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HQ 961153




March 30, 1998

CLA-2 RR:CR:GC 961153 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.60.65; 8524.99.90

Ms. Sandra Liss Friedman
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016

RE: Reconsideration of NY B87981; MFC 1770 Multifunction Machine; GRI 3(b);
Composite Good; Explanatory Note 3(b)(VIII); Essential Character; HQs 958124 and 958348; NYs B87982, B87181, A88887, and B89972; Chapter 85, Note 6; 8517.21.00; 8524.99.60

Dear Ms. Friedman:

This is in response to your letter of December 1, 1997, on behalf of Brother International Corporation, requesting reconsideration of NY B87981, dated August 5, 1997, concerning the classification of the MFC 1770 multifunction machine (MFC 1770) under the Harmonized Tariff Schedule of the United States (HTSUS).

Pursuant to 625(c)(1), Tariff Act of 1930 [19 U.S.C. 1625(c)(1)], as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub.L. 103-82, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY B87981 was published on February 25, 1998, in the CUSTOMS BULLETIN, Volume 32, Number 8. No comments were received in response to the notice.

FACTS:

The MFC 1770 is a 5-in-1 multifunction machine which operates on the principle of thermal transfer technology. The machine, which is compatible with any personal computer (PC) using a Microsoft Windows environment, is capable of performing printer, facsimile, copier, and scanner functions. For the machine to perform as a printer, it must be connected to a PC through a serial port. The MFC 1770 prints at the rate of two pages per minute at a resolution of 200 x 400 dots per inch (dpi). You state that, because of its speed, the MFC 1770 is not purchased for high volume use. Instead, it is generally purchased for use in the home or small business by low volume users.

The MFC 1770 is also capable of sending and receiving faxes at a resolution of up to 200 x 400 dpi, depending on such factors as telephone line quality and scanner resolution chosen, if applicable. Because of these variables, you claim that the quality of the document produced using the printer function will generally be better than the quality of the document produced using the facsimile function. In addition, the MFC 1770 is capable of scanning text or graphic images at a resolution up to 400 x 400 dpi. The MFC 1770 is also capable of sending and receiving faxes directly through the PC, and producing copies of documents.

In its imported condition, the MFC 1770 incorporates a thermal print engine, consisting of a print head, power supply, main control board, software, and cable connection necessary for its use with a PC. It is our understanding that the software, which is imported in three 3 1/2 inch disks, provides the necessary linkage between the MFC-1770 and a PC to allow for the operation of the printer, PC facsimile, and scanner functions. You have stated that, once the software is downloaded, a series of interactive instructional images appear on the PC monitor directing the user in setting up the linkage. The thermal print head is also used for the facsimile and copier functions. In addition, the MFC 1770 incorporates a paper handling guide, paper drive, and drive motor for paper transport. The machine will be shipped with the printing cartridge removed; the cartridge will be packaged separately and shipped in the same carton with the MFC.

ISSUE:

Whether the MFC 1770 is classifiable under subheading 8471.60.65, HTSUS, as an other automatic data processing (ADP) thermal transfer printer unit, or under subheading 8517.21.00, HTSUS, as a facsimile machine.

Whether the software is classifiable under subheading 8524.99.60, HTSUS, as other recorded media for reproducing representations of instructions, data, sound, and image, or under subheading 8524.99.90, HTSUS, as other recorded media.

LAW AND ANALYSIS:

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

The HTSUS provisions under consideration are as follows:

8471 Automatic data processing machines and units thereof; * * *:

8471.60 Input or output units, whether or not containing storage units in the same housing:

Other:

Printer units:

Other:

8471.60.65 Thermal transfer.

8517 Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof:

Facsimile machines and teleprinters:

8517.21.00 Facsimile machines.

8524 Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of chapter 37:

Other:

8524.99 Other:

Other:

8524.99.60 For reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded media.

8524.99.90 Other.

In NY B87981, which held the MFC 1770 to be classifiable under subheading 8517.21.00, HTSUS, Customs stated that the essential character of the machine, which constitutes a composite good, is imparted by the facsimile function.

Because the MFC 1770 constitutes a composite good, we must consult GRI 3(b), which states that:

[m]ixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

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 or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). Explanatory Note 3(b)(VIII) (p. 4) states that:

[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

In NY B87981, Customs stated that:

[t]he features of the printer, scanner, and copier are less significant. The printing components of this thermal type printer engine, compared with other multi-purpose machines and standard printers, is slower at two pages per minute. The 200 x 400 dpi resolution is lower that [sic] the 300 x 300 dpi or higher that is standard with printers today.

It is now our understanding that the 300 x 300 dpi standard that the MFC 1770 was compared against is applicable to laser printers. As thermal transfer printers are of a different class of printers from laser printers, the printer function of the MFC 1770 should not have been compared against such a standard. You have provided evidence that thermal transfer technology is used in a wide variety of products (besides printers) whose main function is printing, such as typewriters and labeling machines. Not only is the MFC 1770 print head used for the printer function, it is also used for the facsimile and copier functions. Although the MFC 1770 prints only two pages per minute, the machine is marketed for low volume users in the home or small business, users which may not require the speed of laser printer machines. Based upon the description of the MFC 1770 you provided, it is our position that the essential character of the machine is imparted by the printer function. Therefore, the MFC 1770 is classifiable under subheading 8471.60.65, HTSUS, as an other automatic data processing ADP thermal transfer printer unit. See several rulings which have held multifunction machines to be classifiable as ADP printer units in heading 8471, HTSUS: HQ 958124, dated March 13, 1996; HQ 958348, dated January 17, 1996; NY B87982, dated August 4, 1997; NY B87181, dated July 2, 1997; NY A88887, dated October 31, 1996; and NY B89972, dated October 2, 1997.

With regard to the classification of the software, chapter 85, note 6, HTSUS, states that:

[r]ecords, tapes and other media of heading 8523 or 8524 remain classified in those headings, whether or not they are entered with the apparatus for which they are intended.

You claim that the software is classifiable under subheading 8524.99.60, HTSUS. However, as it is our understanding that the software is not for reproducing representations of instructions, data, sound, and image (all four representations required), the software is precluded from classification under subheading 8524.99.60, HTSUS. Therefore, it is our position that the software is classifiable under subheading 8524.99.90, HTSUS.

HOLDING:

The MFC 1770 multifunction machine is classifiable under subheading 8471.60.65, HTSUS, as an other ADP thermal transfer printer unit.

The software is classifiable under subheading 8524.99.90, HTSUS, as other recorded media.

NY B87981 is revoked. In accordance with 19 U.S.C. 1625(c)(1), this ruling will become effective 60 days after its publication in the CUSTOMS BULLETIN. Publication of rulings or decisions pursuant to 19 U.S.C. 1625(c)(1) does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs regulations [19 CFR 177.10(c)(1)].

Sincerely,

John Durant, Director
Commercial Rulings Division

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