CLA-2-84:OT:RR:NC:1:120
Ms. Maureen Ford
Toys R Us, Inc.
One Geoffrey Way
Wayne, New Jersey 07470-2030
RE: The tariff classification of the USB Funkey set and Funkey figurines from China
Dear Ms. Ford:
In your letter dated May 18, 2009 you requested a tariff classification ruling.
The merchandise under consideration is a Funkey starter set, item number 84855. The starter set includes a USB hub with USB cable, 2 Funkey character figurines, an installation CD-ROM and manual, packaged together and put up for retail sale. The submitted sample is retained by this office.
The USB hub is a USB interface unit with an integrated multi-meter, shaped as a character figurine. It is made of plastic and measures approximately 4 ¾” high x 3” wide. The front and back clamshells encase a printed circuit board with USB capability that is attached to a USB cable.
The Funkeys are similarly shaped plastic figurines that measure approximately 2 ¾” high x 1 ¼” wide. Each figurine has four resistors located on its base. The Funkey is placed on its base in an insert on the back of the USB interface unit, and the resistor values are read by the integrated multi-meter. The USB interface functions by accepting analog voltage data from the Funkey resistors. Then, utilizing an analog/digital converter board, the interface converts the analog voltage signals to the digital signals which can then be processed by an ADP machine. The values of the four resistors are passed through the USB interface connection to the PC Funkeys program installed on the computer, in order to initiate a specific game.
The ENs, which provide for "Separately Presented Units" of ADP machines include: (5) Signal Converting Units. At input, these enable an external signal to be understood by the machine, while at output, they convert the output signals that result from the processing carried out by the machine into signals which can be used externally.
Clearly, the interfaces are signal converting units for input, which enable an external signal to be understood by an ADP machine. Therefore, it is Customs position that the interfaces are, in fact, "signal converting unit(s)" and are thus properly classifiable under subheading 8471.80.1000, HTSUS, which provides for: "Automatic data processing machines and units thereof: Other: Other: Other: Other."
The USB interface unit with which these Funkeys are used would meet the definition of a "unit" of an ADP system as per Legal Note 5 (B) to Chapter 84 of the HTSUS. Noting Legal Note 2 (b) to Section 16 of the HTSUS, these Funkeys would thus be classifiable as parts, since they are solely used with the USB interface unit, and are instrumental to its function.
When shipped packaged together and put up in sets for retail sale, the USB interface unit, 2 Funkey figurines, the installation CD-ROM and manual meet the definition of a set. In accordance with GRI 3 (b), goods put up in sets for retail sale, which cannot be classified by reference GRI 3 (a), shall be classified as if they consisted of the material or component that gives them their essential character. It is the opinion of this office that the USB interface imparts the essential character of this particular set.
The applicable subheading for the Funkeys set will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Automatic data processing machines and units thereof…Other units of automatic data processing machines: Control or adapter units." The rate of duty will be free.
When imported separately, the applicable subheading for the Funkey figurine will be 8473.30.5100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other." The rate of duty will be free.
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 http://www.usitc.gov/tata/hts/.
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 Denise Faingar at (646) 733-3010.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division