May 29, 2009 CBP Bulletin Notice on Classification of Certain Satellite Radio Receivers/Tuners

Proposed modification of rulings; proposed revocation of treatment. CBP is proposing to modify two rulings on the classification certain satellite radio receivers/tuners. Additionally, CBP proposes that this notice covers any rulings on this merchandise that 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 an interpretive ruling or decision on the merchandise that is subject to the proposed modifications and revocation, or any party involved with a substantially identical transaction, should advise CBP by June 29, 2009, 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 receivers/tuners. The merchandise is described as the SIR-PNP1 receiver/tuner that receives a transmitted satellite radio broadcast signal and converts it to an analog signal. It does not have any amplification capability. It is designed to primarily receive the broadcast signal through the ether without any line connection. It further transmits that signal to the radio broadcast receiver within the automobile. CBP was later informed by the importer that the initial description of the merchandise was incomplete because SIRPNP1 receivers/tuners also have internal digital recording capability.

CBP is proposing to issue HQ H042575 in order to modify NY K87747 and reflect the proper procedural basis on which to modify an interpretive ruling or decision. CBP is also proposing to issue HQ H043540 in order to modify NY J89049 and reclassify the PNP1 under HTS 8527.91 as other reception apparatus "combined with sound recording or reproducing apparatus" rather than under HTS 8527.99 (formerly 8527.90) as "other reception apparatus."

In HQ H042575, CBP proposes that under the provisions of 19 U.S.C. 1625(c), CBP's classification decision in NY K87747 concerning the SIR-PNP1 model of receiver/tuner is without effect. CBP states that rulings which have been in effect for at least 60 days may only be modified in accordance with the provisions of 19 U.S.C. 1625(c), which require that notice of the proposed action be published in the Customs Bulletin and that the public be allowed to comment on the proposed action for a period of at least 30 days. This procedure was not followed with respect to the purported reclassification of the SIR-PNP1 receiver/tuner.

In HQ H043540, CBP proposes the change in HTS classification as a correction based on new information about the product. (This is the same reclassification that was attempted in NY K87747 but which is now proposed to have not taken effect because of the procedural error.) The importer provided information indicating that the SIRPNP1 receivers/tuners also have internal digital recording capability.

CBP now proposes that by application of GRI 1, the SIR-PNP1 satellite radio receivers/tuners with recording capability are classified in subheading 8527.91.60 which provides for: "Reception apparatus for radio broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: Other: Combined with sound recording or reproducing apparatus: Other: Other."

Proposed: 8527.91.60, duty-free (formerly 8527.31); current: 8527.99.40, 6% (formerly 8527.90)

May 29, 2009 CBP Bulletin (Vol. 43, No. 22) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/