CLA-2 OT:RR:CTF:TCM H070862 HkP
Deborah B. Stern, Esq.
Sandler, Travis & Rosenberg, P.A.
Attorneys at Law
5200 Blue Lagoon Drive
Miami, FL 33126-2022
RE: Tariff Classification of Atmel starter kits, evaluation kits and expansion kits
Dear Ms. Stern:
This is in response to your letter dated February 9, 2009, on behalf of Atmel Corporation (“Atmel”), to the National Commodity Specialist Division, U.S. Customs and Border Protection (“CBP”), requesting a binding ruling on the classification of Atmel starter kits, evaluation kits, and expansion kits for microcontrollers under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your letter, along with submitted samples, was sent to this office for a response. In reaching our decision, we have taken into account additional information provided to CBP during a teleconference with you and your client on July 1, 2009, and memorialized in a submission dated July 6, 2009, as well as information submitted on August 4, 2009.
FACTS:
According to the submitted information, the products at issue are used in prototyping applications for Atmel microcontrollers. They are marketed and sold as evaluation kits, starter kits, and expansion kits for Atmel AVR® 8-Bit RISC and AVR32® 32-Bit microcontroller units as well as other microcontroller series. These microcontrollers are integrated circuit processors combined with memory that are ultimately used in control applications for various devices. Specifically,
They are used in the development of programming that will be required for an end use microcontroller unit, and the subsequent testing and reprogramming of the microcontroller device. Functional verification of the written code is performed by the development boards, as well, but … debugging ... is generally performed through a separate debugger, for which the devices contain an interface or an interface connector….[]
Programming, function verification and testing are performed in conjunction with specialized development software program, such as AVR Studio, Atmel’s Integrated Development Environment (“IDE”), installed on a PC. An IDE is needed to program new firmware to the microcontroller and can also be used to develop user’s custom applications.
RZRAVEN Kit
The RZRAVEN is a development kit for the AT86RF230 radio transceiver and the AVR microcontroller. The kit contains 2 AVRRAVEN boards, 1 RZUSBSTICK board, 4 LR44 batteries (mounted), 5 dual row 10-pin headers (50 mil spacing), 1 50-mil to 100-mil JTAG adapter, flyers and/or CD.
The hardware of the AVRRAVEN boards is based on two microcontroller chips/units (the AVR ATmega3290P and the AVR ATmega1284) and one radio transceiver chip (the AT86RF230). The MCUs and the radio communicate via serial interfaces. In addition to these chips, the AVRRAVEN board contains: an antenna; LCD; a speaker; a microphone; storage (serial dataflash and serial EEPROM); a real time clock; an NTC [resistor] – used to measure the surrounding temperature; a power supply; and interfaces (programming, relay, voltage measurement). Both the ATmega3290P and ATmega1284P can be programmed using either the JTAG or ISP interface.
The RZUSBSTICK board contains a programmable AVR AT90USB1287-MU microcontroller, a radio transceiver chip, an antenna, interfaces (external memory, serial, programming), and LEDs.
AT91SAM7X-EK
The package contains the following items: 1 board marked AT91SAM7X-EK, 1 A/B type USB cable, 1 crossed serial RS232 cable, 1 RJ45 crossed Ethernet cable, universal input AC/DC power supply with US and EU plug adapter, and a DVD-ROM containing summary and full datasheets and other documents for the development board and AT91 microcontrollers. An AT91 software package with C and assembly listings is also provided.
For the kit model at issue, the AT91SAM7X board is equipped with components such as: an AT91SAM7X256 microcontroller (100-pin LQFP Green package); an ARM7TDMI ARM Thumb processor; Internal High-speed Flash and SRAM; controllers; a clock generator; timers; universal synchronous/ asynchronous receiver transmitters; 16-bit timer/counter; 10-bit analog-to-digital converter; SAM-BA boot assistance; and, power supplies. The board also has several interfaces, such as USB, DBGU, RS232, LTAG/ICE, and MII Ethernet 100-base TX.
EVK1100 Kit
The EVK1100 evaluation kit comes with a large software suite including a collection of software examples and the Atmel development tool chain based on GNU gcc and AVR32 Studio. It also includes an AVR32 UC3 freeRTOS port and evaluation versions of third party development tools.
The board has an Ethernet port, sensors – light, temperature, potentiometer, blue LCD with adjustable backlight, connectors for JTAG, Nexus, USART, USB 2.0, TWI, SPI, and SD and MMC Card Reader.
STK600 Kit
The STK600 is designed to support all AVR devices (both AVR and AVR32) with internal flash memory. The kit contains: STK600 starter kit evaluation board; cables for STK 600; USB cable; DC power cable; Atmel CD-ROM with datasheets and software; device board with a programmable ATmega2560 AVR microcontroller; two sets of screws and nuts, one set of clips. The STK600 can perform ISP, Parallel High Voltage, Serial High Voltage, JTAG, and PDI programming, as well as In-System Programming of an External Target System.
