October 4, 2006 CBP Bulletin Notice on Certain Audio Visual Laptops
In the October 4, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 41), CBP published a notice revoking a ruling and treatment as follows:
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Revocation of ruling; revocation of treatment. CBP is revoking one ruling on the classification of certain audio visual laptops. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the revocation of the classification ruling and treatment are effective for merchandise entered or withdrawn from warehouse for consumption on or after December 3, 2006.
Audio visual laptop. The item at issue is the Toshiba audio video laptop personal computer denoted under the brand name of Qosmio. This laptop personal computer is equipped with an Intel Pentium M processor 735, 64MB Graphics, 512 MB memory, a 15" XGA screen, 80GB hard disk drive, fixed 2-spindle DVD drives, WiFi 802.11g, XP-MCE operating system and an integrated TV tuner. The device has two distinct independent functions; it can operate as a personal computer and as a television.
CBP is issuing HQ 967655 in order to revoke NY K88339 to reflect the proper classification of audio visual laptops under HTS 8471.30.0000, which provides for portable digital automatic data processing (ADP) machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display, rather than under HTS 8528.12.7201, which provides for other reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus, with a flat panel screen, etc.
Pursuant to Note 5(A) to HTS Chapter 84, CBP states that the subject laptop meets the terms of heading 8471 as an ADP machine; however, it is also capable of displaying a variety of TV signals and other audio visual information, which is provided for under heading 8528, as reception apparatus for television. Therefore, the subject laptop is considered a composite machine that has the functions of both an ADP machine and a reception apparatus for television.
As a composite machine, CBP states that it is to be classified as if consisting only of that component or as being that machine which performs the principal function.
According to CBP, probative evidence included in the petitioner's submission indicates that consumers are primarily purchasing the subject laptop for its ADP functions with ancillary interest in the audio visual functions. Furthermore, the laptop is marketed and sold in channels of trade for ADP machine, is sold in the ADP departments of consumer electronic retailers, and is advertised as such. In addition, evidence has been submitted indicating that the overwhelming majority of purchasers use the subject laptop for its data processing functions while few regularly use the laptop to watch television.
Based on the information above and certain other factors, CBP finds that the principal function of the laptop is an ADP machine of HTS heading 8471.
new: 8471.30.0000, duty-free; previous: 8528.12.7201, 5%.
(See ITT's Online Archives or 07/12/06 news, 06072045, for BP summary of proposed HQ 967655.)
October 4, 2006 CBP Bulletin (Vol. 40, No. 41) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_10042006_no41/