HQ 0950302 - Protest No. 3004-91-000041; parts of System 51 "Network Management System"; 8473; 8529; Note 2 to Section XVI; Note 5(A) to Chapter 84; 19 CFR 174.13(5)(6); HQ 086400; HQ 089277 - United States International Trade Commision Rulings

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HQ 950302

August 14, 1992

CLA-2 CO:R:C:M 950302 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.92.40; 8504.40.00; 8517.82.00; 8525.10.80; 8536.90.00; 8537.10.00; 8544.20.00; 8544.41.00; 8544.51.80

District Director
U.S. Customs Service
9901 Pacific Highway
Blaine, Washington 98230

RE: Protest No. 3004-91-000041; parts of System 51 "Network Management System"; 8473; 8529; Note 2 to Section XVI; Note 5(A) to Chapter 84; 19 CFR 174.13(5)(6); HQ 086400; HQ 089277

Dear Sir:

This is our response regarding Protest No. 3004-91-000041, dated February 1, 1991, which concerns the classification of parts of the System 51 "Network Management System" [hereinafter, "System 51"] under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

This protest concerns the classification of parts of the System 51. The System 51 includes the following three systems: (1) 51RS Remote Station [51RS]; (2) Microtel Spacetel SCPC Satellite Communications System [Microtel]; and (3) 46A Multiplex Equipment [46A]. Parts of the three systems which encompass the System 51 were entered at the port of Blaine, Washington.

The parts of the 51RS were entered under subheading 8473.30.80, HTSUS, which describes parts and accessories suitable for use solely or principally with the machines of Heading 8471, HTSUS. The parts of the Microtel and the 46A were entered under subheading 8529.90.50, HTSUS, which describes parts suitable for use solely or principally with the apparatus of Headings 8525 to 8528, HTSUS. All of the parts were liquidated under subheading 8517.90, HTSUS, which describes parts of electrical apparatus for line telephony or telegraphy. - 2 -

The System 51 is a network management system that monitors the status of remote sites from one central location so that all surveillance and control functions can be executed from a single site. It monitors critical points in a geographically dispersed network and reports their status via communication links to a centrally located control center. For example, it can monitor radio pilot levels, noise thresholds, AC and DC power and environmental conditions. Further, it can administer all facets of a telecommunications network operation.

The parts of the three systems--51RS, Microtel, and 46A-- which are subject to this protest include the following: a remote shelf; a terminal block; an alarm and relay control unit; a control output unit; a service extender unit; an expansion cable; an external display shelf; a "connectorized" terminal block panel; a power supply panel and unit; a display power supply unit; a CPU unit; digital input units; an encoder unit; an interface unit; an asynchronous buffered multiplexor (ABM) port; and blank units.

ISSUE:

Whether the parts of the System 51 "Network Management System" are classifiable as parts of electrical apparatus for line telephony or telegraphy.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The articles in question were liquidated under subheading 8517.90, HTSUS, which describes parts of electrical apparatus for line telephony or telegraphy. They were entered under subheading 8473.30.80, HTSUS, which describes parts and accessories suitable for use solely or principally with the machines of Heading 8471, HTSUS, and under subheading 8529.90.50, HTSUS, which describes parts suitable for use solely or principally with the apparatus of Headings 8525 to 8528, HTSUS.

Note 2 to Section XVI states that "[p]arts which are goods included in any of the headings of Chapters 84 and 85 . . . are in all cases to be classified in their respective headings . . . [emphasis added]." Thus, if the articles in question are goods included in a chapter 84 or 85 heading, they cannot be classified as parts under subheading 8473.30.80, 8517.90, or 8529.90.50, HTSUS.

The Remote Shelf provides mounting facilities for plug-in units or cards and interconnecting wiring, which encodes a maximum of 256 inputs and controls a maximum of 32 relays. The shelf provides communication to and from the Master (HOST) via the VF Transmit/Receive Unit. The Remote Shelf is classifiable under Heading 8536, HTSUS, specifically under subheading 8536.90.00, HTSUS, which describes other electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits, for a voltage not exceeding 1,000 V.

