Request to reconsider NY N304480 (June 11, 2019); Tariff classification of a Personal Computer Module, Automated Data Processing machine ViewSonic model VPC15-WP

HQ H308723 May 11, 2022 CLA-2 OT:RR:CTF:EMAIN H308723 ALS CATEGORY: Classification TARIFF NO.: 8471.50.01 Mr. Brian KimViewSonic Corporation14035 Pipeline AvenueChino, California 91710 RE: Request to reconsider NY N304480 (June 11, 2019); Tariff classification of a Personal Computer Module, Automated Data Processing machine ViewSonic model VPC15-WP Dear Mr. Kim: This letter is in response to your submission, dated January 20, 2020, requesting that we reconsider New York Ruling Letter (NY) N304480 (June 11, 2019). The National Commodity Specialist Division forwarded your request to our office for consideration. We ruled in NY N304480 that the personal computer module, ViewSonic model VPC15-WP, is properly classified under heading 8471, HTSUS, as an automatic data processing (ADP) machine. Our ruling is set forth below. FACTS: The following are the facts as stated in NY N304480: 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. ISSUE: Is the ViewSonic personal computer module model VPC15-WP properly classified under heading 8471, HTSUS, as an ADP machine, or under heading 8473, HTSUS, as a part of accessory of an ADP machine? LAW AND ANALYSIS: Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order. Additional U.S. Rule of Interpretation 1 provides, in pertinent part, as follows: In the absence of special language or context which otherwise requires— * * * (c) a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for "parts" or "parts and accessories" shall not prevail over a specific provision for such part or accessory The HTSUS provisions under consideration are as follows: 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: 8471.50.01 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... * * * 8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8470 to 8472: 8473.30 Parts and accessories of the machines of heading 8471: 8473.30.51 Other… Note 6 (A) to Chapter 84, HTSUS, provides the following: 6. (A) For the purposes of heading 8471, the expression "automatic data processing machines" means machines capable of: Storing the processing program or programs and at least the data immediately necessary for the execution of the program; Being freely programmed in accordance with the requirements of the user; Performing arithmetical computations specified by the user; and Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. In NY N304480, CBP ruled that the VPC15 is properly classified under heading 8471. In doing so, CBP stated the following: The ViewSonic VPC15-WP is a fully functional ADP machine that satisfies all of the prerequisite requirements of Chapter 84 Note [6](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. You now contend that the VPC15 is not an ADP machine but is an accessory classifiable under heading 8473. Specifically, you opine that because VPC15 does not have its own power source, it cannot be used as a standalone computer, and that it is covered by heading 8473, HTSUS, because it is dedicated for use only with certain ViewSonic displays. Per Additional U.S. Rule of Interpretation 1(c), heading 8471, HTSUS, which is a specific provision, “prevails” over heading 8473, HTSUS, which is a provision for parts and accessories. Note 6 (A), supra, notes that ADP machines are capable of storing processing programs or the data necessary to do so, are freely programmable, can perform arithmetical computations, and can execute a processing program without human intervention. Even if the VPC15 must be connected to a compatible display monitor for power, it remains capable of storing a processing program, of being programmed to user’s specifications, of performing arithmetical computations, and executing a processing program. In short, the VPC15’s dedication for use with certain Viewsonic display monitors does not hinder it from performing general purpose computing tasks and running applications of the user’s choosing. The VPC15’s lack of independent power source also does not hinder the VPC15’s capabilities as an ADP any more than a stand-alone ADP machine is hindered from performing its duties when not connected to its power source. We therefore find no reason to depart from the conclusion reached in NY N304480. HOLDING: By application of GRIs 1 (Note 6 to Chapter 84) and 6, ViewSonic model VPC15-WP is properly classified under heading 8471, HTSUS, and is specifically provided for under subheading 8471.50.01, HTSUS. NY N304480 is hereby affirmed. The HTSUS column one, general rate of duty for merchandise classified in this subheading is Free. Pursuant to U.S. Note 20(e) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8471.50.01, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty.  At the time of importation, an importer must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8471.50.01, HTSUS, noted above, for products of China.   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, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov. EFFECT ON OTHER RULINGS: CBP Ruling NY N304480 (June 11, 2019) is hereby AFFIRMED. Sincerely, Craig T. Clark, Director Commercial and Trade Facilitation Division