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 > 2002 HQ Rulings > HQ 963598 - HQ 963972 > HQ 963680

Previous Ruling Next Ruling
HQ 963680




August 30, 2002

CLA-2 RR: CR: GC 963680 TPB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8472.90.80

Matthew J. McConkey; Esq.
Arent Fox Kintner Plotkin & Kahn
1050 Connecticut Ave. N.W.
Washington, D.C. 20036-5339

RE: Multi-function Digital Office Machines; DP 1250; DP 1450; DP 1570; DP 2460; DP 2570; DP 3580; DP 4580; DP 5570; DP 6570

Dear Mr. McConkey:

This is in response to your letter of December 10, 1999, on behalf of Toshiba American Business Solutions, Inc. (“TABS”), requesting the tariff classification of certain digital copiers under the Harmonized Tariff Schedule of the United States (HTSUS). The models at issue are the Toshiba DP 1250, DP 1450, DP 1570, DP 2460, DP 2570, DP 3580, DP 4580, DP 5570 and DP 6570. In preparing this ruling, consideration was given to your supplemental submissions of February 16, 2000 and August 30, 2000. We regret the delay in responding.

FACTS:

The products at issue are all finished multi-functional digital (“MFD”) office machines, capable of scanning documents and printing. Some of the machines also have walk-up fax capabilities through use of a connected modem. All of the machines are designed to operate in local area networks or in client/server environments when they are connected to a printer controller.

The DP 1250, 1450 and 1570 all use laser print engines (electro-photographic process) and have an output of less than 20 pages per minute (ppm). The DP 2460, 2570 and 3580 also employ laser print engines and produce output at a rate that exceeds 20 ppm. In addition, these machines also have walk-up fax capability, at a speed of 14.4 kilobits per second (Kbps). The DP 4580, 5570 and 6570 all employ laser print engines as well, and produce output that exceed the rate of 20 ppm. The literature included in your submissions indicates that an optionally available embedded printer boards or SC-2 controller would allow any of the above model digital copiers to function as standard printers.

The HTSUS provisions under consideration are as follows:

Automatic 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:

8472 Other office machines (for example hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines):

Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunications for carrier-current line systems or for digital line systems

Photocopying apparatus incorporating an optical system or of the contact type and thermocopying apparatus; parts and accessories thereof:

ISSUE:

What is the proper classification of the subject Toshiba multi-function digital office machines?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs 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.

These goods are all finished multi-functional digital office machines. They have the capability to scan documents via a flatbed charge-coupled device (“CCD”) and by converting them to digital signals, they can print them via the attached laser printer. The machines also has the ability to be connected, via an optional print controller, to an automatic data processing (ADP) system, or network with several ADP systems, and function as laser printers, at rates that range from 12 ppm to 65 ppm. Some of the machines can also function as walk up facsimile machines. None of the machines, however, are connectable to an automatic data processing (“ADP”) machine until optional embedded printer boards or SC-2 controllers are added.

Heading 9009, HTSUS, provides for “photocopying apparatus incorporating an optical system or of the contact type and thermocopying apparatus; parts and accessories thereof.” EN 90.09(A) states that an optical system projects an optical image of an original document on to a light sensitive surface, and components for the developing and printing of the image. With this in mind, it is the opinion of Customs that all photo-copying apparatus of heading 9009, whether electrostatic, contact or thermal design, operate by means of exposing (1) a photosensitive material or surface with (2) light that is reflected directly from the object to be copied. This process produces an “optical image” to produce a copy.

An optical image is the optical counterpart of an object, produced by an optical device (as a lens or mirror); the image is formed by the light rays from a light source that traverse an optical system. The optical image of an object is produced by the light distribution coming from each point of the object at the image plane of an optical system. See McGraw-Hill Multimedia Encyclopedia of Science and Technology, Version 2.1. A photocopying apparatus functions by a process which places an optical image, reflected from the object, onto a photosensitive surface.

