CLA-2 RR: CR: GC 964813 TPB
8471.70.6000, 8471.80.908473.30.10, 8517.80.1010, 9022.90.95
Port Director
U.S. Customs Service
610 South Canal Street
Chicago, IL 60607-4523
RE: LightSpeed QX/i CT System, components and miscellaneous printed circuit assemblies.
Dear Port Director:
This is in response to your letter dated January 18, 2001 (MAN-1-TC:CH:CT310 RJ), requesting internal advice on the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of automatic data processing (“ADP”) machines and units thereof, imported by General Electric Medical Systems (“GEMS”) for used with its Computed Tomography (“CT”), Magnetic Resonance Imaging (“MRI”), Ultrasound and Positron Emission Tomography (“PET”) systems. In particular, GEMS requested a classification ruling regarding its LightSpeed QX/i CT system and components for this system, as well as several miscellaneous printed circuit assemblies (“PCAs”).
In preparing this ruling, consideration was given to supplemental submissions by counsel for GEMS dated March 26, 2002 and April 8, 2002.
FACTS:
GEMS is the manufacturer of sophisticated medical systems. The system at issue here is its LightSpeed QX/i. This is a CT system, where thin slices of the body are scanned with a narrow x-ray beam, which rotates around the body. This produces an image of each slice as a cross section of the body, which overcomes the problem created by conventional radiographs. Conventional radiographs depict a three-dimensional object as a two-dimensional image and thereby superimpose overlying tissues on the image. CT also provides the additional benefit of
the ability to distinguish between two tissues with similar density, such as soft tissue and fluid. In operation, information acquired by CT is stored on a computer as digital raw data and an image is displayed on the computer’s video monitor.
The LightSpeed QX/i consists of several components including a table, gantry, power distribution unit and operator console (computer cabinet). The table holds the patient and moves back and forth (into and out of the gantry). The table is computer-controlled and includes a series of PCAs that connect it to the system’s computer.
The gantry, a large device with a circular cut-out, houses the x-ray tube, matrix detector and generator. In operation, a high-voltage x-ray beam is fired from one side of the gantry, through the patient, and into the detector which is located 180 degrees from the beam. Data is collected from multiple angles, as the x-ray tube and detector rotate around the patient (generally, each rotation results in one scan acquisition, or “slice”). The series of x-rays taken are used to create two-dimensional images that can be displayed on a monitor. The detector, which represents the primary difference between the LightSpeed QX/i and other CT systems, consists of solid-state cells that convert x-ray energy into light. The light is converted into small electrical currents, which are then converted into digital data that is representative of the density of the objects that were in the x-ray beam. Like the table, the gantry is computer-controlled and is connected to the computer by a series of PCAs, which are also located in the gantry housing.
In addition to the table and gantry, the CT’s imaging system is also computer-controlled, hence the name “Computed” Tomography. The LightSpeed Systems include seven computers, the Silicon Graphics “Octane” workstation, the Silicon Graphics “O2” workstation, and five VME (industrial) single board computers (two in the reconstruction system, two in the gantry system and one in the table system).
The Octane and O2 workstations reside, along with a VME single board computer and the reconstruction system, in the operator console of the LightSpeed QX/i. The Octane, or host computer, controls the systems monitors and imaging system. It communicates with the film printer and the hospitals information system (so that patient data (i.e. name, weight, height, etc.) does not have to be manually typed into the CT computer). The O2, or scan computer, interacts and communicates with the host computer, the table/gantry subsystems and the VME reconstruction subsystem to coordinate the progress of scanning and image reconstruction.
None of theses computers are imported by GEMS, except when defective or in need of repair, GEMS does import various peripherals used with these computers.
The peripherals include monitors, keyboards, disc drives, printers and mice. Two monitors are connected to the Octane workstation. The left monitor controls the table and scanner set-up, while the right monitor receives images from the system. The keyboards, which are also connected to the Octane workstation, consist of two components. The first component is a standard QWERTY configuration keyboard. The second component consists of a Scan Control Intercom Module (“SCIM”), which mounts to the keyboard via a bracket and strip of velcro. The SCIM is designed specifically for use with GEMS’ LightSpeed QX/i CT system. The SCIM unit includes all CT-specific application buttons, such as “enable x-ray” and “move table,” and intercom/speaker buttons. It also houses volume controls for the patient-operator intercom system. There is no electronic connection between the keyboard and the SCIM.
The VME single board computers are each programmed to control and monitor the particular system with which they are used (in this sense, “system” is used to refer to reconstruction, gantry or table system).
The reconstruction system consists of both commercial and GEMS-specific PCAs that are interconnected by a VME bus, or backplane. These boards are programmed to communicate and work together to reconstruct images from the raw patient data. The reconstruction system communicates directly with the Octane and O2 workstations (i.e., patient images are delivered from the reconstruction system to the Octane workstation).
