CLA-2 CO:R:C:G 086122 CMS

8442.40.00
8471.91.00

Mr. Robert E. Burke, Esq.
Barnes, Richardson & Colburn
200 East Randolph Drive
Chicago, IL 60601

RE: Typesetting Machinery, Apparatus And Equipment; Graphics And Lettering Composing Systems; Parts; Optical Scanners; Laser Imagesetters

Dear Mr. Burke:

This is in response to your request on behalf of Purup North America, dated December 4, 1989, for a classification ruling on certain Purup typesetting equipment. The classification of the merchandise as a system, and all components entered separately except the scanner and imagesetter, are determined in this ruling. The classification of the scanner and imagesetter entered separately will be determined in a subsequent ruling under HQ file 088459.

FACTS:

The merchandise consists of certain Purup graphics and lettering composing systems. The systems are used to produce color offset printing media, especially in the labels, forms, checks, and package printing industries. The systems can produce printing media on photosensitive printing plates, film or paper. The systems are normally imported in single shipment but individual components are entered separately.

The system components include an interactive work station (IWS), interactive graphics system (IGS), input scanner and laser imagesetter. Hard copy proofers, digitizers and interfaces may be added to the systems after importation.

The IWS consists of a composing terminal with command screen and keyboard, an interactive graphics display, and a tracker ball

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and keypad which control the cursor on the graphics display. With the cursor, it is possible to draw lines, logos or graphic elements. The IWS uses the CPU of the IGS. Four models of the IWS are imported, the PE 1400, PE 1410, PE 1420 and PE 1440. The primary difference between the models is that the PE 1420 and PE 1440 are specifically designed to operate with particular models of the IGS.

The IGS functions as the central processor for the IWS. The IGS incorporates hard and floppy drives, and also incorporates the power supply for the scanner. Four models of the IGS are imported, the PE 1100, PE 1300, PE 1320 and PE 1340. The primary difference is that the PE 1320 and PE 1340 are further enhanced versions of the PE 1100 and PE 1300.

The input scanners are controlled by a program within the IGS software. The scanners incorporate charge coupled devices. Scanned images are transferred onto the hard disc digitally and can then be reproduced on the IWS and manipulated by the user. Scanned images are stored in Purup's proprietary data formats. Two models of input scanners are imported, the PE 1710 which has a resolution capability of 5,000 pixels, and the PE 1720 which has a resolution capability of 10,000 pixels.

The laser imagesetters use an argon-ion laser to plot images on photosensitive film, paper or plates. The imagesetters include an operator terminal consisting of monitors and keyboards. The imagesetters plot according to commands which the units translate from digitally processed data. The raster image processor of the imagesetter is designed to exclusively calculate Purup composition data. Two models of the imagesetters are imported, the PE 5000 and PE 7000. Both models have maximum exposure formats of 25" x 25", and maximum resolutions of 2,540 lines per inch. The PE 5000 must communicate on line with the IGS. The PE 7000 can communicate on line with the IGS, or off line with Purup input systems via modem, diskette or streamer tape.

The data formats used in the Purup systems are Purup's proprietary data formats designed for typesetting applications. The October 23, 1990 submission states that every Purup system is loaded with the same basic software, the primary module of which is principally used for entering, editing, placing, copying and coloring text, and manipulating boxes and lines. Purup also states in the October 23, 1990 submission that the data formats do not lend themselves well to other programs such as CAD and CAM programs; further, Purup states that it would not be commercially or economically feasible to principally use the programs resident in read only memory (ROM) for non-printing functions, notwithstanding the fact that the programs resident are capable -3-

of further programming. In the December 4, 1989 submission it is stated that the IWS's are slaved to the IGS's by pre- programmed EPROM chips which are made to Purup's specifications and installed prior to importation. Purup represents that it does not market the equipment for non-typesetting applications.

ISSUES:

1. Are the Purup components imported as systems classified as machinery, apparatus and equipment for typesetting in Heading 8442?

2. Are the IWS and IGS when entered separately classified as parts in Heading 8442, or as goods which are specifically described in other headings?

LAW AND ANALYSIS:

Heading 8442 in part describes machinery, equipment and apparatus for typesetting. The Explanatory Notes to Heading 8442, p. 1234, provide that the heading covers machines "...used to assemble (compose or set) it [(type)] for use in printing, whether by hand or mechanically..." and "...includes composing machines using a laser beam projected onto photographic film." The Explanatory Notes, p. 1237, provide that Heading 8442 "...covers only phototype-setting or composing machines which actually set type even if the type is photographed after it has been set" (emphasis in original).

Systems consisting of a Purup IWS, IGS, input scanner and laser imagesetter perform the function of phototypesetting or composing. Section XVI Note 4 provides that where machines (including a combination of machines) consist of individual components intended to contribute together to a clearly defined function covered by a Section XVI heading, then the whole falls to be classified in the heading appropriate to that function.

Also relevant is Chapter 84 Note 5, last paragraph, which provides in part that machines incorporating or working in conjunction with automatic data processing machines and performing a specific function are classified in the heading appropriate to their respective functions. The systems consisting of a Purup IWS, IGS, input scanner and laser imagesetter perform the specific function of phototypesetting or composing, a function described by Heading 8442. These systems are classified as Section XVI Note 4 functional units, in 8442.10.00, HTSUSA.

When entered separately, the IGS cannot be classified as a typesetting machine in subheading 8442.10.00. Without other -4-

system components, such as the IWS, no type can be set or composed. The IGS is suitable for use principally as the central processor for a typesetting system. It is not classified pursuant to Section XVI Note 2(a) because it is not a good included in a heading of Chapters 84 or 85. It is classified as a part pursuant to Section XVI Note 2(b), in 8442.40.00, HTSUSA. When entered separately, the IWS is similarly classified in 8442.40.00, HTSUSA.

HOLDING:

Typesetting systems consisting of the Purup interactive work station, interactive graphics system, input scanner and laser imagesetter are classified as phototypesetting and composing machines in 8442.10.00, HTSUSA. The interactive work stations and interactive graphics systems, when entered separately, are classified as parts in 8442.40.00, HTSUSA.

Sincerely,

John Durant, Director
Commercial Rulings Division