CLA-2-84:OT:RR:NC:N2:220
MEMORANDUM FOR: Director, Commercial & Trade Facilitation Division
Regulations & Rulings
Headquarters, Customs & Border Protection
FROM: Chief, Branch 2
National Commodity Specialist Division
SUBJECT: Request for Reconsideration of NY N304480
REFERENCE: Headquarters File Number N/A
We have reviewed the attached reconsideration request, filed by Viewsonic Corporation, pertaining to the classification of the ViewSonic VPC15-WP. In NY Ruling N304480, CBP determined that the VPC15-WP was classified under subheading is 8471.50.0150, Harmonized Tariff Schedule of the United States (HTSUS). ViewSonic now states that insufficient information was provided at the time of the initial request and is appealing for CBP to reconsider N304480 by classifying the VPC15-WP as a part/accessory under subheading 8473.30.5100, HTSUS.
In NY N304480, CBP described the ViewSonic Slot-In PC Module VPC15-WP as a personal computer (PC) that is intended to be permanently mounted to a specific group of ViewSonic interactive display monitors. The VPC15-WP consists of an enclosure having a motherboard, an Intel i5 processor, 8 GB memory, 128 GB solid state storage drive[1], Ethernet and Wi-Fi connectivity, and various interconnections such as USB, HDMI, audio input/output, and RGB out. At the time of importation, the VPC15-WP has Windows 10 operating system preinstalled and has no hardware or software limitations that would prevent users from adding or removing software of their choosing. After installation into a corresponding display monitor, users are able to perform general computing tasks, accept the connection of various peripherals, browse online content, and more.
In their initial letter, ViewSonic requested that CBP issue a classification of the VPC15-WP under subheading 8473.30.5100, HTSUS, because it was designed and marketed in such a way that is dedicated irrevocably for use with the interactive display to which it is mounted. We disagreed with the suggested classification because VPC15-WP was determined to be a fully functional automatic data processing (ADP) machine that satisfies all of the prerequisite requirements of Chapter 84 Note 5 (A), HTSUS. Specifically, users are free to use the device for general-purpose computing tasks and are not prevented from adding or removing an application or performing a data processing function of their choosing. CBP reiterated that device may be dedicated for use with a certain type of output unit (monitor) but it was not limited in its ability to meet the computing needs of the user. Thus, CBP distinguished the ViewSonic VPC15-WP as not merely a dedicated accessory to the interactive display monitor it is mounted to, but instead it is the actual ADP machine that users interact with and use to conduct general purpose computing tasks.
In this reconsideration appeal, ViewSonic requests again that CBP issue a determination that the VPC15-WP is correctly classified under subheading is 8473.30.5100, HTSUS, for the reasons stated below:
. "Users cannot use VPC15-WP as a standalone item because it doesn't have its own power source. [The ViewSonic touchscreen monitor][2] provides VPC15-WP's power through the unique connector between the two products.
Please refer to attachment "Pin Configuration" for VPC15-WP's layout of the connector pin configuration. Because the connector's pin configuration is unique only to [ViewSonic touchscreen monitors], users cannot purchase another slot-in PC from a different manufacturer that will perfectly fit and correspond pin for pin. As such, the VPC15-WP is dedicated irrevocably for use with [ViewSonic touchscreen monitors]." And,
. "United States v. Pompeo, 43 C.C.P.A. 9, 1955 WL 6859 sets a precedent to our claim. In the said appeal it was concluded that an imported item that is dedicated solely for use with another article is a "part" of that article within the meaning of the HTSUS. We believe similar argument can be made for our appeal. Because VPC15-WP is undisputedly designed, marketed, and sold to be attached to [ViewSonic touchscreen monitors], and serves no function or purpose that is independent of [ViewSonic touchscreen monitors]we believe that VPC15-WP is considered to be an accessory of [ViewSonic touchscreen monitors]."
In response to the reconsideration arguments, we would initially note that ViewSonic does not provide any additional information other than what is contained within their request letter and what was supplied previously as an attachment in N304480. Nonetheless, we propose that the VPC15-WP is classified correctly under subheading 8471.50.0150, HTSUS, and NY N304480 should be affirmed for the following reasons:
. The VPC15-WP is marketed and sold as a fully functional PC. Its principal use is to perform general computing tasks in business meetings and educational environments to include meeting room collaboration, on-screen data manipulation (where a touchscreen display is used), etc.
