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NY K82971





February 26, 2004
CLA-2-84:RR:NC:1:110 K82971

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.49.1095; 8471.49.2100; 8471.49.4895

Mr. Sidney H. Kuflik
Miller & Company
233 Broadway, 51st Floor
New York, NY 10279

RE: The tariff classification of a desktop media center from China.

Dear Mr. Kuflik:

In your letter dated February 3, 2004, on behalf of your client Gateway, Inc. you requested a tariff classification ruling.

The merchandise under consideration is the Gateway 610 Media Center Personal Computer (PC). The Gateway 610 Media Center PC is a desktop computer available in three different configurations. All units come standard with Microsoft Windows XP Media Center Edition 2004 Operating System, Integrated 7 in 1 Media Card Reader, DVD/EC-RW Combo Drive, 5 USB Ports, various input/output jacks, 17” LCD Screen, infrared remote control, wireless keyboard and mouse, integrated TV tuner card, Personal Video Recorder (PVR), MP3 player, FM tuner and internal stereo speakers, subwoofer and modem. The application software, processor, memory, hard drive, video, and networking capabilities vary from the entry-level model to the high-end system. Each unit is imported packaged together as a complete system with all components.

On face view, the main unit of the Gateway 610 Media Center PC is a freestanding 17” Wide Screen Format LCD monitor with speaker grills on both sides. The LCD is mounted on a small tower support via a swivel joint. This support tower incorporates the subwoofer and various input/output jacks for connection to audio/video sources and power. On the left side of the monitor’s housing are slots for Memory Stick, SecureDigital (SD)/MultiMedia Card (MMC), CompactFlash/Micro Drive and SmartMedia (SM) Card readers. The right side of the LCD housing encompasses the Combo DVD+RW/+R/CD-RW drive. The keyboard, mouse and remote control are infrared wireless devices.

As mentioned above, the Gateway 610 Media Center PC is imported packaged together as a complete system. The General Rules of Interpretation (GRIs) of the Harmonized Tariff System (HTS) governs the classification of goods put up in sets for retail sale. GRI 3(b) provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes (ENs) of the HTS provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. According to the ENs for GRI 3(b), “goods put up in sets for retail sale” refers to goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repackaging.

The Gateway 610 Media Center PC is advertised as a PC entertainment center housed in one compact home system. Although this entertainment system appears to be a composite machine performing two or more complementary or alternative functions, as it can be used as a media center to watch and record TV, play videos, music and view pictures, its design characteristics and size are that of a desktop computer. With its screen size and built in computer peripherals within the desktop monitor/tower unit, it functions as a complete and compact home PC. Noting, Section XVI, Note 3:

Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed 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 Gateway 610 Media Center PC encompasses all the performance characteristics, software, hardware devices for data input/output, storage and adaptability one would expect in today’s home PC. With that in mind, we believe that the PC functions and desktop design of this particular item establishes the principal function of this machine.

The infrared remote control does not meet Chapter 84, Note 5(B)(a) and is not considered an automatic data processing unit. However, each 610 Media Center PC is imported packaged as a complete set. Therefore, the infrared remote control would be classified as part of the set along with the main unit.

The applicable subheading for the Gateway 610 Media Center PC main unit with remote control will be 8471.49.1095, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof Other digital automatic data processing machines: Other, entered in the form of systems: 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 units: storage units, input units, output units: Other.” The general rate of duty will be free.

The applicable subheading for the Keyboard will be 8471.49.2100, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system Other: Keyboards.” The general rate of duty will be free.

The applicable subheading for the Mouse will be 8471.49.4895, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof Other digital automatic data processing machines: Other, entered in the form of systems: Input or output units, entered with the rest of a system Other: Other: Other: Other: Other.” The general rate of duty will be free.

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 Eileen S. Kaplan at 646-733-3016.

Sincerely,

Robert B. Swierupski
Director,

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