CLA-2 RR:CR:GC 960164 RFA
Port Director
U.S. Customs Service
300 S. Ferry Street
Terminal Island, CA 90731
RE: Protest 2720-1996-150028; Point-of-Sale (POS) Printers; Parts of Automatic Data Processing (ADP) Units; Parts of Cash Registers; Reels; Legal Notes 5(B) and 5(D) to Chapter 84; Legal Notes 1(c) and 2 to Section XVI; HQ 956855; NY 851829, superseded
Dear Port Director:
The following is our decision regarding Protest 2720-1996-150028, which concerns the classification of Epson Point-of-Sale (POS) printers and parts for the POS printers under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this decision, consideration was given to supplemental submissions made by counsel for the protestant on November 30 and December 18, 1998, and on April 19 and 27, 1999.
FACTS:
The subject merchandise consists of the following Epson Terminal Module (TM) Printers: models TM-L6011 and TM-T85 are 40-column printers capable of printing receipts, coupons, tickets, daily reports, and kitchen orders; model TM-3000 is capable of printing receipts, journals, credit and debit receipts, daily reports, kitchen orders, and delivery tickets; models TM-U950 and TM-U925 are capable of printing receipts, journals, sales slips, tickets, credit and debit card receipts, daily reports, check verification and check endorsement, invoices, daily reports, and delivery tickets. The TM printers can be used in a store, retail establishment, office or restaurant. All of the TM printers are equipped with an RS-232C serial interface that allows them to be connected to a computer network environment or in smaller applications by a single computer operating customer application software.
The subject merchandise also consisted of several parts of the POS printers. The following chart describes the parts samples and their function:
Sample No.
Invoice Part No.
Invoice Description
Part Function
Printer in which part is used
A
TU260A
Take-up Device for POS
Take up reel for paper
M260
B
C903304010
Shaft, Paper rolling for POS
Paper take-up reel for printer
M512
C
C903304000
Paper rolling shaft for M-512
Paper take-up reel for printer
M512
D
Y545002018
Lower case
lower portion of housing for printer
TM-930
E
Y545002020
Upper case
lower portion of housing for printer
TM-930
F
F813HEADMASK
Head Mask for POS TM-U375
Holds printer ribbon in place
TM-U375
G
1019709
Paper take-up shaft assembly
Paper take-up reel for printer
TM-U370
H
C930502020
Dust Cover for POS
Protective cover for printer
M-515TA
I
F201260010
Paper position controller for POS
Paper guide for printer
M210
J
C92953010
Wheel, paper feeding ratchet
Sprocketed take-up roller
M518T
K
F251258000
Intermediate drive assembly roller
Paper feed rollers
TM 270
L
Y545002022
P cover A for POS
Top cover for printer
TM-930
M
F150551010
Head cover (M-930)
Protective cover for printhead
TM-930
N
C930253020
Paper holding Roller B (M-518A)
Paper take-up reel for printer
M-518A
O
F230004041
Circuit Board (M-260)
Unfinished PC board for printer
TM-270
[P]
2020556
Main Circuit Board Assy for POS
Controller board for the POS printer
TM-590
Other parts included within this protest, but for which no samples were provided, are impact dot printer mechanisms for the M-U311 and M-U311S POS printers and thermal printer mechanisms for the TM-270 POS printers.
The POS printers were entered under subheading 8471.60.57, HTSUS, as ADP printers. The parts of POS printers were entered under subheading 8473.30.50, HTSUS, as parts and accessories of ADP units. The entries of the POS printers and the parts were liquidated on August 9, 16, and 23, 1996, under subheading 8472.90.90, HTSUS, as other office machines, and subheading 8473.29.00, as parts of cash registers, and subheading 8473.40.90, as part of office machines. The protest was timely filed on November 7, 1996.
The 1996 subheadings under consideration are as follows:
8471.60.57: Automatic data processing machines and units thereof. . . : [i]nput or output units, whether or not containing storage units in the same housing: [p]rinter units: [a]ssembled units incorporating at least the media transport, control and print mechanisms: [o]ther. . . .
Goods classifiable under this provision have a column one, general rate of duty of 2.2 percent ad valorem.
8472.90.90: Other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin sorting machines, coin counting or wrapping machines, pencil sharpening machines, perforating or stapling machines): [o]ther: [o]ther. . . .
Goods classifiable under this provision have a column one, general rate of duty of 2.9 percent ad valorem.
8473: Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472:
8473.29.00: Parts and accessories of the machines of heading 8470: [o]ther. . . . .
Goods classifiable under this provision have a column one, general rate of duty of 3.1 percent ad valorem.
8473.30.50: Parts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of free.
8473.40.90: Parts and accessories of the machines of heading 8472: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of 3.1 percent ad valorem.
ISSUE:
Whether the Epson TM printers are classifiable as ADP printers, or as other office machines, or as parts of cash registers 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.
