The tariff classification of Novelty Lights with Speakers (Item Numbers A014DA00004 and A014DA000095) from China

N107350 June 8, 2010 CLA-2-85:OT:RR:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8518.21.0000 Mr. Troy D. Crago-Edwards Import Specialist Atico International USA, Inc. 501 South Andrews Avenue Fort Lauderdale, FL 33301 RE: The tariff classification of Novelty Lights with Speakers (Item Numbers A014DA00004 and A014DA000095) from China Dear Mr. Crago-Edwards: In your letter dated May 20, 2010 you requested a tariff classification ruling for Novelty Lights with Speakers. You also asked if the Novelty Light with Speaker were subject to visa or quota requirements. This merchandise is not subject to visa or quota requirements. As such, the balance of this ruling will provide the classification of the Novelty Light with Speaker. The merchandise subject to this ruling is two types of Novelty Lights with Speakers. They are identified within your letter as Item Numbers A014DA00004 and A014DA00095. A sample of Item Number A014DA00004 was submitted for classification purposes. Your letter states that either Atico International USA, Inc. or its retail customer will appear as the importer of record on the entry documents depending on the preference of Atico International USA, Inc.’s customers. The Novelty Lights with Speakers consist of a pair of speakers with red, green, and blue (RGB) light emitting diode (LED) lights attached to each speaker. The RGB LEDs act as strobe lights that blink and flash in synch to the rhythm of the music coming through the speakers. One of the speakers contains a power switch, an on/off switch, a volume dial, and a light effect dial, which adjusts the sensitivity of the lighting effect. Imported with the Novelty Lights with Speakers is an audio cable that plugs into the headphone plug of one of the speakers at one end of the cable and plugs into the audio output plug of a music player, such as an iPod, MP3 player, radio, PC, gaming system, etc., at the other end of the cable. It also contains an alternating current adapter, which is plugged into a wall outlet and connects to the body of one of the speakers in order to power the device. Item Number A014DA00095 has a power switch that provides the user with the option of obtaining power via a USB/DC power source or via the use of 4 AAA batteries. It does not appear that the batteries will be imported with this Novelty Lights with Speakers. In your letter you have suggested subheading 9405.40.8000 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for “other electric lamps and lighting fittings” as a possible classification of the Novelty Lights with Speakers. However, Explanatory Note (EN) 94 General Note 3 states: “Lamps and lighting fittings having a permanently fixed light source are classified in heading 94.05.” The Novelty Lights with Speakers do not have a permanently fixed light source. Rather, the LED lights blink and flash in time to the music coming through the speakers. As such, they are excluded from classification in heading 9405, HTSUS. You have claimed in your letter that the lights within the Novelty Lights with Speakers function in the same way as the lights within the items in New York Rulings N063396, N062228, N024984, and N067842 and should be classified under the same subheading 8543.70.9650, as “other machines and apparatus.” The merchandise within those New York rulings contained lights that flashed in synch to sounds or music coming from a sound chip within the device or from a sound chip in a sound/control unit or box that the merchandise was connected to. While the lights in the Novelty Lights with Speakers blink and flash, they do not blink and flash in response to the sounds coming from a sound chip. Rather, the LED lights within the Novelty Lights with Speakers blink and flash in synch to the rhythm of the music coming from a separate consumer device, such as an iPod, MP3 player, radio, PC, gaming system, etc. However, the LED lights blink and flash only after the speakers convert the electrical variations or oscillations coming from the consumer device into mechanical vibrations, which are then communicated to the air. As such, the lights within the Novelty Lights with Speakers are not similar to the lights in the aforementioned New York rulings because the LED lights within the Novelty Lights with Speakers do not execute their function in the same way as the lights in those New York rulings. You have also stated that it is your belief that the Novelty Lights with Speakers is a composite good. However, we believe the Novelty Lights with Speakers is a composite machine. As such, its classification is guided by Note 3 to Section XVI of the Harmonized Tariff Schedule of the United States (HTSUS) which states: “Unless the content 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 Novelty Lights with Speakers consist of a pair of speakers with LEDs that blink and flash as strobe lights in synch to the rhythm on the music coming through the speakers. In order for the Novelty Lights with Speakers to function, one end of the audio cable needs to be plugged into the speaker’s headphone plug and the other end of the audio cable needs to be plugged into the audio output plug of an iPod, MP3 player, radio, PC, gaming system, etc. Since the iPod, MP3 player, radio, PC, gaming system, etc., must be connected to the speaker in order for the Novelty Lights with Speakers to produce sound, it appears that the principal function of the device is that of a speaker, which converts the electrical variations or oscillations coming from the iPod, MP3 player, radio, PC, gaming system, etc., into mechanical vibrations, which are communicated to the air so that it can be heard. In comparison, the blinking and flashing of the light is a subsidiary function of the Novelty Lights with Speakers. The applicable subheading for the Novelty Lights with Speakers (Item Numbers A014DA00004 and A014DA00095) will be 8518.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Loudspeakers, whether or not mounted in their enclosures: Single loudspeakers, mounted in their enclosures.” The rate of duty will be 4.9 percent ad valorem. 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 Linda M. Hackett at (646) 733-3015. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division