. The VPC15-WP fulfills the strict prerequisites for ADP machines by satisfying all requirements set out in Note 5 (A) to Chapter 84, which are summarized as:
o Storing the processing program or programs required for execution;
o Being freely programmable in accordance with the requirements of the user;
o Performing arithmetical computations specified by the user; and
o Executing, without human intervention, the processing program.
. The VPC15-WP is not subject to Note 5 (E) to Chapter 84, which excludes machines incorporating or working in conjunction with an ADP machine but performing a specific function that is not data processing, because the very nature of the VPC15-WP is to perform data processing functions.[3] The VPC15-WP has no other purpose than to provide users with the ability to display, manipulate, and interact with installed applications through the output of the display monitor.
. The VPC15-WP must be connected directly to an output unit for use with ADP machines in order to function. As ViewSonic has presented, the VPC15-WP can only be used with a display monitor having an appropriate type of slot-in connector to which it is inserted. However, the tariff has no provision for excluding ADP machines that receive their power from, or are dedicated for use with, any specific type of output unit.
. Previously, and directly related to the instant issue, CBP reviewed the "CleverTouch" (N280009 dated October 2016) and the "CleverTouch V Series, CleverTouch Pro Series, CleverTouch Plus Series, and CleverTouch LUX Plus Series" (N300326 dated September 2018)[4] and determined that:
o When the touchscreen display monitor was imported with the ADP machine[5] attached, CBP classified the entire composite machine under subheading 8471.41.0150, HTSUS. In each scenario, when the machine included the "Android Module/Android OS Module/Windows PC Module", it was classified as an ADP machine.
o When the touchscreen display monitor was imported without the ADP machine attached, CBP classified the monitor as a combined input/output unit under subheading 8471.60.1050, HTSUS, even after considering the functionality of the on-board processing capabilities of the monitor.
o In NY N280009, the attorney representing Sahara Presentation Systems, PLLC, asserted that CBP must conclude that the capacitive touchscreen display monitor is properly classified as an ADP machine because at the time of importation, the fully functioning PC was mounted to the touchscreen display. Counsel provided a surplus of examples where the PC, as attached to its monitor, substantiated the capabilities of a fully capable ADP machine. CBP found that the PC installed onto the rear of the touchscreen display monitor satisfied the ADP requirements of Note 5 (A) to Chapter 84 and classified the machine accordingly.
. The VPC15-WP is not a part of the monitor. The courts have considered the nature of parts under the HTSUS and two distinct, though not inconsistent, tests have resulted. (See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, ("Bauerhin") 110 F.3d 774.
o The first, articulated in United States v. Willoughby Camera Stores, ("Willoughby Camera") 21 C.C.P.A. 322 (1933) requires a determination of whether the imported item is "an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article." Bauerhin, 110 F.3d at 778 (quoting Willoughby Camera, 21 C.C.P.A. 322 at 324).
o The second is set forth in United States v. Pompeo, ("Pompeo") 43 C.C.P.A. 9 (1955), where it states that "an imported item dedicated solely for use with another article is a 'part' of that article within the meaning of the HTSUS." Id. at 779 (citing Pompeo, 43 C.C.P.A. 9 at 13).
o However, "under either line of cases, an imported item is not a part if it is "a separate and distinct commercial entity." Bauerhin, 110 F. 3d at 779, (emphasis added for this reconsideration request). This aligns with Additional U.S. Rules of Interpretation 1(c) where it states "a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for "parts" or "parts and accessories" shall not prevail over a specific provision sur such part or accessory."
. The VPC15-WP is not subject to Note 2 to Section 16 because it is not a part of the touchscreen monitor. The IFP5550 monitor does not require a "Computing Module" (PC or Chromebox) in order to function. In fact, this 55" touchscreen display monitor is equipped with an on-board quad-core processor, 16GB onboard storage and running on Android OS. The IFP5550 comes with embedded software that allows multiple users to write or draw with their fingers and styluses and can be connected to a host ADP machine via HDMI, USB, and VGA by functioning as a combined input/output unit. The attached datasheet even provides for two power consumption scenarios, one with the slot-in PC and one without.
