CLA-2 CO:R:C:G 084649 AJS
TARIFF NO: 8471.92.10
Neil R. Andrews
Manager, Corporate Customs
Data General Corporation
Mail Stop C221
4400 Computer Drive
Westboro, MA 01580
RE: Portable computer terminal
Dear Mr. Andrews:
Your letter of May 26, 1989, requesting a tariff
classification of a portable computer terminal produced by Nippon
Data General has been referred to this office for reply.
FACTS:
The article in question is a portable video display terminal
named the "Cardinal". It consists of a keyboard, liquid crystal
display, and a modem in a plastic housing. When closed, the
article measures 13.2" X 9.6" X 1.8" and weighs five pounds.
The liquid crystal display is hinged and tiltable, and when
closed covers the keyboard.
The terminal contains parallel (printer) and asynchronous
interface ports. Two 8-bit microprocessors which are hard-coded
via ROM-base emulators perform terminal emulator functions,
battery checking and keyboard scan, manage the real-time clock,
control data flow through the modem and perform other
housekeeping functions. The terminal also contains 32K-bits of
static RAM.
The Cardinal contains no floppy or hard disk drives and is
not capable of processing programs or performing arithmetic
computations. In fact, the article must be connected to a host
computer in order to perform any functions at all for the user.
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It is normally used by a traveler to remotely connect to a
computer system in the home office. Power is provided by
internal batteries or by a wall-current adapter.
ISSUE:
Whether the article in question is properly classifiable
within subheading 8471.92.10, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for combined
input/output units; or is it more properly classifiable within
subheading 8471.20.00, HTSUSA, which provides for digital
automatic data processing machines.
LAW AND ANALYSIS:
Classification under the HTSUSA is governed by the General
Rules of Interpretation (GRI's). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the nomenclature and any relative section or
chapter notes.
Heading 8471 provides for automatic data processing (ADP)
machines and the units thereof. The article in question does not
meet the definition of an ADP machine specified in Chapter 84,
note 5(A)(a). It cannot execute the required processing
programs or perform arithmetical computations. Therefore, this
portable computer terminal is not an ADP machine.
However, note 5(B) states that ADP machines may be in the
form of systems consisting of a variable number of separately
housed units. A unit is to be regarded as part of the complete
system if:
"(a) [i]t is connectable to the central processing unit
either directly or through one or more other units; and
(b) [i]t is specifically designed as part of such a system
(it must, in particular . . . be able to accept or
deliver data in a form (code or signals) which can be
used by the system).
Such units presented separately are also to be class-
ified in heading No. 84.71."
The article in question satisfies these requirements. It is
designed to connect to a computer system in the home office and
functions principally as a combined input/output unit (i.e. it
accepts and delivers data), and it is to be presented separately.
Subheading 8471.92, HTSUSA, provides specifically for
"input or output units". This phrase accurately describes the
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function of the Cardinal, which is an input unit in that it
receives data and converts it into signals and an output unit in
that it converts signals into an intelligible display form.
Explanatory Note 84.71 (I)(A) states that input and output units
may be combined into one signal unit. In addition, subheading
8471.92.10 specifically provides for "combined input/output
units". Therefore, the article in question satisfies the terms
of the subheading for combined input/output units.
In addition, Explanatory Note (I)(D) states that heading
8471 also covers separately presented constituent units of data
processing systems. Examples of these units are additional input
and output units (i.e. input-output terminals etc.,). The
Cardinal is designed and functions as an additional input/output
display terminal. This note gives further indication that
additional input/output terminals like the Cardinal are included
in this heading.
In sum, the article in question is classifiable as a
combined input/output unit. This conclusion is based on the fact
that the Cardinal meets the description of a these devices as
they are defined within the terms of the relative headings and
legal notes.
HOLDING:
The Cardinal portable computer terminal is properly
classifiable under subheading 8471.92.10, HTSUSA, which provides
for other combined input/output units dutiable at the rate of 3.7
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division