The Terminal Block is used to connect wiring to another article, such as, connecting wiring units and shelves together. The Service Extender Unit provides the means to extend all connections of a shelf position outside the shelf frame, at which time the unit to be serviced is fully exposed, although fully operational with its system. The main body of the unit contains 100 test points which are connected pin for pin. The External Display Shelf provides mounting facilities for external display units and a display power supply unit. The signals and power required to interconnect the equipped units are carried by the printed circuit wiring present on the shelf backplane. The "Connectorized" Terminal Block Panel provides mounting facilities for a maximum of four "connectorized" terminal blocks. The Terminal Block, the Service Extender Unit, the External Display Shelf and the "Connectorized" Terminal Block Panel are all classifiable under subheading 8536.90.00, HTSUS, which describes other electrical apparatus for making connections to or in electrical circuits, for a voltage not exceeding 1,000 V.

The Alarm and Relay Control Unit is used in the 51RS to monitor operating parameters, and to select, confirm and operate/release control output relays. This unit also monitors CPU activity (such as, low battery or elapsed time of Remote/Master Communications). In addition, this unit may initiate the INPUT test, disable the remote communication for maintenance and rest the CPU. The Alarm and Relay Control Unit is classifiable under Heading 8537, HTSUS, specifically under subheading 8537.10.00, HTSUS, which describes boards, panels and other bases for electric control or the distribution of electricity, for a voltage not exceeding 1,000 V.

The Control Output Unit provides latching, non-latching or transistor drive outputs. Each card contains eight relays or transistor drives, and each has two FORM C relay contact outputs. This unit is also described by subheading 8537.10.00, HTSUS.

The Expansion Cable allows the 51RS to expand to a CPU Expansion Shelf (not subject to this protest) for auxiliary processing capability. The options -01 cable consists of two, 20
pair cables terminated at each end by a 42 pin paddle board. The cable is described by Heading 8544, HTSUS, which provides for insulated wire, cable and other insulated electric conductors fitted with connectors. If coaxial, the cable is classifiable under subheading 8544.20.00, HTSUS, which describes "[c]oaxial cable and other coaxial electric conductors." If not, it is classifiable in either subheading 8544.41.00, HTSUS (if voltage does not exceed 80 V), or under subheading 8544.51.80, HTSUS (if voltage exceeds 80 V but not 1,000 V), depending on the cable's maximum voltage.

The Power Supply Panel provides redundant power supply up to a total of 135 watts of output power. The Power Supply Unit provides the circuitry to convert a -20V to -56V unregulated office battery voltage to a regulated +5V, +15V and -15V outputs. All outputs have the capability of regulating both output voltage and output current. The Display Power Supply Unit consists of two (-5V and -24V) switching type regulators which may be operated from a -24V input. Both regulators are current limited and have over-voltage protection of the outputs. Upon failure or either regulator, a relay is released to signal the failure. These units are described by Heading 8504, HTSUS, which provides for electrical transformers, static converters and inductors. Specifically, they are classifiable under subheading 8504.40.00, HTSUS, which describes "[s]tatic converters."

The Digital Input Units allow the 51RS Remote Terminal Assembly to monitor 32 binary inputs in either a normal or data lock mode. The inputs are protected against overvoltages and the input circuitry is isolated from the outputs of the unit by the use of optocouplers. A control byte, programmed by an on-board switch, informs the CPU during initialization how each byte of data is to be processed and how the 32 inputs are to be treated. These units are classifiable under subheading 8471.92.40, HTSUS, which provides for other input units for automatic data processing machines, whether or not entered with the rest of a system and whether or not containing storage units in the same housing.

The Encoder Unit provides parallel to serial data conversion (converts signal to coded data form for transmission), common alarm and status change detection. This unit is classifiable under subheading 8525.10.80, HTSUS, which describes other transmission apparatus for radiotelegraphy. See 086400, dated May 11, 1990 (integrated receiver/decoder for the transmission of encrypted audio and data communications was classified under subheading 8525.10.20, HTSUS).

