CLA-2-84:RR:NC:1:120

Mr. John Peterson
Neville Peterson LLP
17 State Street, 19th Floor
New York, NY 10004

RE: The tariff classification of Xerox DocuSP Color Controller from various countries.

Dear Peterson:

In your letter dated November 15, 2006 you requested a tariff classification ruling on behalf of your client, Xerox Corporation.

The merchandise under consideration is the DocuSP Color Controller. It is imported and packed with a Qwerty keyboard and standard mouse, and a 17-inch flat panel display monitor. The DocuSP Color Controller is a server that manages printing functions within a network. It is imported as a stand-alone unit that enables a computer system to manage Xerox’s iGEN 3 Production Printing System. However, the Color Controller is not limited to this printer nor this function, and can be used with various operating systems (OS), including Windows 95/98/ME/NT 4.0./2000/SP, Macintosh OS 8.6 or higher, and Solaris 2.6 and higher. It is also capable of functioning with a variety of network protocols, including TCP/IP Novell, IPX/SPX, IPP Appletalk and many others. It supports a number of file printing formats, including Adobe PostScript levels 1, 2, and 3, TIFF, ASCII, Adobe Acrobat, PCL5c and others.

The DocuSP Color Controller incorporates a Sun UltraSparcTM IV Processor with Chip Multi Threading technology, four independent central processing units (CPU), three (3) 73 gigabyte disk drives with eight (8) gHz memory (two (2) per CPU), and a DVD/CD-RW ROM drive. It features image accelerator/printer interface cards, a spectrophotometer and three (3) redundant 240-volt power supplies. It does not have any blocks in its hardware or software which prevent the download of any operating system or off-the-shelf software. In its condition as imported, the DocuSP Color Controller meets the definition of an automated data processing (ADP) machine as per Note 5 (A) to Chapter 84, Section XVI. The independent, stand-alone unit can be freely programmed by the user to perform any data processing functions. It performs arithmetical computations specified by the user. The device can execute, without human intervention, processing programs which call for the logic-driven changes to operations during the processing run. The DocuSP Color Controller’s operating system uses the Sun Micro Systems SunFire 890 computer server platform, with the addition of specialized embedded color printing and printer management software that does not limit the free programmability of the product. The embedded software enables the item to conduct high-speed image processing of color images for printing.

As per Section XVI, Chapter 84, Note 5 (B) automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subheading Note 1 to Chapter 84 defines the term “systems” as automatic data processing machines whose units satisfy conditions laid down in note 5 (B) to Chapter 84 and which comprise at least a central processing unit (DocuSP Color Controller), one input unit (keyboard), and one output unit (display monitor). Classification for Xerox’s DocuSP Color Controller would thus fall under subheading 8471.49, HTSUS.

The applicable subheading for the DocuSP Color Controller will be 8471.49.1095, HTSUS, which provides for: Automatic Data Processing machines and units thereof: Other digital automatic data processing machines: Other, entered in the form of systems: Digital processing units entered with the rest of a system…: Other. The general rate of duty will be free.

The applicable subheading for the 17-inch flat panel Display Monitor will be 8471.49.2900, HTSUS, which provides for: Automatic Data Processing machines and units thereof: Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Display units: Other: Other. The general rate of duty will be free.

The applicable subheading for the Keyboard will be 8471.49.2100, HTSUS, which provides for: Automatic Data Processing machines and units thereof; not elsewhere specified or included: Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Keyboards. The general rate of duty will be free. The applicable subheading for the Mouse will be 8471.49.4895, HTSUS, which provides for: Automatic Data Processing machines and units thereof; not elsewhere specified or included: Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Other: Other, Other: Other. The general rate of duty will be 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 World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

Pursuant to title 19 United States Code, Section 3005 The Harmonized Tariff Schedule of the United States is in the process of being amended to reflect changes recommended by the World Customs Organization. The amendments are expected to affect the classification of your merchandise. Pursuant to Section 3005 c, the report recommending those changes was sent to the President for proclamation of the changes. By law, the President cannot proclaim the implementation of these latter amendments in the HTS until a required 60-legislative-day Congressional layover period is completed. We understand that the layover period has been completed. Accordingly, the recommended changes will become law after they are proclaimed by the President. The effective date of those changes will be specified in the Presidential proclamation. In addition, at that time, the United States International Trade Commission will post an updated electronic version of the 2007 HTSUS on its website, www.usitc.gov, and the Government Printing Office will publish a hard-copy version of the 2007 HTS.

Once those changes are in effect, it is anticipated that the DocuSP Color Controller, Display Monitor, Keyboard, and Mouse will be classified in 8471.49.00 HTSUS. Under the circumstances, this information is advisory only.

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 Denise Faingar at 646-733-3010.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division