The tariff classification of audio/video production units from an undisclosed country.

N285326 May 3, 2017 CLA-2-85:OT:RR:NC:N4:120  CATEGORY: Classification TARIFF NO.: 8543.70.9960  Mr. Brian Kavanaugh A.N. Deringer, Inc. 173 West Service Road Champlain, NY 12919 RE:  The tariff classification of audio/video production units from an undisclosed country. Dear Mr. Kavanaugh: In your letter dated April 11, 2017 you requested a tariff classification ruling on behalf of your client, Ross Video.The merchandise under consideration is described as audio/video production units and are identified as the Abekas Air Cleaner, the Abekas Mira Production Server, the Abekas Mira Replay Server, and the Abekas Tria Video Clip Server. With the exception of the Air Cleaner, the Production Server, the Replay Server and the Video Clip Server perform multiple functions such as video production control, recording, instant replay, and editing. The Air Cleaner is a composite machine consisting of a rack mounted chassis and a separate user control panel. The Air Cleaner is used primarily as an audio/video digital delay device in television studios to eliminate offensive content from airing on live broadcasts. Once offensive content is identified, the user would manually depress the user interface button which switches the audio and/or video signal to an auxiliary feed or mute. In your request, you suggest classification of the Air Cleaner under subheading 8543.70.9960 to Chapter 85, Harmonized Tariff Schedule of the United States (HTSUS). We agree. The Production Server is a television and event audio/video production unit that is used in live studio programming. The Production Server consists of a rack mounted chassis with numerous audio and video channel inputs/outputs, RAID-6 data storage, and dual-redundant power supplies. Additionally, Ethernet, RS422, and USB connections are available to attach peripherals. A user would control the Production Server through an attached mouse and keyboard and depending upon the intended application, a separate control unit. We would note that these peripherals are not being considered in this ruling. Its audio, video, and key capabilities provide for animated switcher transitions and for feeding on-set displays, meaning that every configured video channel (up to eight) can instantly switch between record and play operations. In addition to capturing, storing, and playout of audio and video clips during a live television broadcast, a key feature of the Production Server is the editing function. In your request, you suggest classification under subheading 8543.70.9960 to Chapter 85, HTSUS. We agree. The Replay Server is similar to the Production Server with regard to live television recording, editing, and playback operations. However, the Replay Server also features an instant replay function that is commonly used during live televised events, such as sporting events. The Replay Server consists of a rack mounted chassis with numerous audio and video channel inputs/outputs, RAID-6 data storage, and dual-redundant power supplies. Additionally, Ethernet, RS422, and USB connections are available to attach peripherals. A user would control the Replay Server through an attached mouse and keyboard and a separate control unit that is referred to as the Control Surface. We would note that these peripherals are not being considered in this ruling. In your request, you suggest classification under subheading 8543.70.9960 to Chapter 85, HTSUS. We agree. The Video Clip Server, which is similar to both the Production and Replay Servers in live video recording and playback functions, also captures, stores, and plays back audio/video clips during production of live television broadcasts and during live events. The Video Clip Server consists of a rack mounted chassis with numerous audio and video channel inputs/outputs, SSD data storage, and dual-redundant power supplies. A user would control the Video Clip Server through an attached mouse and keyboard which are not being considered in this ruling. In your request, you suggest classification under subheading 8543.70.9960 to Chapter 85, HTSUS. We agree. Classification under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied in their appropriate order. GRI 3 provides as follows: When, by application of rule 2(b) or for any other reason, good are, prima facie, classifiable under two or more headings, classification shall be effected as follows: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. With the exception of the Abekas Air Cleaner, the three production servers perform recording, play back, instant replay, and editing functions. Because of these multiple functions, it is the opinion of this office that the servers do not have an essential character. They are designed to perform multiple functions, one of which is the editing function, that is neither covered under heading 8521 nor heading 8525, HTSUS (as video recording or reproducing apparatus or transmission apparatus), and is not covered in any other heading in the tariff. Therefore, classification will be in accordance with GRI 3(c), HTSUS, which requires, in pertinent part, that the item be classified in the heading which occurs last in numerical order among those which merit equal consideration. Consequently, we find that the servers are properly classified under heading 8543, HTSUS, as other electrical apparatus having an individual function not elsewhere specified. The applicable subheading for the Abekas Air Cleaner, the Abekas Mira Production Server, the Abekas Mira Replay Server, and the Abekas Tria Video Clip Server will be 8543.70.9960, HTSUS, which provides for; Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus; …Other. The rate of duty will be 2.6 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 https://hts.usitc.gov/current. 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 Karl Moosbrugger at: [email protected].Sincerely, Steven A. Mack Director National Commodity Specialist Division