GEMS requests the classification of the peripherals, and other parts, used with the Octane and O2 workstations. GEMS is also seeking advice on the classification of the monitors, keyboards, printers, mice and disk drives used with the workstations, when imported separately. In addition, GEMS requested an opinion regarding the classification of various PCAs used with the system. These PCAs, which are located within the table, gantry or operator console, are used to connect these components to the computers and, in many instances, permit the computers to control their operation.
ISSUE:
What is the classification of the peripherals, and other parts, including monitors, keyboards, printers, mice, disk drives and various PCAs, used with the Octane and O2 workstations, when imported separately?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). 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 GRIs may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs 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.
The GEMS LightSpeed QX/i CT system is precluded from classification as an ADP machine or unit thereof under heading 8471, HTSUS, by virtue of Note 5(E) to chapter 84, which states:
Machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings.
Instead, this system would be classified under heading 9022, HTSUS, which provides for x-ray apparatus. However, the classification of the individual components of this system, when imported separately, must be considered independently and must be based on the classification rules applicable to those items.
Although the LightSpeed QX/i is not classifiable under heading 8471, HTSUS, the system does include two Silicon Graphics workstations: the “Octane” and “O2.” The Octane controls the system’s monitors and imaging system, and communicates with the hospital’s information system and film printer. The O2 starts and stops the gantry, controls the movement of the table and also performs midlevel processing of images. The HTSUS defines the expression “automatic data processing machine” in Note 5(A) to chapter 84, which states, in pertinent part:
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, with out human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.
The Silicon Graphics workstations, when imported on their own, are digital machines that meet the requirements of Note 5(A)(a) to chapter 84, and by themselves, are not designed for a specific use (e.g. medical diagnostic equipment). This finding is consistent with previous Headquarters rulings (see, e.g., HQ 557024, dated June 30, 1993).
Accordingly, because the Silicon Graphics workstations appear to be classifiable as ADP machines of heading 8471, peripherals used with these machines are also classifiable in this heading, when imported separately from the LightSpeed QX/i CT system.
Referring to the supplemental submission filed by counsel for GEMS on May 18, 2001, the following peripherals of the Silicon Graphics workstations will be classified under these subheadings, when imported separately:
Sony Monitors will be classified under subheading 8471.60.3500, HTSUS, which provides for ADP machines and units thereof…input or output units…other…display units…other…with color cathode-ray tube CRT).
Silicon Graphics mice and Microspeed trackballs will be classified under subheading 8471.60.9090, HTSUS, which provides for ADP machines and units thereof…input or output units…other… other…other… other…other…other.
Bell Microproducts keyboards (without “SCIM”) will be classified under subheading 8471.60.2000, HTSUS, which provides for ADP machines and units thereof…input or output units…other…keyboards.
Silicon Graphics , Bell Microproducts and Avnet hard drives will be classified under subheading 8471.70.4065, HTSUS, which provides for ADP machines and units thereof…storage units…magnetic disk drive units…other…hard magnetic disk drive units.
Maxoptix magnetic optical disk (“MOD”) drives and Teac CD-ROM drives will be classified under 8471.70.6000, HTSUS, which provides for ADP machines and units thereof…storage units…other storage units…not assembled in cabinets for placing on a table, desk, wall, floor or similar place.
The SCIM is a composite machine. Although it houses control buttons, such as “enable x-ray” and “move table,” GEMS’ memorandums indicate that the actual control is done by the computer and not the SCIM. Thus the SCIM is an input device of heading 8471, HTSUS. Additionally, the SCIM also has an intercom function (intercom/speaker buttons; volume controls) which is provided for under heading 8517, HTSUS. Although counsel for GEMS indicates that the intercom function is subsidiary and the principal function is that of an input device, we decline to agree. From the brochures provided by GEMS in its original submission of September 25, 2000, it is clear that the physical configuration of LightSpeed QX/i CT scanner system requires some distance between the operator’s console and the patient table/CT gantry. It is also apparent that communication with the patient during lengthy diagnostic procedures in order to give instructions, such as when to lay still, or hold one’s breath, is critical during the session. Clearly, the intercom function is of vital importance to the SCIM and the LightSpeed QX/i CT system. For this reason, by virtue of GRI 3(c), the SCIM is to be classified under subheading 8517.80.1010, HTSUS, which provides for electrical apparatus for line telephony or line telegraphy…other apparatus…telephonic…intercom systems.
