CLA-2-84:OT:RR:NC:N2:220
Tammie Krauskopf
Law Offices of Tammie Krauskopf, LLC
101 N. Euclid Ave.
Oak Park, IL 60301
RE: The tariff classification of the Dialpad and Keypad from China
Dear Ms. Krauskopf:
In your letter dated May 14, 2024 you requested a tariff classification ruling on behalf of your client, Logitech, Inc.
The merchandise under consideration is identified as the Logi MX Creative Console set, which is described as a retail set containing two input devices for use with automatic data processing (ADP) machines. Based on the samples provided, the retail packaging contains the MX Dialpad, the MX Keypad, a plastic cradle for the Keypad, and a USB-C cable. You have requested a tariff classification for the Logi MX Creative Console as a set, and also separate classifications for the MX Dialpad and the MX Keypad.
The MX Dialpad is described as a a plastic housing measuring approximately 9.2 cm by 8.9 cm and having four pushbuttons on the top surface, one large scroll wheel, and one small scroll wheel. There is a battery compartment on the bottom and a power switch on the side. In use, the MX Dialpad connects to a user's ADP machine to interact with on-screen content and manipulate program application features and functions.
The MX Keypad is described as a plastic housing measuring approximately 7.6 cm by 8.9 cm having 11 user interaction buttons on the top surface, where two are typical pushbuttons and the remaining nine are arranged in a 3 by 3 grid of individual buttons consisting of a clear operator surface and an underlying LCD screen. Each of the buttons are said to be user programmable with customizable keymapping to allow for specific commands and/or keystroke combinations to be sent to the connected ADP machine, while the underlying LCD screen displays a customized icon depicting the function assigned to that key. There is a USB-C socket on the underside to facilitate a direct wired connection to the ADP machine. Like the MX Dialpad, the MX Keypad serves as an input device for a user's ADP machine to interact with program application features and functions.
In your request, you suggest the MX Dialpad and the MX Keypad are properly classified as keyboards under subheading 8471.60.2000, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Addressing the tariff classification of the MX Dialpad first, it works as an input device that allows for cursor, slide, scroll, and selection functions but in no way allows the user to input alphanumeric data to the connected ADP machine. You state that the MX Dialpad is an analog device that the dial and roller are used in timeline navigation, brightness, opacity, and volume level adjustments, the changing of brush sizes, and selecting required editing tools. The MX Dialpad does not have the ability to input alphanumeric text, nor does it embody the physical characteristics of a keyboard.
Turning to the tariff classification of the MX Keypad, we would note that the device does not have the physical characteristics of a keyboard, but instead, as it is aptly named, it functions as a keypad. While users have the ability to press certain buttons which send a programmed keystroke to the attached ADP machine, the MX Keypad does not allow for the input of alphanumeric data like a keyboard. Furthermore, in NY 884639, a keypad of similar physical design was not classified as a keyboard, but rather as an other type of input device for ADP. In our view, the fact that the MX Keypad can be programmed to input a limited amount of text does not divert the classification towards a keyboard. The MX Keypad is, by design and function, a keypad and not a keyboard.
Regarding the tariff classification of the Logi MX Creative Console retail set, we would note General Rule of Interpretation (GRI) 1, HTSUS, which states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3.
GRI 3 (a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3 (b) or GRI 3 (c) taken in the appropriate order in which they are set out in GRI 3. GRI 3 (b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component that gives them their essential character.
The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3 (b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without re-packing. Goods classifiable under GRI 3 (b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
The Logi MX Creative Console set consists of two or more different articles that are, prima facie, classifiable in different headings (the MX Keypad/Dialpad, the cradle, and the USB cable). The set also consists of articles put up together to carry out a specific activity (i.e., input data to ADP machines and interacting with on-screen content). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the Logi MX Creative Console set is described within the meaning of "goods put up in sets for retail sale".
In accordance with GRI 3 (b), which states in part that goods put up in sets for retail sale, that cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component which gives them their essential character. In our view, the article(s) that provides the essential character of the Logi MX Creative Console set is the MX Keypad and MX Dialpad, which are both classified within the same tariff subheading.
The applicable subheading for the Logi MX Creative Console retail set will be 8471.60.9050, HTSUS, which provides for Automatic data processing machines and units thereofInput or output units, whether or not containing storage units in the same housing: Other: Other: Other. The general rate of duty will be Free.
The applicable subheading for the MX Dialpad, when imported separately, will be 8471.60.9050, HTSUS, which provides for Automatic data processing machines and units thereofInput or output units, whether or not containing storage units in the same housing: Other: Other: Other. The general rate of duty will be Free.
The applicable subheading for the MX Keypad, when imported separately, will be 8471.60.9050, HTSUS, which provides for Automatic data processing machines and units thereofInput or output units, whether or not containing storage units in the same housing: Other: Other: 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 9903.88.03, 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., 9903.88.03, in addition to subheading 8471.60.9050, 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