CLA-2-84:OT:RR:NC:N2:220
Katie de Koning
SMART Technologies ULC
600, 214 - 11 Ave SW
Calgary
Canada
RE: The tariff classification of interactive flat panel displays from China
Dear Ms. de Koning:
In your letter dated February 4, 2025, you requested a tariff classification ruling.
The merchandise under consideration is identified as the IFP7552, which is described as an interactive flat panel display for computer systems having a LCD display, an Ultra-Fine Touch (UFT) touch overlay, and multiple connectivity interfaces, such as VGA, DisplayPort, HDMI, USB-A, USB-C, and an open pluggable specification (OPS) slot. Additionally, the subject display incorporates 4G of internal memory, 32G storage, an ARM Cortex processor, and Ethernet connectivity. In your letter, you explain that this interactive display comes in four variations that are distinguished by size, but you only identify one model number. As a result, this ruling is applicable for the IFP7552 interactive flat panel display only.
The subject interactive display is equipped with front facing speakers/microphone and is intended for users to connect an automatic data processing (ADP) machine, such as a personal computer or a laptop, for use in classrooms. While the device does have an OPS slot, you state that this unit does not include the OPS computing module at the time of entry and users are able to configure the devices post-importation. At the time of importation, the IFP7552 interactive display is shipped with a stylus pen, eraser, cables, and remote control.
The General Rules of Interpretation (GRIs) to the Harmonized Tariff Schedule of the United States (HTSUS) govern the classification of goods in the tariff schedule. GRI-1 states, in pertinent part, that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." And the Explanatory Notes (ENs) facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
The ENs 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 subject interactive flat panel display consists of two or more different articles that are, prima facie, classifiable in different headings. The set also consists of articles put up together to carry out a specific activity. Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the interactive flat panel display 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. In our view, the article that provides the essential character of the interactive flat panel display set is the touchscreen display monitor.
As stated in your submission, the subject interactive flat panel display is designed to connect directly to an ADP machine for the purpose of performing input and output functions in an ADP system. The ENs describe an ADP system as consisting of a central processing unit, an input unit, and an output unit and states that an input unit and output unit can be combined into one single unit within the system.
We would note that to be classified in heading 8471, the merchandise must meet the terms of a unit of an ADP system as specified in Legal Note 6 (C) of Chapter 84, HTSUS. In this regard, Note 6 (C) to Chapter 84 defines the term “data processing units” for purposes of heading 8471 as follows:
(i) It is of a kind solely or principally used in an automatic data processing system;
(ii) It is connectable to the central processing unit either directly or through one or more other units; and
(iii) It is able to accept or deliver data in a form (codes or signals) that can be used by the system.
Further to meeting the conditions of Note 6 (C), the unit must not be excluded from any of the conditions provided for in Note 6 (D) and Note 6 (E) of Chapter 84, HTSUS. While monitors and projectors are excluded from classification in heading 8471, the subject interactive flat panel display is not merely a display monitor, but instead meets the conditions set forth in the legal notes for ADP systems by comprising two of the three components within the system, namely the input and the output functional component. As the UFT touchscreen and the LED panel are permanently combined into a single unit, and the display unit is principally used within an ADP system for the purpose of performing a data processing function, the interactive flat panel display will be classified in accordance with GRI-1 as a combined input output unit for ADP.
The applicable subheading for the interactive flat panel display identified as IFP7552 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.
Effective February 4, 2025, in accordance with the President’s Executive Order “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China,” all products of China and Hong Kong as provided by heading 9903.01.20 in Section XXII, Chapter 99, Subchapter III, U.S. Note 2(s), HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.20, in addition to subheading 8471.60.1050, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8471.60.1050, 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 8471.60.1050, 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 United States Trade Representative 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