CLA-2-84:OT:RR:NC:N2:220
Nidhin Narayanan
Newark Electronics Corporation
4180 Highlander Parkway
Richfield, OH 44286
RE: The tariff classification of single board computers from China
Dear Mr. Narayanan:
In your letter dated August 21, 2023, you requested a tariff classification ruling.
The three items under consideration are identified as the Beaglebone Black, PN 102110420, the Beaglebone Black Industrial, PN 102110423, and the Beaglebone AI-64, PN 102110646, which are described as single board computers (SBCs), each consisting of a printed circuit board assembly having a processor, memory, storage, USB ports, an HDMI port, an Ethernet port, and serial ports. Based on the materials provided and information from the manufacturer’s website, the SBCs are open-sourced hardware and software computing devices that are used for a number of purposes, such as general computing tasks, educational programming, IoT control and programming, and more. The SBCs are capable of running a number of operating systems, such as Android, Ubuntu, and Debian.
In use, the SBCs function as miniature personal computers (PCs) to perform various data processing and other specialized functions. They can also be connected directly to a separate PC to perform specialized tasks in what is identified as a “tethered” configuration. There are a number of hardware accessories available for use with the SBCs, which are referred to as Capes, such as servo boards, fan boards, robotics and/or motor controllers, and more.
In your request letter, you state that the subject SBCs satisfy all the requirements to be classified as an automatic data processing (ADP) machine. We agree.
The subject SBCs are hardware and software open-source devices with modest computing power to perform tasks based solely on the needs of the user, including specialized functions. However, the core function of the SBCs is basic computing, where users are free to develop and write programs for any number of specialized uses. This is demonstrated by its ability to accept, change, or remove applications and/or operating systems at the user’s discretion. There are no hardware or software blocks preventing the execution of programs or third-party software applications, or gaining internet access, or performing data processing tasks, which are all typical features of ADP machines. See NY N285104 and NY N329254.
Based on the foregoing, the SBCs are considered freely programmable and satisfy 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 Beaglebone Black, PN 102110420, the Beaglebone Black Industrial, PN 102110423, and the Beaglebone AI-64, PN 102110646, 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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