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HQ 083957


July 11, 1989

CLA-2 CO:R:CV:G: 083957 JLV

CATEGORY: CLASSIFICATION

TARIFF NO.: 9903.41.15

Gary C. Cooper, Esq.
Law Offices George R. Tuttle
Three Embarcadero Center, Suite 1160
San Francisco, California 94111

RE: Essential character of incomplete components for a laptop computer

Dear Mr. Cooper:

In a letter of March 2, 1989, on behalf of your client, Alps Electric U.S.A., Inc., you request a ruling on whether certain groupings of components for laptop computers constitute an incomplete or unfinished computers within the subheading 9903.41.15, Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The merchandise consists of various component parts or subassemblies of laptop computers to be imported on separate days in the following shipments:

1. Plasma display and upper case, floppy disk drive and hard disk drive;

2. Motherboard, without CPU and EPROM;

3. CPU and EPROM, keyboard, HDD interface, FDD interface, power supply, and lower case.

You conclude that none of these shipments of components for a laptop computer constitutes an incomplete or unfinished computer having the essential character of a computer for
purposes of classification in subheading 8471.20.00, HTSUSA, under the principle of GRI 2(a), HTSUSA, and, therefore, if these components are imported in the above manner, they will not be subject to the duty in subheading 9903.41.15, HTSUSA.

ISSUE:

Whether the combination of components for a laptop computer, as identified in the facts, constitute an unfinished article having the essential character of a computer for purposes of classification in subheading 8471.20.00 under the classification rule set forth in GRI 2(a)?

LAW AND ANALYSIS:

Subheading 8471.20.00 provides for "[d]igital automatic data processing machines, containing in the same housing at least a central processing unit and an input and output unit, whether or not combined." Subheading 9903.41.15 provides for "[a]utomatic data processing machines, of the type of which the constituent units are integrated in the same housing, whether finished or unfinished . . . (provided for in subheading 8471.20)."

GRI 2(a) requires that an article that is presented incomplete or unfinished is to be classified as the complete or finished article if it has the essential character of the complete or finished article, even if presented unassembled or disassembled.

A shipment of a plasma display, upper case, floppy disk drive and hard disk drive (factual situation 1) would not constitute an article having the essential character of a digital automatic data processing machine because it consists essentially of a display unit and storage units and does not have the processing features of such a machine. Similarly, a shipment of a motherboard without a CPU and EPROM (factual situation 2), or a shipment of the CPU and EPROM, keyboard, HDD interface, FDD interface, power supply, and lower case (factual situation 3), does not have the essential character of a digital automatic data processing machine.

These conclusions, however, are based on the facts as submitted. Because of the highly technical nature of this merchandise, and because of the expanding technology in this area, this ruling applies only to the limited facts presented by counsel for the importer in this case.

HOLDING:

Under the facts as presented, none of the shipments of components for a laptop computer constitute an unfinished article for purposes of the additional duties on certain automatic data processing machines in subheading 9903.41.15, HTSUSA.

Sincerely,

John Durant, Director

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