The tariff classification of an incomplete automatic data processing (ADP) machine from China

N325863 May 11, 2022 CLA-2-84:OT:RR:NC:N2:220 CATEGORY: Classification TARIFF NO.: 8473.30.5100; 9903.88.03 Jason Liao G.B.T Inc 17358 Railroad St City of Industry, CA 91748 RE: The tariff classification of an incomplete automatic data processing (ADP) machine from China Dear Mr. Liao: In your letter dated May 3, 2022, you requested a tariff classification ruling. The merchandise under consideration is identified as the GB Stealth Combo, PN G-9BSCIN2181-00-10, which is described as a barebone system consisting of an ATX style enclosure, a motherboard, and a graphics processing board. Based on the information supplied, the system is intended to be a do-it-yourself, user-built personal computer, where the ultimate purchaser sources the required components, such as the processor, the system memory, the storage drive(s), etc. and assembles the ADP machine with their customized parts post-importation. Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. GRI 2(a) states as follows: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. Incomplete ADP machines, imported with their processors, BIOS, and cache memory, have been consistently deemed to possess the essential character of an ADP machine. See NY N303818. However, the subject incomplete ADP machine lacks essential components at the time of importation, and we find that it fails to satisfy the criteria of Legal Note 6 (A) to Chapter 84, HTSUS. While the presence of cache memory and BIOS does give the ability to store the processing program and at least the data immediately necessary for execution of a program, the absence of the processor renders the instant system inoperable. As such, we find that the subject merchandise is classifiable as a part of the ADP machine under heading 8473, HTSUS, and not the machine itself. See NY N304698 and NY L84615. The applicable subheading for the GB Stealth Combo, PN G-9BSCIN2181-00-10, will be 8473.30.5100, HTSUS, which provides for “Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other”. The general 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 the World Wide Web at: https://hts.usitc.gov/current Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8473.30.5100, 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 8473.30.5100, 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 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