The tariff classification of Network Blu-ray Disc Home Theater Systems from Indonesia.

N051740 February 26, 2009 CLA-2-85:OT:RR:NC:1:108 CATEGORY: Classification TARIFF NO.: 8527.91.60 Ms. Sarah Cho LG Electronics U.S.A., Inc. 1000 Sylvan Avenue Englewood Cliffs, NJ 07632 RE: The tariff classification of Network Blu-ray Disc Home Theater Systems from Indonesia. Dear Ms. Cho: In your letter dated February 3, 2009, you requested a tariff classification ruling. The subject merchandise is referred to as the Network Blu-ray Disc Home Theater Systems, LG model numbers LHB953, LHB954, and LHB977. Based on the information provided, each system features an AM/FM radio receiver with a Blu-ray disc player and HD audio with picture in picture capability, as well as NetCast entertainment accessibility that offers instant streaming of movies, TV shows, and access to Netflix and Pandora Internet radio. These home theater systems also include advance audio processing technology, Dolby Digital Plus, and Dolby True HD, various speakers, a subwoofer, an iPod dock, an LG Simplink, and a USB media host. Each system requires an external source of power to operate. It is the opinion of this office that the item, which imparts the essential character to this particular set, is that of the AM/FM radio receiver with Blu-ray disc player and video transmission capabilities. It is the dominant apparatus contained within the set by value and use. It is the means that provides the audio/visual entertainment for the user and the reason one would purchase the set.  Further, it is the opinion of this office that neither the function of audio entertainment nor the function of visual entertainment performs the principal function of these composite machines. Each will be chosen at the discretion of the user. Therefore, classification will be in accordance with GRI 3 (c), Harmonized tariff Schedule of the United States (HTSUS), which requires in relevant part, that the item be classified in the heading which occurs last in numerical order among those which merit equal consideration. The applicable subheading for these Network Blu-ray Disc Home Theater System will be 8527.91.60, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: Other: Combined with sound recording or reproducing apparatus: Other: Other. The rate of duty will be Free. 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 http://www.usitc.gov/tata/hts/. 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 Lisa Cariello at (646) 733-3014. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division