H310177

U.S. Customs and Border Protection HQ H310177 July 16, 2020 CLA-2 OT:RR:CTF:EMAIN H310177 DSR CATEGORY: Classification TARIFF NO.: 8518.22.00 Mr. John M. Peterson Neville Peterson LLP Counsellors at Law 17 State Street, 19th Floor New York, NY 10004 RE: Revocation of NY N194496, NY N083076 and NY N234397; tariff classification of various multifunction wireless speakers Dear Mr. Peterson: In New York Ruling Letters (NY) N194496 (December 28, 2011), NY N083076 (November 19, 2009) and NY N234397 (November 15, 2012), U.S. Customs and Border Protection (CBP) classified devices identified as the “Sonos Play:3,” the “Sonos ZonePlayer S5 Router” and the “SUB,” respectively, in subheading 8517.62.0050, Harmonized Tariff Schedule of the United States (HTSUS). That subheading provides for “Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” Since the rulings were issued, CBP has reviewed the rulings and determined that the classifications provided for the subject devices are incorrect and, therefore, NY N194496, NY N083076 and NY N234397 must be revoked for the reasons set forth in this ruling. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed revocations of NY N194496, NY N083076 and NY N234397 was published on May 20, 2020, in the Customs Bulletin, Volume 54, No. 19. CBP received one comment in response to the notice. FACTS: The device that is the subject of NY N194496 is the Sonos Play:3. It allows the user to wirelessly stream data, including digital music files and related metadata in multiple locations. The Sonos Play:3 does not have any independent capability of recording, storing or playing back digital sound files. However, it allows files to be played from storage on a personal computer or network storage facilities, and allows the user to play songs from select music services without ripping, downloading or personal computer interaction required. Regarding sound output, the device contains three digital amplifiers and three drivers (one tweeter and two 3-inch midrange drivers), as well as one bass radiator. The device that is the subject of NY N083076 is the ZonePlayer S5 Router (“ZonePlayer S5”). It is one of the components of the Sonos digital media network system. The ZonePlayer S5 is similar in construction and function to the ZP 100 ZonePlayer ruled on in New York Ruling N021357 and the ZP 80 ZonePlayer ruled on in New York Ruling N021358. With the use of a Sonos ZonePlayer installed in various rooms, a system user can play the same digital sound files in different rooms or play different digital sound files in different rooms. As many as thirty-two (32) ZonePlayers may be deployed across the network, which is a mesh wireless network. All the ZonePlayers may be operated and manipulated with the use of a single handheld controller, which is not imported with the ZonePlayer and not the subject of the ruling. The user can purchase the controller separately. The principal components of the ZonePlayer S5 are a power source and wireless network card. In addition, it incorporates a digital to analog converter, which allows digital files to be converted to analog signals and played through the owner’s existing sound equipment radios, home theatres, and the like. The ZonePlayer S5 also incorporates 5 Class-D amplifiers and five driver speaker system; 2 tweeters, 2 3” mid-range drivers, and a 3.5” woofer. A single ZonePlayer S5 establishes what is referred to as a Sonos system or network via initial connection to a broadband router, which is typically connected to a high-speed Internet service and controlled by a personal computer (neither of which are at issue in this ruling). Computer software must also be installed (after importation) for this connection to work. Connecting this initial ZonePlayer to a router as described above creates a network to which 32 additional ZonePlayers may be added. Each ZonePlayer may be connected by wire to additional loudspeakers or play audio through its own incorporated speakers. This enables the user to wirelessly stream data, namely digital music files and related metadata, to be played in multiple rooms. The source of the data played by the ZonePlayers can be a personal computer, network storage facilities, and select online music services. Through the wireless controller, which is imported separately, a user can call up digital music files from a number of sources. The Sonos system also allows a user to source sound files from up to 16 PCs or Mac computers connected to the network. The controller also contains pre-set programming, which allows the user to access streaming audio files from approximately 25,000 radio stations Internet web streams. The stream audio files are not actual satellite radio transmission or radio broadcasting. The device that is the subject of NY N234397 is described as the SUB, a subwoofer intended for use with the Sonos digital home music system. It contains two digital amplifiers and two force-canceling speakers positioned face-to-face. The SUB intercepts and decodes the low-end frequencies of the audio file that had previously come out of a ZonePlayer, a type of which is described above (the ZonePlayer S5). As data on the system streams, the controller processes the non-audio files (metadata), the ZonePlayers decode the audio files and converts them to sound, and the SUB subwoofer receives and decodes the base register notes of the audio file. The SUB has a power source and wireless network card that can be utilized after first wiring either a ZonePlayer or Bridge to the home network using the Ethernet cable. The Sonos SUB subwoofer cannot operate without a connection to a network to which the Sonos software has been loaded. It cannot receive or convert files unless the SonosNet network is active. Once connected, digital audio files from a variety of sources can be accessed and played. The SUB receives specific parts of the digital music file and converts them into sound. As a device within the mesh network SonosNet, the SUB also participates in the transmission of related data and metadata. ISSUE: Whether the subject devices are classified under heading 8517, HTSUS, which provides for, in pertinent part, apparatus for the reception, conversion and transmission or regeneration of voice, images or other data, or under heading 8518, HTSUS, which provides for, in pertinent part, loudspeakers, whether or not mounted in their enclosures. LAW AND ANALYSIS: 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 based on 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The HTSUS provisions under consideration in this ruling are as follows: 8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or 

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 based on 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The HTSUS provisions under consideration in this ruling are as follows:8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: . . . Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): . . . 8517.62.00 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus* * *8518 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: . . . Loudspeakers,