H304416

U.S. Customs and Border Protection HQ H304416 August 10, 2020 CLA-2 OT:RR:CTF:EMAIN H304416 PF CATEGORY: Classification TARIFF NO.: 8471.60.10 Michael K. Tomenga Neville Peterson LLP 1400 16th Street, N.W. Washington, D.C. 20036 RE: Tariff classification of the ActivPanel Version 7 Dear Mr. Tomenga: This is in reply to your correspondence to U.S. Customs and Border Protection (“CBP”), Office of Trade, Regulations and Rulings, on behalf of your client Promethean, Inc. (“Promethean”). In your letter, you seek a prospective ruling under the Harmonized Tariff Schedule of the United States (“HTSUS”) regarding the tariff classification of the ActivPanel Interactive Display version 7 (“ActivPanel v7”). We have taken into consideration supplemental information received on October 24, 2019 and January 30, 2020. FACTS: There are two models of the ActivPanel v7 subject to this request, which are the ActivPanel Nickel and ActivPanel Titanium. Both models contain a 4K ultra high-definition liquid crystal display (“LCD”) video monitor containing a touch overlay, a CPU, speakers and connectors for various signal inputs and outputs, including VGA, USD, and HDMI, and a remote control. The LCD screen size of the ActivPanel Nickel is available from 65 inches to 86 inches and the LCD screen size of the ActivPanel Titanium is available from 70 inches to 86 inches. Both ActivPanel v7 models are configured with a Quad Core processor, 2GB to 4GB of memory, 16GB to 64GB internal storage, a graphics processor, audio, Ethernet, Wi-Fi and Bluetooth connectivity. The ActivPanel v7 is described as an interactive display and includes a menu bar that allows users access to applications, tools, files, and other attached computing machines. The ActivPanel v7 is sold with Promethean Classroom Essential Applications, which include Whiteboard, Annotate, Screen Share, Spinner and Timer. The Promethean Classroom Essential Apps are educational applications that provide a user with whiteboard, screen capture, annotating, and mirroring functions. The ActivPanel v7 also has an application or control feature entitled the “Locker” that displays and provides access to the applications that are installed onto the ActivPanel v7 as well as the applications that are stored on a separate computing device. The ActivPanel v7 includes a preinstalled Promethean Store, which includes curated educational applications. In order to install an application from the Promethean Store or from the Google Play Store onto the ActivPanel v7, a separate computing system is required. Promethean sells different types of computing/Open Pluggable Specification (“OPS”) modules that are externally connected to the ActivPanel v7, including Chromebox, OPS-M, and ActivConnect OPS-G. These OPS modules are considered optional devices and are not imported with the ActivPanel v7. The Chromebox uses a Chrome operating system, contains 4GB of RAM, a 128GB solid-state drive, and has Wi-Fi and Bluetooth connectivity. The Chromebox is connected to the ActivPanel v7 via an HDMI cable, the OPS-M is connected to the ActivPanel v7 via an OPS connection port on the ActivPanel v7’s housing, and the ActiveConnect OPS-G is mounted directly onto the ActivPanel v7 via a mounting bracket. The Chromebox allows a user to download applications from the Google Play Store directly onto the ActivPanel v7, which appear on the ActivPanel v7’s screen. The OPS-M (Windows version) is pre-loaded with Windows 10 and allows a user to install applications and software packages such as Microsoft Office. The ActivConnect G uses an Android operating system and allows the downloading of applications from any Android Application Store to the ActivPanel v7. The ActiveConnect G is described as an external Android Module that gives the ActivPanel v7 “tablet-like capabilities, [and] puts the digital world at your fingertips with access to apps, content, mirroring, and more.” Promethean’s website also provides a description of the OPS modules on its website and describes the objective of these devices: The objective of the OPS is to provide the ability for a wide range of computing units to be integrated into display units such as the ActivPanel based on standardized dimensions and the use of a common 80-pin JEA socket and other connectors. The Chromebox is described as follows: The Promethean Chromebox is the perfect solution for extending an existing Chrome OS ecosystem to the ActivPanel Elements Series, providing certified and seamless access to your preferred apps from the Google Play Store. View and launch downloaded apps directly from the Unified Menu with one-click access and no need for source switching. The ActivPanel v7 has a CPU on a scaler board. The CPU that runs the Android operating system functions as an image processor that takes a signal from an automatic data processing (“ADP”) machine input and translates it onto the LCD in the form of an image. Aside from the control and interface applications that are installed directly onto the internal scaler CPU, users are limited as to what they can directly install on the scaler board CPU. Applications that provide general purpose computing functions reside on the computing/OPS modules, such as the ActiveConnect OPS-G, Chromebox, and OPS-M and not on the ActivPanel v7. A support video from Promethean describes how a user can “integrate the ActivConnect OPS-G with the ActivPanel Elements Series so the apps will exist in the Locker alongside the apps from the ActivPanel.” In addition, a separate support video states that the OPS-M and Active Connect G are required to install applications. Moreover, in order to manually install applications, users must download the specific application from their personal computer, save it to a USB drive, and insert it into the mounted OPS/ActiveConnect OPS-G/Chromebox. Promethean also creates and supports lesson delivery software, entitled ActivInspire and ClassFlow for use on its ActivPanels v7. These applications are not physically installed on the ActivPanel v7, but instead are installed on a separate ADP machine. The ClassFlow application is installed on the ActiveConnect OPS and is marketed is for its ability to “deliver lessons, write, draw, annotate and poll students.” In addition, the ActivInspire specifications require a Windows, Mac or Linux operating system to function and the ActivPanel v7 runs on an Android operating system. Based on the ActivInspire specifications, this software has to be installed on a separate ADP machine and not on the ActivPanel v7. Neither the ActivInspire nor Classflow programs allow users to perform general purpose computing functions. ISSUE: Whether the ActivPanel v7 is classified as an automatic data processing (“ADP”) machine of heading 8471, HTSUS or a combined input/output unit of an ADP machine of heading 8471, HTSUS. LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (“AUSR”). The GRIs and the AUSR are part of the HTSUS, and are considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The HTSUS headings under consideration are as follows: 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing suc

Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (“AUSR”). The GRIs and the AUSR are part of the HTSUS, and are considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The HTSUS headings under consideration are as follows:8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: * * *Other automatic data processing machines:8471.41.01 Compromising in the same housing at least a central processing unit and an input and output unit, whether or not combined..* * *8471.60 Input or output units, whether or not containing storage units in the same housing:8471.60.10 Combined input/output units…ADP machines are defined in Legal Note 5(A) to Chapter 84, HTSUS, which provide as follows: For the purposes of heading 8471, the expression "automatic data processing machines" means machines capable of:Storing the processing program or programs and at least the data immediately necessary for the execution of the program;Being freely programmed in accordance with the requirements of the user;Performing arithmetical computations specified by the user; andExecuting, without human intervention, a processing program which requires the