The tariff classification of a MCX-RC100 Network Music Commander, a MCX-A300 Network Music Player, a MCX-P200 Network Music Player, and a Yamaha Music CAST2 Network Music System from China; Correction to Customs Ruling Number N049847

N066817 July 2, 2009 CLA-2-85:OT:RR:E:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8517.62.0050 8526.92.0000 Mr. Dennis D. Heck Customs Compliance Manager Yamaha Corp. of America 6600 Orangethorpe Avenue Buena Park, CA 90277 RE: The tariff classification of a MCX-RC100 Network Music Commander, a MCX-A300 Network Music Player, a MCX-P200 Network Music Player, and a Yamaha Music CAST2 Network Music System from China; Correction to Customs Ruling Number N049847 Dear Mr. Heck: This ruling is being issued to correct Customs Ruling Number N049847, dated February 6, 2009. The ruling mis-described the MCX-A300 Network Music Player and the MCX-P200 Network Music Player as receivers. As per your subsequent correspondence, it is now realized that the MCX-A300 Network Music Player and the MCX-P200 Network Music Player are transceivers. The entire corrected ruling follows. In your letter dated June 29, 2009 you requested a tariff classification ruling. The merchandise subject to this ruling is a MCX-RC100 Network Music Commander, a MCX-A300 Network Music Player, and a MCX-P200 Network Music Player, and a Yamaha Music CAST2 Network Music System. The Yamaha Music CAST2 Network Music System consists of the MCX-RC100 Network Music Commander, the MCX-A300 Network Music Player, and the MCX-P200 Network Music Player. Within your ruling request, you asked for the classification of the commander and the music players when imported separately and when imported together as the Yamaha Music CAST2 Network Music System. The classification of the music system’s three components, when imported separately and the classification of the Yamaha Music CAST2 Network Music System are provided within this ruling. The MCX-RC100 Network Music Commander is a component of the CAST2 Network Music System. It is a Wi-Fi (IEEE 802.11 2.4 GHZ radio frequency) remote control that switches and routes the functionality of up to 32 music players and components attached to those players in all rooms of a house individually or all at once. The MCX-RC100 does not contain an AM or FM tuner and has no capability of playing music. It is a remote control that sends commands to Digital Living Network Alliance (DLNA) server application that resides in a computer or a network attached storage device to stream digital music data to a designated Network Music Player(s) within the same network. It can also instruct the Music Players to access a USB device through the USB connection on the Music Player of the Internet and get music content, such as Internet radio and online music services streamed to each Network Music Player from an attached PC. The MCX-RC100 can also control Yamaha network AV receivers via a network module built-in to these units for over Ethernet controllability. The MCX-A300 Network Music Player is a component of the CAST2 Network Music System. It is a Wi-Fi (IEEE 802.11) transceiver that transmits and receives streaming signals from various sources wirelessly and via cable from a PC, MP3 player, Bluetooth and USB devices, etc. This transceiver needs to be controlled by the MCX-RC100 Network Music Commander to initiate playback of components attached to the unit. This transceiver does not contain an AM or FM tuner, but contains an amplifier and speaker terminals so that once speakers are attached music can be heard. The MCX-P200 Network Music Player is a component of the CAST2 Network Music System. It is a Wi-Fi (IEEE 802.11) transceiver that transmits and receives streaming signals from various sources wirelessly and via cable from a PC, MP3 player, Bluetooth and USB devices, etc. This transceiver needs to be controlled by the MCX-RC100 Network Music Commander to initiate playback of components attached to the unit. It does not contain an AM or FM tuner. While it is similar to the MCX-A300 Network Music Player, it does not contain an amplifier. Therefore, it must be connected to an audio system with an amplifier and speakers in order to hear music. The MCX-RC100 Network Music Commander, MCX-A300 Network Music Player, and MCX-P200 Network Music Player when imported together are considered to be a wireless music delivery system known as the Yamaha Music CAST2 Network Music System. Although the “system” consists of a remote control (the commander) and two network music players (MCX-A300 and MCX-P200), the essential character of the system, is imparted by the two network music players, which carry-out the function of wireless transceivers. You suggested that the Yamaha Music CAST2 Network Music System is correctly classified under subheading 8527.91.6080, 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: Other.” However, the components of the Yamaha Music CAST2 Network Music System, which are MCX-RC100 Network Music Commander and the MCX-A300 and MCX-P200 Network Music Players, do not contain an AM or FM tuner and do not meet the definition of radiobroadcasting, which must be for the reception of signals by means of electro-magnetic waves transmitted through the ether without any line connection. The MCX-RC100 Network Music Commander is a RF remote control and the MCX-A300 and MCX-P200 Network Music Players are Wi-Fi (wireless) transceivers. RF remote controls are provided for in heading 8526 and wireless transceivers are provided for in heading 8517. As such, subheading 8527.91.6080 is inapplicable for the Yamaha Music CAST2 Network Music System. You suggested that the MCX-A300 and MCX-P200 Network Music Players are correctly classified under subheading 8527.91.6080, 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: Other.” However, the MCX-A300 and MCX-P200 Network Music Players do not contain an AM or FM tuner and do not meet the definition of radiobroadcasting, which must be for the reception of signals by means of electro-magnetic waves transmitted through the ether without any line connection. The MCX-A300 and MCX-P200 Network Music Players are Wi-Fi (wireless) transceivers. Wireless transceivers are provided for in heading 8517. As such, subheading 8527.91.6080 is inapplicable for the MCX-A300 and MCX-P200 Network Music Players. The applicable subheading for the Yamaha Music CAST2 Network Music System will be 8517.62.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” The rate of duty will be free. The applicable subheading for the MCX-RC100 Network Music Commander will be 8526.92.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Radar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: Radio remote control apparatus.” The rate of duty will be 4.9 percent. The applicable subheading for the MCX-A300 Network Music Player and the MCX-P200 Network Music Player will be 8517.62.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: 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 Linda M. Hackett at (646) 733-3015. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division