CLA-2-84:RR:NC:1:110 B85213
8471.49.4895; 8471.50.8095; 8524.39.0000; 8524.99.4000
Mr. Steven B. Zisser
Stein Shostak Shostak & O'Hara
Suite 1200
515 South Figueroa Street
Los Angeles, CA 90071-3329
RE: The tariff classification of a multimedia data processing
machine shipped with and without a monitor from Taiwan and
China.
Dear Mr. Zisser:
In your letter dated April 14, 1997, on behalf of Packard
Bell NEC, Inc., you requested a tariff classification ruling.
The merchandise under consideration involves a multimedia
automatic data processing machine (desk-top computer) that will
be imported packaged in a single retail carton.
Configuration one will consist of the following components:
1. Processor unit- will include a CPU and motherboard, power
supply, hard disk drive, floppy disk drive, CD Rom drive, sound
card, modem, FM radio card and PBTV card; preloaded software such
as Windows 95 and Microsoft Office on the hard disk drive.
2. Additional Components- monitor, keyboard, mouse, remote
control, 2 sound speakers with power adapter, microphone, power
cable, Telephone cable/splitter, and software floppy discs and CD
ROMs
Under configuration one, the merchandise before us is
basically a multimedia desk-top computer that includes a
processor unit, input unit, output unit, preloaded software on
the hard disk, additional add-ons such as speakers, microphones
and cables, and various software programs. The merchandise will
be shipped in a single retail carton, and will be sold as a
retail set.
Noting the Subheading Notes (1) to Chapter 84 of the HTS,
this multimedia computer system meets the definition of a
"system", since it incorporates a processor unit, one input unit,
and one output unit. Classification would thus fall under
8471.49 for this system. Since this multimedia computer is also
imported as a system, the additional components in the retail box
would appear to qualify as a functional unit, noting Legal Note 4
to Section 16 of the HTS, since they all contribute to a clearly
defined function.
The preloaded software on the hard disk of this computer
would be separately classifiable noting Legal Note 6 to Chapter
85 of the HTS, and HQ ruling 950675 of January 7, 1992. The
additional software in the form of floppy disks and CD-ROMs would
also be separately classifiable under 8524.
The applicable subheading for the processor portion of the
multimedia data processing machine will be 8471.49.1095
Harmonized Tariff Schedule of the United States (HTS), which
provides for digital processing units entered with the rest of a
system, whether or not containing in the same housing one or two
of the following types of unit: storage units, input units,
output units. The rate of duty will be 2.7 percent ad valorem.
The applicable subheading for the keyboard of this system
will be 8471.49.2100, HTS, which provides for keyboards, entered
in the form of systems. The rate of duty will be free.
The applicable subheading for the CRT monitor of this system
will be 8471.49.2600, HTS, which provides for other display
units, with color cathode-ray tube (CRT). The rate of duty will
be 1.5 percent ad valorem.
The applicable subheading for the mouse of this system will
be 8471.49.48.95, HTS, which provides for other input units,
entered in the form of systems. The rate of duty will be 1.5
percent ad valorem.
The applicable subheading for the CD-ROM software will be
8524.39.0000, HTS, which provides for other discs for laser
reading systems. The rate of duty will be 3.7 percent ad
valorem.
The applicable subheading for the preloaded software on the
hard disks, and the floppy disks will be 8524.99.4000, HTS, which
provides for other, other recorded media. The rate of duty will
be 3.9 cents per square meter of recording surface.
The applicable subheading for the additional components of
this multimedia processor system (such as the remote control,
speakers, microphone, and cables) noting Legal Note 4 to Section
16 of the HTS, will be 8471.49.1095, which provides for digital
processing units.
Under configuration two, the multimedia data processing
system will be shipped also as a retail set in one common carton,
but will be missing the monitor. It will thus include all of the
components described in configuration one, including the
preloaded software, but will be without a monitor. Consideration
as a "system" under 8471.49, would be precluded since it is
missing at least one output unit as covered under Legal Note 5
(B) to Chapter 84 of the HTS.
Noting in part GRI-1 and GRI-3 (B) to the HTS, this
multimedia processor system has the essential character of a
digital processing machine, and also meets the definition of a
retail set. Classification of this multimedia automatic data
processing machine, which includes the processor, input and
storage components, and the additional components, such as the
remote control, speakers, microphone, and cables, would thus fall
under HTS number 8471.50.8095, as other digital processing units
other than those of subheading 8471.41 and 8471.49, whether or
not containing in the same housing on or more of the following
types of unit: storage units, input units, output units. The
rate of duty will be 2.7 percent ad valorem.
The preloaded software and the floppy disks and CD-ROM
software, noting Legal Note 6 to Chapter 85, will be separately
classifiable under 8524, noting the previously mentioned HTS
numbers.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above
should be provided with the entry documents filed at the time
this merchandise is imported. If you have any questions
regarding the ruling, contact National Import Specialist Art
Brodbeck at 212-466-5490.
Sincerely,
Robert B. Swierupski
Chief, Metals & Machinery Branch
National Commodity
Specialist Division