CLA-2-84:OT:RR:NC:N4:120
Melinda J. Lilly
Future Forwarding
4380 International Parkway
Suite C
Atlanta, GA 30354
RE: The tariff classification of the ActivPanel from China.
Dear Ms. Lilly: In your letter dated April 21, 2017, you requested a tariff classification ruling on behalf of your client, Promethean Inc. The merchandise under consideration is identified as the ActivPanel. The ActivPanel is described as an interactive display unit principally used with automatic data processing (ADP) machines in environments such as classrooms and meeting rooms and provides a surface for users to interact with application content provided by the connected ADP machine. The ActivPanel consists of a 70” or larger LCD display and contains a built-in infrared digitizer, a digital camera, and a digital response and polling device. The ActivPanel is equipped with multiple connection terminals, such as: VGA; HDMI; D-Sub; Display Port; RS-232C; RJ45 Ethernet; and USB that allows the unit to connect to an ADP machine(s) for the display and manipulation of content.
In your request, you suggest that the ActivPanel should be classified under subheading 8528.52.0000, Harmonized Tariff Schedule of the United States (HTSUS), as monitors, not incorporating television reception apparatus, and being capable of directly connecting to and designed for use with an ADP machine of heading 8471. We disagree as these interactive displays are specifically provided for in their entirety elsewhere in the tariff.
The General Rules of Interpretation (GRIs) to the HTSUS govern the classification of goods in the tariff schedule. GRI-1 states, in pertinent part, that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." And although not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
As stated, the subject ActivPanel display unit is designed to connect directly to an ADP machine for the purpose of performing input and output functions in an ADP system. The ENs describe an ADP system as consisting of a central processing unit, an input unit, and an output unit and states that an input unit and output unit can be combined into one single unit within the system.
We would note that in order to be classified in heading 8471, the merchandise must meet the terms of a unit of an ADP system as specified in Legal Note 5(C) of Chapter 84, HTSUS. In this regard, Note 5(C) to Chapter 84 defines the term “data processing units” for purposes of heading 8471 as follows:
It is of a kind solely or principally used in an automatic data processing system;
It is connectable to the central processing unit either directly or through one or more other units; and
It is able to accept or deliver data in a form (codes or signals) that can be used by the system.
Further to meeting the conditions of Note 5(C), the unit must not be excluded from any of the conditions provided for in Note 5(D) and Note 5(E) of Chapter 84, HTSUS. While monitors and projectors are excluded from classification in heading 8471, the subject ActivPanel display unit is not merely a display monitor, but instead meets the conditions set forth in the legal notes for ADP systems by comprising two of the three components within the system, namely the input and the output. As the infrared touchscreen and the LCD panel are permanently combined into a single unit, and the display unit is principally used within an ADP system for the purpose of performing a data processing function, the subject ActivPanel display unit will be classified by name and in accordance with GRI-1 as a combined input output unit for ADP.
The applicable subheading for the ActivPanel will be 8471.60.1050, HTSUS, which provides for: Automatic data processing machines and units thereof; Input or output units, whether or not containing storage units in the same housing: Combined input/output units: Other. 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 the World Wide Web at https://hts.usitc.gov/current. 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,
Steven A. Mack
Director
National Commodity Specialist Division