# HQ 964941

June 18, 2002

# CLA-2 RR:CR:GC 964941 TPB

> **CATEGORY:** Classification
>
> **TARIFF NO.: 8543.89.9695**
>
> Port Director
>
> U.S. Customs Service
>
> Los Angeles-Long Beach Seaport
>
> 301 East Ocean Blvd.,
>
> Long Beach, California 90802
>
> **RE:** Protest 2704-01-100573; Pioneer Electronics; Audio Processors.
>
> Dear Port Director:
>
> This is our decision on Protest 2704-01-100573, filed on behalf of
> Pioneer Electronics (USA), Inc. ("Pioneer"; "Protestant") against your
> classification, under the Harmonized Tariff Schedule of the United
> States ("HTSUS"), of certain audio processors.
>
> **FACTS:**
>
> The merchandise at issue are Pioneer brand Digital Signal Processors,
> Model Nos. DEQ-7600 and DEQ-9200. The entries were filed on January 3,
> 2000 and liquidated November 17, 2000, under subheading 8543.89.9695,
> HTSUS, which provides for electrical machines and apparatus, having
> individual functions, not specified or included elsewhere in this
> chapter; parts thereof: other: other. The protest was filed on
> February 6, 2001.
>
> The Protestant describes the merchandise as digital sound processors,
> which are used in conjunction with car audio systems. The processors
> decode sound from an audio source and transmit the sound to an audio
> receiver through wires. The processors do not incorporate reception
> apparatus.
>
> The Protestant claims that the processors are properly classified
> under heading 8525, HTS, as transmission apparatus for radio
> broadcasting.

Protestant claims that NY C85943, dated April 27, 1998, which classified
a digital sound processor for a home theater system under heading 8525,
HTS, is equally applicable to the merchandise at issue here, since both
sets of merchandise decode sound from an audio source.

**ISSUE:**

Are the Pioneer digital sound processors, models DEQ-7600 and DEQ-9200
properly classified under heading 8525, HTS, as transmission apparatus
for radio broadcasting, or under heading 8543, HTS, as other electrical
machines, having individual functions, not provided for elsewhere in
that chapter?

**LAW AND ANALYSIS:**

We note initially that the protest was timely filed under the statutory
and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19
CFR 174.12(e)(1).

Merchandise is classifiable under the Harmonized Tariff Schedule of the
United States (HTSUS) in accordance with the General Rules of
Interpretation (GRIs). GRI 1 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, and provided the
headings or notes do not require otherwise, according to GRIs 2 through
6. GRI 2(a) states in part that incomplete or unfinished articles are to
be classified as complete or finished if, as imported, they have the
essential character of the complete or finished article. GRI 6 permits
the comparison of same-level subheadings within the same heading, in
part by application of Rules 1 through 5, applied by appropriate
substitution of terms.

The HTSUS headings under consideration are as follows:

> 8525 Transmission apparatus for radio-telephony, radio-telegraphy,
> radio-broadcasting or television, whether or not incorporating
> reception apparatus or sound recording or reproducing apparatus;
> television cameras; still image video cameras and other video camera
> recorders; digital cameras.
>
> 8543 Electrical machines and apparatus, having individual functions,
> not specified or included elsewhere in this chapter; parts thereof.

Protestants argues that the digital sound processors at issue have as
their sole function the decoding of audio signals from a sound source
and transmitting those signals ***through wires*** to an audio receiver
(*emphasis added*). Protestant indicates that this clearly falls within
the description of transmission apparatus for radio broadcasting, rather
than the 8543, HTSUS, basket provision for electrical appliances and
apparatus not specified or included elsewhere in chapter 85, HTSUS.

The Harmonized Commodity Description and Coding System Explanatory Notes
(ENs) constitute the official interpretation of the Harmonized System at
the international level. While not legally binding, the ENs provide a
commentary on the scope of each heading of the Harmonized System and are
thus useful in ascertaining the classification of merchandise under the
HTSUS. Customs believes the ENs should always be consulted. *See* T.D.
89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

The ENs to subheading 85.25, HTSUS, state, in pertinent part, as
follows:

(B) Transmission apparatus for radio-broadcasting or television

> The apparatus for radio-broadcasting falling in this group must be for
> the transmission of signals by means of electro-magnetic waves
> transmitted through the ether **without any line connection**. On the
> other hand **television apparatus** falls here whether the
> transmission is by electro-magnetic waves or by line. *Emphasis
> added*.

The Protestant's submission clearly indicates that the sound processors
transmit audio signals through wires to an audio receiver. Thus,
clearly, heading 8525, HTSUS, is disqualified from consideration because
of the exclusionary terms of EN 85.25US, HTS.

Protestant cites NY C85943 as precedence for classifying the sound
processors under heading 8525, HTSUS. In NY C85943, Customs classified a
digital sound processor for a home theater system as a transmission
apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or
television under heading 8525, HTSUS. The digital sound processor in
that ruling decoded the sound from either a DVD player or satellite, and
passed it via a wire to a home theater receiver. As the digital signal
sound processor in NY C85943 decoded television audio signals, it was
considered a television apparatus. This clearly falls within the
exception stated in EN 85.25(B) to the requirement that a device of this
heading transmit through the ether. Thus, the digital sound processor in
NY C85943 can be distinguished from the merchandise at issue, which are
clearly meant to operate as automobile audio processors.

The Protestant's sales literature indicates that the sound processors
are marketed as "equalizers and crossovers." See
www.pioneerelectronics.com. Equalizers for car audio systems have, in
the past, been classified by Customs under subheading 8543.89.9695,
HTSUS (formerly 8543.80.9080, HTSUS). See NY 842537, dated June 29,
1989; NY G84386, dated December 12, 2000). Therefore, we find
classification of the Pioneer DEQ-7600 and DEQ-9200 digital sound
processors under subheading 8543.86.9695, HTSUS, to be the correct
classification and consistent with prior Customs rulings.

**HOLDING:**

For the above stated reasons, we find classification of the Pioneer
DEQ-7600 and DEQ-9200 digital sound processors under subheading
8543.86.9695, HTSUS, to be the correct classification. Consequently, the
protest should be **DENIED**. In accordance with Section 3A(11)(b) of
Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised
Protest Directive, you are to mail this decision, together with the
Customs Form 19, to the protestant no later than 60 days from the date
of this letter. Any reliquidation of the entry or entries in accordance
with the decision must be accomplished prior to mailing the decision.

Sixty days from the date of the decision the Office of Regulations and
Rulings will make the decision available to Customs personnel, and to
the public on the Customs Home Page on the World Wide Web at
www.customs.gov, by means of the Freedom of Information Act, and other
methods of public distribution.

Sincerely,

John Durant, Director

Commercial Rulings Division