CLA-2 CO:R:C:M 956686 DWS
Mr. Robert E. Burke
Barnes, Richardson & Colburn
200 East Randolph Drive, Suite 7920
Chicago, IL 60601
RE: Industrial Ink Jet Printer; ADP Machine and Unit Thereof;
Chapter 84, Note 5; Explanatory Notes 87.41(D) and 84.43;
General Explanatory Note (E) to Chapter 84; HQs 955018 and
955263; NYs 854057 and 876142; 8443.50.50
Dear Mr. Burke:
This is in response to your letter of July 5, 1994, on behalf
of Videojet Systems International, Inc., concerning the
classification of an industrial ink jet printer under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of an industrial ink jet printer,
consisting of a printer unit and a printer mechanism (model no. SR
25B/SR 50B), which is part of an ink jet imaging system. The
printer unit, which weighs 725 pounds, measures 57 inches in
height, 47.2 inches in width, 23.6 inches in depth. The entire
imaging system is comprised of the ink jet printer and a personal
computer (PC). The printer is imported into the U.S. without media
transport.
Specific software must be downloaded into the PC for the
printer unit, which is incapable of operating independently, to
function. The printer unit itself contains input/output and memory
boards for receiving output data from the PC. Once the data is
obtained, a formatter board governs the entire process of printing.
The printer unit also contains a control board which controls the
mix of inks, and controls the destination of each ink droplet
discharged by the printer mechanism. The type of ink jet printing
which the system produces is called "continuous stream" ink jet
printing. The system is used for printing bar codes, high
resolution fonts and complex graphic images on items as varied as paper and envelopes to packaged consumer goods. The
system allows the user to manipulate images with graphics software
programs which are loaded into the PC. Text can also be typed in
on the PC's keyboard in a variety of sizes and fonts.
The subheadings under consideration are as follows:
8443.50.50: [o]ther printing machinery: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 3.3 percent ad valorem.
8471.92.62: [a]utomatic data processing machines and units
thereof; . . . : [o]ther: [i]nput or output
units, whether or not entered with the rest of a
system and whether or not containing storage
units in the same housing: [o]ther: [p]rinter
units: [o]ther: [i]nk jet.
Goods classifiable under this provision receive duty-free
treatment.
ISSUE:
Whether the industrial ink jet printer is classifiable under
subheading 8443.50.50, HTSUS, as other printing machinery, or under
subheading 8471.92.62, HTSUS, as an ink jet printer unit.
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 84, note 5, HTSUS, states:
(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;
(b) Analog machines capable of simulating mathematical
models and comprising at least: analog elements,
control elements and programming elements;
(c) Hybrid machines consisting of either a digital
machine with analog elements or an analog machine
with digital elements.
(B) Automatic data processing machines may be in the form
of systems consisting of a variable number of separately
housed units. A unit is to be regarded as being a part
of the complete system if it meets all of the following
conditions:
(a) It is connectable to the central processing unit
either directly or through one or more other units;
and
(b) It is specifically designed to be part of such a
system (it must, in particular, unless it is a power
supply unit, be able to accept or deliver data in a
form (code or signals) which can be used by the
system).
Such units entered separately are also to be
classifiable in heading 8471.
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.
It is our position that the subject ink jet printer is an
automatic data processing (ADP) unit as defined under chapter 84,
note 5(B), HTSUS. It is indirectly connectable to the ADP
machine's central processing unit (CPU), and it is specifically
designed to be a part of an ADP system. In fact the printer is
inoperable without such a system and the corresponding software.
It has been suggested that the ink jet printer has a specific
function, that of printing, and should be precluded from
classification under heading 8471, HTSUS.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive or
legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper
interpretation of these headings. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (August 23, 1989). In part, Explanatory Note 84.71(D)
(p. 1299) states:
(D) SEPARATELY PRESENTED UNITS
This heading also covers separately presented constituent
units of data processing systems. Constituent units are
those defined in Parts (A) and (B) above as being parts of a
complete system.
Apart from central processing units and input and output
units, examples of such units include:
(1) Additional input and output units (. . . , printers,
. . . ).
In part, General Explanatory Note (E) (p. 1139) to chapter
84, HTSUS, states:
(E) MACHINES INCORPORATING OR WORKING IN CONJUNCTION WITH
AND AUTOMATIC DATA PROCESSING MACHINE
AND PERFORMING A SPECIFIC FUNCTION
(Chapter Note 5, last paragraph)
In accordance with the provisions of the last paragraph of
Note 5 to Chapter 84, the following classification
principles should be applied in the case of a machine
incorporating or working in conjunction with an automatic
data processing machine, and performing a specific
function:
(i) xxx
(ii) Machines presented with an automatic data processing
machine and intended to work in conjunction therewith
to perform a specific function other than data
processing, are to be classified as follows:
the automatic data processing machine must be classified
in heading 84.71 and the other machines in the heading
corresponding to the function which they perform unless,
by application of Note 4 to Section XVI or Note 3 to
Chapter 90, the whole is classified in another heading
of Chapter 84, Chapter 85 or of Chapter 90.
As stated in Explanatory Note 84.71(D), printers are
considered to be additional output units, and are to be
classifiable under heading 8471, HTSUS, as long as they work in
conjunction with an ADP machine to perform the function of data
processing, as described under General Explanatory Note (E) to
chapter 84, HTSUS. The subject printer does not perform a specific
function other than that of data processing. The purpose of the
printer is to print data processed from the PC and its software.
Therefore, it is our position that the industrial ink jet printer
is specifically classifiable under subheading 8471.92.62, HTSUS.
See HQ 955018, dated January 25, 1994;
HQ 955263, dated January 19, 1994; NY 854057, dated July 10, 1990;
and NY 876142, dated July 6, 1992, for rulings which held certain
laser jet and ink jet printers classifiable under heading 8471,
HTSUS.
It is also our position that the subject printer is not
classifiable under subheading 8443.50.50, HTSUS. After an
examination of Explanatory Note 84.43 (pp. 1238-1241) and the
rulings classifying goods under heading 8443, HTSUS, we find that
none of the exemplars listed, and none of the goods so classified,
describe the class of merchandise to which the printer belongs.
HOLDING:
The industrial ink jet printer is classifiable under
subheading 8471.92.62, HTSUS, as an ink jet printer unit.
Sincerely,
John Durant, Director