تبلت و رابط عیب‌یاب خودرو و ویدئوسکوپ: هیچ‌کدام «دستگاه آزمایش» ۹۰۳۱ نیستند

CLA-2 OT:RR:CTF:EMAIN H315864 NVF

TARIFF NOs.: 8471.30.01, 8517.62.00, 8525.80.40 Port Director U.S. Customs and Border Protection Port of Newark 1210 Corbin Street Elizabeth, NJ 07201

Dear Port Director:

This letter is in response to the Application for Further Review (“AFR”) of Protest No. 4601-19-106736, timely filed on behalf of protestant, Autel US Inc. (“Autel”). The protest contests the classification and liquidation by Customs and Border Protection of 1) certain computer tablets under heading 9031 of the Harmonized Tariff Schedule of the United States (“HTSUS”), 2) vehicle communication and pass-through interface devices (“VCIs”) under heading 8473, HTSUS, and 3) videoscope cameras under heading 9031, HTSUS.

There are three distinct groups of goods at issue in this protest. The first are computer tablets that are used in conjunction with automotive diagnostics. They are described as the Smart Diagnostics tablet computer Model MaxiSys-ADAS and are equipped with a processor, 2 GB system memory, 64 GB storage, wireless connectivity, USB and HDMI output, a touchscreen display, and various ports for connecting peripherals. The tablets are imported with preloaded Android OS and various applications “for user interaction and entertainment” such as playing music. Autel imported the tablets as automatic data processing machines of heading 8471, HTSUS and CBP reclassified them under heading 9031, HTSUS as measuring or checking instruments, appliances or machines not specified elsewhere in Chapter 90.

The second group of goods in this protest consist of 1) the MaxiSys VCIMini, 2) the MaxiSys VCI-100, and 3) the MaxiFlash Elite J2534 ECU Programming Device. All three models connect to the on-board diagnostic (“OBD”) port of an automobile and transmit the data via Bluetooth to a tablet or computer. The MaxiFlash Elite J2534 has the added feature of being able to connect via a USB cable rather than solely through Bluetooth. The VCIs cannot display information, nor can they clear codes or scroll through a list of codes. Autel imported the VCIs under heading 8471, HTSUS and CBP reclassified them under heading 8473, HTSUS as a part or accessory suitable for use solely or principally with machines of headings 8470 to 8472. Autel now argues that the VCIs should be classified as a machine for the reception, conversion and transmission of data of heading 8517, HTSUS.

The third good in this protest consists of videoscope cameras mounted on a flexible arm. The videoscope cameras take digital photographs of items in hard to reach areas. There are four models at issue in this protest. The first model is the Autel MaxiVideo MV208 digital videoscope. It features the ability to record digital still images and MPEG2 or MPEG1 videos. This videoscope has a 2.4-inch color LCD screen and offers the capability to transmit digital video outside the camera to a PC. The second model is the MaxiVideo MV500, which is described as a display tablet and an inspection scope. It has a 5-inch LCD capacitive touchscreen with 1280x720 resolution and a dual-camera cable, which allows technicians to work either individually or collaboratively during an inspection. It is capable of recording still images and videos. The last two models are HD digital inspection videoscopes, model MV480, which has a dual-camera, and model MV460, which contains a single camera. The information provided indicates that these cameras capture high-resolution images and videos. Autel imported the videoscope cameras as digital still image video cameras of heading 8525, HTSUS and CBP reclassified them under heading 9031, HTSUS as measuring or checking instruments, appliances or machines not specified elsewhere in Chapter 90.

Whether the computer tablets are classified under heading 8471, HTSUS as an automatic data processing machine or under heading 9031, HTSUS as measuring or checking instruments, appliances and machines not specified elsewhere in Chapter 90.

Whether the VCIs are classified under heading 8517, HTSUS as a machine for the reception, conversion and transmission of data or under heading 8473, HTSUS as a part or accessory suitable for use solely or principally with machines of headings 8470 to 8472.

Whether the videoscope cameras are classified under heading 8525, HTSUS as a digital still image video camera, or under heading 9031, HTSUS as measuring or checking instruments, appliances and machines not specified elsewhere in Chapter 90.

We observe as an initial matter that the matters protested are protestable under 19 U.S.C. § 1514(a)(2) as decisions on classification and amount of duties chargeable. The subject merchandise was entered by Autel between October 6, 2018 and March 15, 2019. CBP liquidated the entries between August 23, 2019 and October 18, 2019. On November 8, 2019, Autel timely filed a protest and AFR, within 180 days of liquidation of the first entry. Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006). Further review of the protest is properly accorded to protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with at least one CBP ruling.

Computer Tablets

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. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all classification 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. 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 Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headinigs. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS subheadings under consideration are as follows:

Note 1(m) to Section XVI states that Section XVI does not cover articles of Chapter 90, therefore we must first determine whether the tablets are classified under heading 9031, HTSUS.

Heading 9031, HTSUS provides for, “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof.” The ENs to heading 9031 list a variety of machines and instruments which fall under heading 9031, such as test benches, planimeters, and bubble levels. Furthermore, the ENs states that heading 9031 includes:

Apparatus for testing and regulating vehicle motors, for checking all parts of the ignition system (coils, sparking plugs, condensers, batteries, etc.), for ascertaining the best carburettor setting (by analysing exhaust gases), or for measuring the compression in cylinders.

