OT:RR:CTF:EMAIN H337673 PF
Electronics Center of Excellence and Expertise
U.S. Customs and Border Protection
301 E. Ocean Blvd., Suite 1400
Long Beach, CA 90802
ATTN: Alan Aprea, Center Director
Re: Application for Further Review of Protest No. 270424169122/Request for Internal
Advice; Tariff Classification of Docking Stations and Dual High-Definition Multimedia
Interface Adapters
Dear Mr. Aprea:
This is our decision regarding an Application for Further Review (AFR) of Protest No.
270424169122 filed by counsel on January 16, 2024, on behalf of Leancode Inc. d/b/a Plugable
Technologies (Protestant). 1 The Protest and AFR concern the classification under the
Harmonized Tariff Schedule of the United States (HTSUS) of docking stations, a hub, and a dual
high-definition multimedia interface (HDMI) adapter. Our decision regarding the classification
of the hub will has been addressed under separate cover to the Electronics Center of Excellence
and Expertise.
The subject merchandise was entered between September 7, 2022 and November 16,
2022 and was liquidated between October 27, 2023 and November 3, 2023 under heading 8471,
HTSUS, and specifically subheading 8471.80.10, HTSUS, which provides for “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: Other units of automatic data processing machines: Control or adapter
units.” As products of China, the subject merchandise was also subject to additional ad valorem
duties pursuant to U.S. Note 20 to Subchapter III, Chapter 99, subheading 9903.88.03, HTSUS.
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Our decision incorporates Protestant’s request for Internal Advice that was submitted on December 6,
2023.
Protestant maintains that the subject merchandise is properly classified in heading 8517,
HTSUS, and specifically subheading 8517.62, HTSUS, which provides for “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
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): Machines for the
reception, conversion and transmission or regeneration of voice, images or other data, including
switching and routing apparatus.”
Our decision considers a meeting held on August 21, 2024, and supplemental information
submitted on October 15, 2024. No samples were provided.
FACTS:
The subject merchandise comprises docking stations and an HDMI adapter. The subject
docking stations UD-3900H, UD-6950, and UD-6950H, and UD-6950PDH are universal laptop
docking stations. The subject docking stations allow for combined audio, data, power, and video
through one station. The docking stations include two USB 3.0 ports, audio in and out ports,
four USB 2.0 ports, display ports, a host port, a power button, and a high-speed Gigabit Ethernet
port for network connection. The various USB ports allow for a laptop to connect to various
peripheral devices including a monitor, hard drive, and speaker. The ethernet port provides an
internet connection and connects devices to a local network. Ethernet connections are commonly
used to connect a wireless fidelity (WiFi) router to the internet entry port.
The subject HDMI adapter, UGA-HDMI-2S, is a USB to HDMI adapter for dual
monitors, capable of mirrored or extended display with resolutions up to 1920x1080 at 60Hz.
The purpose of this device is to expand the number of monitors that can connect to a PC. The
HDMI adapter extends the video signal across multiple monitors and allows a user to dedicate
screens to online meetings, presentation, spreadsheets, web browsing, and more.
ISSUE:
Whether the subject docking stations and HDMI adapter are classified under heading 8471,
HTSUS or under heading 8517, HTSUS.
LAW AND ANALYSIS:
A decision on classification and the rate and amount of duties chargeable is a protestable
matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on January 16, 2024,
within 180 days of liquidation, pursuant to 19 U.S.C. §1514(c)(3). Further review of the protest
is justified pursuant to 19 C.F.R. §174.24(a) because the protestant alleges that the Center’s
decision in this matter was inconsistent with prior rulings on similar merchandise.
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Classification under the HTSUS is in accordance with the GRIs. GRI 1 provides that the
classification of goods will 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 will then be applied in order.
The 2022 HTSUS headings 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:
*****
8517 Telephone sets, including smartphones and other 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:
Note 6 to Chapter 84 provides the legal provisions for ADP machines, ADP systems,
ADP units and exclusions for classification therein.
To be classified as an ADP unit under heading 8471, HTSUS, an article must meet the
terms of Legal Note 6 (C) to Chapter 84, HTSUS, which provides that:
Subject to paragraphs (D) and (E) below, a unit is to be regarded as being a part of an
automatic data processing system if it meets all the following conditions:
(i) It is of a kind solely or principally used in an automatic data processing system;
(ii) It is connectable to the central processing unit [CPU] either directly or through one
or more other units; and
(iii) 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.
However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy
the conditions of paragraphs (C) (ii) and (C) (iii) above, are in all cases to be classified as
units of heading 8471.
Chapter 84, Note 6 (D) identifies certain units that must be classified in their own
provisions when separately presented. It states, in relevant part:
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Heading 8471 does not cover the following when presented separately, even if they
meet all of the conditions set forth in Note 6 (C) above:
* * *
ii. 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);
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs)
constitute the official interpretation of the HS. While not legally binding on the contracting parties,
and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the
HS and are useful in ascertaining the classification of merchandise. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989).
The EN to heading 8471 provides in relevant part:
(B) SEPARATELY PRESENTED UNITS
Subject to the provisions of Notes 6 (D) and (E) to this Chapter, this heading also
covers separately presented constituent units of automatic data processing systems. These
may be in the form of units having a separate housing or in the form of units not having a
separate housing and designed to be inserted into a machine (e.g., insertion onto the main
board of a central processing unit). 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 following criteria set out in Note 6 (C) to this Chapter:
(i) It is of a kind solely or principally used in an automatic data processing system;
(ii) It is connectable to the central processing unit either directly or through one or
more other units; and
(iii) It is able to accept or deliver data in a form (codes or signals) which can be used
by the system.
(c) Is not excluded by the provisions of Notes 6 (D) and (E) to this Chapter.
