CLA-2-85:OT:RR:NC:N1:112
Ms. Sarah Cho
LG Electronics U.S.A., Inc.
1000 Sylvan Avenue
Englewood Cliffs, NJ 07632
RE: The tariff classification of the Chromebase 22CV241-W from China
Dear Ms. Cho:
In your letter dated October 2, 2014 you requested a tariff classification ruling.
The merchandise in question is referred to as a Chromebase (Model #22CV241-W) and is described as an All-in-one computer. The Chromebase is equipped with a 21.5” LED monitor, a 1.4 GHz processor, 2 GB of memory, a 15 GB solid state hard disk drive, and comes with the Chrome Operating System (OS) pre-installed. This All-in-one unit includes wired and wireless communication, built-in speakers, a microphone, and a webcam. The unit is packaged with a separate keyboard and mouse.
The Chromebase allows a user to conduct general computing tasks like web browsing, e-reading, document creation and editing, and minor photo and video editing capabilities. Users are provided with a cloud based file storage solution, antivirus and security software, and photo editing applications. The unit relies on the Internet for many of its main features, but the Chromebase can operate as a standalone unit and users are able to perform some tasks that are not dependent on web connectivity. However, while in a standalone mode, some core attributes like the cloud based storage do not function.
We note that software applications are limited to Chrome specific programs, and must be acquired exclusively from Chrome’s Web Store. Further, users of the Chromebase are prevented or blocked from loading an alternative OS, web browser, or antivirus software of their choosing other than what is available from the Chrome Web Store.
You suggested the Chromebase is properly classified under 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.” This office disagrees with the proposed classification.
Based on the additional information you provided, the Chromebase is not freely programmable by the end user. It is limited in its capabilities since it is not able to do its own processing. Thus it does not meet all the requirements of Note 5A to Chapter 84, HTSUS.
The applicable subheading for the Chromebase (Model #22CV241-W) will be 8543.70.9650, HTSUS, which provides for Electrical machines and apparatus…: Other machines and apparatus: Other: Other: Other: Other. The rate of duty will be 2.6 percent ad valorem.
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 Karl Moosbrugger at [email protected].
Sincerely,
Gwenn Klein Kirschner,
Director
National Commodity Specialist Division