CLA-2 RR:CR:GC 962182 RFA
Ms. Laura Proctor
Customs Analyst
J.C. Penny Purchasing Corporation
6501 Legacy Drive
Plano, TX 75024-3698
RE: Smart Station; Automatic Data Processing (ADP) Machines; Office Machines; Headings 8471 and 8472; Legal Note 5(A)(a); EN 84.72; NY B86267; PC B86239, superseded in part
Dear Ms. Proctor:
This is in reference to a Preclassification Ruling (PC) B86239, issued to you on October 30, 1997. It has come to Customs attention that one of the items covered within this ruling is in conflict with another Customs decision involving the same merchandise. The following is our decision on the classification of the Smart Station under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The Comquest Smart Station, model A0700, is a learning device for allowing children to perform functions such as word processing, educational and arcade game functions, making greeting cards, data bank/retrieval, calculations, and homework helper functions. The Smart Station operates by itself but can also be connected to a color TV for full color animation. It is approximately 10 inches in length and width, incorporates a liquid crystal device (LCD) display, a full stroke keyboard, and a mouse. Although not included, a personal computer (PC) Link 2 accessory can connect the device to a computer. This multi-functional device incorporates a base for placing it on a table. The electronic data bank includes such tools as address book, scheduler, calculator, unit conversion, clock, alarm, stopwatch, and doodle faces. By connecting this device to a dedicated “Power Printer”, the Smart Station can produce documents, letters, and greeting cards.
In NY B86267, dated June 9, 1997, Customs classified the Comquest Smart Station under subheading 8472.90.90, HTSUS, as other office machines. In PC B86239, dated October 30, 1997, Customs classified the Smart Station, listed as Item Lot Number 652-7410, under heading 8471.30.00, HTSUS, as portable digital automatic data processing (ADP) machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display.
ISSUE:
Whether the Smart Station is classifiable as an ADP machine, or as other office machines, under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
To be classified as an “ADP machine” under heading 8471, HTSUS, the merchandise must meet the requirements of Legal Note 5(A)(a) to Chapter 84, HTSUS, which provides that:
Digital machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and, (4) executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.
According to the submitted literature for this article, the Smart Station has the following capabilities: word processing; greeting card maker; homework helper games; trivia games; mathematics games; arcade games; address book; scheduler; and calculator. While the Smart Station can perform some functions, a user cannot add new programs. Because it does not meet the requirements of being “freely programmable” under Legal Note 5(A)(a), the Smart Station is precluded from classification under heading 8471, HTSUS, as an ADP machine.
Heading 8472 provides for other office machines. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not 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, 54 FR 35127, 35128 (August 23, 1989). EN 84.72, states, in pertinent part, that:
This heading covers all office machines not covered by the preceding three headings or more specifically by any other heading of the Nomenclature.
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.).
Office machines are classified here only if they have a base for fixing or for placing on a table, desk, etc.
The Smart Station is not provided for within heading 8471. As stated earlier, the device can be used for: word processing; as an address book; as a scheduler; as well as for other functions. We find that these functions are provided for under heading 8472, HTSUS, as other office machines. Based upon the above analysis, we find that the classification set forth in NY B86267 is correct. Accordingly, PC B86239 is superseded in part as it relates to the classification of the Smart Station.
HOLDING:
For the foregoing reasons, the Comquest Smart Station is classifiable under subheading 8472.90.95, HTSUS, which provides for: “[o]ther 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): [o]ther: [o]ther. . . .” Goods classifiable under this provision have a column one, general rate of duty of 1.8 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division