In classifying the Epson TM slip printers under subheading 8472.90.80, HTSUS, your office relied upon NY 851829, issued on April 25, 1990, which dealt with Epson TM printers. Since the issuance of that ruling, there have been significant changes in the HTSUS. In 1996, Legal Note 5 to Chapter 84, HTSUS, was changed to include the following:
(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all the following conditions:
(a) It is of a kind solely or principally used in an automatic data processing system;
(b) It is connectable to the central processing unit either directly or through one or more other units; and
(c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.
(C) Separately presented units of an automatic data processing machine are to be classified in heading 8471.
(D) Printers, keyboards, X Y coordinate input devices and disk storage units which satisfy the conditions of paragraphs (B)(b) and (B)(c) above, are in all cases to be classified as units of heading 8471.
According to Legal Note 5(D) to Chapter 84, HTSUS, if a printer is connectable to the central processing unit either directly or through one or more other units, and is able to accept or deliver data in a form (codes or signals) which can be used by the system, then it can be classified within heading 8471, HTSUS, as an ADP unit. While the TM POS printers have multiple uses and are not of a kind solely or principally used in an automatic data processing system, they are all equipped with an RS-232C serial interface that allows them to be connected to a computer network environment or in smaller applications by a single computer operating customer application software. Based upon the application of Legal Note 5(D) to Chapter 84, HTSUS, we find that the subject POS printers are classifiable under heading 8471, as printers. See also HQ 956855, dated May 1, 1995, for a similar holding. Because of the changes in the HTSUS in 1996, NY 851829 is superseded.
The only remaining issue is the classification of the parts. Classification of the parts is determined by Legal Note 2 to Section XVI, HTSUS, which provides as follows:
2. Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
(c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548.
Samples A through O, which were submitted by counsel, were examined. Samples A, B, C, and G, described as paper rolling shafts are used as paper take-up reels for the printers. Legal Note 1(c) to Section XVI, states that: “[t]his section does not cover: . . . [b]obbins, spools, cops, cones, cores, reels or similar supports, of any material (for example, chapter 39, 40, 44 or 48 or section XV)”. Based on the application of Legal Note 1(c), we find Samples A, B, C, and G are reels and are therefore precluded from classification within Section XVI, HTSUS. Samples A, B, C, and G are classifiable under subheading 3926.90.98, HTSUS, which provides for other articles of plastic.
Sample O is a bare printed circuit board without any active components. Based upon the application of Legal Note 2(a) to Section XVI, we find that Sample O is classifiable under subheading 8534.00.00, HTSUS, which provides for printed circuits.
Sample P consists of a printed circuit board assembly controller board which connects the print mechanism of the POS printer to the CPU that is transferring the data to be printed. Samples D, E, and L are plastic housings or bezels for the printers. Sample F, which is a head mask, is used to hold printer ribbon in place. Sample H is a plastic article which protects dust from entering the POS printer. Sample I is a paper position controller and functions as a paper guide for the printer. Sample J is a paper feed ratchet wheel. Sample K is an intermediate drive roller assembly. Sample M is described as a head cover which serves as a protective cover for the print head. Sample N is a hollow cylinder used as a paper holding roller. The impact dot printer mechanisms for the M-U311 and M-U311S POS printers and thermal printer mechanisms for the TM-270 POS printers, are also under consideration.
None of the remaining parts fall within any exclusion of Legal Note 1 to Section XVI or of Legal Notes 1 to Chapters 84 and 85, HTSUS. Therefore, we must apply Legal Note 2 to Section XVI, HTSUS, to determine the classification of the parts. Because no heading specifically describe the goods, classification cannot be determined by the application of Legal Note 2(a) to Section XVI. All of the parts described above are suitable for use solely or principally with POS printers. As stated earlier, the POS printers are classifiable under heading 8471. Based upon the application of Legal Note 2(b) to Section XVI, we find that the remaining parts are classifiable under subheading 8473.30.10 and subheading 8473.30.50, HTSUS, as appropriate, as parts of POS printers.
HOLDING:
The protest is DENIED IN PART for parts labeled as samples A, B, C, G, and O, and GRANTED IN PART for the subject POS printers and the remaining parts. The POS printers are classifiable under subheading 8471.60.57, HTSUS, which provides for: “[a]utomatic data processing machines and units thereof. . . : [i]nput or output units, whether or not containing storage units in the same housing: [p]rinter units: [a]ssembled units incorporating at least the media transport, control and print mechanisms: [o]ther. . . .” Goods classifiable under this provision have a column one, general rate of duty of 2.2 percent ad valorem. The parts are classified in accordance with our analysis stated above. Because the correct classification for samples A, B, C, G, and O results in a higher rate of duty than the liquidated duty, the entries cannot be reliquidated to reflect the correct classification [see 19 U.S.C. §1515 and 19 U.S.C. §1501].
In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division