CLA-2 CO:R:C:G 086649 MBR
Mr. Jerrold E. Anderson
Katten Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, Illinois 60606-3693
RE: PreComputer 1000 Junior electronic educational computer
Dear Mr. Anderson:
This is in reply to your letter of January 11, 1990, on behalf
of Video Technology Industries, requesting classification of the
PreComputer 1000 Junior, under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA).
FACTS:
The Precomputer 1000 Junior (hereafter PreComputer) has a small
LCD display screen that flips up from the chassis of the unit,
similar to a lap-top computer. Nine plastic insertable disks are
supplied with the unit, allowing the user to select from 18
educational activities including math, science, spelling, music
and art. The disks are essentially keys that trigger a program
selection inside the unit and are in no way electronic. The
PreComputer is designed solely for children ages 6-10.
ISSUE:
Under which of the following HTSUSA headings is the PreComputer
properly classified:
8472, HTSUSA, which provides for other office machines (for
example, hectograph or stencil duplicating machines,
addressing machines, automatic banknote dispensers, coin-
sorting machines, coin-counting or wrapping machines,
pencil-sharpening machines, perforating or stapling
machines).
9504, HTSUSA, which provides for articles for arcade, table or
parlor games, including pinball machines, bagatelle,
billiards and special tables for casino games; automatic
bowling alley equipment.
8543, HTSUSA, which provides for electrical machines and
apparatus, having individual functions, not specified or
included elsewhere in this chapter.
9503, HTSUSA, which provides for other toys; reduced-size
("scale" models and similar recreational models, working or
not; puzzles of all kinds; and accessories thereof: other:
other: other toys (except models), not having a spring
mechanism.
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...
Subheading 8472.90.80, HTSUSA, provides for: "[o]ther office
machines: [o]ther." The other office machines that are provided
for eo nomine are:"[a]utomatic bank note dispensers and other
coin or currency handling machines; [p]encil sharpeners;
[n]umbering, dating and check-writing machines; [o]ther. The
Harmonized Commodity Description and Coding System Explanatory
Notes to heading 84.72, page 1302, state:
The term "office machines" is to be taken in a wide
general sense to include all machines used in offices,
shops, factories, workshops, schools, railway stations,
hotels, etc., for doing "office work" (i.e., work
concerning the writing, recording, sorting, filing,
etc., of correspondence, documents, forms, records,
accounts, etc.). (Emphasis added).
The heading includes, inter alia: (1) Duplicating machines; (2)
Addressing machines; (3) Ticket issuing machines; (4) Coin
sorting or coin-counting machines; (5) Automatic banknote
dispensers; (6) Pencil sharpening machines; (7) Punching
machines; (8) Machines for perforating paper bands so that they
can be used in automatic typewriting machines; (9) Perforated
band operated machines. Clearly, these are all machines that are
to be used in offices, for office work.
The PreComputer is designed and marketed for the exclusive use
of children ages 6-10. These children are not likely to be
working in factories, hotels or railway stations, etc. It is
clear that the PreComputer is not likely to be used in offices,
for office work.
The question arises whether the PreComputer is a toy
classifiable under heading 9503, HTSUSA. To determine this, the
issue of the PreComputer's essential character is presented. Is
the article's essential character that of a toy that is also
educational or is its essential character that of an educational
article that has toy features? There can be no question that this
article is designed as an educational device and that parents
would purchase it as an educational tool for their children.
Furthermore, the ultimate consumer, the child, is learning the
same basic skills taught in school, as the parents intended.
Therefore, we find that the essential character is that of an
educational article.
However, there is no provision in the HTSUSA for "educational
articles," per se. The EN to heading 9503, page 1588, state that
this heading includes: "(17) Educational toys (e.g., toy
chemistry, printing, sewing and knitting sets)." However, the
"General" Explanatory Note to chapter 95, page 1585, states:
"[t]his covers toys of all kinds whether designed for the
amusement of children or adults." It is Customs position that
the PreComputer is not designed to amuse children or adults and
is therefore not classifiable in Chapter 95.
Therefore, the PreComputer is classifiable under subheading
8543.80.90, HTSUSA, which provides for: "[e]lectrical machines
and apparatus, having individual functions, not specified or
included elsewhere in this chapter; [o]ther." See HQ 085758
(January 2, 1990) for a similar holding regarding similar
merchandise.
HOLDING:
The PreComputer 1000 Junior is classifiable under the provision
for electrical machines and apparatus in subheading 8543.80.90,
HTSUSA. The rate of duty is 3.9% ad valorem.
EFFECT ON OTHER RULINGS:
In Ruling Letter NY 830452 (September 14, 1988) Customs
determined that the "Socrates," (an educational video system used
in conjunction with a television), and the "PreComputer 1000" (a
self-contained electronic educational device) were classifiable
under 9504.10.00, and 9504.90.40, respectively, which provide
for video game machines. Both items were also manufactured by
Video Technology Industries "Educational Electronics." It is
now Customs position that the "Socrates" and the "PreComputer
1000" are properly classifiable in subheading 8543.80.90, for the
reasons stated above. Ruling Letter NY 830452, (September 14,
1988), is modified under authority of section 177.9(d), Customs
Regulations.
Sincerely,
Jerry Laderberg
Acting Director
Commercial Rulings Division