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NY M83284




June 21, 2006

CLA-2-84:RR:NC:1:120 M83284

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.60.4580, 8471.80.1000

Mr. Jerome Zaucha
Venable LLP
575 7th Street, NW
Washington, DC 20004-1601

RE: The tariff classification of networking system devices from Malaysia, Mexico or Thailand

Dear Mr. Zaucha:

In your letter dated May 25, 2006 you requested a tariff classification ruling on behalf of AMX Corporation.

The five AMX products utilized as part of the device networking system include: AMX NI-2000 NETLinx Integrated Controller (Product Number FG 2105- AMX Axcent Integrated Access Controller (Product Number FG-5955-20; AMX NXC-COM2 Dual COM Port Control Card (Product Number FG 2022; “NXC-COM2”) AMX 8.4 inch Modero Viewpoint Touch Panel (Product Number FG 5965-02; “Viewpoint Touch Panel”) AMX 15 inch Modero Multimedia Touch Panel (Product Number FG 2252-61; “Multimedia Touch Panel”)

The NI-2000 is a network device that combines the functions of a NetLinx master controller and an AMX device controller. It performs a “Gateway” function converting between different types of networks or applications. A Gateway connects a personal computer LAN to a mainframe network. It has triple bus networking covering ICSNet, Axlink and Ethernet. Ethernet technology supports 10/100 BaseT Ethernet networking. The NI-2000 is programmed with the following Ethernet protocols: ICSP, ICMP, Telnet, HTTP, FTP and Integration solutions. It is encased in a black metal housing powered by a 12 volt DC power supply and has a 32-bit microprocessor, 32 MB of Compact flash memory, 32 MB of volatile memory with 1 MB of non-volatile memory. The AMX device controller supports four infrared ports, four input/output channels, four relays and three serial ports. The Vx Works realtime operating system, version 5.55 runs on the IBM Power platform. Vx Works requires a host workstation running UNIX or Windows to develop programs. Similar to a Windows or Macintosh-based operating system, users can write programs that work with AMX but can’t modify the Vx Works software. It cross-compiles target software to run on various target CPU architectures. There are no hardware or software blocks on the NI-2000 and the user can reprogram the system as required. From the information provided with the ruling request, the individual AMX devices are components of a Local Area Network System, LAN, which would meet the requirements of note 5 (A) to Chapter 84 and will accept new applications that allow the user to manipulate the data as deemed necessary by the user and does not impose artificial limitations upon such applications.

The Axcent is another network device that combines the functions of an Axcess master controller and an AMX device controller. It is encased in a black metal housing powered by a 12-volt DC power supply. It has a 32-bit microprocessor, 32 MB of Compact flash memory, 32 MB of volatile memory with 1 MB of non-volatile memory. It supports a modified four wire 485-bus network; six RS-232/RS-422/RS-485 serial ports, six infrared ports, six input/output ports and eight relays. It cannot support Ethernet protocols. Unlike the NI-2000, the Axcent does not run on an operating system. It has AMX firmware embedded that can process Axcess programming, interpret incoming messages, generates outgoing messages to AMX and third party devices. It controls the Axcent’s device control ports. It is used with freely programmable devices.

The NXC-COM2 is an interface between the NetLinx Master controller and a series of non-ADP devices such as a projector. In this case, the COM2 would process and translate the touch panel commands generated by a projector.

The Modero Viewpoint and Multimedia touch panels are AMX user interfaces. The user interface is an input/output device that allows a system user to access and program the system. They display digital content on a networked device such as a personal computer (PC). The touch panels enable a user to program and operate networked devices, play digital music files, display stored images, surf the internet, check and respond to email, and open software files.

The Viewpoint is an 8.4 inch color active matrix TFT display (800x600 pixel resolution) that possesses 64 megabytes of SDRAM and 64 megabytes of compact flash memory and runs the Linux operating system. It uses a standard 802.11b wireless interface card to communicate with the integrated controller. It is programmed after importation via a USB cable between the touch panel’s mini-USB connector and a programming PC. It is sold and advertised solely for use with an AMX device networking system. It connects to the AMX device networking system via a wireless Ethernet. It converts system user commands input via the display into a form usable by the AMX device networking system.

The Multimedia is a 15-inch LCD display (1024 x 768 pixel resolution) that possesses 256 megabytes of onboard memory and 128 megabytes of compact flash memory and runs on the Linux operating system. It is installed with an 802.11g wireless card to communicate with the integrated controller. It is connected to the integrated controller for control purposes via the Ethernet cable and for video purposes via a Category 5 cable. In its condition as imported it does not possess the software or hardware necessary to accept any video signals. It is programmed via a USB cable running between a USB or Ethernet LAN connection to an IBM compatible programming PC.

The five AMX networking system devices may be programmed and reprogrammed, even after installation, by a system user familiar with AMX’s programming language. They appear freely programmable and meet Note 5(b) to Chapter 84, Section XVI.

Legal Note 5(B) to Chapter 84, HTSUS, provides guidance regarding units of automatic data processing machines. It states that "[a]utomatic data processing machines may be in the form of systems consisting of a variable number of separate units." A unit is to be regarded as a part of the complete system if it meets all of the following conditions:

It is of a kind solely or principally used in an automatic data processing system; It is connectable to the central processing unit whether 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.

The Interfaces do effect the interconnection of a freely programmable host computer (Chapter 84, Legal Note 5(A) ADP machine). The Interfaces principally effect the interconnection of a central processing unit ("CPU") to external sensors, motors, lamps and sound elements (which are not classifiable as ADP units as specified by Chapter 84, Legal Note 5(A)). Based on the literature provided, the interfaces are performing network operations principally used with "other digital data processing machines, or to groups of input or output units...."

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to the HTSUS, define "control" and "adapter" units. EN 84.71(1)(D)(4) states as follows:

(4) Control and adapter units such as those to effect interconnection of the central processing unit to other digital data processing machines, or to groups of input or output units which may comprise visual display units, remote terminals, etc.

The ENs, although not dispositive, should be looked to for the proper interpretation of the HTSUS.

Both, NI-2000 and Axcent are free-standing devices that meet the definition of a "unit" of an automatic data processing system, noting Legal Note 5 (B) to Chapter 84, HTSUS. Since these devices bridge control and process information exchange within the framework of a LAN system, they are principally used to effectuate the interconnection of the CPU to other units or ADP machines, thereby serving "control" and "adaption" functions.

The applicable subheading for the NI-2000 (product Number: FG 2105-01) and the AMX Axcent Integrated Access Controller (Product Number FG-5955-20) will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Automatic data processing machines and units thereofOther units of automatic data processing machines: Control or adapter units.” The rate of duty will be free.

The applicable subheading for the Dual COM Port Control Card (Product Number FG 2022) imported separately will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Automatic data processing machines and units thereofOther units of automatic data processing machines: Control or adapter units.” The rate of duty will be free.

According to Legal Note 5(B) to Chapter 84, a flat panel touch screen display must be: connectable to the CPU; capable of receiving data from an ADP system; and of a type of display that is principally or solely used in an ADP system. From the information provided, the instant displays are of a class or kind of merchandise that meets the criteria.

The applicable subheading for the Modero Viewpoint Touch Panel (Product Number FG 5965-02 and the Modero Multimedia Touch Panel (Product Number FG 2252-61) imported separately will be 8471.60.4580, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “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: Input or output, whether or not containing storage units in the same housing: Other: Display units: Other: Other: Other. The rate of duty will be free.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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 Denise Faingar at 646-733-3010.

Sincerely,

Robert B. Swierupski
Director,

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