CLA-2-84:OT:RR:NC:N2:220
Eileen Family
GEODIS
5101 South Broad Street
Philadelphia, PA 19112
RE: The tariff classification of the Chromebox 3 from China
Dear Ms. Family:
In your letter dated October 3, 2018 you requested a tariff classification ruling on behalf of your client, ASUS Computer International.
The merchandise under consideration is identified as the Asus Chromebox 3, (Chromebox 3), which is described as a small form factor mini personal computer (PC) consisting of an Intel processor, up to 16 GB of memory, up to 32 GB of storage, numerous USB sockets, HDMI output, wireless 802.11ac and Bluetooth data connectivity, and an RJ45 LAN port. The Chromebox 3 measures approximately 15 cm in width by 15 cm in depth by 4 cm in height and comes pre-installed with the Chrome operating system.
In use, the Chromebox 3 is stated to function as a standard PC to perform basic data processing functions. In this regard, this office first considered classification in heading 8471 as an automatic data processing (ADP) machine noting that for goods to be considered an ADP machine, it must satisfy all the requirements set forth in Chapter 84 Note 5 (A), Harmonized Tariff Schedule of the United States (HTSUS), which requires the machine is 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.
Based on the technical specifications provided, in its imported form, the Chromebox 3 is a fully functional ADP machine that has no limitations on its ability to be programmed. Users are granted the freedom to add or remove software applications and the machine is fully capable of performing an abundance of general purpose computing functions. Therefore, we are of the opinion that the requirements of Note 5 (A) are satisfied and the Chromebox 3 is identified as an ADP machine as described in the nomenclature.
The applicable subheading for the Asus Chromebox 3 will be 8471.50.0150, 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: Other”. The general rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8471.50.0150, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8471.50.0150, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division