CLA-2 OT:RR:CTF:TCM H083735 KSH
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 RZUSBSTICK and AVRRAVEN boards
Dear Ms. Stern:
This is in response to your letter dated November 3, 2009, on behalf of Atmel Corporation (“Atmel”), requesting a binding ruling on the classification of the separately imported components of the Atmel RZRAVEN development kit for microcontrollers under the Harmonized Tariff Schedule of the United States (“HTSUS”). The classification of the components of RZRAVEN kit, when imported together, was addressed in Headquarters Ruling Letter (HQ) H070862, dated September 1, 2009.
FACTS:
According to the submitted information, the product at issue is used in prototyping applications for Atmel microcontrollers. See HQ070862, FACTS. 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 a CD. Only the classifications of the AVRRAVEN boards and the RZUSBSTICK board are at issue.
The hardware of the AVRRAVEN boards is based on two microcontroller chips/units (MCUs) (the AVR ATmega3290P and the AVR ATmega1284) and one radio transceiver chip (the AT86RF230). The MCUs and the radio transceiver communicate via serial interfaces. In addition to these chips, the AVRRAVEN board contains: an antenna; LCD; a speaker; a microphone; storage/memory (serial dataflash and serial EEPROM – a rewriteable chip that typically stores the basic input and output system (BIOS), which is used by the central processing unit to perform startup procedures); a real time clock; a Negative Temperature Coefficient resistor (thermistor) – 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 with EEPROM, a radio transceiver chip, an antenna, interfaces (external memory, serial, programming), and LEDs. According to the Atmel datasheet, the microcontroller has 32 general purpose working registers that are directly connected to the Arithmetic Logic Unit (ALU). The on-chip ISP Flash allows the program memory to be reprogrammed in-system by a conventional nonvolatile memory programmer or by an on-chip boot program running on the AVR core. The boot program can use any interface to download the application program into that application flash memory. Software in the Bootflash section will continue to run while the application Flash section is updated. The microcontroller is supported by a full suite of programs and system development tools including C compilers, macro assemblers, program debuggers/simulators, in-circuit emulators, and evaluation kits. Atmel Document no. 7593K-AVY-11/09, available at www.atmel.com.
ISSUE:
Whether the RZUSBSTICK and the AVRRAVEN boards are classified as processing units other than automatic data processing machines under heading 8471, HTSUS, when imported separately.
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:
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof:
Other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network):
8517.62.00 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus:
8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and for machines 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 …..
8471.70 Storage units:
8471.80 Other units of automatic data processing machines:
Control or adapter units …..
Note 5 to Chapter 84, HTSUS, provides in relevant part:
(A) For the purposes of heading 8471, the expression "automatic data processing machines" means machines capable of:
Storing the processing program or programs and at least the data immediately necessary for the execution of the program;
Being freely programmed in accordance with the requirements of the user;
Performing arithmetical computations specified by the user; and
Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.
* * *
(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 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 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.
* * *
(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 functions or, failing that, in residual headings.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While neither 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 the headings. It is Customs and Border Protection’s (CBP) practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN 84.71, provides, in relevant part:
AUTOMATIC DATA PROCESSING MACHINES AND UNITS THEREOF
Data processing is the handling of information of all kinds, in pre-established logical sequences and for a specific purpose or purposes.
Automatic data processing machines are machines which, by logically interrelated operations performed in accordance with pre-established instructions (program), furnish data which can be used as such or, in some cases, serve in turn as data for other data processing operations.
….
(A) AUTOMATIC DATA PROCESSING MACHINES
….
Automatic data processing machines may comprise in the same housing, the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. In the latter case, the units form a "system" when it comprises at least the central processing unit, an input unit and an output unit (see Subheading Note 1 to this Chapter). The interconnections may be made by wired or wireless means.
A complete automatic data processing system must comprise, at least:
(1) A central processing unit which generally incorporates the main storage, the arithmetical and logical elements and the control elements; in some cases, however, these elements may be in the form of separate units.
(2) An input unit which receives input data and converts them into signals which can be processed by the machine.
(3) An output unit which converts the signals provided by the machine into an intelligible form (printed text, graphs, displays, etc.) or into coded data for further use (processing, control, etc.).
….
(B) SEPARATELY PRESENTED UNITS
Subject to the provisions of Notes 5(D) and (E) to this Chapter, this heading also covers separately presented constituent units of automatic data processing systems…. Constituent units are those defined in Part A above and in the following paragraphs, as being parts of a complete system.
An apparatus can only be classified in this heading as a unit of an automatic data processing system if it:
(a) Performs a data processing function;
(b) Meets the criteria set out in Note 5(C) to this Chapter:
….
(c) Is not excluded by the provisions of Notes 5(D) and (E) to this Chapter.
EN 85.17 provides, in pertinent part:
This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks.
(II) OTHER APPARATUS FOR TRANSMISSION OR RECEPTION OF VOICE, IMAGES OR OTHER DATA, INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK)
….
(G) Other communication apparatus.
This group includes apparatus which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such a network.
RZUSBSTICK Module
Because the module contains a transceiver as well as storage (serial dataflash and EEPROM) and a programmable microcontroller, you have asked us to address whether its’ correct classification is under heading 8517, HTSUS, (apparatus for the transmission or reception of data) or heading 8471, HTSUS (units of automatic data processing (ADP) machines). You note that CBP has previously classified devices that only provide wireless connectivity to other devices in heading 8517, HTSUS, noting in particular NY H87700, dated Mar. 4, 2002 (concerning the classification of a short-range Bluetooth module), and NY N012171, dated June 12, 2007, (concerning the classification of a Bluetooth headset for cellular phones). On the other hand, storage devices for ADP machines with Bluetooth technology have been classified by CBP under heading 8471, HTSUS, as units of ADP machines in, for e.g., NY N010817 (June 6, 2007).
