CLA-2-84:OT:RR:NC:N2:220
David Ribner
O'Melveny & Myers LLP
1625 I St. NW
Washington, DC 20006
RE: The tariff classification of the Argo from China
Dear Mr. Ribner:
In your letter dated May 2, 2024, you requested a tariff classification ruling on behalf of your client, DigiLens Inc.
The merchandise under consideration is identified as the Argo, which is described as smart glasses that function as a self-contained wearable automatic data processing (ADP) machine. The Argo consists of the processor, left and right waveguides, cameras, microphones and speakers, and rechargeable batteries. The Argo incorporates a Qualcomm Snapdragon XR2 processor, 8 GB RAM, 128 GB storage, an on-board graphics processor, and Wi-Fi 6E connectivity that allows the user to wirelessly connect to a network. The Argo utilizes the DigiOS operating system and supports applications available in the Android APK environment. At the time of importation, the Argo is held in a protective case and is accompanied by the charger, cords, a small QWERTY keyboard, and lens covers.
In your letter, you state that the Argo is a fully functional ADP machine where users perform data processing activities. You also state that the Argo grants users with the ability to add, remove, and edit programs of their own choosing. Based on the information provided, users wear the device and perform tasks such as web navigation, 3D design, office productivity, games, and more. However, like the HoloLens that was classified in NY N273804, when compared to conventional ADP machines, the Argo is very different in how the information and applications are displayed.
Nonetheless, we find that the user is not inhibited from performing ADP functions or limited in the operation of the device. Users are free to attach peripheral units to the Argo, such as a printer or keyboard, and free to add or remove programs. Thus, we find that the Argo meets all the following conditions of Legal Note 6 (A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS), which sets forth the requirements of an ADP machine: it stores the processing program (DigiOS) and other programs along with the data necessary for the execution of those programs; it is freely programmable since the user may add, remove, or write new applications for the device; it performs computations as specified by the user; and its processing programs are executed by logical decisions without human intervention.
In your request you suggest the Argo is correctly classified under 8471.41.0150, HTSUS. We agree.
The applicable subheading for the Argo smart glasses will be 8471.41.0150, HTSUS, which provides for Automatic data processing machines and units thereof; : Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other. The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8471.41.0150, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8471.41.0150, 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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