CLA-2 RR:TC:MM 956839 LTO
Port Director
U.S. Customs Service
610 W. Ash Street, STE 1200
San Diego, California 92101-3213
RE: IA 43/94; Portable Data Collection Terminals; PDT 3100
Portable Data Computer with Laser Scanner Option; base
assembly with speaker; HQs
083187, 088941, 952862, 957028; NYs 813679, 842537; NYs
802011, 896417 modified; heading 9013; GRI 3(b); GRI 6;
"freely programmable;" section XVI, note 2(a); chapter 84,
note 5(A)(B); chapter 90, note 2(a); chapter 90, additional U.S. note 3
Dear Port Director:
This is in response to your memorandum dated June 29, 1994
[Clas-1:CO MM], requesting the classification of a "base assembly
with speaker" for the PDT 3100 Portable Data Computer with Laser
Scanner Option, manufactured by Symbol Technologies, Inc., under
the Harmonized Tariff Schedule of the United States (HTSUS).
In NY 896417, issued by the Area Director of Customs, New
York Seaport, on April 6, 1994, the PDT 3100 with scanner, and in
NY 802011, issued on September 19, 1994, the PDT 3300 and PDT
3300IS, were held to be classifiable under subheading 8471.20.00,
HTSUS, which provides for "[d]igital automatic processing
machines, containing in the same housing at least a central
processing unit and an input and output unit, whether or not
combined" (i.e., laptop computers). Pursuant to section
625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended
by section 623 of Title VI (Customs Modernization) of the North
American Free Trade Agreement Implementation Act, Pub. L. No.
103-182, 107 Stat. 2057, 2186 (1993), notice of the - 2 -
proposed modification of NY 802011 and NY 896417 was published
February 14, 1996, in the Customs Bulletin, Volume 30, Number 7.
FACTS:
The subject articles are "base assemblies with speakers" for
the PDT 3100 Portable Data Collection Terminal (PDT 3100), which
is a small, hand held terminal
that is ideal for a wide range of data tracking applications,
such as, package and asset tracking, electronic ordering systems
and in-store retail. The PDT 3100 has a 35-key keyboard, 256K of
NVM for program storage, a 4 x 20 supertwist display and 640K RAM
for data collection. The PDT 3100 is normally sold with an
optional laser scan device that fits on the end of the unit.
Without the optional laser scan device, the PDT 3100 does not
incorporate any optical components.
ISSUE:
Whether the "base assemblies with speakers" for the PDT 3100
terminal are classifiable as parts of ADP units under heading
8473, HTSUS, or as parts of optical appliances or instruments
under heading 9013, HTSUS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part, that "for legal purposes,
classification shall be determined according to the terms of the
headings and any relative section or chapter notes . . . ."
Because the "base assembly with speakers" is a specially
designed part of the PDT 3100 terminal and is not a "good
included" in any chapter 84, 85 or 90 heading, it is necessary to
determine the classification of the terminal. See section XVI,
note 2(a); chapter 90, note 2(a), HTSUS. The headings under
consideration are as follows:
8471 Automatic data processing machines and units
thereof;
magnetic or optical readers, machines for
transcribing
data onto data media in coded form and machines
for
processing such data, not elsewhere specified or
included
9013 Liquid 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 - 3 -
Heading 8471, HTSUS, covers both automatic data processing
(ADP) machines and units thereof. Note 5(A) to chapter 84,
HTSUS, defines the term automatic data processing machines for
purposes of this heading. The definition is expressed in terms
of the abilities an ADP machine must possess. Note 5(A)(a)(2) to
chapter 84 states that digital ADP machines must be capable of
"being freely programmed in accordance with the requirements of
the user." The PDT 3100 terminal does not meet this definition.
The PDT 3100 terminal, which has a very small screen and
keypad, is not a "general purpose" machine like a standard laptop
or desktop terminal, nor does it provide the general purpose
display capability of these machines. See HQ 952862, dated
November 1, 1994 (regarding the "freely programmable"
requirement). The PDT 3100 terminal is designed for specific
applications (i.e., package and asset tracking, electronic
ordering systems and in-store retail), and, unlike a standard
laptop or desktop terminal, cannot be programmed by the user to
perform word processing, make a spreadsheet, play games, etc.
Although it has some processing capability, the PDT 3100 terminal
is not "freely programmable," and therefore, is not an ADP
machine. Accordingly, the PDT 3100 terminal cannot be classified
under subheading 8471.20.00 (now, 8471.30.00 or 8471.41.00),
HTSUS.
With regard to the classification of separately housed units
of ADP machines, note 5(B) to chapter 84, HTSUS (for changes, see
1996 version of HTSUS), provides as follows:
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 as a 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 classified in
heading 8471.
The PDT 3100 terminal is an ADP unit, as it connects to the
host computer's central processing unit and accepts and delivers
data which can be used by the ADP system. Specifically, the PDT
3100 terminal is classifiable under subheading 8471.92.10 (now,
8471.60.10), HTSUS, which provides for combined input/output
units. - 4 -
The PDT 3100 itself does not incorporate any "optical"
components. Thus, classification of the terminal as an optical
instrument under heading 9013, HTSUS, was not a consideration.