Heading 8517, HTSUS, provides for transmission or reception apparatus that may be used in a wired or wireless network. See EN 85.17. The USB module at issue does more than communicate in a network; it also provides different types of storage. Consequently, we find that it is not provided for in heading 8517, HTSUS, at GRI 1. See, for e.g., W967550 (January 28, 2008) (concerning the classification of the Central Gateway Module N93 that routed information between bus systems within a motor vehicle (heading 8517, HTSUS) and also maintained a log of maintenance actions, including comparing data received with preprogrammed data (heading 8543, HTSUS)).
Heading 8471, HTSUS, provides for separately presented units of ADP machines. These are devices that are solely or principally used in an ADP system, connect to the central processing unit (CPU), and are able to accept or deliver data which can be used by the system. See Note 5(C), to Ch. 84, HTSUS.
There is no doubt that the USB module at issue connects or is connectable to the CPU and is solely or principally used with ADP machines. Moreover, it is through the transceiver that it is able to accept or deliver data which can be used by the ADP system. Further, because the module’s only function is data processing, we find that it is not precluded from classification in the heading by Note 5(E) to Chapter 84, HTSUS. As such, we find that it is provided for under heading 8471 (8471.70.60), HTSUS, as a storage unit at GRI 1. This is consistent with our classification decision in NY N010817. We note that NY I85985 (Sept. 27, 2002), which classified a USB Adapter used to transmit to a base station, is not relevant to the classification of the instant product because the wireless device in that ruling did not contain storage.
AVRRAVEN Boards
You argue that like the RZUSBSTICK Module discussed above, the boards are units of ADP systems, classified under heading 8471, HTSUS. You state that they are solely or principally used with ADP systems and the transceiver and antenna in the modules allow them to connect to an ADP machine via another unit (the RZUSBSTICK) and to accept and deliver data in a form used by the system to develop code.
Heading 8471, HTSUS, provides, in relevant part, for ADP machines and their units. According to Note 5(A) to Chapter 84, HTSUS, an ADP machine is capable of: storing a processing program and execution data; being freely programmable in accordance with the requirements of the user; arithmetical computations specified by the user; and, executing, without human intervention, a processing program that requires logical decisions during the processing run.
In the instant case, the boards fulfill all of these requirements. The AVR ATmega3290P and AVR ATmega1284 are freely programmable and capable of performing arithmetical computations in accordance with the requirements of the user. The EEPROM chip is capable of storing processing programs and
execution data. Finally, it appears that one can write a program that contains logical operators (“and”, “or”, “not”) and use the board to execute the program without human intervention. See HQ 964880, dated Dec. 21, 2001, for a discussion of these factors. See also Optrex v. United States, 475 F.3d 1367 (citations omitted) citing with approval HQ 964880 as it concerns CBP’s interpretation of “freely programmable”.
Moreover, it appears that the boards fulfill the requirements of Note 5(C) to Chapter 84. When imported they are not programmed and are thus suitable for use only with ADP systems. Through their transceiver chips, they are connectable to the CPU through the RZUSBSTICK and are able to accept or deliver data to be used in the system. In addition, they are able to handle information of all kinds in pre-established logical sequences for a specific purpose. Finally, they are not excluded from heading 8471, HTSUS, by Notes 5(D) or (E). See EN 84.71.
At issue is whether, at the subheading level, the boards should be classified in subheading 8471.50.01, HTSUS, as other processing units, or under subheading 8471.60, HTSUS, as input or output units. You support classification in subheading 8471.50.01, HTSUS, because you are of the view that the boards at issue are substantially similar to other development boards classified in that subheading in HQ H070862. We note that the products classified in subheading 8471.50.01, HTSUS, in HQ H070862 were classified as sets and according to their essential character (the EVK1100 and the AT91SAM7X-EK kits), or as a functional unit (the RZRAVEN kit), according to its clearly defined function. In the instant case, the boards are being individually classified.
As illustrated by the ENs to heading 8471, HTSUS, input and output units convert signals. See EN 84.71(A)(2) (An input unit … receives input data and converts them into signals which can be processed by the machine. (3) An output unit … converts the signals provided by the machine into and intelligible form….”). Based on this explanation, the boards at issue are not input or output units because they transmit and receive data but do not convert data into different signals. As such, the boards are processing units other than those of subheading 8471.41 (and cannot be classified in subheading 8471.60, HTSUS). Moreover, they are not presented as systems (subheading 8471.49). Consequently, they are classified in subheading 8471.50.01, HTSUS.
HOLDING:
Pursuant to GRI 1, AVRRAVEN BOARD is classified in heading 8471, HTSUS. Specifically, it is classified in subheading 8471.50.01, HTSUS, 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 2010 column one, general rate of duty is free.
Pursuant to GRI 1, the RZUSBSTICK is classified in heading 8471, HTSUS. Specifically, it is classified in subheading 8471.70.60, HTSUS, which provides for “Automatic data processing machines and units thereof; ...Storage units: Other storage units: Not assembled in cabinets for placing on a table, desk, wall, floor or similar place.” The 2010 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