* * *
(3) Control and adaptor units such as those to effect interconnection of the central
processing unit to input or output units (e.g., USB hubs). However, control and adaptor
units for communication in a wired or wireless network (such as a local or wide area
network) are excluded (heading 85.17).
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The subject docking stations allow for combined audio, data, power, and video through
one station. The docking stations include two USB 3.0 ports, audio in and out ports, four USB
2.0 ports, display ports, a host port, a power button, and a high-speed Gigabit Ethernet port for
network connection. The various USB ports allow for a laptop to connect to various peripheral
devices including a monitor, hard drive, and speaker. The function of the subject docking
stations is to allow users to connect an ADP machine to multiple display monitors, the Internet,
and several peripherals via a USB cable from the docking station to the ADP machine. The
docking stations enhance the functionality of an ADP machine by providing various downstream
outputs. This function is described under heading 8471, HTSUS, which provides for “units of
ADP machines.” As such, the docking stations are properly classifiable under heading 8471,
HTSUS, based on their function of acting as a unit to an ADP machine.
The requestor argues that the docking stations are classifiable in heading 8517, HTSUS,
as “apparatus for the transmission or reception of voice, images or other data.” We disagree.
Heading 8517, HTSUS, does not describe the docking station’s function. The heading applies to
articles whose function is to act as an “apparatus for the transmission or reception of voice,
images or other data” (emphasis added). Except for the ethernet ports, none of the downstream
outputs of the docking stations are primarily for the transmission or reception of data from one
ADP machine to another. Instead, the docking station’s outputs are for connecting an ADP
machine to monitor displays, hard drives, speakers, and other peripherals.
CBP has considered docking stations that share some similarities with the subject
merchandise. In New York Ruling Letter (NY) N307285, dated November 22, 2019, CBP
reviewed four docking stations from China, each allowing users to connect an ADP machine to
multiple display monitors, the Internet, and several peripherals “through a single USB input
connection.” 2 For example, one of the models in that decision “[was] described as a plastic
enclosure having two HDMI ports, two DisplayPorts, audio lines in/out, one RJ45 Ethernet Port,
six USB 3.0 Ports, and a single USB-C port.” That decision held that the docking stations were
properly classified under heading 8471, HTSUS, specifically as control or adapter units of ADP
machines.
Just like the merchandise discussed in NY N307285, the function of the subject docking
stations is to allow users to connect an ADP machine to multiple display monitors, the Internet,
and several peripherals via a USB cable from the docking station to the ADP machine. Based
on the subject merchandise’s functionality, we find that the docking stations are properly
classified under heading 8471, HTSUS, as units to an ADP machine. Specifically, the docking
stations are classified in subheading 8471.80.10, HTSUS, which provides for “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: Other units of automatic data processing machines: Control or adapter
units.”
In support of its argument that the docking station is classified in heading 8517, HTSUS,
the requestor relies on Headquarters Ruling (HQ) H258764, dated April 20, 2015, that classified
docking stations for patient monitoring devices in subheading 8517.62, HTSUS. HQ H258764 is
2
NY N307285 (Nov. 22, 2019).
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distinguishable from the instant case. The docking stations in HQ H258764 did not connect to
an ADP machine. Moreover, the docking stations in HQ H258764 are a different product than
the docking stations at issue and have no nexus with the classification of control/adapter units of
ADP. EN 84.71(B)(3). Therefore, HQ H258764 is inapplicable.
The requestor also contends that the HDMI adapter is classified in heading 8517,
HTSUS. We disagree. The subject merchandise is a USB to HDMI adapter that enables a
computer to connect to dual monitors. It allows for the execution of mirrored or extended
display with resolutions up to 1920x1080 at 60Hz. The purpose of the HDMI adapter is to
expand the number of monitors that can connect to a PC. The HDMI adapter extends the video
signal across multiple monitors and allows a user to dedicate screens to online meetings,
presentation, spreadsheets, web browsing, and more. The main function of the HDMI adapter is
to allow additional peripheral device (monitors) the ability to connect to a PC. Therefore, the
HDMI adapter is classifiable in heading 8471, HTSUS. Our decision is consistent with NY
N292574 dated December 21, 2017 (classifying various display HDMI adapters in subheading
8471.80.10, HTSUS).
In support that the USB to HDMI adapter is classified in heading 8517, HTSUS, the
requestor relies on NY Ruling N289786, dated September 27, 2017. In NY N289786, CBP
classified transmission adapters in heading 8517, HTSUS, because they were specifically
dedicated to transmitting video signals and were not acting as a hub or interconnection point for
an ADP machine. Therefore, NY N289786 is dissimilar from the subject HDMI adapter.
HOLDING:
By application of GRIs 1 and 6, the subject docking stations and HDMI adapter are
classified under heading 8471, HTSUS, specifically subheading 8471.80.10, HTSUS, which
provides for, “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: Other units of automatic data
processing machines: Control or adapter units.” The general, column one rate of duty is free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China
classified under subheading 8471.80.10, HTSUS, unless specifically excluded, are subject to an
additional 25 percent ad valorem rate of duty. As such, the subject merchandise is properly
classified under the relevant Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading
8471.80.10, HTSUS, listed above.
Duty rates are provided for your convenience and are subject to change. The text of the
most recent HTSUS and the accompanying duty rates are provided on World Wide Web at
https://hts.usitc.gov/current.
You are instructed to DENY the Protest with respect to the docking stations and HDMI
adapter.
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You are instructed to notify the Protestant of this decision no later than 60 days from the
date of this decision. Any reliquidation of the entry or entries in accordance with the decision
must be accomplished prior to this notification. Sixty days from the date of the decision, the
Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and
the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or
other methods of public distribution.
Sincerely,
for Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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