CLA-2 CO:R:C:M 955750 RFA
8521.10.60, 8525.30.90
Mr. John N. Politis, Esq.
Politis, Pollack & Doram
3255 Wilshire Blvd.
Suite 1688
Los Angeles, CA 90010
RE: Trackeye Automated Motion Analysis System; Functional Unit;
Image Work Station (IWS); Film Scanner; Personal Computer
(PC); High Resolution Monitor; Video Cassette Recorder
(VCR); Laser Printer; Optical appliances and instruments;
Subsidiary Purpose; Functional Units; Additional U.S. Note 3
to Chapter 90; HQs 088941, 953116 and 955230; NY 889158,
modified
Dear Mr. Politis:
This is in response to your letter dated January 18, 1994,
requesting reconsideration of NY 889158, dated August 31, 1993,
concerning the tariff classification of the Trackeye Automated
Motion Analysis System under the Harmonized Tariff Schedule of
the United States (HTSUS). In preparing our ruling, we
considered arguments made in our meeting on July 6, 1994, as well
as your supplemental submission made on October 14, 1994.
Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as
amended by section 623 of Title VI (Customs Modernization) of the
North American Free Trade Agreement Implementation Act, Pub. L.
103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625),
notice of the proposed modification of NY 889158 was published
December 21, 1994, in the Customs Bulletin, Volume 28, Number 51.
No comments were received in response to this notice.
FACTS:
The Trackeye Automated Motion Analysis System (Trackeye
system), is a completely automated system designed to permit
analysis of motion variables such as position, velocity,
acceleration, angle and angular velocity. It consists of the
following components: an image work station (IWS); a high
resolution linear array film scanner; a personal computer (PC)
with a VGA monitor to display system status data; a 768 by 512
pixel, high resolution monitor; a video cassette recorder (VCR);
and a dedicated 300-dot per inch (300 DPI) laser printer.
The IWS, a metal air conditioned cabinet, is preprogrammed
to manipulate data and analyze targets. It contains all the
control and analysis software and hardware in addition to 4
specially configured magnetic video discs, giving the IWS a
capacity of just over 4 Giga Bytes. The film scanner uses a
charged-coupled device (CCD) high resolution linear array which
has the capacity to scan up to 1,000 feet of standard 16mm and
35mm film, color or black and white (though Trackeye digitizes
only in black and white). The personal computer, which contains
a 486 processor with an 80 MB hard disc and 4 MB internal memory,
forms the main interface and allows the operator to access all
parts of the Trackeye system via a mouse and menu selections.
The high resolution monitor displays the menu options and all
animated and graphical data.
ISSUE:
What is the classification of the Trackeye Automated Motion
Analysis System components when entered together or separately
under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
The Trackeye system consists of an IWS, a linear array film
scanner, a PC with a VGA monitor, a high resolution monitor, a
VCR, and a laser printer. Note 3 to Chapter 90, HTSUS, states
that: "[t]he provisions of note 4 to section XVI apply to this
chapter." Note 4 to section XVI provides as follows:
Where a machine (including a combination of machines)
consists of individual components . . . 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.
The Trackeye system meets the definition of a functional
unit because it consists of individual components intended to
contribute together to a clearly defined function of analyzing
motion variables such as position, velocity, acceleration, angle
and angular velocity.
In NY 889158, dated August 31, 1993, the Area Director of
Customs, New York Seaport, classified the Trackeye system as
other optical measuring and checking instruments under subheading
9031.40.00, HTSUS. To classify merchandise as an "optical
appliance" or an "optical instrument", it must meet the
requirements of Additional U.S. Note 3 to chapter 90, HTSUS,
which states as follows:
For 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.
You agree that the complete system is provided for under
heading 9031, HTSUS. However, you claim that any optics which
are contained within the system are subsidiary and that the
merchandise is classifiable under subheading 9031.80.00, HTSUS,
as other measuring and checking instruments.
A tariff term that is not defined in the HTSUS or in the
Harmonized Commodity Description and Coding System Explanatory
Notes (ENs), which constitute the Customs Cooperation Council's
official interpretation of the HTSUS, is construed in accordance
with its common and commercial meaning. Nippon Kogaku (USA) Inc.
v. United States, 69 CCPA 89, 673 F.2d 380 (1982). Common and
commercial meaning may be determined by consulting dictionaries,
lexicons, scientific authorities and other reliable sources. C.J.
Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982).
In HQ 088941, dated January 16, 1992, Customs, citing
Webster's II New Riverside University Dictionary (1984),p. 1155,
defined "subsidiary" as "[s]erving to supplement or assist . . .
