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HQ 085392


November 22, 1989

CLA-2:CO:R:C:G 085392 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 7326.90.90, 8471.92.40; 8473.30.40; 8528.10.80, 8537.10.00, 8543.80.90, 9010.30.00

Mr. E. Thomas Honey
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016

RE: Data/graphics projector systems, switcher unit, wall and ceiling mount, projection screen, interface unit, cart.

Dear Mr. Honey:

Your August 11, 1989 letter requesting a classification ruling under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for the Electrohome ECP 3000 and ECP 4000 data/graphics projector systems was forwarded by New York to this office for a reply.

FACTS:

The Electrohome ECP 3000 and ECP 4000 projector systems, imported from Canada, are high resolution display units used for presentations and simulations. The ECP 3000 and ECP 4000 incorporate extensive horizontal and vertical scanning capability. These projection units are able to accommodate eight different interfaces which provide compatibility with numerous computer systems. One of the interfaces, the RS170 (NTSC) interface enables the projection units to display signals from popular computer models and composite video signals. Both models display sharp images generated by high resolution pixels.

The ECP 3000 and the ECP 4000 retail in the United States for $15,000-$20,000 per unit. Along with the various interfaces, accessories for the projection units include switcher units, wall and ceiling mounts, a projection screen, and a cart.

ISSUE:

Whether the ECP 3000 and ECP 4000 data/graphic projector systems are classified within heading 8471, HTSUSA, as "Automatic data processing machines and units thereof...Input or output units, whether or not entered with the rest of a system and whether or not containing storage units in the same housing... Other...", or within heading, 8528, HTSUSA, as "Television receivers (including video monitors and video projection television receivers), whether or not combined, in the same housing, with radiobroadcast receivers or sound or video recording or reproducing apparatus...Other television receivers..."

Whether the RS170 (NTSC) interface's ability to display composite video signals affects the classification of the Electrohome ECP 3000 and ECP 4000 data/graphic projection systems.

Whether the accessories should be classified within heading 8473, HTSUSA, as "Parts and accessories...suitable for use solely or principally with machines of headings 8469 to 8472..."

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and...according to the following provisions..." The competing headings in this case are headings 8471 and 8528, HTSUSA. The headings describe:

8471 Automatic data processing machines and units thereof...

8471.92.40 Input or output units, whether or not entered with the rest of a system and whether or not containing storage units in the same housing...Other...

8528 Television receivers (including video monitors and video projection television receivers), whether or not combined, in the same housing, with radiobroadcast receivers or sound or video recording or reproducing apparatus...

8528.10.80 Other television receivers...

Within the United States, goods classified by use are classified according to their principal use, and "the controlling use is the principal use." Additional U.S. Rule of Interpretation 1(a), HTSUSA. It is the opinion of this office that the controlling use, and therefore principal use, of the projectors is to display computer generated images. Therefore, the Electrohome ECP 3000 and ECP 4000 projectors are classified under subheading 8471.92.40, HTSUSA, as "Automatic data processing machines and units thereof...Input or output units, whether or not entered with the rest of the system and whether or not containing storage units in the same housing..."

When the projectors are imported with their accessories--the interface unit, switcher unit, wall and ceiling mount, projection screen, and cart--Section XVI, Note 4, HTSUSA, is relevant. This Section note provides the concept of a "functional unit." Section XVI, Note 4 states:

Where a machine...consists of individual components... intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

The projectors in question and their accessories contribute to the function of displaying images. Therefore, the ECP 3000 and ECP 4000 projector systems are functional units within the meaning of Section XVI, Note 4. When shipped as a system, the classification within subheading 8471.92.40, HTSUSA, will cover the whole unit.

Subheading 8471.92.40, HTSUSA, remains the classification even when the RS170 (NTSC) interface is part of the imported package. According to Chapter 84, Note 7, HTSUSA, a machine used for more than one purpose is "to be treated as if its principal purpose were its sole purpose." This office has determined that the ability to display computer generated imagery is the principal purpose of the projectors. The cost and design of the data/graphics display systems supports this conclusion. Therefore, subheading 8471.92.40, HTSUSA, is the classification for all ECP 3000 and ECP 4000 systems imported into the United States.

You contend that subheading 8473.30.40, HTSUSA, is the appropriate classification for the interface units, switcher units, projection screens, the wall and ceiling mounts, and the carts when the articles are imported separately. The subheading describes "Parts and accessories...suitable for use solely or principally with machines of headings 8469 to 8472..." We agree that the items in question are accessories to the projection unit
which has been classified within heading 8471, HTSUSA. However, this alone is not enough to classify all the articles within heading 8473, HTSUSA.

For classification within heading 8473, HTSUSA, the goods must be "solely or principally" used with the projector system. The cart fulfills this requirements since it is specifically designed for use solely with the projector. Therefore, the cart is classified within subheading 8473.30.40, HTSUSA, as "Parts and accessories...suitable for use solely or principally with machines of headings 8469 to 8472...Parts and accessories of machines of heading 8471...Not incorporating a cathode ray tube..."

On the other hand, the wall and ceiling mounts fail the use requirement as they are typical mounts without any special design or features. Thus, the mounts are not classifiable within heading 8473, HTSUSA. They are properly classifiable within subheading 7326.90.90, HTSUSA, as "Other articles of iron or steel...Other..."

The RS170 Interface unit, although integral to the functioning of the projector unit, is not classifiable within heading 8473, HTSUSA. Explanatory Note 84.73 of the Harmonized Commodity Description and Coding System (HCDCS), states that heading 8471, HTSUSA, "does not extend to independent accessory or ancillary machines used in conjunction with other machines." HCDCS, Vol. 3. p. 1304. The Explanatory Notes, although not dispositive, are to be looked to for the proper interpretation of the HTSUSA. 54 Fed. Reg. 35127, 35128 (August 23, 1989). The proper classification for the unit is within subheading 8543.80.90, HTSUSA, as "Electrical machines and apparatus, having individual functions, not specified or included elsewhere in the chapter; parts thereof...Other..."

The switcher unit is also an important, but ancillary accessory. The appropriate classification is within subheading 8537.10.00, HTSUSA, as "Boards, panels (including numerical control panels), consoles, desks, cabinets and other bases equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity...For a voltage not exceeding 1,000 V..."

Finally, the projection screens are not classifiable within heading 8473, HTSUSA. The screens are independent articles not specifically designed for sole or principal use with the subject projector system. Projection screens are provided for eo nomine within heading 9010, HTSUSA. The screens are to be classified within subheading 9010.30.00, HTSUSA, as " Apparatus and
equipment for photographic (including cinematographic) laboratories...not specified or included elsewhere in the chapter...projection screens...Projection screens..."

HOLDING:

The Electrohome ECP 3000 and ECP 4000 data/graphic projection systems are properly classifiable under subheading 8471.92.40, HTSUSA. The projector unit, when shipped alone, is also classifiable under 8471.92.40, HTSUSA. The cart is properly classified within subheading 8473.30.40, HTSUSA. The wall and ceiling mount should be classified within subheading 7326.90.90, HTSUSA. The RS170 Interface unit is to be classified within subheading 8543.80.90, HTSUSA. The switcher unit is properly classified within subheading 8537.10.00, HTSUSA. The projection screen is classified within subheading 9010.30.00, HTSUSA.

Sincerely,

John Durant, Director
Commercial Rulings Division

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