CLA-2 CO:R:C:M 953383 DWS
Ms. Jeanette Lingle
Traffic Specialist
Logitech, Inc.
6505 Kaiser Drive
Fremont, CA 94555
RE: "Audioman"; Automatic Data Processing Unit; Supporting
Software; Combined Microphone/Speaker Set; Heading 8518;
Explanatory Note 85.18; Chapter 84, Note 5(B);
Dear Ms. Lingle:
This is in response to your various letters from August 20,
1992, to January 28, 1993, to the Area Director, New York Seaport,
concerning the classification of the "Audioman" under the
Harmonized Tariff Schedule of the United States (HTSUS). Your
letters have been transferred to Customs Headquarters for a reply.
FACTS:
The merchandise consists of the "Audioman", which is an
external audio device with an integrated speaker and microphone,
and its supporting software. It attaches to an IBM personal
computer or compatible via its parallel port, allowing it to
produce audio (voice, sound, and music) within a sound compatible
application. The unit does not record. All recording or saving
of information takes place within the computer to which it is
attached in conjunction with the supporting software. The
microprocessor housed within "Audioman" converts information from
analog to digital so that data may be stored within the computer.
The microprocessor also converts the data within the computer from
digital to analog so that it may be heard by others who have
"Audioman" units and the supporting software.
A computer user who has an "Audioman" unit and supporting
software prepares a document or spreadsheet. The user then assigns
sounds or verbiage to a particular cell of the spreadsheet or
document by accessing the software and inputting sound through the
microphone, and then sends the file to another user. To hear this
information, the other computer user who has supporting software
and an "Audioman" unit may then access the software and hear the
stored sound through the "Audioman" unit.
ISSUE:
Whether the "Audioman" is classifiable as a combined
microphone/speaker set under heading 8518, HTSUS, or as a digital
automatic data processing unit under heading 8471, HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In part, heading 8518, HTSUS, provides for: ". . . headphones,
earphones and combined microphone/speaker sets . . ."
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 85.18 (pp. 1364 - 1365) states that:
[t]his heading covers microphones, loudspeakers, headphones,
earphones and audio-frequency electric amplifiers of all kinds
presented separately, regardless of the particular purpose for
which such apparatus may be designed (e.g., telephone
microphones, headphones and earphones, and radio receiver
loudspeakers). . .
(C) HEADPHONES, EARPHONES AND COMBINED
MICROPHONE/SPEAKER SETS
. . . The heading covers headphones, earphones and combined
microphone/speaker sets for telephony or telegraphy . . .
Based upon Explanatory Note 85.18, the "Audioman" is not
described under heading 8518, HTSUS. Although it possesses a
microphone and a speaker, it is not a microphone/speaker set for
telephony or telegraphy. It is a device containing a
microprocessor which both sends information to and receives
information from a computer. The "Audioman" cannot operate
correctly without the use of a computer.
Heading 8471, HTSUS, provides for: "[a]utomatic data
processing machines and units thereof; magnetic or optical readers,
machines for transcribing data onto data media in coded form and
machines for processing such data, not elsewhere specified or
included."
Chapter 84, note 5(B), HTSUS, states that:
[a]utomatic data processing machines may be in the form
of systems consisting of a variable number of separately
housed units. A unit is to be regarded as being a part of
the complete system if it meets all of the following
conditions:
(a) It is connectable to the central processing unit either
directly or through one or more other units; and
(b) It is specifically designed to be part of such a system
(it must, in particular, unless it is a power supply unit,
be able to accept or deliver data in a form (code or
signals) which can be used by the system).
Such units entered separately are also to be classifiable in
heading 8471.
Based upon chapter 84, note 5(B), HTSUS, it is our position
that the "Audioman" is classifiable as a unit under subheading
8471.99.90, HTSUS, which provides for: "[a]utomatic data processing
machines and units thereof; magnetic or optical readers, machines
for transcribing data onto data media in coded form and machines
for processing such data, not elsewhere specified or included:
[o]ther: [o]ther: [o]ther: [o]ther."
The supporting software for the "Audioman" is classifiable
under subheading 8524.90.40, HTSUS, which provides for: "[r]ecords,
tapes and other recorded media for sound or other similarly
recorded phenomena, including matrices and masters for the
production of records, but excluding products of chapter 37:
[o]ther: [o]ther."
HOLDING:
The "Audioman" is classifiable under subheading 8471.99.90,
HTSUS. The general, column one rate of duty is 3.7 percent ad
valorem.
The supporting software for the "Audioman" is classifiable
under subheading 8524.90.40, HTSUS. The general, column one rate
of duty is 9.7 cents per square meter of recording surface.
Sincerely,
John Durant, Director
Commercial Rulings Division