GEMS also requested classification advice on certain PCAs used in or with the LightSpeed QX/i CT system. The original memorandum submitted by counsel on behalf of GEMS indicates that the LightSpeed QX/i CT system includes a variety of PCAs imported by GEMS. For example, the gantry includes more than fifty PCAs, the table approximately six PCAs and the operator console approximately seven PCAs, including one located within the O2 workstation. However, GEMS specifically requested a ruling regarding the classification of only four PCAs: 1) GEMS’ Image Generator Board (2118899-2); 2) the Stationary Communications Controller, or “SCOM” (46-321300G1); 3) the Mercury Systems’ Digital Signal Processor Board (2185174); and the “.5 ADC” card (T3202EL, 46-783027P129). The PCAs, when imported separately from the LightSpeed QX/i CT system will be classified under the following subheadings:
GEMS’ Image Generator Board (2118899-2): this PCA is located within the reconstruction system of the operator console and performs image generation from pre-processed raw patient data. It is made by GEMS specifically for and used solely or principally with its CT systems. Note 5(E) to chapter 84, HTS, reads: machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. This PCA performs a specific function other than data processing. It creates an image from the pre-processed raw patient data. The PCA meets the terms of Note 2(b) to chapter 90, HTS, which reads, in pertinent part: other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus… are to be classified with the machines, instruments or apparatus of that kind. As this is one of many parts in the operator console, this PCA is to be classified under subheading 9022.90.95, HTSUS, which provides for apparatus based on the use of x-rays or alpha, beta or gamma radiations, whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high tension generators, control panels and desks, screens, examination or treatment tables, chairs and the like; parts and accessories thereof: other, including parts and accessories, other, other, other.
Stationary Communications Controller, or “SCOM” (46-321300G1): this PCA is located in the LightSpeed gantry and receives raw patient data from the rotating detector and data acquisition system and sends it to the O2 workstation. When imported separately, this part would be classified under subheading 8473.30.10, HTSUS, as a part of a machine of heading 8471, HTS, other printed circuit assemblies.
Mercury Systems’ Digital Signal Processor Board (2185174): located within the reconstruction system, this PCA is programmed to perform the initial steps of the image reconstruction process. Mercury Computer Systems, Inc. (“Mercury”), produces embedded computer processors for, among other things, medical imaging. See website at www.mc.com. As with the GEMS Image Generator Board, this PCA performs a specific function other than data processing. This PCA also meets the terms of Note 2(b) to chapter 90, HTS. As this board is used with a CT system, the Mercury Systems’ Digital Signal Processor Board will be classified under subheading 9022.90.95, HTSUS, which provides for apparatus based on the use of x-rays or alpha, beta or gamma radiations, whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high tension generators, control panels and desks, screens, examination or treatment tables, chairs and the like; parts and accessories thereof: other, including parts and accessories, other, other, other.
“.5 ADC” Card (T3202EL, 46-783027P129): a high-gain analog-to-digital converter located within the gantry. It receives an analog signal that is sent from the CT scanner’s detector system and converted into digital data that can be read by the system’s computer. This is a form of signal conversion. Chapter 84 Note 5(B) indicates that subject to Note 5(E), a unit of an ADP machine is to be regarded as being a part of a complete system if it meets all of the following requirements: (a) it is of a kind solely or principally used in an ADP machine; (b) it is connectable to the central processing unit (“CPU”) either directly or through one or more other units; and (c) it is able to accept or deliver data in a form (codes of signals) which can be used by the system. EN 84.71(I)(D)(5) reads: “Signal converting units. At input, these enable an external signal to be understood by the machine, while at output, they convert the output signals that result from the processing carried out by the machine into signals which can be used externally.” This PCA meets the terms of Note 5(B), and does not violate Note 5(E), as well as meet the terms of EN 84.71(I)(D)(5). Therefore the “.5 ADC” Card will be classified under subheading 8471.80.90, HTSUS.
HOLDING:
For the reasons stated above, when presented separately, units, peripherals and PCAs of the LightSpeed QX/i are to be classified as follows:
Sony Monitors: 8471.60.3500, HTSUS;
Silicon Graphics Mice: 8471.60.9090, HTSUS;
Microspeed Trackballs: 8471.60.9090, HTSUS;
Bell Microproducts Keyboards (without “SCIM”):8471.60.2000, HTSUS;
Silicon Graphics , Bell Microproducts and Avnet Hard Drives: 8471.70.4065, HTSUS;
Maxoptix Magnetic Optical Disk (“MOD”) Drives: 8471.70.6000, HTSUS;
Teac CD-ROM drives: 8471.70.6000, HTSUS;
“SCIM”: 8517.80.1010, HTSUS;
GEMS’ Image Generator Board: 9022.90.95, HTSUS;
Stationary Communications Controller, or “SCOM”: 8473.30.10, HTSUS;
Mercury Systems’ Digital Signal Processor Board: 9022.90.95, HTSUS;
“.5 ADC” Card: 8471.80.90, HTSUS.
This decision should be mailed to the internal advice requestor no later than 60 days from the date of this letter. 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.gov, by means of the Freedom on Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division