Principal function controls classification of head mounted devices as communication apparatus, not automatic data processing machines.

Head mounted devices with processing, storage and wireless connectivity were not treated as automatic data processing machines because their principal function was communication. Applying Note 3 to Section XVI and Note 5(A) and 5(D)(ii) to Chapter 84, the devices were found not freely programmable in the relevant sense, not to perform arithmetical computations as ADP machines, and to operate through command-driven human intervention. Their actual use and product description showed remote collaboration and transmission or reception of voice, images and data between users at different locations. The devices were therefore classified under heading 85.17 as communication apparatus, specifically sub-heading 85176290.

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Issues: Whether the head mounted devices HMT-I and HMT-1Z1 are classifiable as automatic data processing machines under heading 84.71 or as apparatus for the transmission or reception of voice, images or other data under heading 85.17.

Analysis: The devices had processing capacity, storage, wireless connectivity and the ability to run applications, but their classification depended on the principal function under Note 3 to Section XVI and the scope of heading 84.71 read with Note 5(A) and Note 5(D)(ii) to Chapter 84. The features relied upon for treatment as tablet computers were found insufficient because the devices were not freely programmable in the relevant sense, did not perform arithmetical computations as ADP machines, and their operation remained command-driven with human intervention at each stage. Their catalogues and actual use showed them to be remote collaboration tools meant to transmit and receive voice, images and data between users at different locations. As such, the principal function was communication, not data processing.

Conclusion: The devices are not classifiable under heading 84.71 and are correctly classifiable under sub-heading 85176290 under heading 85.17.

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