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NY N012883




July 10, 2007

CLA-2-85:RR:E:NC:1:108

CATEGORY: CLASSIFICATION

TARIFF NO.: 8528.59.30

Mr. Alan Geoffrey Froy
AF Customs Consultancy
705 Southchurch Road
Southend-on-Sea SS1 2PW
United Kingdom

RE: The tariff classification of digital signage from China.

Dear Mr. Froy:

In your letter dated June 15, 2007, on behalf of Sonance Limited, you requested a tariff classification ruling.

The subject merchandise, based on the submitted information, is a 20-inch color LCD monitor for advertising displays, which is referred to as the “AD20 Angel Light.” It is noted that this device contains a central processing unit which incorporates a CPU chip and a 256MB SDRAM; it has two USB interfaces, a LAN interface and a CompactFlash Type-ii socket, as well as a housing which incorporates two small loudspeakers. Moreover, this merchandise, which is packed with a remote control unit, can accommodate the attachment of a keyboard and a printer.

This device operates on Linux-based MediaCAT software that supports the playback of many different video and audio formats, image slideshows, web pages, Flash™ animations, and optional digital TV. It is stated that the Angel Light unit has a hardware-accelerated MPEG 1/2 decoder, which allows for the display of high- resolution, high-quality MPEG2 video. The video playback system supports the primary MPEG2 formats in noting that the content can be uploaded by a CompactFlash card or a USB stick, or through an USB or IP network. This device is also compatible with multimedia cards, microdrive cards, memory sticks, secure digital cards, memory stick pro cards, and smart media cards.

You claim that this merchandise should be classified under subheading 8471.50.0150, Harmonized Tariff Schedule of the United States (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: Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units..Other. This claim is supported in stating that this device meets legal note 5 (A) to chapter 84 since it is a freely programmable automatic data processing machine.

Although this device may meet the criteria for an automatic data processing machine within legal note 5 (A) to chapter 84, it nevertheless functions as digital signage in being used in advertising displays. Further, legal note 5 (E) to chapter 84 reads: “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 regard, it has been determined that the specific function of this machine is digital signage, which in this instance would be the type of monitor covered under heading 8528, HTS, thereby precluding classification of this merchandise under heading 8471, HTS.

The applicable subheading for the AD20 Angel Light will be 8528.59.30, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Monitors and projectors, not incorporating television reception apparatusOther monitors: Other: Color: With a flat panel screen: Other: Other. The rate of duty will be 5 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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

If you have any questions regarding the ruling, contact National Import Specialist Lisa Cariello at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,

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