Principal function test governs classification of a cordless phone with answering machine, leading to treatment as a line telephone set.

For tariff classification of a composite machine, the principal function governs where two features are complementary or alternative. A cordless phone with answering machine was held to retain its essential character as a line telephone set, because telephony was its main function and the answering facility was only complementary. Applying Note (3) to Section XVI of the Tariff Schedule, the goods were classified under SH 8517.11 as a line telephone set with cordless handset, and the claim for SH 8520.20 as a telephone answering machine was rejected.

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Issues: Whether a cordless phone with answering machine imported as a line telephone set with cordless handset is classifiable under SH 8520.20 as a telephone answering machine or under SH 8517.11 as a line telephone set with cordless handset.

Analysis: The imported goods were found to be a line telephone set whose principal function was telephony, with the cordless handset supporting that function. The answering mechanism was only a complementary feature and did not alter the essential character of the apparatus. Under Note (3) to Section XVI of the Tariff Schedule, a composite machine designed to perform two or more complementary or alternative functions must be classified according to the component performing the principal function. Since the principal function was telephony, the goods were correctly treated as a line telephone set with cordless handset, and not as a telephone answering machine simplicitor.

Conclusion: The classification under SH 8517.11 was upheld and the assessee's claim under SH 8520.20 was rejected.

Ratio Decidendi: For classification of a composite machine, the principal function governs, and a complementary feature does not determine tariff classification where the goods retain their essential character.

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