CLA-2 CO:R:C:G 085404 MBR
Mr. Steven W. Baker
Bellsey and Baker
100 California Street, Suite 670
San Francisco, California 94111
RE: 9100 Mobile Radio Data Terminal, 9031 Universal Mobile
Communications Terminal, 7100 Dispatch Terminal, 7031 Dispatch
Terminal, 6100 Portable Data Terminal
Dear Mr. Baker:
This is in reply to your request for classification of the
9100 Mobile Radio Data Terminal, 9031 Universal Mobile
Communications Terminal, 7100 Dispatch Terminal, 7031 Dispatch
Terminal and 6100 Portable Data Terminal, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The following mobile data terminals (MDTs) are all installed
in vehicles (except the portable 6100) such as: taxis, police
cars, delivery vehicles, sales personnel vehicles, repair
vehicles, etc. They all are either connected to a radio
transmitter/ receiver (by cables) or have an integrated radio
(models 9100 & 6100). These MDTS communicate with a host
computer by radio communication (general purpose computer not
imported or sold with the MDTs). The host computer's function is
primarily the transmission/ reception with a number of units
through radiotelegraphic communication. Some MDT units provide
data base access, however, the subject MDTs are principally
designed, dedicated and used for dispatching and other messaging
applications.
9100 Mobile Radio Data Terminal. ("9100").
Your literature states that the 9100 is "the flagship
product of the new SYSTEM 100 family designed to solve your
communication needs. The Terminal, combined with our data
communications system, offers constant, real-time, two-way
communications for your people on the move. The four basic
functions you require-dispatch operations, database access, fleet
status monitoring, and messaging capability-are simple, accurate
and instantaneous....The rugged, single-piece unit with its
integrated radio is built to last." The 9100 includes; a 16 line
by 32 character amber CRT display, a full alphanumeric keyboard,
a separate functions keypad and power and illumination controls.
It transmits data at a rate of 4800 bits per second with
modulation based on FM. The radio transmitter operates in a
frequency range of 806 to 825 MHz. The radio receiver operates
in a frequency range of 851 to 870 MHz.
9031 Universal Mobile Communications Terminal. ("9031").
The 9031 is very similar to the 9100. The 9031 is a mobile
data terminal which includes; a 16 line by 32 character CRT
display, a full alphanumeric keyboard, and a separate functions
keypad. However, the 9031 utilizes an 8100 voice radio (which
also transmits and receives data) rather than having a voice
radio integrated within the system, like the 9100.
7100-10 Mobile Communications Terminal. ("7100").
Your promotional literature states; "This terminal was
specifically designed to meet the requirements of the dispatching
services market." This terminal sends and receives text messages
over standard voice quality FM radio channels. Data transmission
supports a larger number of dispatches than conventional voice
dispatched systems thereby reducing radio channel congestion.
When the terminal receives a message it sounds an audible alert
and an indicator lights up telling the driver a message is
waiting to be displayed. All messages are stored in terminal
memory until the driver clears them (up to six pages of 10 lines
by 32 characters each). The terminal has a back lit 4 line by 40
character LCD display. The keyboard has function commands and a
numeric keypad but no alpha keyboard. The 7100 is designed to
function with an 8300 radio (or an approved third party model).
The terminal can support external peripheral devices such as a
printer, bar-code reader, etc., through a serial RS-232C
connection at the base of the unit. The 7100 is based on the 4.0
MHz Z80 microprocessor with 64K bytes of EPROM (Erasable
Programmable Read Only Memory), 24K bytes of RAM plus 1K bits of
E2 PROM. The terminal software is stored in EPROM while the
radio parameters are stored in E2 PROM.
