June 28, 2006 CBP Bulletin Notices on CD Softcase with Speaker and Certain Batteries/Battery Chargers
In the June 28, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 27), CBP issued notices: (1) proposing to modify or revoke two classification rulings on certain batteries and battery chargers, and (2) revoking a classification ruling on a CD softcase with integrated loudspeaker. CBP states that it is also proposing to revoke, or is revoking, any treatment it has previously accorded to substantially identical transactions.
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According to CBP, the revocation for the subject CD softcase is effective for merchandise entered or withdrawn from warehouse for consumption on or after August 27, 2006.
CBP states that any party who has received an interpretive ruling or decision on the batteries/battery chargers, and/or any person involved in substantially identical transactions should advise CBP by July 28, 2006, 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.
CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification or Revocation of Two Classification Rulings
Certain batteries and battery chargers. The items at issue are: (1) a nickel cadmium storage battery and a battery charger, both designed to power a footwarmer, and not attached to one another; and (2) a solar powered battery charger with rechargeable battery.
CBP is proposing to issue HQ 968226 in order to revoke HQ 955105, as well as HQ 968227 in order to modify NY G87863, and reclassify the subject merchandise under HTS 8504.40.9550, which provides for "Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: other: rectifiers and rectifying apparatus: other;" rather than under subheadings of HTS 8507 as electric storage batteries.
Based on CBP's recent review of HQ 955105 and NY G87863, it has determined that the classification for the batteries and battery chargers is incorrect. Among other things, CBP notes that prior to initial use, the storage batteries must be fully charged in order to be useful and that every time the batteries need charging, the charger must be used. Therefore, CBP finds that that the battery charger is essential to the effectiveness of the storage batteries.
In addition, CBP states that it has previously held, in relation to similar merchandise, that the battery-charging component imparts the set's essential character because the purpose of the set is to charge batteries. Furthermore, the main reason for purchasing the set is not to obtain the batteries, but rather to obtain a device which increases the need to periodically purchase new batteries.
Therefore, by application of General Rule of Interpretation (GRI) 3(b), CBP finds that the purpose of the subject battery charger sets is to charge batteries, and such sets are provided for under HTS 8504.40.9550.
proposed: 8504.40.9550, 1.5%; current: 8507.30.00 (1993), now 8507.30, 2.5%; 8507.20.8030, 3.5%.
Revocation of One Classification Ruling
CD softcase with speaker. At issue is an article described as the "I'm A Speaker" Softcase with Integrated Loudspeaker, available in both mono and stereo models. The subject article is a single loudspeaker that is imported within a softcase that has the capacity of storing up to 12 compact discs (CDs).
CBP is issuing HQ 968051 in order to revoke NY J84601 and reclassify the subject article under HTS 4202.92.9050, as cases designed to protect and transport CDs, CD ROM disks, CD players, cassette players and/or cassettes; rather than under 8518.21.0000, as single loudspeakers, mounted in their enclosures.
CBP finds that the CD softcase is described by both HTS headings 4202 and 8518, as it is a case, as well as a loudspeaker. Because the subject article is classifiable under two headings, CBP notes that it cannot be classified according to GRI 1.
Instead, CBP considers GRI 3(b), which states in part that composite goods shall be classified as if they consisted of the material or component which gives them their essential character.
CBP explains that the portable loudspeaker and the CD case components are attached to each other to form a practically inseparable whole, and are thus considered a composite good. As a result, CBP states that it must consider which component (the loudspeaker or the CD softcase) imparts the essential character of the subject article.
CBP finds that the CD softcase imparts the essential character to the article-contending that a consumer's motivating impetus to purchase this article would primarily be the need or desire for a container which can store, protect and transport a CD player and CDs. Among other things, CBP notes that although the subject article can also amplify music, it is unlikely that a consumer would purchase this article primarily for use as an amplifier.
Therefore, CBP finds that the essential character of the subject loudspeaker/softcase is imparted by the HTS 4202 component and is classified accordingly under HTS 4202.92.9050.
new: HTS 4202.92.9050, 17.6%; previous: 8518.21.0000, 4.9%.
(See ITT's Online Archives or 04/12/06 news, 06041240, for BP summary of proposed HQ 968051.)
June 28, 2006 CBP Bulletin (Vol. 40, No. 27) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_06282006_no27/