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HQ 965319




February 4, 2002

CLA-2 RR: CR: GC 965319 DBS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8543. 89.96

Mr. A. Arndt
Team Concepts North America, Ltd.
331 Eisenhower Lane South
Lombard, IL 60148

RE: NY B86267, NY C86650, NY E80895, NY B87631, NY B87626 and NY B87857 revoked; Electronic educational devices

Dear Mr. Arndt:

In NY B87626, issued to you on July 21, 1997, NY C86650, issued to you on April 20, 1998 and NY E80895, issued to you on April 27, 1999, the Director, National Commodity Specialist Division, New York, classified various electronic educational devises in subheading 8469.11.00, Harmonized Tariff Schedule of the United States (HTSUS), as word processors. In NY B87631, issued to you on July 22, 1997, and NY B87857, issued to you on July 24, 1997, the Director, National Commodity Specialist Division, New York, classified various other electronic educational devices in subheading 8472.90.95, HTSUS, as other office machines. NY B86267, issued to you on June 9, 1997, similar merchandise was classified in subheading 8472.90.90, HTSUS, which was the predecessor provision for other office machines.

Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification of the above identified rulings was published on January 2, 2002, in the Customs Bulletin, Volume 36, Number 1. No comments were received. Our decision follows.

FACTS:

The merchandise described in B87626 is a model A0725 “ComQuest Scholar.” It is a multi-functional educational device designed for children ages 6 and up, grades 1-3. It consists of a liquid crystal display (LCD), a mouse and a QWERTY keyboard with special function keys for various activities. This multifunctional device has an electronic data bank of 40 multi-level educational games and activities for math, spelling, grammar, Homework HelperTM games and more. The device also has a mini word processor with built-in memory and spell checker.

The merchandise described in NY C86650 is a model A0800 Electronic Talking “ComQuest Gold” multi-functional educational device designed for children ages 9 and up. It consists of a LCD screen, a QWERTY keyboard with special function keys for various activities, and a mouse. The electronic data bank of educational activities include math, strategy, publishing and more. It incorporates a mini word processor and built-in memory.

The merchandise described in NY E80895 is a model A0920 Electronic Talking “ComQuest Pro.” It is a multi-functional educational device designed for children ages 6 and up, or grades 1-3. This device consists of a LCD screen, a QWERTY keyboard, a mouse and a mousepad. The electronic data bank features 64 activities to strengthen children’s learning skills, including language and word activities, strategy games, artistic games, math games, Homework HelperTM games and more. The device also incorporates a mini word processor with chart maker and spell checker. Additional memory cartridges to expand storing capabilities are sold separately.

The merchandise described in NY B87631 is a model A0170 Electronic Talking “Junior Computer Plus,” which is an educational device for children ages 5 and up. It incorporates a LCD screen, a QWERTY keyboard and a mouse. The “Junior Computer Plus” is a multifunctional unit that features a data bank with 29 activities for reinforcing children’s learning skills. Up to two children can participate in activities and games for spelling, numbers, music, time, riddles, memory and grammar.

The merchandise described in B87857 is a model A0735 Electronic Talking “ComQuest Explorer.” It is a multi-functional educational device designed for children ages 5 and up, grades K-2. It consists of a LCD screen, QWERTY keyboard, a mouse and a mousepad. The device incorporates an electronic databank of 36 educational activities that enhance spelling, reading, counting, math, time-telling and more. It also has a mini word processor and memory. Additional memory cartridges to expand storing capabilities are sold separately.

The merchandise described in NY B86267 is a model A0700 Electronic Talking “ComQuest Smart Station”. It is a multi-functional educational device designed for grades 4-7, ages 9 and up. It consists of a LCD screen, QWERTY keyboard and mouse. It connects to your color television set for full color animation. It incorporates 52 educational activities for math vocabulary, spelling, grammar and it has various Homework HelperTM games. It performs databank activites such as address book, scheduler, unit conversion, alarm, stopwatch and doodle faces. The device also includes word processing and data retrieval. Additional memory cartridges to expand storing capabilities are sold separately.

Each of the six models has a printer port and are compatible with paper printers that are sold separately.

ISSUE

What is the classification of the described multi-functional electronic educational devices?

LAW AND ANALYSIS

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that articles are to be classified by the terms of the headings and relative Section and Chapter Notes. For an article to be classified in a particular heading, the heading must describe the article, and not be excluded therefrom by any legal note. In the event that 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.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS provisions under consideration are as follows:

Typewriters other than printers of heading 8471; word processing machines:
Automatic typewriters and word processing machines:

8469.11.00 Word processing machines

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):

8472.90 Other:

Other

Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus:

8543.89 Other:
Other:
Other:

8543.89.96 Other

The models subject to NY B87626, NY C86650 and NY E80895 were classified as word processing machines in subheading 8469.11.00, HTSUS. EN 84.69(5) provides, in pertinent part, that word processing machines are comprised of:

. . . a keyboard, one or more large-capacity memories (e.g., disc, minidisc or cassette), a visual display unit and a printer. The various components may be housed in a single unit or be in separate units connected by cables. Word-processing machines may be fitted with interfaces permitting, for example, relay to other word-processing machines, to phototype-setting equipment, to automatic data processing machines, or to telecommunications systems. Their ability to correct or compose texts is greater than that of automatic typewriters. Their ability to perform arithmetical operations does not compare with that of automatic data processing machines . . . they cannot take the logical decision during processing to modify the execution of a program.

