Multifunction machine classification turned on essential character: printing function made it an output unit, not a photocopier.

A multifunction machine with printing, scanning, faxing and copying features was classified by reference to its principal and essential function. The materials showed that it was capable of use as a printer for computers, that printing formed its major part, and that the tariff did not require an output unit to be a dedicated computer peripheral. Applying the rule for composite goods, classification followed the function giving the machine its essential character, which was printing. The machine was therefore treated as an output unit for automatic data processing machines under sub-heading 8471.60, and not as a photocopier under sub-heading 9009.21.

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Issues: Whether a multifunction machine having printing, scanning, faxing and copying capabilities was classifiable as an output unit for automatic data processing machines under sub-heading 8471.60 or as a photocopier under sub-heading 9009.21.

Analysis: The machine was found to possess multiple functions, but the tariff did not require that an output unit be a dedicated computer peripheral. The catalogue and uncontroverted materials showed that the machine was capable of being used as a printer for computers, that printing constituted its major part, and that the principal and essential function of the device was printing. For a composite machine, classification had to follow the function which gave the goods their essential character, and the material on record supported the conclusion that printing was that function. The earlier tribunal view concerning similar multifunction equipment was also treated as supportive of this approach.

Conclusion: The machine was classifiable under sub-heading 8471.60 as an output unit for computers and not under sub-heading 9009.21 as a photocopier.

Final Conclusion: The lower classification was set aside and the assessee succeeded on the tariff classification dispute.

Ratio Decidendi: A multifunction machine is classifiable according to its principal and essential function, and it need not be a dedicated computer peripheral if it is capable of use as an output unit for automatic data processing machines.

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