident to this office that it represents the imported retail packaging that will be sold to the ultimate purchaser. Therefore it is the opinion of this office that the items packaged together do represent 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 that 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.

Based upon the nature of the components and their use it is the opinion of this office that the CD-ROM video game imparts the essential character to this set. It is the dominant component based upon value, use and function. It is the reason one would purchase this set. It is the opinion of this office that the case is specially designed to house the CD-ROM set and will be classified in accordance with GRI 5(a), HTSUSA.

Also it should be noted that since this merchandise is already unconditionally free of duty, no special duty rate benefit is conferred by the NAFTA.

The applicable subheading for the CD-ROM video game will be 8524.39.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of chapter 37: Discs for laser reading systems: Other: For reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded discs. The rate of duty will be free.

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 World Wide Web at http://www.usitc.gov/tata/hts/.

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,

Previous Ruling Next Ruling

See also: