United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1994 HQ Rulings > HQ 0955232 - HQ 0955297 > HQ 0955256

Previous Ruling Next Ruling



HQ 955256

January 19, 1994

CLA-2 CO:R:C:M 955256 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.91.00; 8471.92.10; 8473.30.40

Ms. Dorren M. Hough Hardy
Wall Shipping Customhouse Brokers
P.O. Box 20022
Washington Dulles International Airport
Washington, DC 20041

RE: FMS On-Board Computer; Mobile Data Terminal; Hard Card System; Driver Input Terminal; Chapter 84, Note 5; Automatic Data Processing Machine; Combined Input/ Output Units; HQ's 083188, 950331, and 084649; Explanatory Note 84.73

Dear Ms. Hough Hardy:

This is in response to your letter of July 29, 1993, on behalf of Argo Instruments, Inc., concerning the classification of an FMS on-board computer, a Mobile Data Terminal, a Hard Card system, and a Driver Input Terminal under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of an FMS 1332 on-board computer, a Mobile Data Terminal (MDT), a Hard Card system, and a Driver Input Terminal (DIT). The on-board computer features open-system architecture and operates in the standard MS-DOS environment, with C programming. The unit mounts inside of a truck cab or side compartment, receiving signals from sensors installed in the vehicle. The computer is designed to receive status and frequency input from the operation of a vehicle, such as rotations per minute, miles per hour, idling time, and can also be programmed as an intelligent controller for such applications as production monitoring.

A user of the system selects the data extraction method best suited to the user's needs: the MDT, the Hard Card system, or direct extraction. Each of these methods will transmit the requested data to a personal computer which will, in turn, produce printed reports in the home office of a trucking business, for example. The MDT provides quick, portable extraction of trip data from a vehicle. The Hard Card system transfers the information collected by the on-board computer onto a portable hard card, which can collect up to 31 days of recorded data. The information on the hard card is transferred to an office personal computer via a hard card reader, connected directly to the personal computer. The DIT generates reports which can include pick-ups and deliveries, stale- line crossings, trip expenses, and other information.

The subheadings under consideration are as follows:

8471.91.00: [a]utomatic 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: [o]ther: [d]igital processing units, whether or not entered with the rest of a system, which may contain in the same housing one or two of the following types of units: storage units, input units, output units.

The general, column one rate of duty for goods classifiable under this provision is 3.9 percent ad valorem.

8471.92.10: [i]nput or output units, whether or not entered with the rest of the system and whether or not containing storage units in the same housing: [c]ombined input/output units.

The general, column one rate of duty for goods classifiable under this provision is 3.7 percent ad valorem.

8473.30.40: [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.

Goods classifiable under this provision receive duty-free treatment.

ISSUES:

Whether the on-board computer is classifiable under subheading 8471.91.00, HTSUS, as a digital processing unit.

Whether the MDT and DIT are classifiable under subheading 8471.92.10, HTSUS, as combined input/output units.

Whether the Hard Card system is classifiable under subheading 8473.30.40, HTSUS, as an accessory of the machines of heading 8471, HTSUS.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

Chapter 84, note 5, HTSUS, states:

(A) For purposes of heading 8471, the expression "automatic data processing machines" means:

(a) Digital machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and, (4) executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run;

(b) Analog machines capable of simulating mathematical models and comprising at least: analog elements, control elements and programming elements;

(c) Hybrid machines consisting of either a digital machine with analog elements or an analog machine with digital elements.

(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separately housed units. A unit is to be regarded as being a part of the complete system if it meets all of the following conditions:

(a) It is connectable to the central processing unit either directly or through one or more other units; and

(b) It is specifically designed to be part of such a system (it must, in particular, unless it is a power supply unit, be able to accept or deliver data in a form (code or signals) which can be used by the system).

Such units entered separately are also to be classifiable in heading 8471.

Heading 8471 does not cover machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines are classified in the headings appropriate to their respective functions, or, failing that, in residual headings.

It is our position that the on-board computer meets the above definition of an automatic data processing machine. It is our understanding that the computer is capable of storing processing programs and data necessary to execute those programs, being freely programmable, performing arithmetical computations, and executing a processing program which requires it to modify its execution by logical decision, without human intervention. Therefore, the on- board computer is classifiable under subheading 8471.91.00, HTSUS. See HQ 083188, dated February 22, 1990.

The MDT and DIT satisfy the chapter 85, note 5(B), HTSUS, definition of a unit. Both articles are connectable to a central processing unit, and they are specifically designed as part of the on-board computer, in that they are able to accept or deliver data in a form which can be used by the computer. Consequently, because both articles operate as input and output units, the MDT and DIT are specifically classifiable under subheading 8471.92.10, HTSUS. See HQ 084649, dated September 20, 1989, and HQ 950331, dated December 2, 1991.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 84.73 (p. 1304) states that:

[t]he accessories covered by this heading are interchangeable parts or devices designed to adapt a machine for a particular operation, or to perform a particular service relative to the main function of the machine, or to increase its range of operations.

Based upon our understanding of the operation of the Hard Card system, we find that it is classifiable under subheading 8473.30.40, HTSUS. In that the system can store up to 31 days of recorded data which can then be downloaded to a home office personal computer for analysis, it performs a service relative to the main function of the on-board computer, which is to gather information.

HOLDING:

The on-board computer is classifiable under subheading 8471.91.00, HTSUS, as a digital processing unit.

The MDT and DIT are classifiable under subheading 8471.92.10, HTSUS, as combined input/output units.

The Hard Card system is classifiable under subheading 8473.30.40, HTSUS, as an accessory of the machines of heading 8471, HTSUS.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling