HQ 0950764 - Protest No. 2809-91-101053; Dial Unit; 8471.99.15; Chapter 84, Note 5; separately housed unit; expansion board; 085221; 089180 - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0950721 - HQ 0950873 > HQ 0950764

HQ 950764

March 18, 1992

CLA-2 CO:R:C:M 950764 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.40

District Director
U.S. Customs Service
555 Battery Street
P.O. Box 2450
San Francisco, California 94126

RE: Protest No. 2809-91-101053; Dial Unit; 8471.99.15; Chapter 84, Note 5; separately housed unit; expansion board; 085221; 089180

Dear Sir:

This is in response to the Application for Further Review of Protest No. 2809-91-101053 dated June 7, 1991, which pertains to the tariff classification of dial units under the Harmonized Tariff Schedule of the United States (HTSUS). A fax dated January 24, 1992, from the protestant, International Business Machines Corporation (IBM), to Customs in New York containing a limited description of the articles was also taken under consideration.

FACTS:

The articles under consideration are dial units, part numbers 6248436, 6247448, and 39F8227. The dial units are optional interface units that allow the interconnection of the central processing unit (CPU) to the output unit (CRT display). The dial units are designed to attach to an IBM machine type 5085 graphics workstation. They are optional units that allow the interconnection of the CPU to output units such as CRT displays. These units incorporate 8 potentiometers that are used to PAN, ZOOM, and ROTATE two and three dimensional figures on a screen of the 5085 display. Upon a request for more specific information from Customs, New York, the protestant faxed a one page description of some of the parts, accessories and units that are used with the IBM 5085 graphics processor, including the dial unit.

The entry was liquidated under subheading 8471.99.90, HTSUS, which provides for "Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included...Other...Other ...Other." The protestant contends that the dial units are classifiable under subheading 8471.99.15, HTSUS, which provides for "Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included...Other...Other... Control or adapter units."

A question has arisen regrading the applicability of heading 8473, HTSUS, which provides for "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472...", as an alternative classification of the dial units.

ISSUE:

Are the dial units a machine or unit described in heading 8471, HTSUS, or are they parts or accessories of heading 8473, HTSUS?

LAW AND ANALYSIS:

The protestant contends that the dial units are classifiable under subheading 8471.99.15, HTSUS, which provides for "Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included...Other...Other...Control or adapter units." The articles in question do not satisfy the description of an automatic data processing (ADP) machine. Chapter 84, Note 5(A), HTSUS. However, ADP machines may be in the form of systems consisting of a variable number of separately housed units. Chapter 84, Note 5(B), HTSUS. A separately housed unit must be connectable to the central processing unit either directly or through one or more units, and it must be specifically designed as part of such system. Chapter 84, Note 5(B), HTSUS. The dial units do not meet this description of a unit for an ADP system. Moreover, "[h]eading 8471 does not cover machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines are classified in the headings appropriate to their respective functions...." Chapter 85, Note 5, HTSUS.

Heading 8473, HTSUS, provides for "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472...." The dial units are basically expansion boards used principally with the IBM 5085 graphics workstation. In other words, the articles in question are accessory boards principally used to expand the capabilities of CPU.

Subheading 8473.30.40, HTSUS, provides for "...Parts and accessories of the machines of heading 8471...Not incorporating a cathode ray tube." The dial units are an accessory of a CPU, which is a machine of heading 8471. More specifically, subheading 8473.30.40, HTSUS, provides for accessories which do not incorporate a cathode ray tube. The article in question meets this description. Therefore, the dial units are specifically provided for by the terms of this subheading. See also, Headquarters Ruling Letter (HRL) 085221 dated November 16, 1989, which held that a multisynchronous graphics board was classified under subheading 8473.30.40, HTSUS, and HRL 089180 dated August 2, 1991, which held that a device which allows an user to add computer graphics to a home videotape was classified under this tariff provision.

HOLDING:

The dial units are properly classified under subheading 8473.30.40, HTSUS, as "Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472...Parts and accessories of the machines of heading 8471...Not incorporating a cathode ray tube", which is a duty free tariff provision.

Since re-classification of the merchandise as indicated above will result in the same rate of duty as claimed by the protestant, this protest should be allowed 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

Previous Ruling Next Ruling