HQ 0952724 - Protest No. 3196-9X-XXXXXX, dated 12/24/91; Modification of HQ 086841; Delivery Information Acquisition Device; DIAD; Main Printed Circuit Board; Data Collector; Multi-Function Machine; NY 868140; NY 850978 - United States International Trade Commision Rulings

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HQ 952724

February 1, 1993

CLA-2 CO:R:C:M 952724 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.40

District Director
U.S. Customs Service
620 East 10th Ave, Rm 101
Anchorage, Alaska 98221

RE: Protest No. 3196-9X-XXXXXX, dated 12/24/91; Modification of HQ 086841; Delivery Information Acquisition Device; DIAD; Main Printed Circuit Board; Data Collector; Multi-Function Machine; NY 868140; NY 850978

Dear District Director:

This is our response regarding Further Review of Protest No. 3196-9X-XXXXXX, dated December 24, 1991, which pertains to the classification of a "Delivery Information Acquisition Device" ("DIAD") main electronics printed circuit board assembly, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The completed DIAD (Delivery Information Acquisition Device) is a hand-held electronic device used to gather information for delivery personnel. The DIAD is used to scan bar coded labels, to record customer signatures, and to input other data that is entered on the keypad. The stored information is then recalled and displayed on the LCD, or uploaded onto a mainframe at the UPS office. The DIAD consists of several components which include an optics module, a liquid crystal display, a keypad, a nickel cadmium battery, a signature pad, and a bar code reader. The electronics are contained on a main printed circuit board assembly. It is the main printed circuit board assembly that is the subject of this protest.

ISSUE:

Whether the article in question is classifiable within heading 8471, HTSUS, which provides for "[a]utomatic data processing machines and units thereof," or in heading 8473, HTSUS, which provides for parts of ADP machines?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes.

In order to classify a component part of the DIAD, it is first necessary to classify the completed good. The DIAD is essentially a "data collector," similar in form and function to the merchandise addressed in both NY 868140, dated October 28, 1991, and NY 850978, dated April 20, 1990. These rulings held that similar data collectors were classifiable in subheading 8471.92.10, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof: [o]ther: [i]nput or output units, whether or not entered with the rest of a system and whether or not containing storage units in the same housing." Thus, it was determined that the essential character of data collectors was imparted by the input/output functions. This continues to be our position regarding data collectors.

However, in HQ 086841, dated July 2, 1990, we held that a certain data collector for a photocopying system was classifiable in subheading 8471.93.60, HTSUS, which provides for ADP storage units. Therefore, it is necessary to modify HQ 086841, in order that all data collectors are consistently classifiable in subheading 8471.92.10, HTSUS, which provides for ADP input/output units.

The completed DIAD consists of several components which include an optics module, a liquid crystal display, a keypad, a nickel cadmium battery, a signature pad, and a bar code reader. The instant protest, however, is specifically regarding the classification of only the DIAD main electronics printed circuit board assembly, imported separately.

The DIAD main electronics printed circuit board itself does not impart the principal function of the multi-function finished good, since the finished good consists of numerous disparate components, all of which are equally integral to the function of the completed article. See the Harmonized Commodity Description and Coding System Explanatory Notes (ENs), page 1132, regarding multi-function machines. Therefore, unlike the "motherboard" decision, in which Customs held that the essential character of a single board computer was imparted by the "motherboard," the completed merchandise here is a multi-function good which relies equally on all of its components to perform its function.

HOLDING:

The "Delivery Information Acquisition Device" ("DIAD") main electronics printed circuit board assembly is classifiable in subheading 8473.30.40, HTSUS, which provides for: "[p]arts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: [p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube."

The protest should be allowed in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

EFFECT ON OTHER RULINGS:

For the reasons stated above, HQ 086841, dated July 2, 1990, is modified under authority of section 177.9(d), Customs Regulations, to reflect that the "Datacollector" is properly classifiable under subheading 8471.92.10, HTSUS.

Sincerely,

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