Principal use classification for business projectors confirmed under the ADP-system entry despite added multimedia inputs.

Business/data projectors designed for data projection and primarily meant for use with computers were treated as projectors solely or principally used in an automatic data processing system. Additional features such as HDMI, USB, composite video and audio inputs did not change their essential character or displace principal use with ADP systems. Earlier Tribunal reasoning on identical or similar projector models was followed, recognising that ancillary video compatibility does not move such goods to the residual projector entry. The goods were therefore classifiable under CTH 85286100, not CTH 85286900, and the denial of exemption, together with the consequential demand, interest and penalties, could not be sustained.

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Issues: Whether the imported business/data projectors were classifiable under CTH 85286100 as projectors of a kind solely or principally used in an automatic data processing system, or under CTH 85286900 as other projectors, and whether the benefit of the exemption notifications was available.

Analysis: The classification turned on the principal use of the goods. The technical literature showed that the projectors were designed for data projection and were primarily meant for use with computers, even though they also had features such as HDMI, USB, composite video and audio inputs. The presence of such additional connectivity did not alter their essential character or displace their principal use with automatic data processing systems. The reasoning in earlier Tribunal decisions on identical projector models and similar specifications was followed, holding that video compatibility or other ancillary features do not by themselves take the goods out of the tariff entry for projectors principally used with ADP systems.

Conclusion: The projectors were correctly classifiable under CTH 85286100 and not under CTH 85286900; the denial of exemption and the consequential demand, interest and penalties could not be sustained.

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