March 31, 2010 CBP Bulletin Notice on Classification of MP-3 Player Case with Speaker
In the March 31, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 44, No. 14), CBP published a notice modifying two rulings and revoking a treatment as follows:
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Modification of rulings, revocation of treatment.CBP is modifying two rulings on the classification of an MP-3 player case with speaker; in addition, this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the modifications and revocation are effective for merchandise entered or withdrawn from warehouse for consumption on or after June 1, 2010.
MP-3 player case with speaker. The merchandise in NY N005234 is described as an Aquapod Splash Proof MP3 Speaker (Style 54123). This item is a hard plastic case, which houses a speaker, and contains an on/off volume control. The lid on the top of the case opens so that an MP3 player can be attached to the wire plug that connects to the speaker. Once connected, the MP3 player can be placed in the case for carrying purposes. The case also contains a fabric strap so that the item can be carried around a person's neck or over their shoulder.
The merchandise in NY N019513 is described as a Melody MP-3 Case with portable speaker, cable (input jack) and battery compartment. It is a media carrying case with a built-in amplified speaker and an input jack. The item measures approximately 6 inches in length by 4 inches in width. The item is comprised of plastic and contains a plastic zipper around the case. On the front of the carrying case, is a built-in speaker. A plastic belt clip is attached to the top of the case. On the back of the case, is a Velcro plastic flap, which opens to enable the MP-3 player to be inserted into and removed from the case. Inside the case is a compartment for batteries, the input jack, and an on/off switch. The item operates on two "AAA" batteries, which are not included.
CBP is issuing HQ H068738 and HQ H026521, in order to revoke NY N005234 and NY N019513, and reclassify the MP-3 case with speaker under HTS 4202 as a case rather than under HTS 8518 as a speaker.
CBP makes this change as a correction, based largely on GRI 3(b) and prior rulings. The cases with speakers are "composite" articles and are therefore classified based on "essential character" pursuant to GRI 3(b). CBP has previously determined that when a composite good consists of a speaker (heading 8518) and a container (heading 4202), the container imparts the essential character because of its role in relation to the use of the goods. (See bulletin for rulings.)
CBP determines that the essential character of the product is imparted by the case of heading 4202 because the consumer is most likely purchasing the product for use as a case. This case has the ability to store the purchaser's MP-3 player so that it can be transported from place to place. While the speaker may make the case more distinctive and more attractive to some, it is unlikely that the purchaser would buy the case primarily for use as a speaker. Also, the case is always in use as a means to store and protect the MP-3 player while the speaker is not always being used by the consumer. Furthermore, with regard to the Aquapod Splash Proof case, it has the ability to protect the MP-3 player from water intrusion.
CBP determines that pursuant to GRI 3(b) the MP-3 cases with speakers are classified in heading 4202 which provides for "trunks, suitcases, vanity cases, attach cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper." A specific subheading classification cannot be provided because additional information is needed concerning the material used to construct the exterior of the case.
New: 4202, duty rate depends on composition; Previous: 8518.21.000, 4.9%
(See ITT's Online Archives or 08/19/09 news, 09081945, for BP summary of proposed HQ H068738 and HQ H026521.)
March 31, 2010 CBP Bulletin (Vol. 44, No. 14) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2010/