HQ 955426: Protest 1001-92-106531; Computer Styluses; Drawing Instruments; Digitizers; HQ 082127; Section XVI, Note 1(m); 8471.92.10; 8473.30.40

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 955426
                          April 14, 1994


CLA-2 CO:R:C:M 955426 DWS

CATEGORY: Classification

TARIFF NO.: 9017.20.80

Area Director
U.S. Customs Service
6 World Trade Center, Room 423
New York, NY 10048

RE: Protest 1001-92-106531; Computer Styluses; Drawing            
    Instruments; Digitizers; HQ 082127; Section XVI, 
    Note 1(m); 8471.92.10; 8473.30.40

Dear Area Director:

     The following is our decision regarding Protest 1001-92-
106531 concerning your action in classifying and assessing duty
on computer styluses under the Harmonized Tariff Schedule of the
United States (HTSUS).

FACTS:

     The merchandise consists of computer styluses (model no.
MM2).  The stylus, which is a digitizer, is an instrument used to
translate information into digital form for transmission and
input to an automatic data processing (ADP) machine.  It is used
with a flat working surface (digitizing tablet), and is utilized
with an ADP machine in place of a keyboard to perform two basic
functions: the conversion of data from analog to digitized form,
and the input of such data into the ADP machine.

     The stylus is a pen-like device which is activated by
pressing down on its tip.  Because of its resemblance to a pen or
pencil, it permits more natural input of drawing or tracing data. 
It is capable of several specialized applications when used with
an ADP machine and the appropriate software, including encoding
and transferring data, drawings or tracings to the host ADP
machine.  This application is important to computer-aided
engineering and computer-aided design (CAE/CAD), computer-aided
publishing (CAP), graphic arts, and scientific analysis.

     The digitizing tablet has a defined space upon which the
user can place either a template or a drawing, map, blueprint, 
x-ray, etc.  The stylus is used to "point to" particular areas
within the active area and this triggers the transmission of X,Y
coordinate data from the tablet to the computer application being
run.  The stylus utilizes two types of technology:
electromagnetic induction and electrostatic technology;
electromagentic induction more preferable because of its greater
resolution and accuracy.

     The styluses were entered under subheading 8473.30.40,
HTSUS, as [a]ccessories of the machines of heading 8471, HTSUS. 
The entry was liquidated on October 16, 1992, under subheading
8471.92.10, HTSUS, as combined input/output units.  The protest
was timely filed on October 26, 1992.

     The subheadings under consideration are as follows:

     8471.92.10: [a]utomatic data processing machines and units
                 thereof . . . : [i]nput or output units, 
                 whether or not entered with the rest of a
                 system and whether or not containing storage 
                 units in the same housing: [c]ombined input/
                 output units.

     The general, column one rate of duty for goods classifiable  
     under this provision is 3.7 percent ad valorem.

     8473.30.40: [p]arts and accessories . . . suitable for use
                 solely or principally with machines of headings
                 8469 to 8472: [p]arts and accessories of the
                 machines of heading 8471: [n]ot incorporating
                 a cathode ray tube.

     Goods classifiable under this provision receive duty-free
     treatment.

     9017.20.80: [d]rawing, marking-out or mathematical 
                 calculating instruments . . . : [o]ther drawing,
                 marking-out or mathematical calculating 
                 instruments: [o]ther.

     The general, column one rate of duty for goods classifiable  
     under this provision is 5.8 percent ad valorem.

ISSUE:

     Whether the styluses are classifiable under subheading
8471.92.10, HTSUS, as combined input/output units, under
subheading 8473.30.40, HTSUS, as accessories of the machines of
heading 8471, HTSUS, or under subheading 9017.20.80, HTSUS, as
other drawing instruments.

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order.  GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.

     In HQ 082127, October 16, 1989, we dealt with the
classification of digitizers under the HTSUS.  In that ruling, we
stated that:

     [o]nly digitizers embodying technology that provides at 
     least a certain degree of accuracy can be considered 
     designed for use as drawing instruments. . .  To determine
     which digitizers are designed for drawing and which are 
     designed as general input devices, Customs conducted
     extensive inquiries with various producers. . .  To 
     determine the appropriate classification it is necessary
     to examine each digitizer carefully to determine the use
     for which it was designed.  Once it is determined that a 
     digitizer utilizes one of the technologies necessary to 
     create accurate drawings (electromagnetic induction,
     electrostatic technology, or similar technologies), it
     must be determined that this precision is not intended to
     be utilized for non-drawing purposes.  Such an intent to
     use for drawing purposes can be presumed when the digitizer
     utilizes a crosshair sight or a large tablet.

     In "MacWeek" magazine (p. 249, April 24, 1990), the impact
of styluses for drawing purposes is discussed.  In part, the
article states that:

     [t]he tablets parallel the artist's sketch pad, and the 
     penlike styluses . . . act as the drawing instruments.  Like
     real pens, styluses  . . . indicate absolute positions on    
     the screen corresponding to underlying absolute positions on 
     the tablet. . .  The stylus also offers a more natural way   
     to draw . . . 

     It is our position that, based upon the test outlined in HQ
082127, and the views of the computer industry, the subject
styluses are classifiable as under subheading 9017.20.80, as
other drawing instruments.  The importer claims that the styluses
are used for the purposes of drawing (supported by the "MacWeek"
article), the styluses incorporate electromagnetic induction and
electrostatic technology, a tablet is used so the styluses can be
used to draw, and there is no evidence that the subject styluses
will be utilized for non-drawing purposes.

     We note that, although having no legal significance, one of
the statistical breakouts under subheading 9017.20.80, HTSUS,
provides for digitizers.

     Section XVI, note 1(m), HTSUS, states that:

     [t]his section does not cover:

     (m) Articles of chapter 90.

     Because the styluses are classifiable under chapter 90,
HTSUS, they are precluded from classification under chapter 84,
HTSUS.

HOLDING:

     The model MM2 styluses are classifiable under subheading
9017.10.80, HTSUS, as other drawing instruments.

     Because the rate of duty under the classification indicated
above is more than the liquidated rate, you are instructed to
deny the protest in full.  In accordance with Section 3A(11)(b)
of Customs Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, this decision, together with the
Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter. 
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision.  Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Lexis, Freedom of
Information Act, and other public access channels.

                            Sincerely,



                            John Durant, Director
                            Commercial Rulings Division