In summary, this office is of the opinion that NY N304480 classified the VPC15-WP correctly as an ADP machine. Because ADP machines are provided for eo nomine in heading 8471, and it is clearly a separate and distinct commercial entity, we are compelled by GRI-1 to classify the VPC15-WP accordingly.
As a side issue, this office is aware of a pending issue (N295039 and N289321) before HQ-ORR concerning the classification of certain video monitors. The specific issue is whether these monitors can be considered televisions even in the absence of the tuner because of the embedded Android OS that is preinstalled. To the best of our knowledge, the televisions that are currently under consideration in your office do not incorporate the touchscreen overlay. In our view, the touch function is fundamentally an input function. Furthermore, a device having both the output and input functions directly satisfies the combined input/output requirements of subheading 8471.60.1050, HTSUS. This office has issued numerous rulings[6] for display monitors/smart TVs under this tariff provision when the device is determined to be connectable to an ADP machine.
If you have any further questions regarding this matter, please contact National Import Specialist Karl Moosbrugger at [email protected]. Please send a copy of your reply to this office.
______________ __________
James Forkan Date
Attachment A - VPC15 Marketing Webpage
Attachment B - ViewSonic Datasheet IFP5550
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Attachment C - CleverTouch Rulings
N280009
October 31, 2016
CLA-2-84:OT:RR:NC:N4:120
Elyssa Emsellem
Neville Peterson LLP
One Exchange Plaza
55 Broadway, Suite 2602
New York, NY 10006
RE: The tariff classification of the CleverTouch Plus from China
Dear Ms. Emsellem:
In your letter dated August 30, 2016 you requested a tariff classification ruling.
The merchandise under consideration, which is referred to as the CleverTouch Plus monitor, is described as a flat panel display having an incorporated automatic data processing (ADP) machine, a LED display with capacitive touchscreen, and connection ports for attaching various types of external devices. The CleverTouch Plus is intended to be used in a classroom or business setting as an interactive whiteboard either in a standalone configuration or in conjunction with a separate ADP machine. For the purposes of this ruling, we are considering the CleverTouch Plus monitor as a single, standalone unit.
The CleverTouch Plus LED screen is equipped with a capacitive touch overlay that allows users to manipulate display data, type and input data, and control the functions of the installed applications. There are numerous input and output connection ports to include USB, HDMI, VGA, RS232, and RJ45 that are accessible on the side and front of the unit. The CleverTouch Plus comes in varying LED screen sizes ranging from 42" to 84".
As previously noted, incorporated into the CleverTouch Plus is a fully functioning ADP machine that you refer to as a personal computer (PC). The CleverTouch Plus PC is mounted on the rear of the monitor and is equipped as follows: an Android OS; a dual core ARM processor; a quad core graphics processor; 1.5G of memory; 8.0G of storage; and both wired and Wi-Fi controllers. In a standalone configuration, the integrated CleverTouch PC processes applications compatible with the Android operating system (OS), joins wired or wireless networks, accesses and manipulates folders and files, and performs general computing tasks such as Internet browsing, email, and editing office documents. You state that the CleverTouch Plus is capable of operating a wide range of software programs and that there are no artificial limitations imposed on the user.
The CleverTouch Plus is stated to meet all the following conditions of Legal Note 5(A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS): it stores the processing program (Android OS), programs compatible with the installed OS, and the data necessary for the execution of those programs; it is freely programmable since the user may add or remove programs when necessary, and the user may also write new programs on the PC; it performs computations as specified by the user; and its processing program is executed by logical decisions without human intervention.
In your request you suggest the CleverTouch Plus is properly classified as an ADP machine under 8471.41.0150, HTSUS, where the LED screen satisfies the requirement for an output and the touchscreen satisfies the requirement for the input. We agree.
The applicable subheading for the CleverTouch flat panel display 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 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
N300326
September 11, 2018
CLA-2-84:OT:RR:NC:N2:220
Michael Mattson
SBS - Superior Brokerage Services, Inc.
