H294092

HQ H294092 April 12, 2022 CLA-2 OT:RR:CTF:EMAIN H294092 JDK CATEGORY: Classification TARIFF NO(s).: 8518.30.20 Brenda J. Mikell Kuehne-Nagel Inc. 10 Exchange Place Jersey City, NJ 07302 RE: Request to reconsider NY N287918; Classification of a gaming headphone set from China Dear Ms. Mikell, This is in response to your letter, dated August 2, 2017, submitted on behalf of Voyetra Turtle Beach, Inc. requesting reconsideration of New York Ruling Letter (NY) N287918, dated July 14, 2017. In NY N287918, U.S. Customs and Border Protection (CBP) classified the “XO Four Stealth” gaming headphone set under the Harmonized Tariff Schedule of the United States (HTSUS). Upon review of NY N287918, we have determined the ruling to be correct. We accordingly affirm the ruling. The instant merchandise is described in NY N287918 is as follows: [The “XO Four Stealth” gaming headphone set] consists of a wired headset, detachable microphone and an adapter unit (audio controller). The wired headset incorporates two large padded ear cups (speakers), a microphone connection port and an approximately 3 foot length of audio cable terminated by a standard 3.5mm, 4 conductor, TRRS audio plug. This plug would allow the headset to be used with a variety of audio sources. The adapter unit incorporates a 3.5mm audio port, a proprietary connector that allows it to be electrically connected to a gaming system hand controller and a variety of control buttons (i.e. bass boost, game/chat balance, mute, master volume). The adapter unit/audio controller allows the user to connect the headset to a gaming controller (game controllers do not have an audio port) while also providing additional audio control functions. This proprietary adapter/audio controller uses the transfer of digital data to connect to the gaming controller. The digital data is decoded into security, control and audio signals. The detachable microphone consists of a microphone attached to an approximately 5 inch length of audio cable which is terminated by a standard 3.5mm, 3 conductor TRS plug connectors. The microphone would be plugged into the headset to form a telecommunication style of headset. In NY N287918, CBP classified the “XO Four Stealth” gaming headphone set in subheading 8518.30.20, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: Other…” Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Section XVI Note 4 states: Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function. Chapter 95 Note 3 states, “Subject to note 1 above, parts and accessories which are suitable for use solely or principally with articles of this chapter are to be classified with those articles.” The subject headphones are not suitable for sole or principal use with video games. Rather, they are suitable for use with all devices that use headphones. For instance, the subject merchandise, in its condition as imported, can be used with an automatic data processing (ADP) machine for other types of gaming, watching videos, listening to music, etc. As such, it does not satisfy Note 3 to Chapter 95 above and therefore is not a part of a video game of heading 9504, HTSUS. In your reconsideration request, you opine that we applied GRI 3(b) to classify the subject merchandise. Based on this, you argue that even though the headphones can be used independently from the other components, the whole set should not be classified as headphones. However, NY N287918 does not rely on GRI 3. Rather, the “XO Fourth Stealth” gaming headphone set is classified pursuant to GRI 1 (Note 4 to Section XVI), under heading 8518, HTSUS. The components that make up the subject merchandise contribute together to translate an electrical signal into an audible sound and translate an audible sound into an electrical signal. As such, we find that the clearly defined function of all the individual components that make up the “XO Four Stealth” gaming headphone set, when assembled together, is that of “headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers” provided for under heading 8518, HTSUS. Therefore, NY 287918 is affirmed. Accordingly, the subject “XO Four Stealth” gaming headphone set remains classified in heading 8518, HTSUS, specifically subheading 8518.30.20, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: Other…” The general, column one rate of duty for goods of subheading 8518.30.20, HTSUS, is 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 https://hts.usitc.gov/current. Sincerely, Craig T. Clark, Director Commercial and Trade Facilitation Division