CLA-2-85:OT:RR:NC:N2:212
Mr. Aaron Marx
Crowell and Moring, LLP
1001 Pennsylvania Ave NW
Washington, DC 20004
RE: The tariff classification of a programmable remote controlled vehicle from China.
Dear Mr. Marx:
In your letter dated April 23, 2019 you requested a tariff classification ruling on behalf of your client, Sphero, Inc. The merchandise is identified as the Sphero RVR Remote Controlled Vehicle (RVR) which is described as a programmable, remote controlled vehicle consisting of a plastic body housing various electronics including two motors, two processors, LED lights, and various sensors. The device is powered by a removable, rechargeable battery. You state that the RVR is drivable right out of the box by utilizing the joystick interface contained within the proprietary Sphero EDU application that can be downloaded onto any smart device which users connect to the RVR via Bluetooth connection for the purpose of controlling the device.
In addition to basic controls, the RVR can be programmed by users, via the Sphero EDU application and utilizing JavaScript language, to fully customize the experience. These custom features include programming LED lights for color and brightness, gathering real-time data from sensors, and GPS interaction. The RVR also allows the user to perform a variety projects including computer coding lessons, math challenges, and engineering projects. It houses an expansion port that allows a multitude of add-ons to be incorporated including connection to third party hardware such as Raspberry Pi, Microbit, and Arduino. The device is marketed primarily to learning institutions that focus on students from Kindergarten through grade 12.
In your letter, you suggest two possible classifications for the RVR. The first suggested subheading is 9503.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other toys…:Other.” We disagree. Based upon the information provided, the RVR is described as a professional level programmable robot that is designed and marketed for robotic students, makers, educators, and tech enthusiasts to develop computer coding, math, physics, and engineering skills. While students may have fun learning the above principles, the product capabilities and features clearly indicate that the RVR is not designed to be used for amusement or recreational purposes. We find that any amusement value associated with the RVR is incidental to its utilitarian function as an educational device and is therefore precluded from classification in heading 9503.
The second suggested subheading is 8543.70.9301, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Portable interactive electronic education devices primarily designed for children.” We agree. The functionality of the device is primarily that of an educational tool to be used to teach individuals a wide variety of programming and coding skills and is therefore specifically provided for in this subheading.
The applicable subheading for the Sphero RVR Remote Controlled Vehicle will be 8543.70.9301, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Portable interactive electronic education devices primarily designed for children.” The general rate of duty will be free.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods to an applicable Chapter 99 subheading and whether additional tariffs may apply to certain products of China.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division