Further, the commercial definition of word processing machines is best summarized by the definition found in The Computer Glossary, sixth edition: “word processing machine: Computer that is specialized only for word processing functions.”

There is no question that the ComQuest Scholar, ComQuest Gold and ComQuest Pro have word processing capabilities. However, they are not word processors for purposes of tariff classification because they are not word processing machines as defined in the EN’s, nor do they satisfy the commercial meaning. These machines do not have large-capacity memory and they do not incorporate printers. The machines have educational games and other features not associated with word processing machines. Further, the letters submitted to the National Commodity Specialist Division, New York requesting rulings on these articles state that the machines incorporate “mini” word processors. Thus, the machines have admittedly limited word processing capabilities.

Moreover, word processing is simply one of the learning tools. In fact, Professor Helen C. Barrett of the University of Alaska Anchorage published an article in 1994 about teaching elementary school children on word processors in school. She found that the goal of increasing the children’s writing was achieved by using the medium of a laptop word processor. And some authors suggest that keyboarding is less laborious than handwriting for young children. See The Computing Teacher, October, 1994, reprinted at http://transition.alaska.edu/www/ SOE/ed626readings/Laptops.html, visited on December 5, 2001.

Section XVI, note 3, HTSUS, states:

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.

The subject models incorporate word processing features with educational games, computing tools, etc. They are not word processors, but rather are adapted for the purpose of performing two or more complimentary or alternative functions. They are composite machines that should be classified according to principal function. The principal function of these machines is that of an educational article or device.

The subject models’ purpose, composition, advertising, etc. is that of an educational device to aid children’s learning process in various areas, including computer skills, writing, math, spelling, vocabulary, grammar and even geography and other subjects. The word processing capabilities reinforce what children learn in school, just as the games and Homework HelperTM do. Thus, the ComQuest Scholar, ComQuest Gold and ComQuest Pro are electronic educational devices.

Educational devices are not specifically provided for in the HTSUS. Heading 8543 provides for other electrical machines and apparatus having individual functions not specified or included elsewhere in the chapter. The EN to heading 8543 states that all electrical appliances and apparatus having individual functions not falling in any other heading in Chapter 85 and not covered more specifically in any other Chapter of the Nomenclature falls under that heading. Accordingly, the ComQuest Scholar, ComQuest Gold and ComQuest Pro are properly classified in subheading 8543.89.96, HTSUS which provides for other electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter; parts thereof: other machines and apparatus: other: other: other: other.

We turn now to the models subject to NY B87631, NY B86267 and NY B87857, which were classified as other office machines in subheading 8472.90.95, HTSUS and predecessor subheading 8472.90.90, HTSUS. EN 84.72 provides, in pertinent part:

The term “office machines” is to be taken in a wide general sense to include all machines used in offices, shops factories, workshops, schools, railway stations, hotels, etc., for doing “office work” (i.e., work concerning the writing, recording, sorting, filing, etc., of correspondence, documents, forms, records, accounts, etc.).

In HQ 086649, dated May 4, 1990, Customs determined that the Precomputer 1000 junior was not an office machine because it was not the type of machine used in an office, school, railways station, hotel, etc. for doing office work of the kind listed in the EN. The machine was determined to be an educational article classifiable in heading 8543 as other electrical machines and apparatus having individual functions, not specified or included elsewhere in Chapter 85. Several other electronic educational devices were also classified under heading 8543, and not under heading 8472 for the same reason. See, e.g., HQ 086577, dated May 4, 1990, HQ 087599, dated March 5, 1991, HQ 088494, dated April 19, 1991 and HQ 955845, dated August 22, 1994.

Similarly, the Junior Computer Plus, ComQuest Explorer and ComQuest SmartStation are not office machines because they are not designed to be used in an office, school, railway station, hotel, etc., for office work of the kind listed above. Like the ComQuest Scholar, ComQuest Gold and ComQuest Pro, these three are composite machines whose principal function is that of an educational device. As stated above, education devices are not specifically provided for in the HTSUS. Thus, the Junior Computer Plus, ComQuest Explorer and ComQuest SmartStation are properly classified in subheading 8543.89.96, HTSUS, which provides for, “Electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter; parts thereof: other machines and apparatus: other: other: other: other.”

HOLDING:

For the reasons stated above, the subject six models of multi-functional electronic educational articles are classified in subheading 8543.89.96, HTSUS, as “electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter; parts thereof: other machines and apparatus: other: other: other: other.”

HOLDING:

For the reasons stated above, the subject six models of multi-functional electronic educational articles are classified in subheading 8543.89.96, HTSUS, as “electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter; parts thereof; other machines and apparatus: other: other: other: other.”

EFFECT ON OTHER RULINGS:

NY B87626, dated July 21 1997, NY C86650, dated April 20, 1998, NY E80895, dated April 27, 1999, NY B87631, dated July 22, 1997, NY B87857, dated July 24, 1997, and NY B86267, dated June 9, 1997, are hereby revoked. In accordance with 19 U.S.C 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.

Sincerely,


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