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HQ 950832


February 11, 1992

CLA-2 CO:R:C:M 950832 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.40

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

RE: Protest 2809-91-100892; CWS portable unit; Subheading 9903.41.20; Subheading 8471.91.00; GRI 2(a); Section XVI, General ENs (IV); HQ 087695; HQ 088118.

Dear District Director:

Protest for further review number 2809-91-100892, dated 5/15/91, was filed against the classification of the "CWS Portable Unit" within subheading 9903.41.20, Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise under protest is the CWS (Compact Workstation) portable unit. It does not contain a central processing unit (CPU) microprocessor or ROM (Read Only Memory). The CWS itself does include all of the other components of a high-end digital processing unit such as the input, output, storage and processor portion (main board). The CWS also contains adapters, cables, power supply, and recorded diskettes.

ISSUE:

Whether the CWS portable unit is properly classifiable within subheading 8471.91.00, HTSUS, which provides for "other" "[d]igital processing units, whether or not entered with the rest of a system, which may contain in the same housing one or two of the following types of units: storage units, input units, output units."; or classifiable within subheading 8473.30.40, HTSUS,
which provides for "[p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube."

Whether the CWS portable unit is additionally classifiable within subheading 9903.41.20, HTSUS, which provides for "[a]utomatic data processing machines, of the type of which the constituent units are separately housed, whether finished or unfinished, which incorporate a microprocessor-based calculating mechanism, are capable of handling data words of at least 16- bits off the micro-processor, designed for use while affixed to or placed on a table, desk, or similar place: [h]aving a micro- processor-based calculating mechanism capable of directly handling memory of over 8 megabits (provided for in subheading 8471.91)."

LAW AND ANALYSIS:

Subheading 8471.91.00, HTSUS, provides for digital processing units, whether or not entered with the rest of an automatic data processing [ADP] system. The CWS portable unit does not satisfy this description. It is incomplete because it does not contain the CPU microprocessor and ROM chips which are essential for data processing. General Rule of Interpretation (GRI) 2(a) states that "[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article." In reference to GRI 2(a), the Harmonized Commodity and Description Coding System Explanatory Notes (ENs) state that throughout this Section [XVI] any reference to a machine or apparatus covers not only the complete machine, but also an incomplete machine (i.e., an assembly of parts so far advanced that it already has the main essential features of the complete machines). Section XVI, General ENs (IV), p. 1132 (1991). The CWS portable unit lacks the essential character or main essential feature (i.e., the data processing chips) of a digital processing unit. Therefore, it is not classifiable as a incomplete or unfinished digital processing unit within subheading 8471.91.00, HTSUS.

Customs has previously discussed the issue of essential character for incomplete or unfinished ADP machines which lack data processing capabilities. In HQ 087695 (3/6/91), Customs addressed the classification of an incomplete or unfinished main printed circuit board (motherboard) without any processing chips. See also HQ 088118 (2/22/91). We stated that this type of device did not possess the essential character of an ADP machine because it lacked the essential chips required for data processing. Accordingly, we similarly ruled that this motherboard also could not be considered an incomplete or unfinished ADP machine.

Heading 8473, HTSUS, provides for parts and accessories suitable for use solely or principally with the machines of heading 8471. In HQ 087695, we classified the incomplete or unfinished motherboard within heading 8473, HTSUS, as a part and accessory of an ADP machine. The subject CWS portable unit also satisfies this description. It is suitable for use solely or principally with the CWS, which itself is an ADP machine. More specifically, the subject CWS portable unit is described within subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines which do not incorporate a cathode ray tube.

Subheading 9903.41.20, HTSUS, provides for "automatic data processing machines . . . (provided for in subheading 8471.91)." The subject CWS portable unit does not satisfy this description. It is not an ADP machine because it lacks the essential character of an ADP machine. As discussed previously, it is a part of an ADP machine. Accordingly, the subject CWS portable unit is not properly classifiable within subheading 9903.41.20, HTSUS.

HOLDING:

The CWS portable unit is properly classifiable within subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines, not incorporating a cathode ray tube. You should grant 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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