[s]econdary in importance: subordinate." Customs further stated
that the "[t]he meaning of 'subsidiary' has nothing to do with
the amount of time optics are used in the overall use of a
device, but it relates more to the type of task which the optics
perform when being used in the operation of the device." See also
HQ 955230, dated July 12, 1994.
The issue to be determined is whether the optics in the
Trackeye system are subsidiary to the actual function of
measuring or checking being performed by the merchandise. The
merchandise measures and analyzes motion variables from images
which are downloaded from a VCR or film scanner. The optics
contained within the Trackeye system are in the film scanner.
Because the optics are not involved in the measuring or checking
function, we find that it is subsidiary to the function of the
Trackeye system. Therefore, the Trackeye system is not
classifiable as other optical measuring or checking instruments
in subheading 9031.40.00, HTSUS. It is provided for under
subheading 9031.80.00, HTSUS, as other measuring and checking
instruments. Based upon the above analysis, NY 889158 should be
modified.
You also requested that Customs determine the classification
of the merchandise of the components if they are entered
separately. You claim that the IWS is classifiable under heading
8471, HTSUS, as an automatic data processing (ADP) machine. In
order to be classified as an ADP machine, merchandise must meet
the criteria in Legal Note 5 to Chapter 84, HTSUS, which provides
as follows:
(A) For purposes of heading 8471, the expression
"automatic data processing machines" means:
(a) Digital machines, capable of (1) storing the
processing program or programs and at least
the data immediately necessary for execution
of the program; (2) being freely programmed
in accordance with the requirements of the
user; (3) performing arithmetical
computations specified by the user; and, (4)
executing, without human intervention, a
processing program which requires them to
modify their execution, by logical decision
during the processing run. . . .
* * * * *
Heading 8471 does not cover machines incorporating or
working in conjunction with an automatic data
processing machine and performing a specific function.
Such machines are classified in the headings
appropriate to their respective functions or, failing
that, in residual headings.
The IWS does not meet the definition of an ADP machine
because it is a dedicated processor which cannot be freely
programmed to accept other programs. It works with a PC to
perform the specific function of measuring or analyzing motion
variables such as position, velocity, acceleration, angle and
angular velocity. Based upon Legal Note 5 to Chapter 84, HTSUS,
the IWS which is a dedicated processor, should be classified in
the heading appropriate to its respective function of measuring.
Therefore, the IWS is classifiable under subheading 9031.90.60,
as parts of other measuring or checking instruments. The
general, column one rate of duty is 4.3 percent ad valorem.
The personal computer is classifiable under subheading
8471.91.80, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof;. . . : [o]ther: [d]igital
processing units, whether or not entered with the rest of a
system . . . : [o]ther. . . ." The general, column one rate of
duty is 3.5 percent ad valorem.
The high resolution monitor is classifiable under subheading
8471.92.30, HTSUS, through subheading 8471.92.34, HTSUS, which
provides for display units, depending on whether or not it
contains a color cathode-ray tube.
The laser printer is classifiable under subheading
8471.92.36, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof;. . . : [o]ther: [i]nput or
output units . . . : [o]ther: [p]rinter units: [a]ssembled units
incorporating at least the media transport, control and print
mechanisms: Laser: [c]apable of producing more than 20 pages per
minute. . . ." The general, column one rate of duty is 3 percent
ad valorem.
Customs has previously classified CCD scanners, like the
film scanner under subheading 8525.30.90, HTSUS, which provides
for other television cameras. The general, column one rate of
duty is 3.8 percent ad valorem. See HQ 953116, dated October 6,
1993.
The VCR is classifiable under subheading 8521.10.60, HTSUS,
which provides for: "[v]ideo recording or reproducing apparatus,
whether or not incorporating a video tuner: [m]agnetic tape-type:
[c]olor, cartridge or cassette type: [o]ther. . . ." The
general, column one rate of duty is 3.1 percent ad valorem.
HOLDING:
The Trackeye system is classifiable under subheading
9031.80.00, HTSUS, which provides for: "[m]easuring or checking
instruments, appliances and machines, not specified or included
elsewhere in this chapter . . . : [o]ther instruments, appliances
and machines . . . ." The general, column one rate of duty is
4.3 percent ad valorem.
Components of the Trackeye system entered separately are
classified in their respective headings as listed above.
NY 889158, dated August 31, 1993, is hereby modified. In
accordance with section 625, this ruling will become effective 60
days after its publication in the Customs Bulletin. Publication
of rulings or decisions pursuant to section 625 does not
constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].
Sincerely,
John Durant, Director
Commercial Rulings Division