The tariff classification of Product Workflow Solutions from Canada and Israel

NY R01367 February 24, 2005 CLA-2-84:RR:NC:1:120:R01367 CATEGORY: Classification TARIFF NO.: 8471.49.1095; 8471.49.2900; 8471.49.2100; 8471.49.4895 Mr. Steve Aiello Creo Americas Inc. 3 Federal Street Billerica, Ma. 01821 RE: The tariff classification of Product Workflow Solutions from Canada and Israel Dear Mr. Aiello: In your letter dated January 28,2005 you requested a tariff classification ruling for Creo’s workflow systems, Prinergy and Brisque. The Prinergy is a Dell server loaded with a Microsoft-Windows 2000 operating system and Prinergy proprietary software integrated in Creo’s Vancouver production facility. Brisque is an IBM server loaded with a UNIX operating system and Brisque software integrated at Creo’s Israeli facility. The hardware added to the Prinergy server includes SCSI (small computer system interface) controller card, disk drive and memory. Both servers are configured to send files to a SCSI controller card, which relays information to the output devices (Lotem/Trendsetter) to create a printing plate. These servers are imported with a keyboard, video monitor and mouse. Once imported technicians install Creo’s Lotem and Trendsetter thermal printing platesetters with the Prinergy and Brisque workstations and other ancillary products ordered by that particular customer. The servers remain freely programmable. Creo does not alter the server operating system (create blocks) to prevent the unit from running other software. Chapter 84, Note 5A (a) (2) requires that an ADP machine be freely programmable by the user. The servers appear to be freely programmable. If imported separately the servers would be classified under 8471.50. As per Section XVI, Chapter 84, Note 5 (B) automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subheading Note 1 to Chapter 84 defines the term “systems” as automatic data processing machines whose units satisfy conditions laid down in note 5 (B) to Chapter84 which comprises at least a central processing unit (server), one input unit (keyboard), and one output unit (video monitor). Classification for Creo’s workflow systems, Prinergy and Brisque would thus fall under 8471.49. The applicable subheading for the server will be 8471.49.1095, Harmonized Tariff Schedule of the United States (HTS), which provides for Automatic Data Processing machines and units thereof; Other digital automatic data processing machines: Other, entered in the form of systems: Digital processing units entered with the rest of a system…, Other. The rate of duty will be free. The applicable subheading for the Display (LCD > 30.5 cm) will be 8471.49.2900 Harmonized Tariff Schedule of the United States (HTS), which provides for Automatic Data Processing machines and units thereof; Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Display units: Other: Other. The rate of duty will be free. The applicable subheading for the Keyboard will be 8471.49.2100, Harmonized Tariff Schedule of the United States (HTS), which provides for Automatic Data Processing machines and units thereof; not elsewhere specified or included: Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Keyboards. The rate of duty will be free. The applicable subheading for the Mouse will be 8471.49.4895, Harmonized Tariff Schedule of the United States (HTS), which provides for Automatic Data Processing machines and units thereof; not elsewhere specified or included: Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system, whether or not containing storage units in the same housing: Other: Other: Other, Other: Other. The rate of duty will be free. 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 Denise M. Faingar at (646)733-3010. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division