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HQ 088464


September 11, 1991

CLA-2 CO:R:C:M 088464 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.90

Assistant District Director
U.S. Customhouse
Interstate 87
Champlain, NY 12919

RE: Protest No. 0712-90-000738; microselect system; controller; interface; Subheading 8537.10.00; EN 84.71(A); Chapter 84, note 5(B); EN 84.71(D); Computer Dictionary and Handbook; Under- standing Computers: What Managers Need to Know; Subheading 8741.99.15.

Dear Sir:

Protest for further review number 0712-90-000738 dated August 15, 1990, was filed against the classification of the Microselect system within subheading 8537.10.00, Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The Microselect system is a simple video network system which performs multiple tasks. It enables a teacher using a micro-computer (MC) to constantly monitor up to 32 students who are also using MCs, and permits complete control over each of the classroom computers.

The system links all the MCs in the classroom by means of a series of interfaces. The system is regulated by a controller at the teacher's station. The controller receives and controls the transmission of electronic signals from the teacher's MC to the interfaces of the other MCs. The interfaces are connected to the video outlet and the screen of each MC. They manipulate and retransmit video signals between the MCs and their screens. The teacher can transfer the screen image from any one of the MCs to any other screen in the network. The students cannot control their screen while the teacher is displaying data.

ISSUE:

Whether the Microselect system is properly classifiable within heading 8537, HTSUSA, which provides for "[b]oards, panels (including numerical control panels), consoles, desks, cabinets
and other bases, equipped with two or more apparatus of heading 8535 and 8536, for electric control or the distribution of electricity . . ."; or classifiable within heading 8471, HTSUSA, which provides for automatic data processing (ADP) machines and units thereof.

LAW AND ANALYSIS:

Heading 8471, HTSUSA, provides for ADP machines and units thereof. These machines usually consist of a number of separately housed interconnected units, which form a system. Harmonized Commodity Description and Coding System, Explanatory Notes (ENs) 84.71(A), p. 1298 (1991). Such systems may also include peripheral units designed to increase the capacity of the system, for instance, by expanding one or more of the functions of the central unit. ENs 84.71(A). Such units are inserted between the input or output units (start and end of the system). ENs 84.71(A). It is claimed that the subject merchandise is such a peripheral unit. The subject system is designed to increase the capacity of the MCs by allowing different MCs to be inter- connected, controlled and monitored. In addition, the controller and interfaces are located between the output unit of the teacher's MC and the input units of the student's MCs.

A separately-housed unit is to be regarded as being a part of the complete digital data processing system, if it satisfies the following conditions:

(a) It is connectable to the central processing unit (CPU) either directly or through one or more other units; and

(b) It is specifically designed as part of such a system. It cannot be considered as such unless, in particular, it is capable of accepting or delivering data in a form (code or signals) which can be used by the system. Chapter 84, note 5(B).

The subject merchandise satisfies these requirements. The controller is connectable to the CPU of the teacher's MC, and the interfaces are connectable to the CPUs of the student's MCs. The subject merchandise is also specifically designed as part of an ADP system. It is designed to interconnect, control and monitor the MCs of the Microselect system by accepting and delivering data in a form usable by the system.

Heading 8471, HTSUSA, covers separately presented constituent units of a data processing system. ENs 84.71(D). Examples of such units include control units such as those to effect interconnection of the CPU to other digital data processing machines, or to groups of input or output units which
may comprise visual display units, remote terminals, etc. ENs 84.71(D)(4). Control units are described as intermediary control devices which link peripheral units to the CPU. C.J. and R.J. Sippl, Computer Dictionary and Handbook, p. 115 (3rd ed. 1980). Control units are used to interface (i.e., interact or inter- connect) computers and peripheral devices. Myles E. Walsh, Understanding Computers: What Managers Need to Know, p. 36 (1981). Control units are provided for within subheading 8471.99.15, HTSUSA. The subject system partially satisfies the description of a control unit. It effects the interconnection of the teacher's MC to the other MCs of the Microselect system. However, it also enables the teacher's MC to monitor and control what image is viewed on the student's screen. These operations are not merely interconnection functions. Accordingly, the subject system does not satisfy the terms of this subheading and is not properly classifiable therein.

Subheading 8471.99.90, HTSUSA, provides for other units of ADP machines. The subject system satisfies this description. As stated previously, it interconnects, controls and monitors the MCs of the subject system. Accordingly, the subject system satisfies the terms of this subheading and is properly classifiable therein.

Heading 8537, HTSUSA, provides for "[b]oards, panels . . . consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity . . ." The subject system does not satisfy this description. It is not used merely for the electric control or the distribution of electricity. As discussed above, the system is used to perform multiple tasks described in heading 8471, HTSUSA. Accordingly, the subject system does not satisfy the terms of this heading and is not properly classifiable therein.

HOLDING:

The Microselect system is properly classifiable within subheading 8471.99.90, HTSUSA, which provides for other units of ADP machines. You should allow the protest in full. A copy of this decision should be attached to the Customs Form 19 and mailed to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director
Commercial Rulings Division

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