The Interface Unit equips serial data ports and auxiliary CPU support functions, and communicates with either a computer or
a printer. The ABM Port is a plug-in unit that mounts directly into a mini-computer, and provides an interface between a 51H computer and communication ports.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) to Heading 8517, HTSUS, pg. 1360, state:

The term "electrical apparatus for line telephony or line telegraphy" means apparatus for the transmission between two points of speech or other sounds (or of symbols representing written messages, images or other data), by variation of an electric current or of an optical wave flowing in a metallic or dielectric (copper, optical fibers, combination cable, etc.) circuit connecting the transmitting station to the receiving station. The heading covers all such electrical apparatus designed for this purpose, including the special apparatus used for carrier- current line systems.

The Interface Unit and the ABM Port are covered by Heading 8517, HTSUS, and are classifiable under subheading 8517.82.00, HTSUS, which describes other electrical apparatus for line telephony or telegraphy. See 089277, dated August 14, 1991.

The CPU Unit provides system timing (CTC), communications (SIO) circuits and processing for various assemblies depending on the firmware installed. The on-board memory may be configured to a maximum of 48K EPROM/16K SRAM by suitable programming of a decode PROM. Memory configuration is possible according to customer need. Based on the information provided by the protestant, this unit does not appear to be "freely programmable." Thus, according to Note 5(A) to Chapter 84, it cannot be classified under Heading 8471, HTSUS, and it is classifiable under subheading 8517.82.00, HTSUS.

HOLDING:

The Remote Shelf, Terminal Block, Service Extender Unit, External Display Shelf and the "Connectorized" Terminal Block Panel are classifiable under subheading 8536.90.00, HTSUS, which provides for "[e]lectrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits . . . for a voltage not exceeding 1,000 V . . . [o]ther apparatus." The corresponding rate of duty for articles of this subheading is 5.3% ad valorem.

The Alarm and Relay Control Unit and the Control Output Unit are classifiable under subheading 8537.10.00, HTSUS, which - 6 -
provides for "[b]oards, panels . . ., consoles desks, cabinets and other bases . . . for electric control or the distribution of electricity . . . [f]or a voltage not exceeding 1,000 V." The corresponding rate of duty for articles of this subheading is 5.3% ad valorem.

The Expansion Cable is classifiable under Heading 8544, HTSUS, which provides for "[i]nsulated . . . wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors . . . ." If coaxial, the cable is classifiable under subheading 8544.20.00, HTSUS. If not, it is classifiable under either subheading 8544.41.00, HTSUS, or subheading 8544.51.80, HTSUS, depending on the cable's maximum voltage. The corresponding rate of duty for articles of these subheadings is 5.3% ad valorem.

The Power Supply Panel, Power Supply Unit and the Display Power Supply Unit are classifiable under subheading 8504.40.00, HTSUS, which provides for "[e]lectrical transformers, static converters . . . and inductors . . . [s]tatic converters." The corresponding rate of duty for articles of this subheading is 3% ad valorem.

The Digital Input Units are classifiable under subheading 8471.92.40, HTSUS, which provides for "[a]utomatic data processing machines and units thereof . . . [i]nput or output units, whether or not entered with the rest of a system and whether or not containing storage units in the same housing . . . [o]ther . . . [o]ther." The corresponding rate of duty for articles of this subheading is 3.7% ad valorem.

The Encoder Unit is classifiable under subheading 8525.10.80, HTSUS, which provides for "[t]ransmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus . . . [t]ransmission apparatus . . . [o]ther." The corresponding rate of duty for articles of this subheading is 6% ad valorem.

The Interface Unit, ABM Port and the CPU Unit are classifiable under subheading 8517.82.00, HTSUS, which provides for "[e]lectrical apparatus for line telephony or telegraphy . . . [o]ther apparatus . . . [o]ther." The corresponding rate of duty for articles of this subheading is 4.7% ad valorem.

The protestant has not provided sufficient information with regard to the remainder of the articles to render a classification determination, and therefore, the protest concerning those articles should be denied. See Section 174.13(5)(6) of the Customs Regulations [19 CFR 174.13(5)(6)].

However, the protest should be granted to the extent reclassification of the merchandise as indicated above results in a net duty reduction or partial allowance. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director

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