CLA-2:OT:RR:CTF:TCM W968368 IOR
Tariff No.: 8471.80.90 HTSUS
Port Director
U.S. Customs and Border Protection
555 Battery St., Room 319
San Francisco, CA 94111
Attn: FNIS Lori Becquet, Kathleen Maguire
Re: Digidesign 002 Rack, Mbox, Mbox2; Internal Advice
Dear Sir:
This is in response to the memorandum dated August, 2006, from your office, forwarding with comments, the Request for Internal Advice, dated July 13, 2006, on behalf of Digidesign, Inc. regarding the classification of certain interface components under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise under consideration consists of a 1) Digi 002 Rack, 2) Mbox, and 3) Mbox 2. Each is an “interface” unit capable of accepting analog music (instruments, voice, etc.) input and converting them to digital signals that are input into an automated data processing machine (ADP) for mixing, editing, etc., and subsequent output to playback or recording units. The music is input by having the actual instruments plug into the interface, including microphones for inputting vocals. For microphones, the interfaces contain pre-amps for boosting the sounds from the microphone before they are input to the ADP machine.
Each unit is an alternative component of the Pro Tools LE System. The Pro Tools LE System, when installed on a Windows or Macintosh ADP machine, allows music input thru an interface to the ADP machine to be manipulated through mixing or editing. The music is manipulated using the ADP system’s keyboard and mouse. Once the mixing or editing is complete, the finished product can be output through the interface to speakers or compact disc. The music input into the ADP machine cannot be output through the ADP system’s speakers, but must be output through speakers connected to the interface.
The importer takes the position that the interfaces are classified in heading 8471, HTSUS, as units of ADP machines. You take the position that the interfaces are classified in heading 8543, HTSUS, as electrical machines and apparatus, having individual functions. You rely on HQ W966951, dated April 21, 2006, which classified a Digidesign Control 24 control surface.
ISSUE:
Are the Digi 002 Rack, Mbox and Mbox 2 classified under heading 8471, HTSUS, which provides for “[a]utomatic data processing machines and units thereof” or heading 8543, HTSUS, which provides for “[e]lectrical machines and apparatus, having individual functions”.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, 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 2 through 6 may then be applied in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs 1 through 5.
The HTSUS provisions 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:
Other units of automatic data processing machines:
Other:
8471.80.90 Other…………………………………….....
* * *
8543 Electrical machines and apparatus, having individual functions, not
specified or included elsewhere in this chapter; parts thereof:
Other machines and apparatus:
Other:
Other:
Other……………………………………..
In order to be classified as a unit of an ADP machine, an article is subject to the terms of Note 5(C) to Chapter 84, HTSUS, which provides as follows:
(C) Subject to paragraphs (D) and (E) below, a unit is to be regarded as being part of an automatic data processing system if it meets all of the following conditions:
(i)It is of a kind solely or principally used in an automatic data processing system;
(ii) It is connectable to the central processing unit either directly or though one or more other units; and
(iii) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.
….
Note 5(E) provides as follows:
Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions, or failing that, in residual headings.
We find that the interfaces are 1) units of a kind solely or principally used in an ADP system, 2) connectable to the central processing unit directly, and 3) able to accept and deliver data in a form which can be used by the ADP system. Therefore, the interfaces meet the requirements of Note 5(C) to Chapter 84, HTSUS. Note (C) is subject to Note 5(E). The Port takes the position that the subject interfaces perform specific functions other than data processing, specifically, audio and MIDI recording, editing and real-time mixing, and are therefore excluded from heading 8471 by Note 5(E) to Chapter 84, HTSUS. In support of its position the Port relies on HQ 966951, dated April 21, 2006, in which a control surface interface was excluded from heading 8471, HTSUS by Note 5(E) to Chapter 84, and was classified in heading 8543, HTSUS.
In HQ 966951, the Control 24 was determined to have specific functions other than data processing, because it incorporated microphone preamps and instrument inputs, control room monitoring capabilities for communication between the control room and other rooms, and a line submixer for auxiliary audio controls, which could work on a stand alone basis, without use of the ADP system.
Of the above features of the Control 24, the subject interfaces include only the microphone preamps and instrument inputs. Neither the instrument inputs nor the microphone preamps function on a stand alone basis, and both serve to input sound into the interface so that it can be converted and delivered to the ADP machine, for processing by the system. Literature submitted for HQ 966951, with respect to the Control 24, states that the microphone preamps can be routed “to destinations other than Pro Tools”, and can “be used as stand-alone units regardless of whether they are connected to Pro Tools.”
The interfaces may also support the use of a control surface (a means of manipulating the music using faders and knobs on a console). However, a control surface is not included with the imported interfaces and is not required for use with the interfaces.
Unlike the Control 24, the subject interfaces themselves, cannot perform any sound recording, editing, or mixing function, or other function, and are not performing a function other than data processing. Therefore they are not precluded from classification as units of an ADP system, by note 5(E) to Chapter 84, HTSUS.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the system. CBP believes the EN’s should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The ENs to 84.71 include among examples of other units of ADP systems apart from central processing units and input and output units, Signal Converting Units, defined as:
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.
We find the subject interfaces, the 002 Rack, Mbox and Mbox 2, to perform the functions described in the EN above. Customs and Border Protection has previously classified audio interface units in Heading 8471, HTSUS. See NY R04352, dated July 26, 2006, and NY H88533, dated February 28, 2002.
The Digi 002 Rack, Mbox and Mbox 2 interfaces are classified in heading 8471, HTSUS, specifically, subheading 8471.80.90, HTSUS, which provides for “[a]utomatic 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: Other units of automatic data processing machines: Other: Other.”
HOLDING:
Under the authority of GRI 1, Digi 002 Rack, Mbox and Mbox 2 interfaces are provided for in Heading 8471, HTSUS, specifically, subheading 8471.80.9000, HTSUSA, which provides for “[a]utomatic 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: Other units of automatic data processing machines: Other: Other,” with a column one, general duty rate of “free”.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
Sincerely,
Myles B. Harmon
Director, Commercial and
Trade Facilitation Division