CLA-2:CO:R:C:G 085392 JMH
8537.10.00, 8543.80.90, 9010.30.00
Mr. E. Thomas Honey
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016
RE: Data/graphics projector systems, switcher unit, wall and
ceiling mount, projection screen, interface unit, cart.
Dear Mr. Honey:
Your August 11, 1989 letter requesting a classification
ruling under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA) for the Electrohome ECP 3000 and ECP 4000
data/graphics projector systems was forwarded by New York to this
office for a reply.
FACTS:
The Electrohome ECP 3000 and ECP 4000 projector systems,
imported from Canada, are high resolution display units used for
presentations and simulations. The ECP 3000 and ECP 4000
incorporate extensive horizontal and vertical scanning
capability. These projection units are able to accommodate eight
different interfaces which provide compatibility with numerous
computer systems. One of the interfaces, the RS170 (NTSC)
interface enables the projection units to display signals from
popular computer models and composite video signals. Both
models display sharp images generated by high resolution pixels.
The ECP 3000 and the ECP 4000 retail in the United States
for $15,000-$20,000 per unit. Along with the various
interfaces, accessories for the projection units include
switcher units, wall and ceiling mounts, a projection screen, and
a cart.
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ISSUE:
Whether the ECP 3000 and ECP 4000 data/graphic projector
systems are classified within heading 8471, HTSUSA, as "Automatic
data processing machines and units thereof...Input or output
units, whether or not entered with the rest of a system and
whether or not containing storage units in the same housing...
Other...", or within heading, 8528, HTSUSA, as "Television
receivers (including video monitors and video projection
television receivers), whether or not combined, in the
same housing, with radiobroadcast receivers or sound or video
recording or reproducing apparatus...Other television
receivers..."
Whether the RS170 (NTSC) interface's ability to display
composite video signals affects the classification of the
Electrohome ECP 3000 and ECP 4000 data/graphic projection
systems.
Whether the accessories should be classified within heading
8473, HTSUSA, as "Parts and accessories...suitable for use solely
or principally with machines of headings 8469 to 8472..."
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes and...according to the
following provisions..." The competing headings in this case are
headings 8471 and 8528, HTSUSA. The headings describe:
8471 Automatic data processing machines and units
thereof...
8471.92.40 Input or output units, whether or not
entered with the rest of a system and
whether or not containing storage units
in the same housing...Other...
* * * * * * * * * * * * *
8528 Television receivers (including video
monitors and video projection television
receivers), whether or not combined, in the
same housing, with radiobroadcast receivers
or sound or video recording or reproducing
apparatus...
8528.10.80 Other television receivers...
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Within the United States, goods classified by use are
classified according to their principal use, and "the controlling
use is the principal use." Additional U.S. Rule of
Interpretation 1(a), HTSUSA. It is the opinion of this office
that the controlling use, and therefore principal use, of the
projectors is to display computer generated images. Therefore,
the Electrohome ECP 3000 and ECP 4000 projectors are classified
under subheading 8471.92.40, HTSUSA, as "Automatic data
processing machines and units thereof...Input or output units,
whether or not entered with the rest of the system and whether or
not containing storage units in the same housing..."
When the projectors are imported with their accessories--the
interface unit, switcher unit, wall and ceiling mount, projection
screen, and cart--Section XVI, Note 4, HTSUSA, is relevant. This
Section note provides the concept of a "functional unit."
Section XVI, Note 4 states:
Where a machine...consists of individual components...
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.
The projectors in question and their accessories contribute
to the function of displaying images. Therefore, the ECP 3000
and ECP 4000 projector systems are functional units within the
meaning of Section XVI, Note 4. When shipped as a system, the
classification within subheading 8471.92.40, HTSUSA, will cover
the whole unit.
Subheading 8471.92.40, HTSUSA, remains the classification
even when the RS170 (NTSC) interface is part of the imported
package. According to Chapter 84, Note 7, HTSUSA, a machine used
for more than one purpose is "to be treated as if its principal
purpose were its sole purpose." This office has determined that
the ability to display computer generated imagery is the
principal purpose of the projectors. The cost and design of the
data/graphics display systems supports this conclusion.
Therefore, subheading 8471.92.40, HTSUSA, is the classification
for all ECP 3000 and ECP 4000 systems imported into the United
States.
You contend that subheading 8473.30.40, HTSUSA, is the
appropriate classification for the interface units, switcher
units, projection screens, the wall and ceiling mounts, and the
carts when the articles are imported separately. The subheading
describes "Parts and accessories...suitable for use solely or
principally with machines of headings 8469 to 8472..." We agree
that the items in question are accessories to the projection unit
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which has been classified within heading 8471, HTSUSA. However,
this alone is not enough to classify all the articles within
heading 8473, HTSUSA.
For classification within heading 8473, HTSUSA, the goods
must be "solely or principally" used with the projector system.
The cart fulfills this requirements since it is specifically
designed for use solely with the projector. Therefore, the cart
is classified within subheading 8473.30.40, HTSUSA, as "Parts and
accessories...suitable for use solely or principally with
machines of headings 8469 to 8472...Parts and accessories of
machines of heading 8471...Not incorporating a cathode ray
tube..."
On the other hand, the wall and ceiling mounts fail the use
requirement as they are typical mounts without any special design
or features. Thus, the mounts are not classifiable within
heading 8473, HTSUSA. They are properly classifiable within
subheading 7326.90.90, HTSUSA, as "Other articles of iron or
steel...Other..."
The RS170 Interface unit, although integral to the
functioning of the projector unit, is not classifiable within
heading 8473, HTSUSA. Explanatory Note 84.73 of the Harmonized
Commodity Description and Coding System (HCDCS), states that
heading 8471, HTSUSA, "does not extend to independent accessory
or ancillary machines used in conjunction with other machines."
HCDCS, Vol. 3. p. 1304. The Explanatory Notes, although not
dispositive, are to be looked to for the proper interpretation of
the HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989). The
proper classification for the unit is within subheading
8543.80.90, HTSUSA, as "Electrical machines and apparatus, having
individual functions, not specified or included elsewhere in the
chapter; parts thereof...Other..."
The switcher unit is also an important, but ancillary
accessory. The appropriate classification is within subheading
8537.10.00, HTSUSA, as "Boards, panels (including numerical
control panels), consoles, desks, cabinets and other bases
equipped with two or more apparatus of heading 8535 or 8536, for
electric control or the distribution of electricity...For a
voltage not exceeding 1,000 V..."
Finally, the projection screens are not classifiable within
heading 8473, HTSUSA. The screens are independent articles not
specifically designed for sole or principal use with the subject
projector system. Projection screens are provided for eo nomine
within heading 9010, HTSUSA. The screens are to be classified
within subheading 9010.30.00, HTSUSA, as " Apparatus and
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equipment for photographic (including cinematographic)
laboratories...not specified or included elsewhere in the
chapter...projection screens...Projection screens..."
HOLDING:
The Electrohome ECP 3000 and ECP 4000 data/graphic
projection systems are properly classifiable under subheading
8471.92.40, HTSUSA. The projector unit, when shipped alone, is
also classifiable under 8471.92.40, HTSUSA. The cart is properly
classified within subheading 8473.30.40, HTSUSA. The wall and
ceiling mount should be classified within subheading 7326.90.90,
HTSUSA. The RS170 Interface unit is to be classified within
subheading 8543.80.90, HTSUSA. The switcher unit is properly
classified within subheading 8537.10.00, HTSUSA. The projection
screen is classified within subheading 9010.30.00, HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division