August 28, 2008 CBP Bulletin Notice on Classification of Satellite Radio Boombox and Satellite Radio Receiver Docking Stations
In the August 28, 2008 issue of the U.S. Customs and Border Protection Bulletin (Vol. 42, No. 36), CBP published a notice proposing to revoke one classification ruling, modify one classification ruling and revoke a treatment as follows:
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Proposed revocation and modification of rulings; proposed revocation of treatment. CBP is proposing to revoke one ruling on the classification of a satellite radio boomboxes and modify one ruling on the classification of satellite radio receiver docking stations. Additionally, CBP proposes that this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed modification and revocation, or any party involved with a substantially identical transaction, should advise CBP by September 27, 2008, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Satellite radio boombox. The item is described as the PAL/Rocky Convertible BoomBox. It is a battery- or cord-operated, waterproof, portable boombox-shaped docking station for an XM PAL or Rocky satellite radio receiver. Features included are an antenna, volume control, speakers, a headphone jack and an infrared remote control. The purpose of the BoomBox is to amplify, clarify and enlarge the sound of a satellite radio reception. The Boombox is imported packaged together with a wireless remote control (collectively, the "Boombox kit"). The XM PAL or Rocky receiver is not imported with the Boombox.
Satellite radio receiver docking station. The satellite radio receiver docking station is described as an XM satellite radio device, specifically model numbers SIR-CK2 and SIR-HK1. The docking station is designed for use with a receiver/tuner that receives a transmitted satellite radiobroadcast signal and converts it to an analog signal. The docking station employs a power adapter; a roof mounted antenna, mounting bracket and an RCA cable. The device provides power for the receiver/tuner as well as receiving the analog signal from it through interconnecting pins. It further transmits that signal through the RCA cable directly to the radiobroadcast receiver/tuner. It can only transmit via the cable.
CBP is proposing to issue to HQ H003733 in order to revoke NY M80558 and reclassify the boomboxes under HTS 8518.22.00 as loudspeakers rather than under HTS 8543.89.9695 (now 8543.70.96) as electrical machines having individual functions not specified or included elsewhere. CBP is proposing to issue HQ H008626 in order to modify NY J89049 and reclassify the docking stations under HTS 8529.10.90 as antennas rather than under 8543.89.9695 (now 8543.70.96) as electrical machines having individual functions not specified or included elsewhere. The other items in ruling NY J89049 remain unchanged.
CBP now proposes that the original determinations were incorrect because as a set and as composite goods, classification under GRI 1 was incorrect, a GRI 3(b) analysis should have been used. The boomboxes are a set "put up together" for sale directly to users without repacking. CBP now proposes that the essential character of the boombox kit is the loudspeaker as it is the dominant component by use and cost. The docking stations are composite goods consisting of an antenna and a power supply and CBP proposes that their essential character is imparted by their antennas by virtue of their value and role in relation to the power supply.
Proposed: 8518.22.00, 4.9%, for boomboxes, and 8529.10.90, 3%, for docking stations
Current: 8543.70.96, 2.6% (prior to 2007, 8543.89.9695)
August 28, 2008 CBP Bulletin (Vol. 42, No. 36) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/