CLA-2-84:OT:RR:NC:N2:220
Ana Gomez
Office Depot, LLC
6600 North Military Trail
Boca Raton, FL 33496
RE: The tariff classification of the Intelligent Pen Set from China
Dear Ms. Gomez:
In your letter dated March 24, 2022, you requested a tariff classification ruling.
The merchandise under consideration is identified as the Intelligent Pen Set, Item Number CGK015E, which is described as a retail package containing the Intelligent Pen, a paper notebook, an ink refill cartridge, a charging adapter, and a USB cable. The Intelligent Pen is comprised of printed circuit board assemblies (PCBAs), a lens, an ink pen cartridge, a battery, and a housing/cap. Incorporated into the PCBAs are a pressure sensor, a Bluetooth module, and a high-speed camera. The notebook is comprised of 99 pages of paper, each having a specialized arrangement of dots that the pen uses to capture the handwritten notes of the user. The Intelligent Pen stores the handwritten information for transfer to other devices, such as a personal computer or a mobile phone.
The Intelligent Pen is said to digitally capture and store data as a user writes on the specialized dot matrix paper. While the Intelligent Pen contains an ink cartridge and functions as an ordinary writing instrument, in our view, the instant pen is nearly identical to the Digital Pen classified in NY J89440 and would be considered an input unit for an automatic data processing (ADP) machine.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3.
GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3. GRI 3(b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character
The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without re-packing. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
The Intelligent Pen Set consists of two or more articles that are, prima facie, classifiable in different headings. The Intelligent Pen Set also consists of articles put up together to carry out a specific activity (i.e., capturing of handwriting, converting the script into usable data, and inputting the data into an automatic data processing system). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the set in question is described within the meaning of "goods put up in sets for retail sale".
In accordance with GRI 3(b), which states in part that goods put up in sets for retail sale that cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component which gives them their essential character, it is the opinion of this office that the Intelligent Pen is the article which imparts the Intelligent Pen Set with its essential character.
The applicable subheading for the Intelligent Pen Set will be 8471.60.9050, 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: Other: Other: 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 8471.60.9050, 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 8471.60.9050, 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