CLA-2 CO:R:C:M 951808 CMS
8443.50.50
David I. Wilson, Esq.
Arter & Hadden
1801 K Street, N.W.
Suite 400K
Washington, D.C. 20006-1301
RE: Phototypesetting And Composing Machines; Apparatus;
Preparing Printing Plates And Components; Laser Recorder
Scanners; Proofers; Forms; Labels; Packaging
Dear Mr. Wilson:
This is in response to your letter dated March 24, 1992,
submitted on behalf of Barco Graphics, Inc., to the Customs
National Import Specialist in New York for a classification
ruling on certain typesetting apparatus under the Harmonized
Tariff Schedule of the United States (HTSUS). Your letter was
forwarded to Customs Headquarters for a reply.
FACTS:
The merchandise consists of the BG 4100 flatbed laser
recorders, BG 3600, 3700 and 3800 laser recorder-scanners, BG
920, 2100, 2200, 2300 and 2400 workstations, and BG 5100 thermal
transfer proofers.
The merchandise is entered as systems and as separate
components. A system would consist of a BG workstation and a
recorder or recorder-scanner, and may include a BG proofer.
The recorders and recorder-scanners convert forms, labels and
packaging artwork into digital form. A workstation is then used
to add text to the forms, labels and packaging designs according
to the specifications of the customer. The proofer may be used
to produce a proof of the ultimate form, label or package to be
printed. A final photographic negative is then produced with a
recorder-scanner.
-2-
The components can only operate with Barco's proprietary
forms, labels and packaging software programs. Barco states
that the workstations would not be capable of performing other
functions such as CAD/CAM, word processing or personal computing
without being totally redesigned which would be neither practical
nor cost effective. The merchandise is similar to the PURUP
typesetting merchandise which was classified in Heading 8442,
HTSUS, in HQ 086122 (January 17, 1991) and HQ 088459 (November 4,
1991).
ISSUE:
Are the BARCO components classified as typesetting and
printing machinery in Headings 8442 and 8443 of the HTSUS?
LAW AND ANALYSIS:
The HTSUS provides that the classification of articles is
governed by the General Rules of Interpretation (GRI's). GRI 1
states in pertinent part that "...classification shall be
determined according to the terms of the headings and any
relative section or chapter notes...".
Heading 8442 in part describes "apparatus...for type-
founding or typesetting, [and] for preparing...printing
components". The Harmonized Commodity Description and Coding
System Explanatory Notes to Heading 8442, p. 1234, provide that
the heading covers machines "...used to assemble (compose or set)
it [type] for use in printing, whether by hand or mechanically".
The Explanatory Notes provide on p. 1236 that Heading 8442
"...includes composing machines using a laser beam projected onto
photographic film", and provide on p. 1237 that the heading
includes "phototype-setting or composing machines which actually
set type even if the type is photographed after it has been set"
(emphasis in original).
The Barco merchandise can only operate with Barco's
proprietary forms, labels and packaging software programs.
These are essentially Heading 8442 typesetting or 8443 printing
applications. Thus, other headings such as Heading 9017 which
cover certain high resolution imaging equipment, are not
applicable.
Systems consisting of a BG workstation and a BG scanner or
recorder-scanner, whether or not they include a BG proofer, are
classified as phototypesetting and composing machines in
subheading 8442.10.00, HTSUS.
-3-
When entered separately, the BG workstations and BG
scanners and recorder-scanners are classified as parts of
phototypesetting and composing machines in subheading
8442.40.00, HTSUS (see HQ 086122 and HQ 088459, supra).
The BG proofers are not used in the actual process of
composing or setting type, but perform a printing function in the
proofing process. In HQ 088024 (January 3, 1991), we held that
a laser proofer was classified as other printing machinery in
subheading 8443.50.50, HTSUS. Although the BG proofer uses a
thermal transfer method, it is principally used for proofing and,
like the laser proofer at issue in HQ 088024, is classified in
Heading 8443. When entered with a BG workstation and BG scanner
or recorder-scanner system, the BG proofers are classified with
the systems in subheading 8442.10.00, HTSUS. When entered
separately, the BG proofers are classified as other printing
machinery in subheading 8443.50.50, HTSUS.
HOLDING:
Systems consisting of a BG 920, 2100, 2200, 2300 or 2400
workstation, and a BG 4100 recorder or BG 3600, 3700 or 3800
recorder-scanner, whether or not they include a BG 5100 proofer,
are classified as phototypesetting or composing machines in
subheading 8442.10.00, HTSUS, currently subject to a free rate of
duty.
When a BG workstation is not entered as a system with a BG
recorder or recorder-scanner, the BG 920, 2100, 2200, 2300 and
2400 workstations, BG 4100 recorders and BG 3600, 3700 and 3800
recorder scanners are classified separately as parts of
phototypesetting or composing machines in subheading 8442.40.00,
HTSUS, currently subject to a free rate of duty.
When a BG 5100 proofer is entered with a system consisting
of a BG workstation and a BG recorder or recorder-scanner, the
proofer is classified with the system in subheading 8442.10.00,
HTSUS. When entered separately, the BG 5100 scanner is
classified as other printing machinery in subheading 8443.50.50,
HTSUS, currently subject to a Column 1 rate of duty of 3.3%, ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division