CLA-2-90:OT:RR:NC:N1:105
Sarah Nappi
Latham & Watkins LLP
555 Eleventh Street, NW, Suite 1000
Washington DC 20004
RE: The tariff classification of monitor calibration kits from China
Dear Ms. Nappi:
In your letter dated October 12, 2018, on behalf of Datacolor, Inc., you requested a tariff classification ruling.
The merchandise at issue consists of two versions of what are described as a monitor calibration kits, identified as the SpyderX Pro and SpyderX Elite. The kits, which contain a SpyderX colorimeter device and a universal serial bus (USB) flash drive loaded with Datacolor’s proprietary calibration software, are designed to facilitate the color calibration of computer monitors. To use the calibration kit, one loads the Datacolor software onto their laptop or desktop computer and plugs the colorimeter into the computer’s USB port. The software will walk a user through the process of calibrating their monitor to an industry color reference standard while the colorimeter measures the output of the monitor and relays this information to the software program. The components of the SpyderX kits work in conjunction with one another to allow a user to calibrate their computer monitors. Per your submission, the SpyderX Pro and SpyderX Elite kits differ from one another only in respect to the version of the Datacolor calibration software loaded onto the USB drive (the SpyderX Elite contains the software version with more advanced features than that of the SpyderX Pro).
In your submission you suggest classification of the SpyderX Pro and SpyderX Elite kits in subheading 8523.51.0000 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Discs, tapes, solid-state non-volatile devices, ‘smart cards’ and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37: Semiconductor media: Solid-state non-volatile storage devices.” However, this office does not believe that the classification of the kits in subheading 8523.51.0000, HTSUS, is appropriate in this case.
As noted above, the USB drive with the Datacolor software and the accompanying colorimeter are packaged together in kit form to perform a specific function, namely calibrating computer monitors by optically analyzing certain variables (luminance, brightness, white balance, color output, etc.). The Datacolor software does play an important role in the calibration process, guiding a user through the necessary steps and analyzing the data collected by the colorimeter. However, the calibration process does require the use of the colorimeter to measure the aforementioned variables to effectively perform the calibration activity. No one component of the kits, neither the USB drive with Datacolor software covered by heading 8523, nor the colorimeter covered by heading 9027, appear to impart the essential character to the goods. Consequently, this office finds that the colorimeter, at a minimum, is described by the last heading that equally merits consideration in imparting the kits’ essential character in accordance with General Rule of Interpretation 3(c).
The applicable subheading for the SpyderX Pro and SpyderX Elite kits will be 9027.50.4060, HTSUS, which provides for Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes; parts and accessories thereof: Other instruments and apparatus using optical radiations (ultraviolet, visible, infrared): Other: Electrical: Other. The general rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 9027.50.4060, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 9027.50.4060, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division