H326071

HQ H326071 July 25, 2023 OT:RR:CTF:EMAIN H326071 PF CATEGORY: Classification TARIFF NO.: 8517.62.00 Mr. Lars-Erik A. Hjelm Ms. Emily S. Opp Akin Gump Strauss Hauer & Feld LLP 2001 K Street, N.W. Washington, DC 20006-1037 RE: Tariff classification of HP Presence Small Space Solutions Dear Mr. Hjelm: This is in reply to your request for a prospective ruling on behalf of HP Inc. (“HP”), on the tariff classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of the HP Presence Small Space Solution and the HP Presence Small Space Solution Plus AI Camera (“subject merchandise”). Your request was forwarded by the National Commodity Specialist Division to this office for a response. Our decision takes into account meetings held on November 30, 2022, March 15, 2023, and a supplement submitted on May 9, 2023. FACTS: The subject merchandise is referred to as the HP Presence Small Space Solution and the HP Presence Small Space Solution Plus AI Camera. The subject merchandise is described as a system designed to facilitate videoconferencing and remote communications. The subject merchandise allows users to have video and audio calls. Moreover, the subject merchandise connects to virtual (remote) users through Microsoft Teams or Zoom applications. The subject merchandise will consist of the following at the time of importation: An “HP Presence Mini Conferencing PC” (“Mini Conferencing PC”) — a “personal computer” that stores and runs an operating system (“OS”), preinstalled and/or user-selected applications, and corresponding data at the command of the user. An “HP Presence Control” (“Control”) — a touchscreen control panel that provides data outputs to the user (as images and sound) while allowing the user to input data and commands (through voice and touch). And in the Solution Plus (but not the Solution), a “Presence See 4K AI Camera (“4K AI Camera”) (a movable device that captures and transmits images, sound and temperature readings to facilitate videoconferencing).” In your submission, you state that the general purpose of the subject merchandise is to facilitate and enhance videoconferencing and remote communications experiences, specifically by blending harmoniously into a conference space. For example, one typical use would involve the placement of the Control at the center of a conference room table, placement of the Mini Conferencing PC below the Control, and (where applicable) placement of the See 4K AI Camera at the head of the table or a separate table. The Control and See 4K AI Camera would be connected by cable to the Mini Conferencing PC. When these items are so situated and connected, a user can operate the Control to execute videoconferencing and other applications on the Mini Conferencing PC, view and hear data outputs from these applications, and activate the See 4K AI Camera. You note that the “HP Presence” units — i.e., the Mini Conferencing PC, Control, and, in the case of the Solution Plus, see 4K AI Camera — function interdependently and can only be used when connected via cable. Each unit has a unique layout of external ports that corresponds to the other units, and each unit is embedded with firmware that interacts specifically and exclusively with other units. Only once connected to the Mini Conferencing PC or other personal computer with similar specifications, for example, can the Control display or emit information and register and direct commands. Likewise, the See 4K AI Camera requires and relies on a connection to the Mini Conferencing PC (or comparable personal computer) to initiate and stop the capture of images, sound, and other data. Conversely, the Mini Conferencing PC depends upon the Control to provide data outputs and receive user commands. Consequently, these components are not capable of use as free-standing components without a connection. The specification for the HP Presence Small Space Solution describes the product as follows: Adaptive AI-enhanced audio and engaging controls make virtual meetings more personal. HP Presence interacts intuitively with you providing an intelligent meeting experience…Bring people together with this intuitive and easy-to-setup conferencing system…. Enjoy room-filling Audio by Bang & Olufsen calibrated to your room dimensions with dedicated audio processing that produces natural voice and audio output. The specification for the HP Presence Small Space Solution Plus AI Camera describes the product as follows:  AI-enhanced audio, cinematic 4K video and engaging controls make virtual meetings more personal…Bring people together with this intuitive and easy-to-setup conferencing system…. The intelligent HP Presence See 4K Camera wakes on room entry and automatically adjust the framing of the video with speaker tracking and picture-in-picture modes. Room filling Audio by Bang & Olufsen produces natural voice and audio output from the HP Presence Control. At the March 15, 2023 meeting, a representative from HP discussed that upon importation, the Mini Conferencing PC is preloaded with either a Zoom or a conferencing Teams application. The Mini Conferencing PC cannot run both applications, Zoom and Teams, by itself. In other words, the Zoom and Teams programs are not capable of interacting with each other solely on the Mini Conferencing PC. In order to run the second application (either Zoom or Teams), a user would need to connect a laptop to run the second program. For example, if the Mini Conferencing PC is imported with a preloaded with a Zoom application, it could not run the Teams application without connecting to laptop. Similarly, if the Mini Conferencing PC is imported with a preloaded Teams application, it could not run the Zoom application without connection to a laptop. Below are images of the two systems with summaries of their components: 
 ISSUE: Whether the subject merchandise is classified as automatic data processing (ADP) system of heading 8471, HTSUS or a telecommunication system of heading 8517, 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. Initially, we note that because the HP Presence Small Space Solution Plus Camera contains a separate “4K AI Camera”, it constitutes a retail set classifiable pursuant to GRI 3 if its components are put up for retail sale. However, we find that the “HP Presence Mini Conferencing PC” imparts the set with its essential character due to the fact that it provides the set with the vast majority of its functionality to hold and facilitate virtual meetings. Therefore, the HTSUS headings under consideration are as follows: 8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): 8517.

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. Initially, we note that because the HP Presence Small Space Solution Plus Camera contains a separate “4K AI Camera”, it constitutes a retail set classifiable pursuant to GRI 3 if its components are put up for retail sale. However, we find that the “HP Presence Mini Conferencing PC” imparts the set with its essential character due to the fact that it provides the set with the vast majority of its functionality to hold and facilitate virtual meetings. Therefore, the HTSUS headings under consideration are as follows:8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network):8517.62 Machines for the reception, convers