Principal function governs tariff classification where composite equipment mainly performs colour correction, not automatic data processing.

Imported equipment assembled from multiple components was classified by its essential and predominant function, which was colour grading and colour correction for digital film intermediates. Applying Chapter Note 5(E) to Chapter 84 and Section Notes 3 and 4 of Section XVI, the classification had to follow the specific or principal function of the composite system rather than its incorporation of automatic data processing elements. The goods therefore fell under heading 8543 as colour correctors and did not qualify as automatic data processing machines under heading 8471. The equipment also could not be placed in sub-heading 84713090, which is confined to portable ADP machines weighing not more than 10 kilograms.

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Issues: Whether the imported Discreet Lustre Master Station was classifiable under heading 8471 as an automatic data processing machine or under heading 8543 as a colour corrector, and whether it could claim the exemption available to goods under heading 8471.

Analysis: The imported goods were found to be a composite system assembled from several components, but the catalogue and technical material showed that their essential and predominant use was colour grading and colour correction for digital film intermediates. Under Chapter Note 5(E) of Chapter 84, a machine performing a specific function other than data processing, even if it incorporates or works in conjunction with an automatic data processing machine, must be classified according to its specific function. The Tribunal also applied Section Notes 3 and 4 of Section XVI, which require classification by the principal function where a combination of machines or components together performs a clearly defined function. The goods were also not within sub-heading 84713090, which is limited to portable automatic data processing machines weighing not more than 10 kilograms, whereas the imported equipment was far heavier and not shown to be a portable ADP machine.

Conclusion: The goods were correctly classified under heading 8543 as colour correctors and not under heading 84713090.

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