The tariff classification of an iOS positioning device from China

N251345 April 9, 2014 CLA-2-84:OT:RR:NC:1:104 CATEGORY: Classification TARIFF NO.: 8479.89.9899 Mr. Mark Della Bona Satarii, Inc. 1354 El Camino Real San Carlos, CA 94070 RE: The tariff classification of an iOS positioning device from China Dear Mr. Della Bona: In your letter dated March 11, 2014, you requested a tariff classification ruling. The SWIVL™, SKU #SW2782, allows a user to video a subject while simultaneously being an active participant in the video. It allows for hands-free video and provides control over horizontal and vertical framing of the user and those around the user. The SWIVL™ is a sensor enabled, motorized base controlled by a remote marker which can be handheld or worn. It is designed to connect to select iOS and Android devices such as cell phones and tablets (incorporating digital video cameras), DSLR cameras and small digital video cameras. The base and marker cannot function independently. The marker controls base functions such as speed and tilt. The stationary base which holds the camera device turns to face whoever is holding the marker. The sensor connection allows the base to position the camera device so that the user is kept in the camera field of view within a range of 10 meters. The base can rotate 360 degrees and tilt (up and down +5-/20 degrees). The base and marker primarily use IR (infrared) to track movement but RF is also used for sending commands. The microphone enabled marker can also capture digital audio through a wireless connection to base. The device features an integrated, approved Bluetooth module for RF communication with devices supporting Bluetooth and a drive system using Micro DC stepper motors to support larger camera devices, tablets, etc. The SWIVL™ can be used in applications such as blogging, sports and education. The base and marker operate on single lithium battery cells and can be recharged using the supplied AC adapter through the base. The standard SWIVL™, SKU #SW2782, consists of a base/SW2782 (BA), a marker/SW2782 (MA), an AC power adapter/SW3000PA, an assortment of small plastic shims to fit various camera devices, a micro-USB cable, a 3.5mm audio cable, a user guide and a an information guide. The items are packaged in a brown corrugated, shippable box. Packaging consists of a cardboard outer box, internal cardboard separators, and internal cardboard boxes for the power adapter and small plastic pieces. General Rule of Interpretation (“GRI”) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes.  Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS.  GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good. Explanatory Note (X) to GRI 3(b) states, that for a group of articles to qualify, as a set put up together for retail sale, they must meet the following three requirements: (1) consist of at least two different articles, which are, prima facie, classifiable in different headings, (2) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (3) be put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards). The instant SWIVL™, SKU #SW2782 consists of at least two different articles that are, prima facie, classifiable in different headings. It consists of articles put up together to carry out a specific activity (i.e., positioning of certain iOS and Android devices). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. It is noted that the Explanatory Notes to GRI 3(b) do not require that sets must be sold to retail stores. However, it is required that they be put up in a manner suitable for sale directly to the users, without repacking. Therefore, the SWIVL™, SKU #SW2782 is within the term "goods put up in sets for retail sale." GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to 3(a), are to be classified as if they consisted of the component which gives them their essential character, in this case, the motorized base. In accordance with GRI 3(b), the applicable subheading for the SWIVL™, SKU #SW2782, will be 8479.89.9899, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: Other machines and mechanical appliances: Other: Other: Other”. The rate of duty will be 2.5% 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 Patricia O’Donnell at [email protected]. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division