The tariff classification of Stylus Pen Tablet Computers with andwithout stylus pen from Japan.

NY D80532 July 30, 1998 CLA-2-84:RR:NC:1:110 D80532 CATEGORY: Classification TARIFF NO.: 8471.50.0085; 8471.41.0095 Ms. Susan Gleason Fujitsu America, Inc. 3055 Orchard Drive San Jose, CA 95134-2022 RE: The tariff classification of Stylus Pen Tablet Computers with and without stylus pen from Japan. Dear Ms. Gleason: In your letter dated July 21, 1998, you requested a tariff classification ruling. The merchandise under consideration involves Fujitsu Stylus Pen Tablet Computers which will be imported under two different configurations: 1- without pen, storage unit, power supply and operating system, and 2- with pen and without storage unit and operating systems. The primary function of the pen computer is to offer users the ability to enter data and navigate even while standing or walking through the use of a special pen "without" a keyboard. In the first configuration the computer will contain the following components: a LCD display, digitizer (which is an electromagnetic or resistive digitizer), and the main logic board (motherboard) with a central processing unit (CPU). The digitizer will be located below the LCD display. It recognizes the input from the pen, control and convert its input signal into a digital form so that the computer can function as a data processor. The pen computer is imported assembled, but is not functional due to the missing pen stylus, hard disk drive, power supply, operating systems and other software which enables the function of the pen system. After importation, all missing components will be added and installed. The pen will be attached to or placed into the penholder of the computer while the battery is inserted into the slot. The hard disk drive will be installed with a flex cable to complete the electrical connections. Windows Operating System and pen enabling software will then be loaded into the pen computer. A test program will ensure that all connections in the pen computer are accurately done and meet manufacturing specifications. Consideration under 8471.30 would be precluded since this configuration lacks a keyboard. Classification under 8471.41 would also be precluded since this configuration lacks an input unit (pen). In the second configuration the pen computer will contain a LCD display, digitizer (electromagnetic or resistive), main logic board with CPU unit and a pen at the time of importation. It will be imported without the hard disk drive and operating systems. The hard disk drive assembly, software loading process and test programs are as described in the first configuration. Classification under 8471.30 would also be precluded since this configuration lacks a keyboard. However, this configuration would appear to be classified under 8471.41 since it incorporates in the same housing a CPU, input (pen), and output (LCD display). The Fujitsu Stylus Pen Tablet Computers with and without stylus pens appear to incorporate the design characteristics which are similar to the digital processing units used with automatic data processing (ADP) applications. Noting Legal Note 5(B) to Chapter 84 of the Harmonized Tariff Schedule, these Stylus Pen Tablet Computers with and without stylus pen would appear to meet the definition of a "unit" of an automatic data processing (ADP) system. Noting GRI-2(a), they would also have the essential character of a finished digital processing machine. The applicable subheading for the Fujitsu Stylistic Pen Tablet Computers without pen, storage unit, power supply and operating systems will be 8471.50.0085, Harmonized Tariff Schedule of the United States (HTS), which provides for digital processing units other than those of subheading 8471.41 and 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. The rate of duty will be free. The applicable subheading for the Fujitsu Stylistic Pen Tablet Computers with pen and without storage unit and operating systems will be 8471.41.0095, HTS, which provides for other digital 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. The rate of duty will be 1.4 percent ad valorem. 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