CLA-2-84:OT:RR:NC:1:120
Mr. Harold M. Grunfeld
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
399 Park Avenue
25th Floor
New York, New York 10022-4877
RE: The tariff classification of a computer system set from an unknown country
Dear Mr. Grunfeld:
In your letter dated November 12, 2008 you requested a tariff classification ruling on behalf of your client, Dell Inc.
The merchandise under consideration is a Dell Inspiron 530S Desktop computer packaged with and put up for retail sale with a Dell 20” E207WFP flat panel analog and digital liquid crystal display, qwerty USB keyboard, optical USB mouse and external speakers.
The Dell Inspiron 530S is an Intel Pentium Conroe Dual Core Processor E2200 with 1 MB cache, 3 GB DDR2 SDRAM and a 320 GB hard drive. It uses Microsoft Vista SP1 Basic edition and is freely programmable. According to the information provided and subsequent research, the E207WFP flat panel display features a maximum resolution of 1680 x 1050 pixels, accepts VGA signals, and does not incorporate built-in speakers.
In your ruling request you suggest classification in 8471.50.0150, Harmonized Tariff Schedule of the United States (HTSUS) as a processing unit other than those of subheading 8471.41 or 8471.49. However, as imported, the Dell Inspiron 530S, qwerty keyboard, optical mouse, and E207WFP flat panel display meet the definition of an automatic data processing system as provided for in Subheading Note 1 to Chapter 84, HTSUS, as it is comprised of at least a central processing unit, input unit, and output unit, and so is more specifically provided for in that heading.
The EN for GRI 3(b), states that "[f]or the purposes of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings...; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).”
The automatic data processing system, classifiable in heading 8471.49.0000, HTSUS, is imported and packaged together with external speakers for a desktop ADP machine provided for in subheading 8518.22.00, HTSUS. When imported together the computer system and external speakers qualify as a set of GRI 3(b). Prior to importation and prior to sale, all the items are packaged and put up together for retail sale without repacking, and they are designed to be used together to carry out the specific activity of a data processing system. Accordingly, the automatic data processing system imparts the essential character to the set.
The applicable subheading for the automatic data processing system and speakers set will be 8471.49.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Automatic data processing machines and units thereof…: Other automatic data processing machines: Other, entered in the form of systems. The 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).
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