A system based on socket and routing cards is used to support different package types and pinouts on the STK600 board. The STK600 features an ID system to identify which routing, socket and expansion card is attached and can impose voltage limitations based on the IDs (AVR Studio will notify the user if the combination is incorrect).
STK600-TQFP64 Kit
The kit is an expansion module for the STK600 kit. The package contains a socket board (STK600-TQFP64) and three adapter (routing) boards (STK600-RCO64M-9, STK600-RCO64M-10, STK600-RCO64U-17) for 64-pins TQFP 0.8mm pitch devices, and an AVR microcontroller to be inserted into the socket on the socket board.
ISSUE:
What is the correct classification of the Amtel starter kits, evaluation kits and expansion kits under the HTSUS?
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 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8471 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:
8471.50.01 Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units …..
8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472:
8473.30 Parts and accessories of the machines of heading 8471:
Not incorporating a cathode ray tube:
Printed circuit assemblies …..
8534.00.00 Printed circuits….
8542 Electronic integrated circuits; parts thereof:
Electronic integrated circuits:
8542.31.0000 Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits ….
9030 Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9028; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations; parts and accessories thereof:
Other instruments and apparatus:
9030.82.00 For measuring or checking semiconductor wafers or devices….
The Legal Notes for Section XVI, HTSUS, in which chapters 84 and 85 are located, provide in pertinent part:
This section does not cover:
….
(m) Articles of chapter 90;
….
4. Where a machine (including a combination of machines) consists of
individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.
Note 5 to Chapter 84, provides, in relevant part:
(C) Subject to paragraphs (D) and (E) below, a unit is to be regarded as being part of an automatic data processing system if it meets 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 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.
Separately presented units of an automatic data processing machine are to be classified in heading 8471.
….
(E) Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective function or, failing that, in residual headings.
Note 5 to Chapter 85 provides, in pertinent part:
For the purposes of heading 8534 "printed circuits" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating-up, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for example, inductances, resistors, capacitors) alone or interconnected according to a pre-established pattern, other than elements which can produce, rectify, modulate or amplify an electrical signal (for example, semiconductor elements).
The term "printed circuits" does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discrete resistors, capacitors or inductances. Printed circuits may, however, be fitted with non-printed connecting elements.
You have asked us to address whether: (1) the EVK1100, STK600, AT91SAM7X-EK, and RZRAVEN kits are classified in heading 8471, HTSUS, and the STK600-TQFP64 kit is classified in heading 8473, HTSUS, (2) all the merchandise at issue is classified in heading 9030, HTSUS, or (3) the merchandise at issue is classified in some other heading(s). You are of the opinion that the correct classification of the products is conveyed by option 1. You have also asked us to address whether the incorporation of wireless technology in one of the products would affect its classification.
Under the provisions of Note 1(m) to Section XVI, if a good is described by a heading in chapter 90 it is precluded from classification in Section XVI. Accordingly, we will first consider whether any of the devices at issue can be classified in chapter 90.
The text of heading 9030, HTSUS, provides, in part, for “instruments and apparatus for measuring or checking electrical quantities.” In United States v. Corning Glass, 66 C.C.P.A. 25, 27 (citations omitted) (1978), the U.S. Court of Customs and Patent Appeals stated that “’checking instruments’ clearly and unambiguously encompasses machines … that carry out steps in a process … to determine whether they conform to [a] … standard.” The court also found that, “[a]lthough ‘checking’ includes the concept of verifying a measurement, … [l]imiting ‘measuring or checking instruments’ to devices that measure or verify the accuracy of a measurement, improperly renders ‘checking’ superfluous, because verification of a measurement is itself a form of ‘measuring.’” Id. at 28.
In their imported condition, the boards at issue can neither check nor measure electrical quantities because they have not been programmed to do so. Rather, they are used in the development and programming of microcontrollers with various end-uses. Based on this fact, we find that none of the boards are described by heading 9030, HTSUS. Consequently, we will not address any of your arguments regarding this heading.
EVK1100 & AT91SAM7X-EK Kits
The kits are composed of: printed circuit boards populated with active and passive components, microcontrollers programmed to control the functions of each board, and freely programmable microcontrollers; cables or other connectors; and software, that are imported packaged together.
At GRI 1, there is no heading that describes these kits in their entirety. Specifically, the cables and other connectors are classified under heading 8544, HTSUS, and software is classified under heading 8525, HTSUS. We find that the boards in these kits are units of ADP systems classified in heading 8471, HTSUS, because they are solely or principally used in an ADP system, are connectable to the CPU either directly or through one or more units, and are able to accept or deliver data in coded form which can be used by the system. See Note 5(C), Ch. 84. Moreover, because their only function is data processing, they fall outside the scope of Note 5(E) to Chapter 84 and are classifiable in subheading 8471.50.01, HTSUS. See Note 5(E), Ch. 84; See also Explanatory Note 84.71(I) (“Data processing is the handling of information of all kinds, in pre-established logical sequences and for a specific purpose or purposes.”). Therefore, resort must be made to GRI 3.
