CLA-2 CO:R:C:M 089317 CMS
8471.92.40, 8471.92.90
9903.41.25
Mr. Tomy Shirai, Manager
Unistar Air Cargo
146 Red Schoolhouse Rd.
Spring Valley, NY 10977
RE: Digital Processing Units; Keyboards; Monitors; Mouse;
Automatic Data Processing Machine; ADP; Personal Computer;
100% Duty Sanction
Dear Mr. Shirai:
Your request on behalf of Sega Of America, Inc., dated
February 11, 1991, for a classification ruling on certain
personal computer products has been referred by the Regional
Commissioner of Customs, New York to Customs Headquarters for a
reply.
FACTS:
The merchandise consists of three models of Sega personal
computers, one model of CRT monitors and one model of input
mouse.
The three models of personal computers consist of keyboards
and table or desk top digital processing units having a 16 bit
microprocessor and main memory of 512KB to 2.5MB. The CRT
monitor and input mouse are imported separately from the digital
processing unit.
The goods under consideration are products of Japan.
ISSUE:
Are the digital processing unit and keyboard subject to the
100% duty rate provided in subheading 9903.41.25, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA)?
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LAW AND ANALYSIS:
The HTSUSA provides that the classification of articles is
governed by the General Rules of Interpretation (GRI's). GRI 1
states in pertinent part that "...classification shall be
determined according to the terms of the headings and any
relative section or chapter notes...".
Heading 8471 in pertinent part describes automatic data
processing machines and units thereof. The merchandise is
described by Heading 8471.
The digital processing units of the three models of personal
computers meet the description of automatic data processing (ADP)
machines provided in Chapter 84 Note 5(A). The digital
processing units are described by subheading 8471.91.00, HTSUSA,
which in pertinent part provides for digital processing units.
The keyboard component of the personal computers is
described by subheading 8471.92.20, which in pertinent part
provides for keyboards, whether or not entered with the rest of
the system (e.g., with digital processing units).
The CRT monitors are described as display units in
subheading 8471.92.40, HTSUSA. The mice are described as other
input units in subheading 8471.92.90, HTSUSA.
Subheading 9903.41.25, HTSUSA, in pertinent part describes
desk or tabletop ADP machines from Japan, of the type having
separately housed constituent units, having at least 16 bit
microprocessors and "...a microprocessor-based calculating
mechanism capable of directly handling memory of not over 8
megabits (provided for in subheading 8471.91)".
The digital processing units of the personal computers under
consideration are capable of directly handling a maximum of only
2.5 megabits of memory, and the units are described by subheading
9903.41.25, HTSUSA. However, Chapter 99, Subchapter III U.S.
Note 5 provides in pertinent part that subheading 9903.41.25,
which provides for a 100% rate of duty, is currently suspended
pursuant to executive action.
The keyboards, even when entered with the digital processing
units, are not described by subheading 9903.41.25, HTSUSA. The
clear language of the article description of subheading
9903.41.25 provides for those machines which are "...provided for
in subheading 8471.91". The keyboards, even when entered with
the digital processing units, are not provided for in subheading
8471.91, and are not described by subheading 9903.41.25, HTSUSA.
Likewise, the CRT monitor and mouse are not described by
subheading 9903.41.25, HTSUSA.
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HOLDING:
The digital processing units of the three models of personal
computers are classified in subheading 8471.91.00, HTSUSA, which
currently provides a Column 1 rate of duty of 3.9%. These units
are described by subheading 9903.41.25, HTSUSA, but are not
currently subject to the 100% rate of duty due to the provision
being suspended by executive action.
The keyboard is classified in subheading 8471.92.20,
HTSUSA, and is currently subject to a Column 1 duty rate of 0%.
The CRT monitor is classified in subheading 8471.92.40, HTSUSA,
and is currently subject to a Column 1 duty rate of 3.7%. The
mouse is classified in subheading 8471.92.90, HTSUSA, and is
currently subject to a Column 1 duty rate of 3.7%.
Neither the keyboard, CRT monitor nor mouse are described by
the article description for subheading 9903.41.25, HTSUSA, and
these articles are not subject to any duty rates which may be
provided by subheading 9903.41.25, HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division