CLA-2-85:OT:RR:NC:N2:212
Amine Sefrioui
Charles Happel, Inc.
777 Sunrise Highway
Lynbrook, NY 11563
RE: The tariff classification of a music production device from China
Dear Mr. Sefrioui:
In your letter dated August 16, 2020, you requested a tariff classification ruling on behalf of your client, Native Instruments North America, Inc.
The merchandise under consideration is identified as the Maschine+ and described as a portable music production device. The subject device consists of a plastic and metal housing measuring approximately 30cm by 30cm. The device incorporates two color LCD displays, eight endless rotary dials, sixteen multicolored touch pads, a multidirectional input encoder, and sixteen backlit buttons. Additionally, there is an illuminated touch strip and multiple function keys as well as connectivity for a microphone, headphones, audio MIDI, USB interface, SD memory, and power.
In use, the device is attached to a personal computer and interacts with the Maschine+ software allowing the user to produce, process, and mix a variety of musical sounds. Music can be created via the preprogrammed sounds within device or imported through microphone or other attached musical device.
In your request, you suggest that the correct classification for the subject device is 8471.41.0150, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
Heading 8471, HTSUS, is governed by the terms of Note 5 to Chapter 84, HTSUS, which provides, in relevant part:
(A) For the purposes of heading 8471, the expression "automatic data processing machines" means machines capable of:
(i) Storing the processing program or programs and at least the data immediately necessary for the execution of the program;
(ii) Being freely programmed in accordance with the requirements of the user;
(iii) Performing arithmetical computations specified by the user; and
(iv) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.
(E) Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings.
Based on the information provided, the Maschine+ is not a freely programmable machine in accordance with Note 5 (A) to Chapter 84, HTSUS. Users are unable to add or remove software applications of their choosing, nor are they free to alter or remove and exchange the operating system to another type. Furthermore, the subject music processor is performing a specific function of sound processing and editing. As such, classification under heading 8471, HTSUS, is precluded.
The applicable subheading for the Maschine+ will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other.” The general rate of duty will be 2.6% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-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