Data collection terminals without a CPU may classify as input units when they transmit captured data to a computer.

Portable hand-held data collection terminals without a central processing unit were treated as input units of an automatic data processing machine because they captured data by keyboard entry or bar-code scanning, stored it only temporarily, and transmitted it for further processing on a computer. Applying Chapter Note 5B of Chapter 84 and the relevant explanatory notes, the classification depended on whether the goods were connectable to a CPU and capable of accepting or delivering data in a form usable by the system. On that basis, the terminals fell under sub-heading 8471.60 as input units and not under sub-heading 8479.89.

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Issues: Whether portable data collection terminals imported without a central processing unit were classifiable as input or output units of an automatic data processing machine under sub-heading 8471.60, or under sub-heading 8479.89 as claimed by the department.

Analysis: The items were portable hand-held terminals designed to collect data by keyboard entry or bar-code scanning. They had no central processing unit and only limited memory for temporary storage, after which the collected data had to be downloaded to a personal computer for further processing. Applying Chapter Note 5B of Chapter 84, the goods satisfied the characteristics of a unit used in an automatic data processing system, being connectable to the central processing unit and capable of accepting or delivering data in a form usable by the system. In light of the section note, explanatory notes, and the specific description of input units, the terminals were treated as input units attached to a data processing system.

Conclusion: The goods were classifiable under sub-heading 8471.60 as input units of an automatic data processing machine, and not under sub-heading 8479.89.

Ratio Decidendi: A portable device without a central processing unit, but capable of capturing data for transmission to a computer for further processing, is classifiable as an input unit of an automatic data processing system if it satisfies the relevant chapter note conditions.

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