CLA-2-84:OT:RR:NC:N2:220
Tony Hsieh
Shuttle Computer Group
17068 evergreen place
City of Industry, CA 91745
RE: The tariff classification of an incomplete automatic data processing (ADP) machine from China
Dear Mr. Hsieh:
In your letter dated February 5, 2019 you requested a tariff classification ruling.
The merchandise under consideration is identified as the All-In-One Personal Computer (PC) Model DH9BW01. The PC is described as a single housing containing a motherboard, a 19.5” LED display with touchscreen, built-in speakers, Wi-Fi, numerous ports, a webcam, and a lithium ion battery. Based on the information provided, we would note that upon importation, the motherboard is said to have its processor (Celeron N3060), BIOS, and 8Mb of L3 cache.
In your request you state that the PC will be imported without its memory boards and hard drive, and you state that there are no software or hardware limitations imposed upon the user that would inhibit their programming the machine with the application of their choosing once the user adds them.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. GRI 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Incomplete ADP machines with their processors, BIOS, and cache memory have been consistently deemed to possess the essential character of an ADP machine. As such, we find that the subject motherboard, containing a CPU chip, BIOS ROM, and cache memory, meets the criteria of Legal Note 5(A) to Chapter 84, HTSUS. The presence of the cache gives the capability of storing the processing program or programs and at least the data immediately necessary for execution of a program. Therefore, we find that the subject merchandise is classifiable as an unfinished ADP machine under heading 8471, HTSUS.
The applicable subheading for the All-In-One Personal Computer (PC) Model DH9BW01 will be 8471.41.0150, HTSUS, which provides for “Automatic data processing machines and units thereof; …: Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other”. The general 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 the 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