The tariff classification of Network Computers from Taiwan

NY C84859 February 27, 1998 CLA-2-84:RR:NC:1:110 C84859 CATEGORY: Classification TARIFF NO.: 8471.30.0000 Mr. Edward L. Rubinoff, P.C. Akin, Gump, Strauss, Hauer & Field, L.L.P 1333 New Hampshire Avenue, N.W. Suite 400 Washington, D.C. 20036 RE: The tariff classification of Network Computers from Taiwan Dear Mr. Rubinoff: In your letter dated February 20, 1998, on behalf of Uniden Financial, Inc., you requested a tariff classification ruling. The merchandise under consideration involves three models of network computers and two models of set top boxes. All five of these units contain a central processing unit, but no hard drive or large amount of memory, and downloads necessary software from a server to perform the functions desired by the user. These products provide an alternative to expensive and complex networked personal computers. All of the models are small and lightweight (less than 10kg) and include a complete motherboard with CPU chip. All models use the NCI-NCOS operating system and a parallel interface. Models NC-300, NC-500 and NC-700 are all basically network computers, that have their input, output, and processor units in a common housing. They all include a standard 8MB RAM, DIMM 1 slot, VRAM 1 MB, and 512 KB Boot ROM. They also have 44khz, 16-bit audio capability, and a PCMCIA-type 2x1 smart card x1 expansion slot. The NC-300 also includes a telephone that is mounted on the network computer, in addition to its CPU, keyboard, an SVGA 800 x 600 color STN LCD 11.3" display, a glide pointer, and attached cordless telephone with speaker phone. Model NC-500 includes the CPU, an SVGA 800 x 600 color STN LCD 11.3" display, keyboard and glide pointer. The NC-500 weighs 4.2 pounds, has a 10 Base T Ethernet. The NC-700 contains all of the same specifications as the NC-500, but also has a Uniden wireless network interface specification to eliminate the need for wiring between the NC-700 and the server. All three of these models are portable devices, incorporate a keyboard, display unit, and a central processing unit, and resemble a notebook computer. Noting Legal Note 5 (A) to Chapter 84 of the HTS, these three models of network computers would meet the definition of a digital processing machine, and have the essential character of an automatic data processing machine. The applicable subheading for the model NC-300, NC-500, and NC-700 network computers will be 8471.30.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for portable digital automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display. The rate of duty will be 1.4 percent ad valorem. The classification of the two models of set top boxes (NC-100 and NC-1000) cannot be furnished at this time, since we require additional information on these 2 models. Please provide specific details as to the internal components of these units, and how they will be principally used by the consumer. Do these units incorporate a modem for gaining access to the Internet or for interactive information exchange? When this information is available, you may wish to consider resubmission of your request. 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 Art Brodbeck at 212-466-5490. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division