2004 (10) TMI 111 - AAR - Customs

Whether the product in question namely Bloomberg keyboard would be classifiable as an input unit of an automatic data processing machine, falling under the specific Tariff Item 8471 60 40 of the Schedule (2004-2005)?

Summary

Issues: Classification of Bloomberg Keyboard under Customs Tariff Act, 1975

Issue 1: Relevant Facts and Interpretation of Law
The applicant, engaged in providing online financial information, sought an advance ruling on the classification of Bloomberg Keyboard under the Customs Tariff Act, 1975. The keyboard, with additional features like speakers, microphone, and LCD, is proposed for import to cater to the applicant's needs. The applicant argued that the keyboard's principal function is data input, essential for accessing their services, and should be classified under Tariff Item 8471.60 as an input unit for automatic data processing machines. Reference was made to General Rules for Interpretation, HSN Explanatory Notes, and the appearance and features of the product to support this contention.

Issue 2: Technical Information and Departmental View
The applicant provided technical information and a communication from H.M. Customs and Excise, UK, supporting their view that the Bloomberg Keyboard is primarily a PC keyboard. The Departmental representative concurred, stating that despite additional functions, the product's essential purpose remains data input for a personal computer. The product's characteristics align with an input device for automatic data processing machines, supporting its classification under Heading 8471.

Issue 3: Features and Functionalities of the Keyboard
Detailed features of the Bloomberg Keyboard were highlighted, including its compatibility with standard Windows applications, specific keys for Bloomberg services, VoIP hardware for voice communication, stereo speakers, and a microphone. The integrated VoIP, speakers, and microphone are intrinsic features of the keyboard, enabling internet telephony capabilities. The product's design and functionalities emphasize its primary function as a keyboard, even with additional features like VoIP.

Issue 4: Classification Analysis and Ruling
The classification issue revolved around whether the Bloomberg Keyboard, despite additional functionalities like VoIP, remains primarily a keyboard. Chapter Note 5(D) of Chapter 84 stipulates that devices meeting specific conditions are classified under Heading 8471. Considering the product's ability to function as a keyboard independently of the added features, it was deemed appropriate to classify it under Heading 8471. The product's principal purpose being data input, with VoIP and other features being ancillary, led to its classification as an input unit for automatic data processing machines under Tariff Item 8471 60 40 of the Schedule (2004-2005).

This detailed analysis of the judgment on the classification of the Bloomberg Keyboard under the Customs Tariff Act, 1975, showcases the considerations of the Authority for Advance Rulings in determining the product's classification based on its essential function and additional features.