CLA-2-84:RR:NC:1:110 J87319
Mr. Brad Menard
Fossil, Inc.
2280 N. Greenville Ave.
Richardson, TX 75082
RE: The tariff classification of a Wrist PDA from Malaysia.
Dear Mr. Menard:
In your letter dated July 7, 2003 on behalf of Fossil you requested a tariff classification ruling.
The merchandise under consideration is the Fossil Wrist PDA (Personal Digital Assistant) model number FX2004. This product will be imported complete in its retail package ready for sale with the Wrist PDA watch, HotSync Pod, USB cable, AC adapter, extra stylus, installation CD, wristband link removal tool and “Getting Started” instruction guide booklet.
The Fossil Wrist PDA is styled after a wristwatch and is designed to be worn as such. The model supplied with your ruling request has a leather band and will be returned to you. The watch body measures approximately 2 inches by 1½ inches wide and is ½ inch thick. The watch face includes a 1-inch by 1-inch LCD (Liquid Crystal Display) touch screen display with 160 x 160 pixels and 6 level grayscale with backlight. There are three buttons and one rocker switch located on the sides of the Wrist PDA with an infrared port (IRDA) on the top portion of the case. A stylus used to navigate through the different screens is integrated into the holder on the models with leather, plastic, and rubber wristbands or directly into the wristbands on models with full metal bands. The Wrist PDA features stylus-free, one-handed navigation using the rocker switch and buttons, Jot® character recognition (lets you enter text directly on the touch screen), large fonts, and a watch face that can be customized by the user. This product features the Palm OS® 4.1 operating system with a Motorola Dragonball VZ (33 MHz Microprocessor) CPU (Central Processing Unit), 2MB (RAM), 2MB (Flash) memory and includes Chapura® PocketMirror® Standard to synchronize your PDA with Microsoft® Outlook®. The Wrist PDA supports infrared beaming with other Palm OS® devices and many third-party applications may be installed. Built-in applications include Address Book, Date Book and calendar, To Do List, Calculator and Time. Other features include convenient drop-down menus, alarm reminder window for recurring appointments, memo pad, and a selection of different time and date displays to personalize “dial” when not in PDA mode (The time automatically displays after a brief period of inactivity). The Wrist PDA does not have a keyboard function.
HQ 964880, dated December 21, 2001 dealt with the classification of a certain handheld PDA. In that ruling, Customs determined that the PDA in question meets the requirements of Note 5(A) of Chapter 84, Harmonized Tariff Schedule of the United States (HTS). The Wrist PDA model FX2004 appears to meet these requirements of Note 5(A)(a) in that it is capable of storing the processing program or programs and at least the data immediately necessary for execution of the program; being freely programmed in accordance with the requirements of the user; performing arithmetical computations specified by the user; and, executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. The PDA function, therefore, is covered by heading 8471.
The Wrist PDA watch is a composite good under GRI 3(b) of the General Rules of Interpretation (GRIs) of the HTS. Heading 8471, HTS, provides for automatic data processing (ADP) machines. Heading 9102, HTS, provides for wrist watches. GRI 3(b) provides that composite goods are classifiable as if they consisted of the component which gives them their essential character. In this case, the essential character is found to be imparted by the PDA/ADP machine (see HQ 964372 for a further discussion of a similar composite good).
It is noted that the Wrist PDA will be imported complete in its retail package with the Wrist PDA watch, HotSync Pod, USB cable, AC adapter, extra stylus, installation CD-ROM software, wristband link removal tool and “Getting Started” instruction guide booklet packaged ready for retail sale. The GRIs under the HTS governs the classification of goods put up in sets for retail sale. GRI 3(b) provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes (ENs) of the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. According to the ENs for GRI 3(b), "goods put up in sets for retail sale" refers to goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repackaging. As imported, the Fossil Wrist PDA meets the definition of "goods put up in sets for retail sale." As per GRI 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character. For this particular product, the essential character is clearly the component and functions of the PDA.
It is also noted that this set contains software in the form of a CD-ROM, which must be classified in accordance with Legal Note 6 to chapter 85. Note 6, which states: “This note does not apply to such media when they are entered with articles other than the apparatus for which they are intended.” The CD-ROM software must be installed into apparatus other than the Wrist PDA. Accordingly, since the CD-ROM is entered with an article other than the apparatus for which it is to be installed, the CD-ROM software need not be separately classified.
The applicable subheading for the Wrist PDA model FX2004 will be 8471.41.0095, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof… Other digital automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other.” The general rate of duty will be free.
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 Eileen S. Kaplan at 646-733-3016.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division