CLA-2-84:OT:RR:NC:N2:220
Rachel Romanczukiewicz
Newline Interactive
950 W Bethany Drive
Allen, TX 75013
RE: The tariff classification of Open Specification Slot (OPS) computers from China
Dear Ms. Romanczukiewicz:
In your letter dated December 14, 2021, you requested a tariff classification ruling.
There are three items under consideration, which you refer to as on-board computers, having Part Numbers EPR8A65000-000, EPR8A64000-000, and EPR8A67160-000. As described hereafter, each on-board computer is functionally similar, with the differences being the processor type, amount of memory, amount of storage, etc. We would note that this ruling covers only the OPS on-board computers and not a display monitor or other peripherals.
On-board computer Part Number EPR8A65000-000 consists of an enclosure having an Intel i5 processor, 4 GB of memory, 128 GB solid state storage (SSD), HDMI output, a microphone input, built-in Wi-Fi with antennas, and multiple USB connections. On-board computer Part Number EPR8A64000-000 consists of an enclosure having an Intel i7 processor, 8 GB of memory, 256 GB SSD, HDMI output, a microphone input, built-in Wi-Fi with antennas, and multiple USB connections. On-board computer Part Number EPR8A67160-000 consists of an enclosure having an Intel i7 processor, 16 GB of memory, 256 GB solid SSD, HDMI output, a microphone input, built-in Wi-Fi with antennas, and multiple USB connections. Post-importation, each of the subject OPS computers are able to receive the operating system (OS) of the user’s choice, and your request states that the devices can also receive third-party applications such as general-purpose office applications, games, educational programs, etc.
We would note that for a good to be considered an automatic data processing (ADP) machine, it must satisfy all the requirements set forth by Note 5 (A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS), which requires that the machine is capable of:
storing the processing program 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.
The information submitted describes a fully functional ADP machine that operates without restrictions to the user and can receive the OS and applications of the user’s choosing. The subject OPS computers are equipped with hardware and software that allows them to perform, without artificial constraints, general computing tasks such as email, Internet browsing, word processing, spreadsheets, games, etc. Thus, the requirements of Note 5 (A) are satisfied and the OPS computers will be classified accordingly.
The applicable subheading for the on-board computers, having Part Numbers EPR8A65000-000, EPR8A64000-000, and EPR8A67160-000 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 8471.5.0150, 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.
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