The tablets, in their condition as imported, do not to merely provide measurements or check settings; rather, they operate whatever software and applications they contain. While one of those programs may in fact aid in measuring or checking as contemplated by heading 9031, HTSUS, this operation does not fully describe the subject tablets. As such, they are not tools or apparatus designed for the purpose of measuring or checking a specific factor such as angle, vibration, or compression; nor do they fall into the same class or kind as the type of measuring and checking instruments listed as exemplars in the EN. Any measuring or checking ability that the tablets have is imparted solely by the software which receives and processes data from separate diagnostic tools. The receiving and processing function that the tablets perform is distinct from the measuring function performed by the type of apparatus described in heading 9031, HTSUS. Therefore, the tablets are not classified under heading 9031.

Note 5(A) to Chapter 84 of the HTSUS states that automatic data processing (“ADP”) machines means machines capable of:

Note 5(E) to Chapter 84 states:

Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings.

In this case, the computer tablets imported by Autel are preloaded with Android OS, software used in automotive care, games, and data necessary for the software to run. Autel states that while the tablets are “designed to be used . . . in the field of auto diagnostics,” that feature is enabled by virtue of an application installed onto the tablets. Moreover, Autel states that the tablets in their condition as imported do not contain any software or hardware blocks that would prevent a user from adding or removing programs. Autel asserts that users may conduct “traditional data processing functions” while using the tablets in addition to running the software used in automotive care. All the above factors indicate that the computer tablets imported by Autel meet the terms of Note 5 to Chapter 84.

In light of the foregoing, the tablets are classified under heading 8471, HTSUS as automatic data processing machines.

VCIs

The HTSUS headings under consideration are:

Additional U.S. Rule of Interpretation 1(c) states that:

A provision for parts of an article covers products solely or principally used as a part of such articles but a provision for “parts” or “parts and accessories” shall not prevail over a specific provision for such part or accessory.

Therefore, we must first determine whether the VCIs are classified under heading 8517, HTSUS, which provides for, “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.”

In this case, the VCIs at issue communicate with a vehicle’s electronic control unit, receive data, and then broadcast the data wirelessly via Bluetooth technology to a tablet such as the one discussed supra. As discussed earlier, one model of VCI is also capable of connecting to a traditional PC computer using a standard USB cable in addition to connecting via Bluetooth. The VCIs are not capable of checking or measuring data but rather receive data from a vehicle and then transmit that data via Bluetooth or USB cable to a separate device. As such, the VCIs fall within the legal text of heading 8517, HTSUS which covers machines for the reception, conversion and transmission of data. Classification under heading 8517, HTSUS is consistent with prior CBP rulings classifying similar merchandise. See, e.g. NY N305138 (July 12, 2019).

In light of the foregoing, the VCIs are classified under heading 8517, HTSUS as other apparatus for the transmission or reception of voice, images or other data.

Videoscope Cameras

The HTSUS headings under consideration are:

Note 1(m) to Section XVI states that Section XVI does not cover articles of Chapter 90, and note 1(h) to Chapter 90 excludes, in relevant part, digital cameras of heading 8525, HTSUS. Therefore, the threshold question before us is whether the subject videoscope cameras are prima facie classifiable under heading 8525, HTSUS.

The information on record shows that the videoscope cameras are capable of taking and recording digital still photographs and/or video only. In that regard, they are no different from a standard camera or video recording device except that they can fit into areas that may be hard to reach. Therefore, they cannot be classified as measuring or checking instruments.

Likewise, as discussed supra, heading 9031, HTSUS provides for, “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof.” CBP recently addressed the classification of certain videoscope cameras in heading 9031, HTSUS. In HQ H270703 (Nov. 4, 2020), CBP discussed the classification of various digital camera video inspection systems that are used to view difficult to access spaces. Notably, CBP distinguished videoscope cameras with optical measuring features from those without. Only videoscope cameras with a measuring function, such as quantitative three-dimensional defect measurement via eight different measurement modes and the ability to measure in real-time, are classified in heading 9031, HTSUS. In this case, the videoscope cameras imported by Autel do not have the ability to measure in real-time or provide three-dimensional defect measurements. There is no indication that they have any optical measuring functions.

In light of the foregoing, the videoscope cameras are classified under heading 8525, HTSUS as a digital still image video cameras.

By application of GRIs 1 and 6, the computer tablets are classified in heading 8471, HTSUS, specifically subheading 8471.30.01, HTSUS, which provides for, “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: Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display. The general column one rate of duty is free.

By application of GRIs 1 and 6 and Additional U.S. Rule of Interpretation 1, the VCIs are classified under heading 8517, HTSUS, specifically subheading 8517.62.00, HTSUS which provides for, “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): Machines for the reception, conversion and transmission or regeneration of voice, images or other data including switching and routing apparatus.” The general column one rate of duty is free.

By application of GRIs 1 and 6, the videoscope cameras are classified under heading 8525, HTSUS, specifically subheading 8525.80.40, HTSUS which provides for, “Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders: Television cameras, digital cameras and video camera recorders: Digital still image video cameras.” The general column one rate of duty is free.

In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.

Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/, which can be found on the CBP website at http://www.cbp.gov and other methods of public distribution.

Sincerely, Craig T. Clark, Director Commercial and Trade Facilitation Division