CLA-2 CO:R:C:G 086553 CMS
Mr. John Montoya
Import/Export Specialist
Canon U.S.A., Inc.
One Canon Plaza
Lake Success, NY 11042-1113
RE: Integrated Telephone/Facsimile Machine/Personal Computer
described as Canon "Navigator"
Dear Mr. Montoya,
Your request dated January 12, 1990, for a classification
ruling on the Canon "Navigator" has been referred by the Regional
Commissioner of Customs, New York to Customs Headquarters for a
reply. Our ruling follows.
FACTS:
The merchandise consists of an integrated telephone/
facsimile machine/personal computer designated as the Canon
"Navigator". The apparatus is comprised of a monitor, telephone
handset and keyboard. The monitor incorporates a monochrome CRT
display screen, facsimile input scanner and thermal output
printer, and data processing components for the telephone/
facsimile/personal computer functions. The telephone handset is
connected to the monitor by a cord; the cradle for the handset is
situated on the front of the monitor to the left of the display
screen. The display screen can be used as an input device when
the user touches the screen in the place where a character
associated with a certain command appears.
The telephone function works in conjunction with certain
data processing operations. With the telephone directory feature
the user can record up to 300 names and telephone numbers on a
floppy disc. When the handset is lifted from its cradle a
telephone directory menu appears on the display screen. The call
is automatically dialed when the user touches the screen in the
place where the name of the person to be called appears. The
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user can organize the telephone directory in business/personal
categories or in other ways which suit the needs of the user.
The Navigator functions as a telephone answering machine by
storing up to 12 incoming messages ranging in length from 15 to
50 seconds. The stored messages can be accessed from an outside
push-button phone or by touching the display screen at the
appropriate place. The Navigator's telephone function features
on-hook dialing, re-dialing, hold melody, and a wake-up feature
with which the user can program the Navigator to call a
particular person at a particular time.
The facsimile input feeder is situated on the top rear of
the monitor. The user accesses the feeder by flipping up a panel
on top of the monitor. The Navigator features document file
direct sending. Facsimile copies of documents stored on a floppy
disc can be transmitted to 100 different places at pre-
programmed times. With the Navigator's "confidential
transmission" feature, facsimile copies can be transmitted to the
memory of a remote Navigator and the copy can only be displayed
or printed when a security access code is input in the remote
Navigator. The Navigator will automatically store incoming
facsimile transmissions when the output printer runs out of
paper. The facsimile function utilizes the same telephone
directory and touch-screen input features as the telephone
function.
The Navigator's personal computer function maintains IBM
PC/XT personal computer compatibility to allow the use of
existing software such as word processing, data base, spread
sheet, scheduling and business graphics. Such software is not
imported with the Navigator. The Navigator has a built-in
"message board" feature which allows the user to communicate with
other Navigator operators regarding telephone or other messages.
The Navigator's built-in "memo pad" feature allows limited word
processing of memos. The personal computer function can be used
with a user-friendly touch-screen input, and a digital clock can
be called up on the screen.
The Navigator's telephone/facsimile/personal computer
functions can be used simultaneously. While on the telephone a
user can send a facsimile transmission. The user does not have
to exit a personal computer program during telephone or facsimile
operation.
ISSUE:
Is the Navigator classified as a data processing machine in
Heading 8471, as a telephone apparatus in Heading 8517 or as a
facsimile apparatus in Heading 8517?
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LAW AND ANALYSIS:
The Navigator is a Section XVI Note 3 composite machine.
The General Explanatory Notes to Section XVI, p. 1133, provide
that composite machines which consecutively or simultaneously
perform separate functions which are generally complementary are
classified according to the machine's principal function. The
Navigator is not classifiable according to the principal physical
component (i.e., monitor, handset, keyboard), but falls in the
heading which describes its principal function.
