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NY I88130

November 27, 2002

CLA-2-84:RR:NC:1:110 I88130


TARIFF NO.: 8471.60.3000

Ms. Kerry Malone
Canon USA, Inc.
One Canon Plaza
Lake Success, NY 11042

RE: The tariff classification of a video see-through head mounted display from Japan.

Dear Ms. Malone:

In your letter dated October 28, 2002, on behalf of Canon USA, Inc. you requested a tariff classification ruling.

The merchandise under consideration is the Canon Video See-through Head Mounted Display (“HMD”) VH-2002. The HMD is a component system composed of an HMD unit, controller, two camera controllers, cables, CD-ROM and adapter. All components will be imported together packaged for retail sale as a system.

The HMD is a 3-D video see-through “goggle type” display attached to a head mount, which provides the user a mixed reality display that merges real life and virtual reality using personal computers (PCs). The user of the HMD can have an interactive experience in which virtual data produced by computer graphics overlaps real scenes. The HMD headpiece incorporates two built-in CCD (Charge Coupled Device) video cameras to image the real or actual image before the eyes and output a three-dimensional video image to the PC. Two 1” LCD (Liquid Crystal Display) screens display the computer generated graphics. The headpiece consists of the display unit, front pad, rear pad, adjustable headband, and transmission cable permanently connected to a Transmission Junction Box that is designed to be worn around the hips (on a belt etc.). Other items included with this system are a CD-ROM disk, two camera controller power cables, two sync cables, AC adapter and power cable used to connect all the HMD components to complete the system.

The HMD VH-2002 system meet the definition of a functional unit under Sec. XVI, Note 4 of the HTS, in that it consists “of individual componentsintended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85.” The HMD VH-2002 functions as an ADP output unit or display. The Canon HMD VH-2002 meets Chapter 84, Note 5 (B) with regards to ADP units. The display system is provided for in subheading 8471.60.3000, Harmonized Tariff Schedule of the United States (HTS).

It is noted that the Canon Video See-through Head Mounted Display VH-2002 and its components are imported together as a complete system, packaged for retail sale. The General Rules of Interpretation (GRI) under the Harmonized Tariff Schedule (HTS) governs the classification of goods put up in sets for retail sale. GRI 3(b) requires 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. As imported, the Canon HMD VH-2002 meets the definition of a “set.” As per GRI 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character.

It is also noted that this set contains software in the form of a CD-ROM, which must be classified in accordance with Legal Note 6 to chapter 85. Note 6, as modified January 1, 2002, states: “This note does not apply to such media when they are entered with articles other than the apparatus for which they are intended.” The CD-ROM software must be installed into apparatus other than the HMD VH-2002. Accordingly, since the CD-ROM is entered with an article other than the apparatus for which it is to be installed, the CD-ROM software need not be separately classified.

The applicable subheading for the Canon Video See-through Head Mounted Display will be 8471.60.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereofInput or output units, whether or not containing storage units in the same housing: Other: Display units: Without cathode-ray tube (CRT), having a visual display diagonal not exceeding 30.5 cm.” The rate of duty will be free.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Eileen S. Kaplan at 646-733-3016.


Robert B. Swierupski

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