The tariff classification of SpeechMikes from Austria.

N076045 October 8, 2009 CLA-2-84:OT:RR:NC:1:120 CATEGORY: Classification TARIFF NO.: 8471.60.9050 Ms. Barbara Dawley Meeks, Sheppard, Leo & Pillsbury 1735 Post Road Suite 4 Fairfield, CT 06824 RE: The tariff classification of SpeechMikes from Austria. Dear Ms. Dawley: In your letter dated September 15, 2009, you requested a tariff classification ruling on behalf of your client, Philips Electronics North America Corporation. The merchandise under consideration includes the SpeechMike model LFH 5284 and the SpeechMike model LFH 5282. Samples of both models were submitted with your ruling request and will be returned to you. The SpeechMikes are handheld devices comprised of a plastic housing measuring approximately 6 inches long by 1 ¾ inches wide by 1 3/8 inches high at its widest points. On one end of each SpeechMike is an integrated optical bar code scanner; on the other is a permanently attached USB (universal serial bus) cable designed to connect the SpeechMike to a computer through its USB port. The SpeechMikes are designed to receive voice dictation from the user and convert the analog signal into a data signal that can be understood by a freely programmable computer. Software installed on the computer converts the data signals to text so that it can be saved, edited, retrieved, etc. The SpeechMike models 5284 and 5282 are similar in design. Both feature an integrated microphone, a loudspeaker, a trackball mouse with left and right mouse buttons and scroll wheel, as well as four programmable keys that allow for individual customization. They both feature buttons used to control the dictation software installed on the computer. Additionally, the model 5284 SpeechMike includes record, play/stop, and fast rewind buttons, while the model 5282 adds an instruction button, and incorporates a 4-position slide switch that controls record, stop, play, and fast forward functions. The trackball, scroll wheel, buttons, and programmable keys are used to manipulate, control, alter, edit, record and play back the dictated text on the computer. These SpeechMikes input position data into ADP (automatic data processing) machines, controlling the position of the cursor on the display unit as a replacement or complement to the cursor keys on the keyboard, thus meeting the definition of an X-Y coordinate ADP input device. It receives input data and converts it into signals which can be processed by the ADP machine. The 5284 and 5282 also feature scan angle adjustment switches and two trigger-style buttons on the underside of the housings. One button is programmable by the user; the other controls the barcode scanner. LED indicator lights on the SpeechMikes provide the user with visual feedback, indicating a mode or use of a key or button. The 5284 and 5282 model SpeechMikes incorporate optional optical barcode scanners that transform barcode information into corresponding alphanumeric characters, and fill in the information as keyboard input into a software application such as a word processing program. This is an input option provided to the user, but is not required for these SpeechMikes to function. Both SpeechMike models are composite machines as defined by Note 3 to Section XVI, Harmonized Tariff Schedule of the United States (HTSUS). They are machines designed for the purpose of performing two or more complementary or alternative functions, the principal function of which is that of an X-Y coordinate ADP input unit which meets Note 5(C) to Chapter 84, HTSUS. They are connectable to the central processing unit directly or through one or more other units; and they are able to accept or deliver data in a form which can be used by the system. Note 5(C) is subject to Note 5(E), whereby goods are excluded from classification in Heading 8471 if they perform a specific function other than data processing. However, the microphone component of the SpeechMike is not a stand-alone microphone classifiable within heading 8518. Also, the type of “transfer” of data does not appear to be the type of “transmission apparatus” provided for in heading 8517. Of the above SpeechMike features, the microphone, transmission apparatus and other functions are subsidiary to the X-Y coordinate input unit, which imparts the principal function. The SpeechMike models 5284 and 5282 are individually packaged with a hanging bracket, driver software, and an instruction manual. They meet the definition of “goods put up in sets for retail sale.” As per GRI 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character. The SpeechMike clearly provides the essential character of the set. The applicable subheading for the SpeechMike model LFH 5284 and the SpeechMike model LFH 5282 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 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 http://www.usitc.gov/tata/hts/. 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 Denise Faingar at (646) 733-3010. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division