HQ 087776: PC-1+ Micro Controller for the control of laser disc and compact disc players; Processor based control used for interactive video point of purchase system

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 087776

                        December 6, 1990

CLA-2 CO:R:C:G  087776 MBR

CATEGORY:  Classification

TARIFF NO.:  8537.10.00

Mr. Joseph L. Giumentaro
Ameri-Can Customhouse Brokers, Inc.
Peace Bridge Plaza
Buffalo, New York
14213-2488

RE:  PC-1+ Micro Controller for the control of laser disc and
     compact disc players; Processor based control used for
     interactive video point of purchase system

Dear Mr. Giumentaro:

     This is in reply to your letter of July 23, 1990, on behalf
of Technovision, requesting classification of the PC-1+ Micro
Controller, under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).

FACTS:

     The PC-1+ Micro controller ("PC-1+") is a processor based
control apparatus which controls an interactive video point of
purchase system.  The PC-1+ is usually connected to a keypad and
a laser disc/ compact disc player.  The laser disc player is then
connected to a display screen.

     "Interactive point of purchase systems" are used primarily
for information systems for the general public in museums,
transportation terminals, etc., whereby individuals can make
inquiries by inputting numbers on the keypad which is connected
to the PC-1+.  The PC-1+ then selects the appropriate laser disc
image to be displayed.

     The PC-1+ is a small black box measuring 2.5" X 1.25" X
4.5".  The PC-1+ has two RS232 serial channels, a 4X4 matrixed
keypad port, a Pioneer 'SR' port, memory card based application
software, battery backed-up memory, and EPROM based BIOS can be
installed.



ISSUE:

     What is the classification of the PC-1+ Micro Controller
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)?

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule.  GRI 1
states, in pertinent part:

     ...classification shall be determined according to the terms
     of the headings and any relative section or chapter notes...

     You argue that the PC-1+ is classifiable under heading 8471,
HTSUSA, which provides for: "[a]utomatic data processing machines
and units thereof."  However, the PC-1+ does not meet the
requirements of Legal Note 5, to chapter 84.  Legal Note 5(A)(a)
requires that ADP machines must be capable of:

     (1)  storing the processing program...;

     (2)  being freely programmed in accordance with the
          requirements of the user;

     (3)  performing arithmetical computations specified by the
          user; and,

     (4)  executing, without human intervention, a processing
          program which requires them to modify their execution,
          by logical decision during the processing run;

     Although the PC-1+ is programmed, it is programmed at the
manufacture site, and is therefore not capable of being "freely
programmed."  The PC-1+ is also not capable of "performing
arithmetical computations specified by the user."

     The PC-1+ also does not meet the requirements of Legal Note
5(B), chapter 84, which delineates "units" of ADP systems.  Legal
Note 5(B) states:

     Automatic data processing machines may be in the form of
     systems consisting of a variable number of separately housed
     units.  A unit is to be regarded as being a part of the
     complete system if it meets all of the following conditions:

          (a)  It is connectable to the central processing
               unit...

          (b)  It is specifically designed as part of such a
               system...

     The PC-1+ is not connectable to any central processing unit,
nor is it specifically designed as a part of an ADP system.  The
PC-1+ is designed as a component of a point of purchase system
which does not utilize an ADP system.

     Heading 8537, HTSUSA, provides for: "[b]oards, panels
(including numerical control panels), consoles, desks, cabinets
and other bases, equipped with two or more apparatus of heading
8535 or 8536, for electric control or the distribution of
electricity...."  Clearly, the PC-1+ is designed, manufactured,
marketed, and used for "electric control."

     Therefore, under GRI 1, the PC-1+ Micro Controller is
properly classifiable under subheading 8537.10.00.60, HTSUSA.

HOLDING:

     For the foregoing reasons, the PC-1+ Micro Controller is
classifiable under subheading 8537.10.00.60, HTSUSA, which
provides for: "[b]oards, panels (including numerical control
panels), consoles, desks, cabinets and other bases, equipped with
two or more apparatus of heading 8535 or 8536, for electric
control or the distribution of electricity...: [f]or a voltage
not exceeding 1,000v: [o]ther: [p]rogrammable controllers."  The
rate of duty is 3.1% ad valorem, (2.1%, January 1, 1991), if the
requirements of the United States-Canada Free Trade Agreement are
met.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division