GRI 3(b) directs that goods put up in sets for retail sale “shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.” As stated by the Court of International Trade in Structural industries v. United States, 360 F. Supp. 2d 1330, 1336 (citations omitted) (2005), “the essential character of an article is that which is indispensable to the structure, core or condition of the article, i.e., what it is.” See also Conair Corporation v. United States, 29 Ct. Int’l Trade, 888, 895 (citations omitted) (2005), (discussing “the concept of ‘essential character’ found in GRI 3(b)”). Based on their value and role in relation to the use of the kits, we find that the boards (processing units) impart the essential character of the kits because they are indispensable to their programming function. See EN (VIII) to GRI 3(b). As such, we find that the kits are sets classified under subheading 8471.50.01, HTSUS.
STK600 Kit
The kit is composed of a board with microcontrollers programmed to control the functions of the board, a routing board with a freely programmable microcontroller, clips, nuts, and screws to connect the boards to each other, and various cables to connect the STK600 board to a computer and to a power source.
We find that the STK600 kit is a functional unit, described in Note 4 to Section XVI, because the components of the kit all work together to program the chip on the routing board. See supra Note 4, Sec. XVI. We also find that the kit is classifiable as a unit of an ADP system because it meets the requirements of Note 5(C) to Chapter 84. Moreover, because its only function is data processing, it falls outside the scope of Note 5(E) to Chapter 84 and is, therefore, not precluded from classification under heading 8471, HTSUS. See Note 5(E), Ch. 84.
Based on their value and role in relation to the use of the kits, we find that the boards (processing units) impart the essential character of the kits. See EN (VIII) to GRI 3(b). As such, we find that the kits are sets classified under subheading 8471.50.01, HTSUS.
STK600-TQFP64
You have suggested classification of the STK600-TQFP64 expansion kit under heading 8473 (8473.30.11), HTSUS, as “parts and accessories of the machines of heading 8471” because the STK600 is classified under heading 8471. In Bauerhin Technologies v. United States, 110 F.3d 774 (citations omitted), (Fed. Cir. 1997), the Court of Appeal for the Federal Circuit stated that “an imported item dedicated solely for use with another article is a ‘part’ of that article within the meaning of the HTSUS.” Id. at 779. The routing cards, socket card, and microcontroller all meet this definition and are “parts” of the STK600 kit for classification purposes. We note that although these components are packaged together as a kit, they are not classifiable as a set because they can function independently of each other.
Notwithstanding the foregoing, Note 2 to Section XVI, HTSUS, directs that “parts which are goods included in any of the headings of chapter 84 or 85 … are in all cases to be classified in their respective headings.” Consequently, the routing cards and socket cards, which are printed circuits provided for in heading 8534.00.00, HTSUS, must be classified there. See LN 5, Ch. 85 supra for the definition of a “printed circuit” of heading 8534, HTSUS. See also EN 85.34 (“Printed circuits may be provided with holes or fitted with non-printed connecting elements either for mounting mechanical elements or for the connection of electrical components not obtained during the printing process.”) Microcontrollers are electronic integrated circuits provided for in heading 8542, HTSUS, and must be classified there. Moreover, EN 84.73 explains that electronic integrated circuits are not to be classified in heading 8473, HTSUS. See EN 84.73 (e).
AVRRAVEN
We find that the Raven kit is a functional unit, described in Note 4 to Section XVI, because the components of the kit all work together to program the chips on the boards. See supra Note 4, Sec. XVI. We also find that the kit is classifiable as a unit of an ADP system because it meets the requirements of Note 5(C) to Chapter 84. Moreover, because its only function is data processing, it falls outside the scope of Note 5(E) to Chapter 84 and is classifiable under heading 8471, HTSUS. See Note 5(E), Ch. 84. We also find that the wireless functionality of this kit does not influence its classification because it does not change the underlying function of the good.
HOLDING:
By application of GRI 3(b), the EVK1100 and AT91SAM7X-EK kits are classified in heading 8471, HTSUS. They are specifically provided for in subheading 8471.50.01, which provides for: “automatic data processing machines and units thereof; ...: Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units.” The 2009 column one, general rate of duty is Free.
By application of GRI 1 (Note 4 to Section XVI) and GRI 3(b), the STK600 and AVRRAVEN kits are classified in heading 8471, HTSUS. They are specifically provided for in subheading 8471.50.01, which provides for: “automatic data processing machines and units thereof; ...: Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units.” The 2009 column one, general rate of duty is Free.
By application of GRI 1, the components of the STK600-TQFP64 expansion kit are classified as follows. The routing boards and socket board is classified in heading 8534.00.00, HTSUS, which provides for “Printed circuits.” The 2009 column one, general rate of duty is Free. The microcontroller is classified in heading 8542, HTSUS, specifically in subheading 8542.31.00, which provides for: “Electronic integrated circuits;…: Electronic integrated circuits: Processor and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits. The 2009 column one, general rate of duty is Free.
A copy of this ruling letter should be attached to entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Gail A. Hamill, Chief
Tariff Classification and Marking Branch