Classification of server units as automatic data processing machines upheld under Heading 84.71, not electrical apparatus.

Imported Fiery XJ + 300 and Fiery XJ + 170 systems were treated as units of an automatic data processing system because they functioned as servers linking computers and photo copiers, receiving, storing and transmitting data under a computer programme. Chapter Note 5(B), 5(C) and 5(D) supported classification of separately presented units under Heading 84.71. Their use with photo copiers did not exclude them from that heading, and they were not classifiable as electrical machines with individual functions under sub-heading 8543.89; the correct classification was Heading 84.71.

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Issues: Whether the imported Fiery XJ + 300 System and Fiery XJ + 170 System were correctly classifiable under Heading 84.71 as units of automatic data processing machines, or under sub-heading 8543.89 as electrical machines and apparatus having individual functions.

Analysis: The systems functioned as servers in a data processing setup linking computers and photo copiers. They received, stored and transmitted data in accordance with the computer programme, and therefore operated as units in an automatic data processing system. Chapter Note 5(B), 5(C) and 5(D) supported classification of separately presented units under Heading 84.71. The fact that the systems were used with photo copiers did not take them out of the scope of that heading, and they were not independently classifiable as electrical apparatus having individual functions under sub-heading 8543.89.

Conclusion: The correct classification was under Heading 84.71 and not under sub-heading 8543.89, in favour of the assessee.

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