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NY B85213




April 23, 1997

CLA-2-84:RR:NC:1:110 B85213

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.49.1095; 8471.49.2100; 8471.49.2600; 8471.49.4895; 8471.50.8095; 8524.39.0000; 8524.99.4000

Mr. Steven B. Zisser
Stein Shostak Shostak & O'Hara
Suite 1200
515 South Figueroa Street
Los Angeles, CA 90071-3329

RE: The tariff classification of a multimedia data processing machine shipped with and without a monitor from Taiwan and China.

Dear Mr. Zisser:

In your letter dated April 14, 1997, on behalf of Packard Bell NEC, Inc., you requested a tariff classification ruling.

The merchandise under consideration involves a multimedia automatic data processing machine (desk-top computer) that will be imported packaged in a single retail carton.

Configuration one will consist of the following components: 1. Processor unit- will include a CPU and motherboard, power supply, hard disk drive, floppy disk drive, CD Rom drive, sound card, modem, FM radio card and PBTV card; preloaded software such as Windows 95 and Microsoft Office on the hard disk drive. 2. Additional Components- monitor, keyboard, mouse, remote control, 2 sound speakers with power adapter, microphone, power cable, Telephone cable/splitter, and software floppy discs and CD ROMs

Under configuration one, the merchandise before us is basically a multimedia desk-top computer that includes a processor unit, input unit, output unit, preloaded software on the hard disk, additional add-ons such as speakers, microphones and cables, and various software programs. The merchandise will be shipped in a single retail carton, and will be sold as a retail set.

Noting the Subheading Notes (1) to Chapter 84 of the HTS, this multimedia computer system meets the definition of a "system", since it incorporates a processor unit, one input unit, and one output unit. Classification would thus fall under 8471.49 for this system. Since this multimedia computer is also imported as a system, the additional components in the retail box would appear to qualify as a functional unit, noting Legal Note 4 to Section 16 of the HTS, since they all contribute to a clearly defined function.

The preloaded software on the hard disk of this computer would be separately classifiable noting Legal Note 6 to Chapter 85 of the HTS, and HQ ruling 950675 of January 7, 1992. The additional software in the form of floppy disks and CD-ROMs would also be separately classifiable under 8524.

The applicable subheading for the processor portion of the multimedia data processing machine will be 8471.49.1095 Harmonized Tariff Schedule of the United States (HTS), which provides for digital processing units entered with the rest of a system, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units. The rate of duty will be 2.7 percent ad valorem.

The applicable subheading for the keyboard of this system will be 8471.49.2100, HTS, which provides for keyboards, entered in the form of systems. The rate of duty will be free.

The applicable subheading for the CRT monitor of this system will be 8471.49.2600, HTS, which provides for other display units, with color cathode-ray tube (CRT). The rate of duty will be 1.5 percent ad valorem.

The applicable subheading for the mouse of this system will be 8471.49.48.95, HTS, which provides for other input units, entered in the form of systems. The rate of duty will be 1.5 percent ad valorem.

The applicable subheading for the CD-ROM software will be 8524.39.0000, HTS, which provides for other discs for laser reading systems. The rate of duty will be 3.7 percent ad valorem.

The applicable subheading for the preloaded software on the hard disks, and the floppy disks will be 8524.99.4000, HTS, which provides for other, other recorded media. The rate of duty will be 3.9 cents per square meter of recording surface.

The applicable subheading for the additional components of this multimedia processor system (such as the remote control, speakers, microphone, and cables) noting Legal Note 4 to Section 16 of the HTS, will be 8471.49.1095, which provides for digital processing units.

Under configuration two, the multimedia data processing system will be shipped also as a retail set in one common carton, but will be missing the monitor. It will thus include all of the components described in configuration one, including the preloaded software, but will be without a monitor. Consideration as a "system" under 8471.49, would be precluded since it is missing at least one output unit as covered under Legal Note 5 (B) to Chapter 84 of the HTS.

Noting in part GRI-1 and GRI-3 (B) to the HTS, this multimedia processor system has the essential character of a digital processing machine, and also meets the definition of a retail set. Classification of this multimedia automatic data processing machine, which includes the processor, input and storage components, and the additional components, such as the remote control, speakers, microphone, and cables, would thus fall under HTS number 8471.50.8095, as other digital processing units other than those of subheading 8471.41 and 8471.49, whether or not containing in the same housing on or more of the following types of unit: storage units, input units, output units. The rate of duty will be 2.7 percent ad valorem.

The preloaded software and the floppy disks and CD-ROM software, noting Legal Note 6 to Chapter 85, will be separately classifiable under 8524, noting the previously mentioned HTS numbers.

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 Art Brodbeck at 212-466-5490.

Sincerely,

Robert B. Swierupski
Chief, Metals & Machinery Branch

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