7031 Computerized Taxi Dispatch. ("7031").
Mobil Data International's computerized taxi dispatch system
works in the following manner: 1) Customer calls cab company, 2)
Call taker enters information into central computer, 3) Computer
sends information to first taxi in line for a passenger in the
appropriate zone, 4) Driver hits a key on the terminal indicating
acceptance of the trip, and 5) Driver picks up customer. The
7031 measures 2.6" x 11.4" x 5.5." It weighs 2.75 lbs and is
mounted in a taxi driver's windshield. It has a two line, forty
character back lit LCD display. Its keyboard contains; 8 single-
stroke keys, 6 key sequences (F plus another key), 0-9 numerals,
TX-initiates transmissions, Nm-displays next message, MDI-
emergency, auto TX (continues transmitting until acknowledged
received). It has a memory capable of retaining six pages
(maximum of ten lines per page). The modem data rate is 4800 bps
with a modulation baseband of FM.
6100 Portable Data Terminal. (6100)
The 6100 is a portable data communications terminal with the
following features: 1) Automatic storage and quick retrieval of
messages and dispatches (with external "message received" LED
indicator, 2) Built-in 800 MHz radio transmitter and receiver
with internal antenna, 3) Factory installed voice option, 4) Back
lit, high contrast, 8 line by 40 character LCD display, and 4)
message capacity of 100 lines. Your literature states: "[i]t is
designed for people who require two-way data communications with
them at all times in order to perform their job activities. With
an MDI 6100 PDT, personnel can receive dispatches, query data
bases, and enter data to a host computer. In addition, they can
compose and transmit messages to, and receive messages from,
fellow co-workers."
ISSUE:
What are the classifications of; 9100 Mobile Radio Data
Terminal, 9031 Universal Mobile Communications Terminal, 7100
Dispatch Terminal, 7031 Dispatch Terminal and 6100 Portable Data
Terminal, under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA)?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Classification of Goods Under General Rule of Interpretation
1 of the Harmonized System, Customs Bulletin and Decisions, Vol.
23, No.36 (September 6, 1989), states, in pertinent part, that
classification under GRI 1 proceeds as follows:
(1) If the nature or make-up of the goods reveals a function
(a specific intended use), then the proper function-related
chapter must be examined. First, it must be determined that
the function of the article is indeed included in the
chapter. Next, the section and chapter notes must be
consulted to ensure that classification of the article is
not ruled out by a legal note....Consideration must also be
given to the possibility that more than one function related
chapter may apply.
The nature and make-up of the Mobile Data Terminals ("MDTs")
reveals their function to be two-fold.
Firstly, the MDTs' function is that of transmission
apparatus for radio-telegraphy, i.e., "for the transmission of
signals (representing speech, messages or still pictures) by
means of electro-magnetic waves which are transmitted through the
ether without any line connection." Harmonized Commodity
Description and Coding System Explanatory Notes (EN), page 1374.
Secondly, the MDTs use radiotelegraphic transmission and
reception to communicate with their host computer. You state
that the host computers are general purpose computers, usually
already in place at the customers site, which meet the definition
of "Automatic Data Processing Machines" as delineated in chapter
84, Note 5, for the purposes of inclusion in heading 8471,
HTSUSA. Therefore, you argue that the MDTs' function is that of
an ADP input/output unit.
Thus, the MDTs are prima facie classifiable under two
function-related headings. The headings are 8525 and 8471,
HTSUSA. These headings describe:
8525 Transmission apparatus for radiotelephony,
radiotelegraphy, radiobroadcasting or television,
whether or not incorporating reception apparatus...:
8525.10.80 Transmission apparatus: [o]ther: [o]ther.
8525.20.60.80 Transmission apparatus incorporating reception
apparatus: [o]ther: [o]ther: [o]ther."
* * * * * * * * * * * * *
8471 Automatic data processing machines and units
thereof;
8471.92.10 Other: [i]nput output units, whether or not
entered with the rest of a system and whether or
not containing storage units in the same housing:
[c]ombined input output units.
Section XVI, Legal Note 4, provides guidance here: "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."
It is Customs position that the MDTs are principally
intended to contribute to the clearly defined function of
transmission apparatus in chapter 85 and therefore must be
classified in this chapter.
Legal Note 5, chapter 84, also states: "[h]eading 8471 does
not cover machines incorporating or working in conjunction with
an automatic data processing machine and performing a specific
function. Such machines are classified in the headings
appropriate to their respective functions or, failing that, in
residual headings."
