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HQ 087077


March 27, 1991

CLA-2 CO:R:C:M 087077 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.90; 9027.20.40

District Director
U.S. Customs
10 Causeway Street, Room 603
Boston, MA 02222-1056

RE: Internal Advice 25/90; Chromatography Server; 9027; Instruments and Apparatus for Physical or Chemical Analysis; 8471; Automatic Data Processing Machine; Control and Adapter Units; Signal Converter; Functional Unit

Dear Sir:

This is in reply to your request for Internal Advice 25/90, dated March 13, 1990, regarding classification of the Chromatography Server, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The Chromatography Server ("Server") is imported by VG Instruments, Inc., as a component of the Chromatography Data Management System. The Server acts as an interface between the actual chromatograph and the automatic data processing unit ("ADP"). The Server accepts analog data from the chromatograph, converts that information to digital data, stores the data in its cache memory until the ADP is ready to receive it, and then transmits the digital data to the ADP.

There are four proposed import configurations: 1) Server; 2) Server, Chromatograph, and Computer; 3) Server and Chromatograph; 4) Server and Computer.

ISSUE:

What is the classification of a Chromatography Server, under the Harmonized Tariff Schedule of the United States Annotated

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

The Server is prima facie classifiable in the following headings:

9027 Instruments and apparatus for physical or chemical analysis...; parts and accessories thereof:

9027.90.40 Microtomes; parts and accessories: Parts and accessories: Of electrical instruments and apparatus: Of articles of subheading 9027.20.40
(Chromatographs)

8471 Automatic data processing machines and units thereof:

8471.99.15 Other: Other: Control or adapter units

8471 Automatic data processing machines and units thereof:

8471.99.90 Other: Other: Other: Other

There are four proposed import configurations of the Server: 1) Server; 2) Server, Chromatograph, and Computer; 3) Server and Chromatograph; 4) Server and Computer.

It has been argued that the Server, imported separately, is properly classifiable under subheading 8471.99.15, HTSUSA, which provides for control or adapter units for ADP machines.

Legal Note 5(B), chapter 84, delineates "units" of automatic data processing (ADP) systems. Legal Note 5(B) states:

Automatic data processing machines may be in the form of systems consisting of a variable number of separately housed units. A unit is to be regarded as being a part of the complete system if it meets all of the following conditions:

(a) It is connectable to the central processing unit...

(b) It is specifically designed as part of such a system...

The Harmonized Commodity Description and Coding System Explanatory Notes (EN), for heading 8471, page 1299, state:

(D) SEPARATELY PRESENTED UNITS

This heading also covers separately presented constituent units of data processing systems. Constituent units are those defined in Parts (A) and (B) above as being parts of a complete system.

Apart from central processing units and input and output units, examples of such units include:

(4) Control and adaptor units such as those to effect interconnection of the central processing unit to other digital data processing machines, or to groups of input or output units which may comprise visual display units, remote terminals, etc. (emphasis added).

However, the Chromatograph is not an "other digital data processing machine" or a "group of input or output units." Therefore, since the Server is designed to interconnect the Chromatograph and the CPU, it cannot be considered a control or adapter unit for an ADP system. See HQ 087902, dated January 14, 1991, regarding control and adapter units of ADP systems.

The Server functions by accepting analog data from the chromatographs. Then, utilizing its A/D converter board, the Server converts the analog signals to the digital signals which can be processed by the ADP machine.

The ENs which provide for "Separately Presented Units" of ADP machines, page 1300, include:

(5) Signal converting units. At input, these enable an external signal to be understood by the machine, while at output, they convert the output signals that result from the processing carried out by the machine into signals which can be used externally.

Therefore, it is Customs position that the Server is, in fact, a "signal converting unit" and is thus properly classifiable under subheading 8471.99.90, HTSUSA, which provides for: "Automatic data processing machines and units thereof: Other: Other: Other: Other."

HQ 086851, dated April 9, 1990, held that a Chromatograph and a Computer, imported together, were a functional unit intended to contribute to the clearly defined function of Chromatography.

Section XVI, Note 4, requires the classification of "functional units" to be within the heading appropriate to the function of the unit. Chapter 90, Note 3, HTSUSA provides that Section XVI, Note 4 also applies to Chapter 90. Thus, Section XVI, Note 4 is applicable to heading 9027. Section XVI, Note 4, states:

Where a machine...consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN), page 1133, states that a "functional unit" covers only those "machines and combination of machines essential to the performance of the function specific to the functional unit as a whole..." The function specific to the goods in question is clearly Chromatography.

Therefore, the Server, Chromatograph and Computer configuration is properly classifiable under subheading 9027.20.40, HTSUSA, which provides for: "Instruments and apparatus for physical or chemical analysis...;parts and accessories thereof: Chromatographs and electrophoresis instruments: Electrical."

When the Server and the Chromatograph are imported together, they cannot be considered a functional unit without the ADP machine because there no are Legal Notes or ENs that provide for "unfinished functional units." Therefore, the Server would be classifiable under subheading 8471.99.90, HTSUSA, and the Chromatograph would be classifiable under 9027.20.40, HTSUSA.

No information has been submitted regarding the configuration of the ADP machine itself. However, when the Server is imported with the ADP machine, the Server would still be classifiable under subheading 8471.99.90, HTSUSA, and the ADP machine would be classifiable under the appropriate subheadings of 8471, HTSUSA.

HOLDING:

The VG Instruments, Inc., Chromatography Server is classifiable under subheading 8471.99.90, HTSUSA, which provides for: "Automatic data processing machines and units thereof: Other: Other: Other: Other." The rate of duty is 3.7% ad valorem.

The Chromatography Server imported with the Chromatograph and the ADP System is classifiable as a functional unit under subheading 9027.20.40, HTSUSA, which provides for: "Instruments and apparatus for physical or chemical analysis...;parts and accessories thereof: Chromatographs and electrophoresis instruments: Electrical." The rate of duty is 4.9% ad valorem.

When the Chromatography Server is imported with the Chromatograph, the Server is classifiable under 8471.99.90, HTSUSA, and the Chromatograph is separately classifiable under 9027.20.40, HTSUSA.

When the Chromatography Server is imported with the ADP machine, the Server is classifiable under subheading 8471.99.90, HTSUSA, and the ADP machine is classifiable under the appropriate subheadings of 8471, HTSUSA.

The Internal Advice applicant should be advised of this decision.

Sincerely,

John Durant, Director

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