Panasonic Reactor Pagers; Paging Receivers; Paging Alert Devices; Signaling Apparatus; Radio Reception Apparatus; Composite Machine; Legal Note 3 to Section XVI; Headings 8527 and 8531; HQ 960048; NY A84145, NY 874994

HQ 961725 August 11, 1998 CLA-2 RR:CR:GC 961725 RFA CATEGORY: Classification TARIFF NO.: 8527.90.85 Mr. William R. Palle Matsushita Logistics Company Two Panasonic Way Secaucus, NJ 07094 RE: Panasonic Reactor Pagers; Paging Receivers; Paging Alert Devices; Signaling Apparatus; Radio Reception Apparatus; Composite Machine; Legal Note 3 to Section XVI; Headings 8527 and 8531; HQ 960048; NY A84145, NY 874994 Dear Mr. Palle: In a letter dated March 20, 1998, to Customs in New York, you requested the tariff classification of the Panasonic Reactor Pager, an alert pager with a numeric display under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response. FACTS: The Panasonic Reactor Pager is an alert pager with a numeric display. The pager has an escalating alert tone and a silent vibrator as well as other features. It is equipped with a 10-character numeric display which provides telephone numbers and the time and date a message was received. In general, pagers are devices used for receiving messages and information via radio frequencies, and have a wide range of applications based upon their abilities to display either just numbers, or both text and numbers. Pagers are miniature, microprocessor-controlled FM receivers. Information is transmitted to the pager via a radio frequency carrier that is modulated by a coded binary sequence. Upon receiving the radio signal, the pager responds by emitting a sound signal or by silent vibration mode, and displaying the message on the liquid crystal display (LCD). ISSUE: Whether numeric display pagers are classifiable as paging receivers under heading 8527, HTSUS, or as paging alert devices under heading 8531, HTSUS? LAW AND ANALYSIS: Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. The subheadings under consideration are as follows: 8527.90.85: Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther apparatus: [o]ther: [o]ther: [p]aging receivers .... Goods classifiable under this provision, have a column one, general duty rate of 3 percent ad valorem. 8531.80.40: Electric sound or visual signaling apparatus . . . : [o]ther apparatus: [p]aging alert devices. Goods classifiable under this provision, have a column one, general duty rate of 0.4 percent ad valorem. In HQ 960048, dated July 14, 1998, Customs dealt with the classification of parts for numeric and alpha-numeric display pagers. In that ruling we stated: To determine the classification of the subject merchandise which consist of several parts, Customs must first determine the classification of the pagers in which the subject merchandise is to be incorporated into. Both types of pagers receive a radio signal containing either a numeric or alpha-numeric message, it then decodes the message, signals the user, and displays the message on an LCD screen. Legal Note 3 to Section XVI, HTSUS, states that: "[u]nless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function." In the present situation, the pagers consist of radio reception apparatus of heading 8527 and signaling apparatus of heading 8531 fitted together to form one machine that performs two complementary functions. We find that the pagers are composite machines with the principal function being the radio reception, because it is the reception of the text message that is of primary importance in the pagers' operation. See NY 874994 (July 1, 1992) and NY A84145 (June 21, 1996) in which Customs classified numeric display pagers under heading 8527, HTSUS, as paging receivers. Based upon the rationale stated in HQ 960048, as well as the holdings in NY 874994 and NY A84145, we find that the subject numeric pagers are classifiable under heading 8527, HTSUS, as radio reception apparatus. HOLDING: For the foregoing reasons, the Panasonic Reactor Pager with numeric display is classifiable under subheading 8527.90.85, HTSUS, which provides for: "[r]eception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther apparatus: [o]ther: [o]ther: [p]aging receivers ...." Goods classifiable under this provision, have a column one, general duty rate of 3 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division