Furthermore, Legal Note 7, chapter 84, states: "[a] machine
which is used for more than one purpose is, for the purposes of
classification, to be treated as if its principal purpose were
its sole purpose. Again, clearly the principal purpose of these
MDTs is the transmission of messages.
Your literature states: "Mobile Data International's
Computerized Taxi Dispatch system can increase productivity, help
provide better service to your customers, improve working
conditions for your drivers and, most importantly...give you a
significant advantage over the competition." There can be no
question that MDTs are simply an improvement in technology over
the traditional hand held, voice dispatch systems. In American
Scientific Products, Div. of American Hospital Supply Corp. v.
United States, Slip. Op. 90-49 (May 14, 1990) the court cited
Texas Instruments Inc. v. United States, 1 CIT 236, 244, 518
F.Supp. 1341, 1346 (1981) (where the court held that tariff
schedules "are written for the future as well as for present
application and may embrace merchandise unknown at the time of
their enactment" as long as such merchandise possesses an
essential resemblance to the characteristics as described by the
applicable tariff provision), aff'd, 69 CCPA 136, 673 F.2d 1375
(1982). In Scientific Products, page 14, the court held that:
Similarly, the [blood] analyzers cannot realistically be
called data processors because although, as plaintiff notes,
the data-processing function of the hematology analyzers is
essential to the analysis of the blood, it is nonetheless
only a component of a machine whose overall purpose is to
analyze. The machines' functions are to break blood up into
its parts, quantify each, and determine the various
qualities.
Similarly, although the MDTs transmit and receive data
from/to the host computer, their principal function is that of
transmission apparatus for radio-telegraphy, i.e., for the
transmission of signals (representing speech, messages or still
pictures) by means of electro-magnetic waves which are
transmitted through the ether without any line connection.
These MDTs are distinguishable from laptop or remote
location, radio linked automatic data processing input/output
terminals by their principal function of dispatching, i.e., for
the transmission of signals (representing speech, messages or
still pictures) by means of electro-magnetic waves which are
transmitted through the ether without any line connection. See
HQ 554810 (TSUS Protest) for a similar holding on this
merchandise.
HOLDING:
The MDI 9100 is integrated with a radio transmitter/
receiver, and is therefore classifiable under 8525.20.60.80,
HTSUSA, which provides for: "[t]ransmission apparatus for
radiotelephony, radiotelegraphy...whether or not incorporating
reception apparatus...: [t]ransmission apparatus incorporating
reception apparatus: [o]ther: [o]ther: [o]ther." The rate of
duty is 6% ad valorem.
The MDI 6100 is integrated with a radio transmitter/
receiver, and is therefore classifiable under 8525.20.60.80,
HTSUSA, which provides for: "[t]ransmission apparatus for
radiotelephony, radiotelegraphy...whether or not incorporating
reception apparatus...: [t]ransmission apparatus incorporating
reception apparatus: [o]ther: [o]ther: [o]ther." The rate of
duty is 6% ad valorem.
The MDI 9031 does not have an integrated radio (requires the
addition of MDI 8100 voice/data radio) and is therefore
classifiable under 8525.10.80, HTSUSA, which provides for:
""[t]ransmission apparatus for radiotelephony,
radiotelegraphy...whether or not incorporating reception
apparatus...: [t]ransmission apparatus: [o]ther: [o]ther." The
rate of duty is 6% ad valorem.
The MDI 7100-10 does not have an integrated radio (requires
the addition of MDI 8300 voice/data radio or approved third party
model) and is therefore classifiable under 8525.10.80, HTSUSA,
which provides for: ""[t]ransmission apparatus for
radiotelephony, radiotelegraphy...whether or not incorporating
reception apparatus...: [t]ransmission apparatus: [o]ther:
[o]ther." The rate of duty is 6% ad valorem.
The MDI 7031 Computerized Taxi Dispatch does not have an
integrated radio and is therefore classifiable under 8525.10.80,
HTSUSA, which provides for: ""[t]ransmission apparatus for
radiotelephony, radiotelegraphy...whether or not incorporating
reception apparatus...: [t]ransmission apparatus: [o]ther:
[o]ther." The rate of duty is 6% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division