December 18, 2008 CBP Bulletin Notice on Classification of Satellite Radio Boombox, Receiver Docking Station
In the December 18, 2008 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 42, No. 52), CBP published a notice revoking one ruling, modifying another ruling and revoking a treatment as follows:
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(Note: These rulings are revoked or modified according to a different analysis than proposed, and HQ H003733 determines a different tariff number than proposed.)
Revocation or modification of ruling, revocation of treatment.CBP is revoking one ruling on the classification of a satellite radio boombox and modifying one ruling on the classification of a satellite radio receiver docking station; in addition, this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, these actions are effective for merchandise entered or withdrawn from warehouse for consumption on or after February 16, 2009.
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 issuing HQ H003733 and HQ H008626 in order to revoke NY M80558 and modify NY J89049, respectively, and reclassify the satellite radio boomboxes and docking stations under HTS 8529.10.90 as antennas rather than under HTS 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 (other than those specifically mentioned above) remain unchanged.
CBP states that the original determinations were incorrect. CBP now determines that the boomboxes and docking stations are composite machines, and should be classified under the principle of GRI 1, with application of Note 3 to HTS Section XVI. Section XVI Note 3 states: "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."
The boombox consists of a loudspeaker (HTS 8518), an antenna (HTS 8529), and a power supply (HTS 8504.) The docking stations consist of an antenna (HTS 8529) and a power supply (HTS 8504.) CBP states they are unable to determine the principal function of each of these composite machines because each part performs important functions and contributes to how the machine is used. Reference is then made to the General Explanatory Note (EN) to Section XVI which provides that for composite machines, where it is not possible to determine the principal function, and where, as provided in Note 3 to the Section, the context does not otherwise require, it is necessary to apply General Interpretative Rule 3 (c). GRI 3(c) requires classification under the heading which appears last in numerical order. Therefore, CBP now determines that the boomboxes and the docking stations are properly classified under heading 8529.
If the boomboxes are imported as "kits," the classification is 8529.10.90 based on GRI 3 (b). Furthermore, CBP notes that the boomboxes and docking stations are precluded from classification under 8543 by the terms of that heading because they are provided for elsewhere in the chapter.
By application of GRI 1 and Note 3 to Section XVI, the boomboxes and docking stations are classified under heading HTS 8529.10.90, which provides for: "Parts suitable for use solely or principally with the apparatus of heading 8525 to 8528: Antennas and antenna reflectors of all kinds, parts suitable for use therewith: Other."
New: 8529.10.90, 3%, Previous: 8543.70.96, 2.6% (prior to 2007, 8543.89.9695)
(See ITT's Online Archives or 09/03/2008 news, 08090360, for BP summary of proposed HQ H003733 and HQ H008626.)
December 18, 2008 CBP Bulletin (Vol. 42, No. 52) available at http://www.cbp.gov/xp/cgov/trade/legl/bulletins_decisions/bulletins_2008/