CLA-2 RR:CR:GC 963181 GOB
Mr. Paul Leitner
Continental Agency
535 Brea Canyon Road
Walnut, CA 91789
RE: Projectors
Dear Mr. Leitner:
This is in response to your letter of September 3, 1999, on behalf of ViewSonic Corporation, requesting the classification of a ViewSonic PJL830 and PJ1000 Office Theater Projector under the Harmonized Tariff Schedule of the United States (“HTSUS”). We regret the delay in responding.
FACTS:
In your letter you state:
The subject article is a ViewSonic PJL830 Office Theater projector. It is designed to connect to a computer and to project images created by the computer.
You have submitted materials with respect to two projectors: PJL830 Office Theater Projector and PJ1000 Office Theater Projector.
The PJL830 projector weighs 10.8 pounds, is equipped with an ultra high pressure lamp, and displays images at a contrast ratio of 450:1. It has SVGA 800 x 600 resolution. Its signal compatibility is described as follows - PC: PC and compatibles (up to 800 x 600 non-interlaced); Mac: Power Mac (up to 800 x 600); and Video: NTSC/PAL/SECAM/S-Video.
The PJ1000 projector has 1,024 x 768 true pixel resolution and 1280 x 1024 SXGA compressed pixel resolution. Its compatibility is described as follows – PC: IBM XT, AT, 386, 486, Pentium, PS/2 and compatibles (from VGA up to 1,280 x 1,024 compressed non-interlaced); Mac: Power Mac (up to 1280 x 1024 compressed); and Video: NTSC/PAL/SECAM/S-Video.
ISSUE:
Are the ViewSonic PJL830 and ViewSonic PJ1000 Office Theater projectors provided for in heading 8471, HTSUS, as automatic data processing machines or in heading 8528, HTSUS, as video projectors?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s 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.
Heading 8471 covers:
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[.]
Heading 8528 covers:
Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors[.]
Legal Note 3 to Section XVI, HTSUS, provides:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The projectors at issue here have two functions. They may be used as display units for computer data and graphics and as video projectors.
Customs has reconsidered the uses of projectors and the evidentiary requirements of Legal Note 3 to Section XVI. The courts have provided factors, which are indicative but not conclusive, to apply when determining whether merchandise falls within a particular class or kind. They include: general physical characteristics, expectation of the ultimate purchaser, channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), use in the same manner as merchandise which defines the class, economic practicality of so using the merchandise, and recognition in the trade of such use. See U.S. v. Carborundum Co., 63 CCPA 98, 102, 536 F. 2d 373, 377 (1976), cert denied, 429 U.S. 979 (1976). We note that in Lenox Collections v. U.S., 19 CIT 345, 347 (1995) and Kraft, Inc. v. U.S., 16 CIT 483, 489 (1992) the court applied the Carborundum factors to principal use. See also G. Heileman Brewing Co. v. U.S., 14 CIT 614, 620 (1990).
Legal Note 3 to Section XVI does not resolve the classification at issue because no satisfactory documentary evidence has been submitted as to the principal function of the subject projectors.
Therefore, we are not able to classify the projectors based upon GRI 1. GRI 2 is not applicable here. GRI 3 provides as follows:
When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, 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.
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
At GRI 3(a), neither of the two competing headings provides a more specific description than the other. Pursuant to GRI 3(b), the projectors are composite goods and there is no satisfactory documentary evidence as to the essential character of the projectors. Accordingly, we proceed to GRI 3(c), i.e., the goods shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
Pursuant to GRI 3(c), we determine that the projectors are provided for in heading 8528, HTSUS, as video projectors.
The PJL830 projectors, which do not have a flat panel screen, cathode-ray tube or video recording or reproducing apparatus, are classifiable in subheading 8528.30.78, HTSUS as: “Video projectors: Color: … Other: … Other.”
The PJ1000 projectors, which have a flat panel screen are classifiable in subheading 8528.30.66 as: “Video projectors: Color: … With a flat panel screen: … Other: With a video display diagonal not exceeding 34.29 cm.”
This determination is consistent with our determinations in HQ 964043 dated July 25, 2000, and HQ 964159 dated July 25, 2000. In those rulings we classified LCD projectors in heading 8528, HTSUS, based upon GRI 3(c) where there was no satisfactory documentary evidence with respect to the principal function of the projectors.
Our determination is consistent with a recent decision on similar merchandise published in the Compendium of Classification Opinions on the Harmonized Commodity Description and Coding System where the classification of certain projectors whose principal function could not be determined was based upon GRI 3(c). See Opinion No. 8528.30/2 of the WCO’s Compendium of Classification Opinions, Amending Supplement No. 24 (August 1999). As we stated in T.D. 89-80, decisions in the Compendium of Classification Opinions should be treated in the same manner as the EN’s, i.e., while neither legally binding nor dispositive, the they provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. T.D. 89-80 further states that EN’s and decisions in the Compendium of Classification Opinions “should receive considerable weight.”
HOLDING:
The subject projectors are provided for in heading 8528, HTSUS. The PJL830 projectors are classified in subheading 8528.30.78, HTSUS, as: “Video projectors: Color: … Other: … Other.” The PJ1000 projectors are classified in subheading 8528.30.66, HTSUS, as: “Video projectors: Color: … With a flat panel screen: … Other: With a video display diagonal not exceeding 34.29 cm.”
Sincerely,
John Durant, Director
Commercial Rulings Division