CLA-2-84:OT:RR:NC:N2:220
Brian Kim
ViewSonic Corporation
14035 Pipeline Ave.
Chino, CA 91710
RE: The tariff classification of a personal computer (PC) module from China
Dear Mr. Kim:
In your letter dated May 23, 2019 you requested a tariff classification ruling.
The merchandise under consideration is identified as the ViewSonic Slot-In PC Module Model VPC15-WP, which is described as a PC that is intended to be permanently mounted to a specific ViewSonic interactive display monitor. The ViewSonic VPC15-WP consists of an enclosure having a motherboard, an Intel i5 processor, 8 GB memory, 128 GB solid state storage drive, Ethernet and Wi-Fi connectivity, and various interconnections such as USB, HDMI, audio input/output, and RGB out. In your request, you state that the subject ViewSonic VPC15-WP is imported with the Windows 10 operating system preinstalled and has no hardware or software limitations that would prevent the user from adding or removing software of their choosing. After installation into a corresponding display monitor, users are able to perform general computing tasks, accept the connection of various peripherals, browse online content, and more.
In your request you suggest the ViewSonic VPC15-WP is classifiable as an accessory to an automatic data processing (ADP) machine under subheading 8473.30.5100, Harmonized Tariff Schedule of the United States (HTSUS) because it is designed and marketed in such a way that is dedicated irrevocably for use with the interactive display that it is mounted to. We disagree with the suggested classification.
The ViewSonic VPC15-WP is a fully functional ADP machine that satisfies all of the prerequisite requirements of Chapter 84 Note 5 (A), HTSUS. As noted previously, users are free to use the device for general purpose computing tasks and are not prevented from running the application or performing the function of their choosing. Although the ViewSonic VPC15-WP is dedicated for use with a certain type of monitor, it is not limited in its ability to meet the computing needs of the user. Thus, we find that the ViewSonic VPC15-WP is not merely an accessory to the interactive display monitor it is mounted to, but instead it is the ADP machine and is classified accordingly.
The applicable subheading for the ViewSonic Slot-In PC Module Model VPC15-WP will be 8471.50.0150, HTSUS, which provides for “Automatic data processing machines and units thereof… Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units: Other.” The general rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8471.50.0150, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.003, in addition to subheading 8471.50.0150, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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