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HQ 950343


December 4, 1991

CLA-2 CO:R:C:M 950343 AJS

CATEGORY: CLASSIFICATION

TARIFf NO.: 8471.20.00; 9903.41.15

Area Director
U.S. Customs Service
Room 137
110 S. Fourth Street
Minneapolis, Minnesota 55401

RE: Protest 3501-1-100139; Personal computer PC-9801 NS20; lap- top computer; 80386 SX central processing unit; Chapter 84, note

Dear Area Director:

This is our decision on application for further review of Protest No. 3501-1-100139 dated May 6, 1991, filed against the classification of a personal computer (PC) within subheading 9903.41.15, Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise under protest is the model PC-9801 NS20 lap- top computer from Japan. It incorporates an 80386 SX central processing unit (CPU) that runs at 12 MHZ. This model incorporates an 80386 microprocessor, which is considered in the industry to be within the 32 bit category of CPU chips. It is a high-speed, advanced computer, which was imported with an external printer.

ISSUE:

Whether the subject PC is classifiable within subheading 9903.41.15, HTSUS, which 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, which incorporate a microprocessor-based calculating
mechanism, are capable of handling data words of at least 16- bits off the microprocessor, and are designed for use with a non cathode-ray tube (non-CRT) display unit, whether or not capable of use without an external power source (provided for in subheading 8471.20)."

LAW AND ANALYSIS:

Heading 8471, HTSUS, provides for automatic data processing (ADP) machines and units thereof. The term ADP machine means "[d]igital machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and, (4) executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run." Chapter 84, note 5(A)(a). There is no dispute that the subject PC satisfies this description. Subheading 8471.20.00, HTSUS, provides for digital ADP machines, containing in the same housing at least a CPU unit and an input and output unit, whether or not combined. The subject PC satisfies the terms of this subheading. It is a lap-top computer which incorporates in the same housing at least a processor, and an input and output unit. Accordingly, the subject PC is classifiable within this subheading.

Footnote 1/ to subheading 8471.20.00, HTSUS, states "[c]ertain ADP machines and units thereof, the product of Japan, are subject to increased duty. See subheadings 9903.41.15 . . ." This subheading provides for ADP machines, of the type of which the constituent units are integrated in the same housing, whether finished or unfinished, which incorporate a microprocessor-based calculating mechanism, are capable of handling data words of at least 16-bits off the microprocessor, and are designed for use with a non-CRT display unit, whether or not capable of use without an external power source (provided for in subheading 8471.20). The subject PC satisfies this description. It incorporates an 80386 microprocessor, which is within the 32 bit category of CPU chips. Accordingly, the subject PC is also properly classifiable within this subheading.

HOLDING:

The PC-9801 NS20 lap-top computer is properly classifiable within subheading 8471.20.00, HTSUS, which provides for digital ADP machines containing in the same housing at least a CPU and an input and output unit. These machines are also classifiable
within temporary subheading 9903.41.15, HTSUS, which provides for certain ADP machines provided for within subheading 8471.20, HTSUS, dutiable at the rate of 100 percent ad valorem.

You should deny the protest in full. 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
Commercial Rulings Division


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