CLA-2-84:OT:RR:NC:N1:120
Mr. Elon A. Pollack
Stein Shostak Shostak Pollack & O'hara, LLP
865 South Figueroa Street
Suite 1388
Los Angeles, CA 90017
RE: The tariff classification of All-In-One Personal Computer system from China
Dear Mr. Pollack:
In your letter dated April 17, 2012, on behalf of your client, Vizio, Incorporated, you requested a tariff classification ruling.
The merchandise under consideration includes two All-In-One Personal Computer (PC) configurations packaged and put up for retail sale as a set with a power supply, a qwerty wireless keyboard, a multi-touch trackpad and a remote control. Each All-In-One PC combines a central processing unit (CPU) and a 24 or 27 inch diagonal flat panel display, identified as model number CA24-A0 (24 inch display) or CA27-A0 (27 inch display).
The All-In-One PC models, CA24-A0 and CA27-A0, meet the definition of an automatic data processing (ADP) machine of Note 5(A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS). Their CPU is an Intel® Core™ i3-3110M Dual Core Processor 2.4GHz with 4 GB RAM and a 500 GB hard drive. The processor uses Microsoft Windows® 7 Home Premium and is freely programmable. The 24 or 27 inch flat panel display is a monitor capable of displaying full, high-definition video, and is principally or solely used with an ADP machine. Built-in speakers are contained in the base of each display.
As imported, the components of the All-In-One PC set meet the definition of an ADP system, classifiable in subheading 8471.49.0000, HTSUS, as provided for in Subheading Note 1 to Chapter 84, HTSUS. This ADP system comprises a central processing unit, at least one input unit (qwerty wireless keyboard, multi-touch trackpad and remote control) and an output unit (visual flat panel display).
The Explanatory Note (EN) for General Rule of Interpretation (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 ADP system, classifiable in heading 8471, HTSUS, is imported and packaged together with an external power supply for a desktop ADP machine provided for in heading 8504, HTSUS. When imported together, the computer system and power supply 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 of the set.
The applicable subheading for the All-In-One Personal Computer system 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,
Thomas J. Russo
Director
National Commodity Specialist Division