Because the personal computer function is principally based
on data processing operations, and certain data processing
operations are also associated with the telephone/facsimile
functions (e.g., programmable telephone directory, delayed
transmission), it might appear that data processing is the
principal function of the Navigator. However, the particular
data processing operations associated with the telephone/
facsimile functions would be attributed to those functions for
classification purposes. Chapter 84 Note 5 in pertinent part
provides that "Heading 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...". The particular data processing operations
associated with the telephone/facsimile functions are performed
by components which are incorporated in the Navigator's monitor
and would not be considered as separate articles for
classification purposes. The personal computer function would
thus encompass personal computer uses (e.g., data base, word
processing, scheduling, business graphics), but would not
include the particular data processing operations associated with
the telephone/facsimile functions (e.g., telephone directory,
delayed transmission); these particular operations would be
attributed to the telephone/facsimile functions when determining
the principal function of the Navigator.
The degree of physical and functional integration of the
Navigator's telephone/facsimile/personal computer functions makes
it difficult to isolate one of the functions and identify it as
the principal function. Many of the Navigator's components are
used in all three functions. The display screen is used as an
input/output device for all three functions. The keyboard is
used as an additional input device for all functions. The
electronic components of the telephone/facsimile functions are
incorporated in the Navigator's motherboard along with the
personal computer components. The Navigator's CPU is used in all
three functions.
The Navigator's telephone/facsimile/personal computer
functions are not just physically integrated; they are
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complementary functions which can be used with each other. A
facsimile transmission can be made directly from the Navigator's
memory on which documents or graphics processed with the personal
computer are stored. The user can make or receive a telephone
call without exiting the computer program being used. At the
same time a facsimile transmission is being sent or received the
user can conduct a telephone conversation with the sender or
receiver to discuss the document or alert them that a facsimile
transmission is underway.
The Navigator is marketed as an integrated office machine
and no one of the three complementary functions is significantly
emphasized over the others. The statement on the cover of the
product brochure submitted by the importer reads: "Canon
NAVIGATOR":"Multiform Integration":"Integrated Telephone/FAX/PC
efficiency is just a touch away". The statement on the second
page of the brochure reads: "Which is the most valuable office
tool? A) The Telephone B) The Facsimile Machine C) The
Personal Computer D) All of the above The Answer: D) All of
the above".
The Navigator's telephone/facsimile/personal computer
functions are complementary under the Section XVI Explanatory
Notes, p. 1133. The telephone/facsimile functions utilize data
processing operations and are similar to the personal computer
function in terms of complexity and functional sophistication.
Designating one of the functions as the principal function would
result in the other two functions falling as subordinate
functions; the three functions are physically and functionally
integrated to an extent that it is not possible to single out a
single function and identify it as the principal function.
The Navigator cannot be classified according to the terms of
the headings and the relative section or chapter notes and thus
is not classified under GRI 1. GRI 2 is inapplicable. The
Navigator cannot be classified according to the relative
specificity provision of GRI 3(a) because all applicable headings
describe only part of the article and are thus considered equally
specific.
The merchandise cannot be classified as a GRI 3(b) composite
good consisting of different components because the single
component which gives the Navigator its essential character
cannot be determined. Under the terms of the GRI's, goods which
cannot be classified according to GRI's 1 through 3(b) are
classified under GRI 3(c). (The General Explanatory Notes to
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Section XVI, p. 1133 provide that where it is not possible to
determine the principal function of a Section XVI composite good,
it is necessary to apply GRI 3(c)).
It is not often that the classification of merchandise is
determined by a GRI other than GRI 1 through 3(b). Under the
facts particular to the Navigator, however, no single function
can be determined to be the principal function and no single
component gives the article its essential character. Under GRI
3(c), the merchandise is classified under the heading which
occurs last in numerical order among those which equally merit
consideration. Of these provisions, Heading 8517 is last in
numerical order. The Navigator is classified as telegraphic
apparatus in subheading 8517.82.00, which is the last subheading
among the subheadings within Heading 8517 that equally merit
consideration. Although the Navigator incorporates a digital
clock which is displayed on the CRT display, the Navigator is not
classified as a clock in Heading 9105 because the clock function
is subordinate to the telephone/facsimile/personal computer
functions and thus Heading 9105 does not equally merit
consideration with Headings 8471 or 8517.
HOLDING:
The Canon Navigator is classified as telegraphic apparatus
in subheading 8517.82.00, HTSUSA.
Sincerely,
Jerry Laderberg
Acting Director
Commercial Rulings Division