CBP Issues New ICP on PDAs and Electronic Organizers

According to CBP, this new ICP is a study of the classification of PDAs and electronic pocket organizers. The following are "highlights" of this new ICP:

Introduction - Classification of Certain PDAs and Electronic Organizers under the HTS.CBP states that this ICP concerns the classification of products generally known as PDAs, pocket organizers, electronic organizers and similar handheld or small electronic devices for doing "office work." CBP notes that these terms are not used uniformly by the industry.

According to CBP, these devices may share certain physical characteristics. They usually have a processor, memory, and at least one input and output device contained in a single housing. The output device is usually a liquid crystal display (LCD), while the input device or devices can vary considerably (keyboards, buttons, trackballs, etc.) and may be combined with the display into a touch sensitive screen. Core applications of PDAs are usually the address book, scheduling calendar, memo pad, and calculator.

Programmable PDAs.CBP has held that programmable PDAs, which may also be referred to as palmtops, handheld computers, and pocket PCs, that satisfy the requirements set forth in Chapter 84, Note 5(A)(a) are classified as automatic data processing (ADP) machines in heading 8471.

Fixed Program Electronic Organizers.According to CBP, fixed program electronic organizers, which are sometimes called pocket organizers or personal organizers, are excluded from heading 8471. Instead, certain of these devices have been classified in either heading 8470 which provides in relevant part for "calculating machines and pocket-size data recording, reproducing and displaying machines with calculating functions" or in heading 8472 which provides for "other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines), etc."

Multi-Function Machines, Composite Machines, and Composite Goods.CBP states that due to the wide variety of hand held or pocket-sized devices available in the market, each must be considered individually. Additional functions and/or additional hardware may be incorporated into these devices that do not fit within the standard functionality of a PDA/organizer (i.e., data recording, reproducing and displaying, calculating or office work).

If the function or functions of the device is/are wholly provided for in a single heading, the device would be classified in that heading (e.g., cellular telephones in heading 8525; pocket game machines in heading 9504).

When a device performs multiple functions (or comprised of more than one machine) that are not provided for in a single heading, but are covered within the headings of Section XVI, it may be a composite machine or a multi-function machine, the classification of which is governed by Note 3 to Section XVI (classification in such a situation would be based on the machine that performs the principal function).

However, PDA/organizers may incorporate a product other than another machine or function of a machine covered in Section XVI. Therefore, it may be a composite good, which is classified according to General Rule of Interpretation (GRI) 3 (e.g., pocket organizer game machine keychain in heading 9504).

Other Considerations.According to CBP, PDAs or electronic organizers may be imported with other goods, such as cradles, instruction manuals or software, that affect how the PDA/organizer and the additional articles will be classified, among other customs requirements.

Sets.CBP states that some PDAs and electronic organizers are imported "put up in sets for retail sale." In this situation, GRIs 1 and 3(b) should be considered. (GRI 1 states that classification is determined by the terms of the headings and any relative section or chapter notes. GRI 3(b) states, among other things, that goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.)

Software under Chapter 85, Note 6.Sets that include PDAs or electronic organizers frequently include software on CD-ROMs. CBP states that Chapter 85, note 6 requires a determination as to whether the software media is "entered with the apparatus for which they are intended" to determine if the software should be classified separately.

According to CBP, the information provided in this publication is for general information purposes only and reliance solely on the general information in this publication may not be considered reasonable care.

PDAs and electronic organizers ICP (dated August 2005) available at http://www.cbp.gov/linkhandler/cgov/toolbox/legal/informed_compliance_pubs/general/icp078.ctt/icp078.pdf