Revocation of HQ 087179; Alternating Current (AC) Combination Stereos Incorporating a Radio, a Dual Cassette Deck, a Record Player, and a Graphic Equalizer

HQ 950882 August 7, 1992 CLA-2 CO:R:C:M 950882 MBR CATEGORY: Classification TARIFF NO.: 8527.31.40 Mr. Wray Hiser Government Affairs Council Electronic Industries Association 2001 Pennsylvania Avenue, NW Washington, D.C. 20006-1813 RE: Revocation of HQ 087179; Alternating Current (AC) Combination Stereos Incorporating a Radio, a Dual Cassette Deck, a Record Player, and a Graphic Equalizer Dear Mr. Hiser: This is in reply to your letter of December 10, 1991, and subsequent meeting of July 13, 1992, on behalf of the Electronic Industries Association (EIA), requesting reconsideration of HQ 087179, dated May 31, 1991, regarding the classification of dual tape cassette combination stereos, under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: You have requested reconsideration of HQ 087179, dated May 31, 1991, regarding the classification of combination stereos incorporating an AM/FM radio, a dual cassette deck, a record player, and a graphic equalizer. These stereo systems are incapable of operating without an external source of power (i.e., they are "nonportable"). The dual cassette deck at issue contains two tape wells. One of the tape wells has tape heads for both recording and playing, while the other tape well has a tape head for playing only. The dual cassette deck features the ability to record from one tape to another, to record from the tuner, turntable or other source, and to play. ISSUE: Is the appropriate classification for nonportable, combination AC stereos with dual cassette tape players under subheading 8527.31.40, HTSUS, which provides for combination stereos incorporating tape players which are incapable of -2- recording, or is the proper classification under subheading 8527.31.50, HTSUS, which provides for other combinations incorporating tape recorders? LAW AND ANALYSIS: The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that: for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . . Heading 8527, HTSUS, in pertinent part, describes reception apparatus for radiobroadcasting, whether or not combined in the same housing with sound recording or reproducing apparatus. There is no dispute that the stereo combinations under consideration are described by this heading. GRI 6 governs the classification of goods in the subheadings of a heading. GRI 6 provides in pertinent part that the classification of goods in the subheadings of a heading is determined according to the terms of the subheadings. In the instant case, the competing subheadings are as follows: 8527.31.40 Combinations incorporating tape players which are incapable of recording 8527.31.50 Other combinations incorporating tape recorders The issue before us specifically is whether a "dual cassette tape player" incorporates tape players which are incapable of recording. In fact, the dual cassette deck features both a tape recorder and a tape player. While the tape recorder can both play and record, the tape player is only capable of playing. In our previous ruling we took the view that the dual cassette deck should be considered a single entity which was capable of recording. However, upon further review, we believe that the tariff provision contemplates that we consider the respective functions of the tape player and recorder separately. The dual cassette deck therefore incorporates a tape player that is incapable of recording. For this reason, we conclude that the instant merchandise is classifiable under subheading 8527.31.40, HTSUS, which provides for combinations incorporating tape players which are incapable of recording. -3- HOLDING: Combination stereos with AM/FM radio, incorporating dual cassette decks, are classifiable under subheading 8527.31.40, HTSUS, which provides for: "[r]eception apparatus for...radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus...: [o]ther radiobroadcast receivers...: [c]ombined with sound recording or reproducing apparatus: [o]ther: [c]ombinations incorporating tape players which are incapable of recording." EFFECT ON OTHER RULINGS: HQ 087179, dated May 31, 1991, is revoked for the above stated reasons, under authority of section 177.9(d), Customs Regulations [19 CFR 177.9(d)]. Sincerely, Harvey Fox, Director