CLA-2 CO:R:C:M 952992 DWS
Mr. Scott A. Cohn
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, NY 10017
RE: Optical Barcode Reader; Optical I.D. Unit; Functional Unit;
Chapter 90, Additional U.S. Note 3; Chapter 90, Note 3;
Section XVI, Note 4
Dear Mr. Cohn:
This is in response to your letter of October 8, 1992, on
behalf of KAO Infosystems Company, concerning the classification
of optical barcode readers and optical I.D. units under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of optical barcode readers and
optical I.D. units. The barcode reader, used in packaging, reads
information from barcode graphs on storage totes in order to
determine color and density characteristics of the flexible
diskettes contained within the totes. The reader has plastic
lenses and operates under the same principle as the barcode scanner
used in supermarket check out lines. A laser diode light is
focused on barcode lines, and the light reflects from the white
spaces in the code to a receiver that converts the signals into
unique ASCII codes. The information obtained from the barcode is
a unique seven digit number. This number is transmitted to the
host computer, and the computer searches for the number in a data
base file, thereby locating all of the attributes of the diskettes
contained within a particular tote. This information is needed to
route totes containing disks to the proper manufacturing area for
processing.
The primary difference between the optical I.D. unit and the
optical barcode reader is that the optical I.D. unit can store and
retrieve data from its own memory, whereas the optical barcode
reader can only transmit scanned data back to a host computer. The
optical I.D. unit emits an infra-red LED invisible light beam which
permits the unit to read information from, or write information
onto, data carrier I.D. plates located on the plastic storage
totes which transport shutters and shells within the flexible
diskette assembly areas. The data carrier, which is imported with
the optical I.D. unit, is a rectangular printed circuit board,
featuring memory chips and photo sensors equipped to receive and
send information to the optical I.D. unit by means of the light
beam. The optical element in the photo terminal containing infra-
red LED beams consists of a glass lens.
ISSUE:
What is the proper classification of the optical barcode
reader and the optical I.D. unit under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
Chapter 90, additional U.S. note 3, HTSUS, states that:
[f]or the purposes of this chapter, the terms "optical
appliances" and "optical instruments" refer only to those
appliances and instruments which incorporate one or more
optical elements, but do not include any appliances or
instruments in which the incorporated optical element
or elements are solely for viewing a scale or for some
other subsidiary purpose.
As both the optical barcode reader and the optical I.D. unit
are optical instruments (both incorporate optical lenses), and
because they are not elsewhere described under the HTSUS, we find
that they are classifiable under subheading 9013.80.60, HTSUS,
which provides for: "[l]iquid crystal devices not constituting
articles provided for more specifically in other headings; lasers,
other than laser diodes; other optical appliances and instruments,
not specified or included elsewhere in this chapter; parts and
accessories thereof: [o]ther devices, appliances and instruments:
[o]ther."
The question as to whether the optical I.D. unit and the
corresponding data carrier are classifiable as a unit is answered
by chapter 90, note 3, HTSUS. It states that:
[t]he provisions of note 4 to section XVI apply also to this
chapter.
Section XVI, note 4, HTSUS, states that:
[w]here a machine (including a combination of machines)
consists of individual components (whether separate or
interconnected by piping, by transmission devices, by electric
cables or by other devices) intended to contribute together
to a clearly defined function covered by one of the headings
in chapter 84 or chapter 85, then the whole falls to be
classified in the heading appropriate to that function.
Therefore, for classification purposes, under chapter 90,
note 3, HTSUS, and section XVI, note 4, HTSUS, the optical I.D.
unit with the printed circuit board is a functional unit.
HOLDING:
The optical barcode reader and the optical I.D. unit are
classifiable under subheading 9013.80.60, HTSUS. The general,
column one rate of duty is 9 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division