1700 Wynne Ave.
St. Paul, MN 55108
RE: The tariff classification of the Clevertouch Series monitors from China
Dear Mr. Mattson:
In your letter dated August 29, 2018 you requested a tariff classification ruling on behalf of your client, Sahara Presentation Systems, Inc.
The merchandise under consideration is referred to as Clevertouch V Series, Clevertouch Pro Series, Clevertouch Plus Series, and Clevertouch LUX Plus Series. These devices, hereafter referred together as the Clevertouch, are designed to be used in classroom or business settings as an interactive whiteboard either in a standalone configuration or in conjunction with the consumer's existing automatic data processing (ADP) machine. The Clevertouch comes in varying LED screen sizes ranging from 55" to 86".
Each of the Clevertouch LED touch screens are equipped with a capacitive touch overlay that allow users to manipulate display data, type, and input/manipulate data as well as control the functions of the installed applications. There are numerous input and output connection ports to include USB, HDMI, VGA, RS232, and RJ45 that are accessible on the side and front of the unit. Mounted onto the back of the Clevertouch units is an Android OS module. The Clevertouch processes applications compatible with the Android operating system (OS), joins wired or wireless networks, accesses and manipulates folders and files, and performs general computing tasks such as Internet browsing, email, and editing office documents. When imported with the Android OS module the Clevertouch is viewed as a fully functioning ADP machine.
The Clevertouch panels also feature a slot on the rear of the unit which allows for the addition of a separate Windows PC module. These PC modules are usually shipped with the panel or could be purchased as an add-on to an existing panel. You are requesting a classification ruling on Clevertouch monitors imported both with the Android OS Module or Windows PC module, and Clevertouch monitors imported without these modules.
We would note that the classification of the Clevertouch Plus with PC module was previously addressed in NY N28009, dated October 31, 2016, where we determined that the monitor with its attached ADP machine was classifiable in 8471.41.0150, Harmonized Tariff Schedule of the United States (HTSUS), which provides for an ADP machine having a central processing unit and an input and output unit combined in the same housing.
In your request you suggest when the Clevertouch LED touch screen monitors are imported without the Android OS Module or the Windows PC module the correct classification is under 8528.52.0000, HTSUS, as monitors, not incorporating television reception apparatus, and being capable of directly connecting to and designed for use with an ADP machine of heading 8471. However, in their entirety, these touchscreen monitors are more specifically classified elsewhere in the tariff and heading 8528 is not appropriate.
The applicable subheading for the Clevertouch V Series, Clevertouch Pro Series, Clevertouch Plus Series, and Clevertouch LUX Plus Series imported with the Android OS Module or Windows PC module 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.
The applicable subheading for the Clevertouch V Series, Clevertouch Pro Series, Clevertouch Plus Series, and Clevertouch LUX Plus Series imported without the Android OS Module or Windows PC module will be 8471.60.1050, HTSUS, which provides for "Automatic data processing machines and units thereof; Input or output units, whether or not containing storage units in the same housing: Combined input/output units: 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 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
-----------------------
[1] In the initial review, the VPC15-WP was stated to have 128 GB storage; however, subsequent research indicates ViewSonic has updated the storage capacity to 256 GB. See: Attachment A - VPC15-WP Marketing Webpage (https://www.viewsonic.com/us/vpc15-wp-4.html#specs) for additional information.
[2] As noted in their request letter, ViewSonic provided a single model number of a touchscreen display that represents five or more additional models. As we are unaware of a specific ruling issued by CBP that reviewed the facts and features of either of the stated models, we have adjusted the bracketed text in quoting ViewSonic. For specific details for the IFP5550, please see Attachment B - ViewSonic Datasheet IFP5550
[3] The term "data processing function" is not defined in the Nomenclature. However, in HQ 952862, CBP considered the Texlogix data collector and provided insight when considering ADP machines, the common terminology of personal computers, and typical applications and uses for ADP machines.
[4] See Attachment C - CleverTouch Rulings
[5] Via this reconsideration request, ViewSonic has implied that they are the manufacturer of the Android Modules considered in N300326 and the CleverTouch Plus PC considered in N280009.
[6] NY N303443, NY N303186, NY N302513, NY N302514, NY N300582, NY N300326, NY N285600, NY N283563, NY N283564, NY N283576, NY N283580