Composite device classification turns on principal function; voice-calling capability kept it within cellular telephone heading.

A hybrid device capable of voice calling and data processing was classified under heading 8517 rather than 8471 because its principal function, read with Section XVI Note 3 and Chapter 84 Notes 5(A) and 5(D), aligned with a cellular telephone and not an automatic data processing machine. The device's dual SIM capability, microphone, ear speaker and voice-call use showed telephone functionality, while its smaller dimensions and the export invoice supported classification under heading 8517. The note-based exclusion of apparatus capable of voice transmission or reception from heading 8471 controlled the outcome.

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Issues: Whether the imported device, being a hybrid product capable of voice calling and data processing, was classifiable under heading 8471 as an automatic data processing machine or under heading 8517 as a telephone for cellular networks.

Analysis: The device had features of both a tablet computer and a cellular telephone, so classification depended on the applicable section and chapter notes and the principal function of the composite machine. Note 3 to Section XVI requires composite machines performing alternative functions to be classified according to the machine performing the principal function. Note 5(A) to Chapter 84 defines an automatic data processing machine, while Note 5(D) excludes apparatus capable of transmission or reception of voice, images or other data from heading 8471. On the facts, the device had dual SIM capability, microphone and ear speaker, and could be used for voice calls; its dimensions were also smaller than the WCO guidance relied upon for tablet computers under heading 8471. The export invoice also reflected classification under 8517, supporting alignment with the Harmonized System.

Conclusion: The goods were not classifiable under heading 8471 and were classifiable under heading 8517; the assessee succeeded.

Ratio Decidendi: A composite device with both telephone and data-processing functions is to be classified according to its principal function, and apparatus capable of voice transmission or reception is excluded from heading 8471 when the chapter notes so provide.

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