CLA-2 CO:R:C:G 088086 MBR
Mr. Jerrold E. Anderson
Katten Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, Illinois 60606-3693
RE: The Smart Start Speller; Educational Electronic Learning
Device for Children; Electrical Machines and Apparatus
Dear Mr. Anderson:
This is in reply to your letter of October 3, 1990, on
behalf of Video Technology Industries, Inc., requesting
classification of the Smart Start Speller, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The Smart Start Speller ("Speller") is an electronic
educational learning device for use by children ages 5 to 8. It
has a 44 key keyboard and a small LCD display screen. A
programmed electronic microprocessor contains ten educational
exercises including spelling activities and programs for music
learning. The Speller includes a user's manual and an activity
workbook containing 150 illustrated spelling questions. The
workbook is used in conjunction with the machine, guiding the
user through the various matching and identification exercises.
Correct answers are rewarded with a musical salute and a
numerical score displayed on the LCD screen, and can be recorded
in a section provided in the book. The workbook suggests that
the scoring is a good way to keep track of the user's learning
progress.
ISSUE:
What is the classification of the "Smart Start Speller,"
educational electronic device for children, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA)?
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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...
The Speller is prima facie classifiable under the following
headings:
8472 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 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.
* * * * * * * * * * * * *
9503 which provides for other toys; reduced-size ("scale" models
and similar recreational models, working or not; puzzles of
all kinds; and accessories thereof.
* * * * * * * * * * * * *
8543 which provides for electrical machines and apparatus,
having individual functions, not specified or included
elsewhere in this chapter.
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 (EN) 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).
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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 Speller is designed and marketed for the exclusive use
of children ages 5-8. Therefore, it is clear that the Speller is
not intended for use in offices, for office work.
The EN for chapter 95 (regarding toys, games and sports
requisites), page 1585, states: "This chapter covers toys of all
kinds whether designed for the amusement of children or adults."
Therefore, to be classifiable in chapter 95, the merchandise must
be designed for the amusement of children or adults.
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. Although the Speller does
have automatic scoring and a "musical salute", these features
alone do not mean that the Speller was designed for the
amusement of 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 and not that of a toy
designed to amuse.
You argue that the Speller is properly classifiable under
subheading 9504.10.00, HTSUSA, which provides for: "[a]rticles
for arcade...: [v]ideo games of a kind used with a television
receiver and parts thereof." Although the Speller does have some
game features, i.e., scoring, the essential character of this
machine is not that of a game, but that of a learning device.
Learning is the purpose of this machine, not competition or
winning. Thus, due to the essential character of this device,
for the same reasons the Speller is not properly classifiable as
a toy, it is not classifiable as a game.
The Speller is therefore 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 086577 (May
4, 1990), HQ 086649 (May 4, 1990), and HQ 085758 (January 2,
1990), for a similar holdings regarding similar merchandise.
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HOLDING:
The Smart Start Speller 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.
Sincerely,
John Durant, Director
Commercial Rulings Division