Multi-function digital machines, or “copiers”, incorporate an optical reader, or scanner coupled with an output device to print onto paper that which has been scanned or recorded. An optical reader cannot produce a photo-copy from an optical image. It does not operate by the reflection and exposure of an optical image onto a photosensitive surface. Instead, optical readers operate with a CCD chip to scan and convert individual points of light from an object into a digital data file. Therefore, consideration of heading 9009 is excluded by the terms of the heading.

As imported, the Toshiba’s are digital imaging systems, which scan documents and store them as digital information in memory. The data is then printed via a connected print engine. Classification of units of ADP machines is governed by the terms of Legal Note 5 to Chapter 84, HTSUS, which provides in relevant part as follows:

Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being part of an complete system if it meets all the following conditions:

It is connectable to the central processing unit either directly or through one or more other units; and It is able to accept or deliver data in a form (codes or signals) which can be used by the system.

Printers, keyboards, X-Y co-ordinate devices and disk storage units which satisfy the conditions of paragraphs (B)(b) and (B)(c) above, are in all cases to be classified as units of heading No. 8471.

The information provided for the Toshiba models indicate that in order for them to function as ADP printers, an optional embedded printer board or SC-2 controller is required. Therefore, the machines do not meet the conditions laid out in Note 5(B)(b) to Chapter 84, HTSUS, because they are not connectable to an ADP system at the time of their importation. They are all, however, fully functional and complete MFD copiers at the time of their importation.

Prior to January 1, 2002, these types of machines were classifiable under heading 8443, HTSUS, as printing machines. See HQ 957981, dated July 9, 1997, classifying a four color digital printer under heading 8443; and HQ 959651, also dated July 9, 1997, classifying similar merchandise under heading 8443. However, the terms of that heading have been amended so that certain digital print machines can no longer be classified under that heading. Because these digital copiers do not meet the terms of note 5(B) to chapter 84, nor do they meet the terms of heading 8443, HTSUS, they are classified under heading 8472, specifically under subheading 8472.90.80, which provides for other office machines, other printing machines, other than those of heading 8443 or 8471.

Note 3 to Section XVI, HTSUS, provides that:

Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.

In this case, the subject goods are composite machines, which are composed of fax machines and digital copiers. These two machines are adapted for the purpose of performing two alternative functions (i.e., faxing and copying).

The headings under consideration are 8472, HTSUS, which provides for office printers other than those of heading 8443 or 8471; and heading 8517, HTSUS, which provides for facsimile machines. Following Note 3 to Section XVI, HTSUS, this composite machine will be classified by its principal function.

To assist in determining the principal function of a machine, we examine a number of factors, and while no one is determinative, they are indicative of principal function. After conducting independent research (i.e., researching web-sites retailing new and used digital machines; examining advertising brochures; etc.), we believe that it is the printing performed by the digital copier that imparts the principal function of this multi-function digital office machine. Therefore, pursuant to Section XVI, Note 3, HTSUS, the Toshiba’s will be classified as if they consisted solely of a digital copier of heading 8472, HTSUS.

The digital copiers meets the terms of heading 8472, HTSUS. They are office machine other than those that are classifiable in earlier headings of chapter 84, or in heading 9009, HTS. Therefore, the subject merchandise is properly classified under subheading 8472.90.80, HTSUS, which provides for office printing machines other than those of heading 8443 or 8471, HTSUS.

Customs has recently issued rulings on merchandise similar to the MFD copiers presently before us. HQ 965527; HQ 965636; HQ 965679; HQ 965980; HQ 965681; HQ 965682; and HQ 965697, all dated August 30, 2002, and to be published in a forthcoming Customs Bulletin, dealt with the classification of MFD copiers that were not connectable to ADP machines at the time of importation. Those ruling all held that the MFD copiers, as imported, were classifiable under heading 8472, HTSUS.

HOLDING:

For the reasons set out above, the proper classification of the Toshiba multi-function digital office machines, models DP 1250, 1450, 1570, 2460, 2570, 3580, 4580, 5570 and 6570 are classified under sub-heading 8472.90.80, HTSUS, which provides for other office machines (for example hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines): other, printing machinery other than those of heading 8443 or 8471.

Sincerely,

Myles B. Harmon, Acting Director

Previous Ruling Next Ruling

See also: