CLA-2 CO:R:C:G 086841 CMS
Mr. J. T. Graham
Operations Director
ABS Electronics
395 Holywood Road
Belfast BT4 2LS
N. Ireland
RE: ABS Electronics Copymanager System
Dear Mr. Graham:
Your request dated March 1, 1990, for a classification
ruling on the ABS Electronics Copymanager System has been
forwarded by the Regional Director of Customs, New York to
Customs Headquarters for a reply. Our ruling follows.
FACTS:
The merchandise consists of the ABS Electronics Copymanager
System. The system is used to control certain photocopier
functions and to monitor photocopier use data for subsequent
analysis and report preparation. The system consists of four
components designated as the Copymanager unit, the Datacollector
unit, the Software package and the Copymanager cards.
The Copymanager unit connects directly to many types of
photocopiers. It controls user access by turning the copier on
when the correct access information is provided. The unit
controls the number of copies which can be made by shutting off
the copier when users attempt to exceed their allotment. The
unit also shuts down the copier when instructed by the user,
after a certain time if the user does not disable it, or after a
certain number of failed entry attempts. The users gain access
with a magnetic card or a personal identification number (PIN).
The Copymanager unit is a programmable microprocessor controlled
unit with a keyboard, LCD display, random access memory and read
only memory. The LCD panel displays information such as user
instructions and the number of copies remaining in a user's
allotment. Data such as the identity of the user and the number
of copies made is stored for subsequent transfer to the
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Datacollector.
The Datacollector extracts copier use data from the
Copymanager unit, stores the data and uploads it to a personal
computer. Data can be collected and stored from as many as 46
copiers. When the Datacollector's memory is full the data is
uploaded to a personal computer and the process is repeated for
the remaining photocopiers. The Datacollector has a 16K RAM.
The Software package is a dedicated software program
recorded on magnetic floppy discs. The program is used to
analyze the copier data and to produce detailed and summary
copier management reports. The floppy discs are inserted into
the personal computers which are uploaded by the Datacollectors.
The Copymanager cards are plastic "credit card" sized cards
with magnetic strips for the recording of Copymanager access
codes.
ISSUES:
1) Are the components of the Copymanager System classified
together as a composite machine, functional unit or a set?
2) What are the classifications for the components if they
are classifiable separately?
LAW AND ANALYSIS:
The ABS Electronics Copymanager System is entered as a
"system" consisting of one of each of the four components.
The system is not a Section XVI Note 3 composite machine
because the components are not "fitted together to form a whole"
as required by Section XVI Note 3. The Datacollector is portable
and is only connected to a Copymanager unit when extracting data.
The Copymanager cards are simply passed through the Copymanager
unit's card reader. The floppy discs are inserted into a
personal computer and not into one of the system components.
The system components do not form a Section XVI Note 4
functional unit because they do not "contribute together to a
clearly defined function covered by one of the headings in
Chapter 84 or 85" as required by Section XVI Note 4. The
Copymanager system principally controls photocopier functions,
and collects, stores and uploads data relating to copier use.
The system components perform several important functions which
together are not described by a Chapter 84 or 85 heading.
GRI 3(b) provides for goods put up in sets for retail sale.
The Explanatory Notes to GRI 3(b), p. 4 provide in pertinent part
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that goods put up in a manner suitable for sale to users without
repacking are classified as a set when they together meet a
particular need, and consist of at least two articles
classifiable in different headings. The system components
together meet the particular need of photocopier management,
including access control and analysis of copier use data.
At least two of the system components are classifiable in
separate headings. The Copymanager unit performs control
functions and stores data used for photocopier use analysis. The
manufacturer's descriptive literature provides: "Put simply, the
Copymanager helps you control your photocopying function-the way
it operates and the costs it incurs." The Copymanager unit can
perform the operational control functions without the assistance
of the other components, while the data analysis function
requires the use of other components. The control function is
the principal function of the Copymanager unit. Heading 8537
describes certain control apparatus. The Explanatory Notes to
Heading 8537, p. 1391 provides that Heading 8537 includes
programmable apparatus which control various types of machines.
For example, the Explanatory Notes at p. 1391 provide for:
"Programmable controllers" which are digital apparatus
using a programmable memory for the storage of
instructions for implementing specific functions such
as logic, sequencing, timing, counting and arithmetic,
to control...various types of machines.
The Copymanager unit is described in Heading 8537 and is
classifiable in subheading 8537.10.00. The device is not
classified as a part or accessory of photocopiers in Heading
9009 because it is not an integral component of a copier, it is a
separate and distinct machine, and Section XVIII Note 2(a)
provides that parts and accessories included in the headings of
Chapter 84 are classified there and not in Chapter 90.
The Datacollector extracts and stores data which is then
retrieved from the Datacollector's memory by a data processing
machine. The Datacollectors perform data processing storage and
input, and storage is the principal function. The Datacollectors
depend on their memory to collect and upload data; when the
memory is full the articles can no longer function except to
upload the data and begin collecting and storing new data. The
Datacollectors meet the criteria for units of data processing
machines provided in the Explanatory Notes to Heading 8471, p.
1298; the articles are (a) connectable to the CPU of an automatic
data processing machine directly or through one or more other
units, and are (b) specifically designed as a data collection and
storage part of a data processing system which, along with other
functions, processes data relating to the use of photocopiers.
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The Datacollectors also deliver data in a form which can be used
by the processing system. The Datacollectors are described by
Heading 8471 as automatic data processing machine storage units,
and are classifiable in subheading 8471.93.60.
The Datacollectors are not classified as parts or
accessories of photocopiers in Heading 9009 because they are not
integral components of copiers, are separate and distinct
machines, and Section XVIII Note 2(a) provides that parts and
accessories included in the headings of Chapter 84 are classified
there and not in Chapter 90.
The Software package consisting of recorded floppy discs is
classified in 8524.90.40, HTSUSA. The Copymanager cards when
unrecorded are classified in 8523.90.00, and when recorded fall
in 8524.90.40.
The Copymanager System, when entered in a manner suitable
for retail sale directly to users without repacking, is
classified as a GRI 3(b) set. The component which gives the set
its essential character is the Copymanager unit. The Copymanager
unit can perform the operational control function without the
assistance of the other components, and also performs part of the
data analysis function by storing the data for transfer to the
Datacollector. When entered as a set, the Datacollector is
classified with the Copymanager unit in 8537.10.00, HTSUSA. When
not entered as a set the Datacollector is classified in
8471.93.60, HTSUSA. Pursuant to Chapter 85 Note 6, the software
package and magnetic access cards are always classified in their
respective headings.
HOLDING:
When entered in a manner suitable for retail sale directly
to users without repacking, the Copymanager unit and
Datacollector are classified together in 8537.10.00, HTSUSA.
When not entered in a manner suitable for sale directly to users
without repacking, the Copymanager unit is classified in
8537.10.00, HTSUSA, and the Datacollector is classified in
8471.93.60, HTSUSA. The recorded Software package is always
classified in 8524.90.40, HTSUSA. The Copymanager cards are
always classified in 8523.90.00, HTSUSA when unrecorded, and in
8524.90.40, HTSUSA when recorded.
Sincerely,
John Durant, Director
Commercial Rulings Division