POS system components classified as automatic data processing units, not signalling apparatus, restoring the exemption claim.

Imported BA 63 display, cash drawer and cables used with a POS system were treated as input or output units of an automatic data processing machine when they were used solely with the system, connected to the central processing unit, and capable of accepting or delivering data in a form usable by the system. Applying the tariff headings, Section and Chapter notes, and the General Rules for Interpretation, heading 8471 was held to fit the goods, while heading 8531 was limited to electric sound or visual signalling apparatus such as alarms and indicator panels. The reclassification under heading 8531 was set aside and the duty exemption claim was restored.

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Issues: Whether the imported BA 63 display, cash drawer and cables used with a POS system were classifiable under CTI 8471 6090 as input or output units of an automatic data processing machine, or under CTI 8531 8000 as other apparatus.

Analysis: The classification had to be determined by reading the tariff headings with the relevant Section and Chapter notes, and by applying the General Rules for Interpretation sequentially. The goods were shown to be used solely with the POS computer system, with the display unit, cash drawer and cables contributing to the purchase and sale transaction and connecting with the central processing unit. The conditions in Note 5 to Chapter 84 were found to be satisfied, because the goods were of the kind used with an automatic data processing system, were connectable to the central processing unit, and were able to accept or deliver data in a form usable by the system. Heading 8531 was found to cover electric sound or visual signalling apparatus such as alarms and indicator panels, and the imported goods did not answer that description. The reliance placed on the earlier decision concerning information display systems was held inapplicable on the facts.

Conclusion: The imported goods were classifiable under CTI 8471 6090 and not under CTI 8531 8000.

Final Conclusion: The appeal succeeded and the reclassification under heading 8531 was set aside, with the duty exemption claim restored in consequence.

Ratio Decidendi: Goods which are identifiable as units or parts of a POS system and satisfy the conditions in Note 5 to Chapter 84 must be classified as input or output units of an automatic data processing machine under heading 8471, and not under heading 8531 unless they truly answer the description of electric sound or visual signalling apparatus.

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