HQ 0087956 - Lumped Constant Delay Lines; Inductors; Capacitors; Passive; Active; Analog, Digital, Video, Audio Signals; Automatic Data Processing Units; Suitable For Use Principally With A Certain Machine Or Article - United States International Trade Commision Rulings

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HQ 087956

January 8, 1991

CLA-2 CO:R:C:G 087956 CMS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.40
8548.00.00

Mr. Dale W. Hornback
Vice President & CFO
Pulse Engineering, Inc.
P.O. Box 12235
San Diego, CA 92112

RE: Lumped Constant Delay Lines; Inductors; Capacitors; Passive; Active; Analog, Digital, Video, Audio Signals; Automatic Data Processing Units; Suitable For Use Principally With A Certain Machine Or Article

Dear Mr. Hornback,

This is in response to your request dated September 4, 1990, for a classification ruling on certain lumped constant delay lines under the Harmonized Tariff Schedules of the United States Annotated (HTSUSA). Our ruling follows.

FACTS:

The merchandise is described by the importer as "lumped constant delay lines". The articles are passive electromagnetic devices designed to delay the transmission of a signal. They typically consist of a ladder network of discrete inductors and capacitors which are formed and encased on a small circuit board. The length of a signal delay is determined by the values of these components.

The delay lines are passive delay lines. They are distinguished from active delay lines (also referred to as "modules", "digital delay lines", "digital programmable delay lines", etc.) which incorporate a delay line and an integrated circuit.

Lumped constant delay lines are usually smaller than distributed parameter delay lines and operate at a lower impedance. They also result in a relatively higher distortion of the original wave form.

The lumped constant delay lines are used in many applications and may be used for analog, digital, video and audio signals. The principal qualities of passive delay lines are stability, precision timing, reliability and compactness. The features of the passive delay lines, including the specific delayed time range, packaging density and delay to rise time ratio make them suitable for automatic data processing (ADP) applications. For example, the delay lines are frequently used to provide timing control over peripherals interfacing with the CPU of a computer.

Information submitted on behalf of the importer includes a survey of five importers who are said to represent 55% of the U.S. market. The five importers reported that they sell approximately 80% of their delay lines to manufacturers of automatic data processing machines and units thereof, including disk drives. The survey was intended to identify 1) the technological application of the delay lines (e.g., data processing, telecommunications, testing, etc.), 2) the particular machines in which they were used, 3) the users of the delay lines, and 4) the quantity sold per year for each application. The survey covered the years of 1988 and 1989.

The results of the survey applied to actual use of both passive and active delay lines. To the extent possible, only results relating to passive delay lines were considered in our review of the survey. Pulse Engineering was one of the respondents in this survey. Although we were unable to correlate the part numbers reported on the survey as passive delay lines with the catalog part numbers for passive delay lines, the descriptions and part numbers reported in the survey appear to be sufficient to identify the delay lines as "passive" delay lines. One of the respondents clearly identified the user, the product in which its delay lines were used, the type of delay line (passive), and the quantity used. To the extent that this respondent has identified all customers of its passive delay lines, it appears that 95% of its passive delay lines are used in ADP equipment.

The results of the survey indicate that 1) the respondents sell passive delay lines to manufacturers of ADP equipment and 2) approximately 65% to 95% of all these delay lines are used in ADP equipment by the manufacturers identified by the respondents. However, the results of the survey alone do not allow us to conclude that the respondents represent 55% of the market share in lumped constant delay lines, that the usage in the telecommunications field has been adequately represented and compared with the usage in ADP, or that the sales of passive delay lines (reported by the respondents) represent the total sales of passive delay lines for 1988 and 1989.

The five respondents advised in December, 1990, that their customer base for 1990 was essentially the same as it was for the years 1988 and 1989.

ISSUE:

Is the merchandise classified as parts of automatic data processing machines in Heading 8473, or as electrical parts of machinery or apparatus, not specified or included elsewhere, in Heading 8548?

LAW AND ANALYSIS:

Heading 8473 in pertinent part describes parts and accessories suitable for use solely or principally with machines of Heading 8471. Heading 8471 in pertinent part describes automatic data processing machines and units thereof.

Heading 8548 describes electrical parts of machinery or apparatus, not specified or included elsewhere in Chapter 85.

Pursuant to Section XVI Note 2, Heading 8548 does not cover parts which are suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading. Thus, if the merchandise is described by Heading 8473 as parts suitable for use solely or principally with data processing machines, the merchandise is classified in Heading 8473 and not in Heading 8548.

The features of the lumped constant delay lines, the survey, and additional information obtained by this office support a finding that lumped constant delay lines are suitable for use principally with ADP machines and units thereof. The survey, by itself, does not permit us to conclude that the delay lines are principally used with ADP equipment. The survey does indicate that a significant volume of lumped constant delay lines are used in ADP equipment. Two manufacturers, other than the respondents on the survey, confirmed that passive delay lines have a significant use in ADP equipment as well as uses in a wide range of other applications. A representative for one of the larger manufacturers confirmed that more than 50% of the total number are used in ADP equipment.

We recognize that principal use, as in the case of electronic components that have a potential for multiple uses, may fluctuate with the trends of a consumer market or developments in technology. However, this does not preclude a finding that components are suitable for use principally with a certain article or machine at the time of their importation, if the facts support such a finding.

The lumped constant delay lines under consideration are classified in 8473.30.40, HTSUSA, as parts suitable for use solely or principally with the machines of Heading 8471.

HOLDING:

The lumped constant delay lines under consideration are classified in 8473.30.40, HTSUSA, as parts suitable for use solely or principally with the machines of Heading 8471.

Sincerely,

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