CLA-2-84:OT:RR:NC:N2:220
Chris Constantine
Voxx International
180 Marcus Blvd
Hauppauge, NY 11788
RE: The tariff classification of a single board computer from China
Dear Mr. Constantine:
In your letter dated November 9, 2022, you requested a tariff classification ruling.
The merchandise under consideration is referred to as the VIM-3, SKU # KVIM3-B-002, which is described as a small form factor single board personal computer (PC). The VIM-3 consists of a printed circuit board assembly having an Amlogic quad-core processor, 2 GB memory, 16 GB EMMC storage, micro SD slot, 4 USB ports, an HDMI port, a gigabit LAN port, a Wi-Fi antenna connection, and more. Based on the information provided, the VIM-3 is capable of using multiple types of operating systems and has numerous applications available to download onto the device, enabling users to perform a variety of computing tasks.
In use, the VIM-3 works as a miniature PC and allows the user to perform various data processing and other specialized functions. The marketing material provided on the referenced website in your letter describes a device that is used in digital signage, neural processing, robotics, a nano-server, cryptocurrency mining, and more. However, while the VIM-3 is an open source device with modest computing power to perform tasks based solely on the needs of the user, including those for specialized functions, the core function of the VIM-3 is basic computing. This is demonstrated by its ability to accept, change, or have applications and/or operating systems removed at the user’s choosing. There are no hardware or software blocks preventing the downloading and executing of installed programs or off-the-shelf software applications, or gaining internet access, or performing data processing tasks, which are all typical features of automatic data processing (ADP) machines. Based on the foregoing, the VIM-3 is a freely programmable PC that satisfies the criteria set forth by Note 6 (A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS) as:
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.
As such, the applicable subheading for the VIM-3, SKU # KVIM3-B-002 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8471.50.0150, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8471.50.0150, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
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 the World Wide Web at https://hts.usitc.gov/current.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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