Tariff classification of fingerprint attendance systems: specific-function devices not freely programmable remain under heading 8543, not heading 8471.

Imported fingerprint time and attendance systems were analysed for tariff classification under heading 8471 and heading 8543. The devices were found to function primarily as fingerprint and proximity readers for attendance marking, capturing data for transmission to a central server, rather than as independent automatic data processing machines. As the importer did not establish that the goods were freely programmable in accordance with user requirements, they failed the Chapter 84 conditions for heading 8471. Applying Note 5(E) to Chapter 84, machines performing a specific function other than data processing are classified according to that function or in the residual heading. The goods were therefore treated as specific-function electrical apparatus under heading 8543.

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Issues: Whether the imported fingerprint time and attendance systems were classifiable as automatic data processing machines under heading 8471 or as electrical machines and apparatus having individual functions under heading 8543, and whether they satisfied the requirement of being freely programmable in accordance with the requirements of the user.

Analysis: For classification under heading 8471, the goods had to satisfy the Chapter 84 conditions for an automatic data processing machine, including the ability to be freely programmed in accordance with the requirements of the user. The record showed that the devices functioned primarily as fingerprint and proximity readers for attendance marking, captured data for transmission to a central server, and performed a specific function rather than independent data processing. The materials relied on by the importer did not establish that the devices were freely programmable by the user. By contrast, Note 5(E) to Chapter 84 requires machines performing a specific function other than data processing, or working in conjunction with an ADP machine, to be classified according to their respective functions or in the residual heading. The devices were therefore treated as specific-function electrical apparatus and not as ADP machines.

Conclusion: The goods were correctly classifiable under heading 8543 and not under heading 8471. The classification adopted by the Revenue was upheld.

Ratio Decidendi: A machine used only for a specific function and not shown to be freely programmable by the user does not qualify as an automatic data processing machine under heading 8471 and is classifiable under the heading appropriate to its specific function.

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