However, when imported with the scanner, the PDT 3100
terminal consists of an ADP input/output unit--the terminal--and
a device which, arguably, is classifiable an optical instrument,
not specified or included elsewhere in chapter 90, under heading
9013, HTSUS. The scanner incorporates an optical element
(mirror) that is used in the device's scanning process. However,
it is our opinion that the scanner, and devices similar to the
scanner, which incorporate a laser diode, one or more optical
elements (such as a mirror, prism or lens), and significant
electrical or mechanical features (such as a decoder, digitizer,
or motor), were not intended to be classified as "optical
instruments or appliances" within chapter 90.
Similar devices incorporating laser diodes, optical elements
and various electrical and/or mechanical features, include the
laser printers, CD-ROM drives, document scanners and optical mice
of heading 8471, HTSUS, the compact disc players of heading 8519,
HTSUS, and the laser disc players of heading 8521, HTSUS. See,
e.g., NY 813679, dated August 15, 1995 (CD-ROM drives); HQ
083187, dated October 16, 1989 (optical mice); and NY 842537,
dated June 29, 1989 (compact disc players). The optics of these
devices are considered "subsidiary" for tariff classification
purposes, and therefore, the scanner portion of the PDT 3100,
laser printers,
CD-ROM drives, document scanners, optical mice, compact disc
players, laser disc players and similar devices, cannot be
classified as "optical instruments or appliances" within chapter
90. See Additional U.S. note 3 to chapter 90, HTSUS (defining
"optical instruments" for chapter 90 purposes); HQ 088941, dated
January 16, 1992 (defining "subsidiary"). The optional scanner
portion of the PDT 3100 is prima facie classifiable under
subheading 8471.92.84 (now, 8471.60.80), HTSUS, which provides
for other input or output units: optical scanners.
As there is no single subheading that covers the PDT 3100
with scanner, it is necessary to resort to GRI 3, HTSUS, which
governs the classification of goods that
are, prima facie, classifiable under two or more headings. This
rule is made applicable at the subheading level by GRI 6. GRI
3(a) requires that the heading (subheading) which provides the
most specific description shall be preferred to headings
(subheadings) providing a more general description. However,
when two or more headings (subheadings) each refer to part only
of the components contained in a composite good, those headings
(subheadings) are to be regarded as equally specific in relation
to those goods. Subheadings 8471.92.10 and 8471.92.84, HTSUS,
each refer to part only of the PDT 3100 with scanner.
Accordingly, no single subheading provides a specific
description of the entire device.
- 5 -
GRI 3(b), HTSUS, provides that "composite goods consisting
of different materials or made up of different components, . . .
which cannot be classified by reference to 3(a), shall be
classified as if they consisted of the material or component
which gives them their essential character, insofar as this
criterion is applicable." The
PDT 3100 terminal is a combined input/output unit that is "ideal
for a wide range of data intensive applications." The scanner
option "offers a cost-effective way to maximize
. . . productivity through laser scanning." While the scanner
option enhances the input
capabilities of the PDT 3100, the PDT 3100 terminal functions as
a sophisticated input/output device without it. Moreover, the
terminal portion of the PDT 3100, when imported with the scanner,
represents two-thirds of the total cost of the entire unit.
Accordingly, the PDT 3100 terminal gives the unit its "essential
character," and the PDT 3100 with scanner is therefore
classifiable under subheading 8471.92.10, HTSUS. Because the PDT
3100 with scanner is classifiable as an ADP unit, it is
unnecessary to discuss whether the device is classifiable as an
"optical reader[ ] . . . not elsewhere specified or included
(emphasis added)," under subheading 8471.99.90 (now, 8471.90.10),
HTSUS. The "base assembly with speakers" for the PDT 3100 is
classifiable as a part under subheading 8473.30.50, HTSUS, which
provides for other parts and accessories for the machines of
heading 8471, HTSUS.
In NY 896417, issued by the Area Director of Customs, New
York Seaport, on April 6, 1994, the PDT 3100 with scanner, and in
NY 802011, issued on September 19, 1994, the PDT 3300 and PDT
3300IS, were held to be classifiable under subheading 8471.20.00,
HTSUS, which provides for "[d]igital automatic processing
machines, containing in the same housing at least a central
processing unit and an input and output unit, whether or not
combined" (i.e., laptop computers). Like the PDT 3100 and PDT
3100 with scanner, the PDT 3300 and PDT 3300IS do not meet the
definition of "ADP machine" found in note 5(A) to chapter 84,
HTSUS. Rather, the PDT 3100, PDT 3100 with scanner (according to
GRI 3(b)), PDT 3300 and PDT 3300IS terminals, are classifiable as
combined input/output units under subheading 8471.92.10, HTSUS.
NY 802011 and 896417 are modified accordingly.
HOLDING:
The "base assembly with speakers" for the PDT 3100 Portable
Data Computer with Laser Scanner Option is classifiable under
subheading 8473.30.50, HTSUS, which
provides for other parts and accessories for the machines of
heading 8471, HTSUS. The corresponding rate of duty for articles
of this subheading is free.
In accordance with 19 U.S.C. 1625(c)(1), this ruling will
become effective 60 days after publication in the Customs
Bulletin. Publication of rulings or decisions
- 6 -
pursuant to 19 U.S.C. 1625(c)(1) 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
Tariff Classification
Appeals Division