HQ 0951717 - Andrew Bridgeport Multi-Station Access Units; MAUs; Local Area Network; LAN; ADP Machine; Control And Adapter Unit; HQ 951331; HQ 952659 - United States International Trade Commision Rulings

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HQ 951717

October 13, 1992

CLA-2 CO:R:C:M 951165 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.15

Ms. Deborah Kok
International Sales Administrator
Andrew Corporation
19021 120th Avenue Northeast
Bothell, Washington U.S.A. 98011

RE: Andrew Bridgeport Multi-Station Access Units; MAUs; Local Area Network; LAN; ADP Machine; Control And Adapter Unit; HQ 951331; HQ 952659

Dear Ms. Kok:

This is in reply to your letter of February 18, 1992, on behalf of the Andrew Corporation, requesting the classification of the Andrew Bridgeport Multi-Station Access Units (MAUs) Local Area Networking (LAN) equipment, under the Harmonized Tariff Schedule of the United States (HTSUS).

We have recently reconsidered the classification of LAN equipment. See HQ 951331, dated September 18, 1992, as modified by HQ 952659, dated October 7, 1992.

FACTS:

Andrew Multi-Station Access Units (MAUs) are wiring concentrators for token ring local area networks. Workstations plug into these MAUs. The MAUs are then connected to other MAUs to form a star-wired ring local area network. MAUs create a network on which mainframes, minicomputers and PCs can communicate and share data.

ISSUE:

What is the classification of the Andrew Multi-Station Access Unit for token ring LANs? Is it classifiable under heading 8471, HTSUS, which provides for ADP machine "Control or adapter units," or under heading 8517, HTSUS, which provides for "[e]lectrical apparatus for line telephony or telegraphy"?

LAW AND ANALYSIS:

Since the HTSUS came into effect there has been a great deal of controversy regarding the classification of LAN equipment. However, there is no clear classification guidance from either the HTSUS or the Harmonized Commodity Description and Coding System Explanatory Notes (ENs), primarily due to the technological advancements in this area.

However, Legal Note 5(B) to chapter 84, HTSUS, provides guidance regarding units of automatic data processing machines. It states:

Automatic data processing machines may be in the form of systems consisting of a variable number of separately housed units. A unit is to be regarded as being a part of the complete system if it meets all of the following conditions:

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

(b) It is specifically designed as part of such a system (it must, in particular, unless it is a power supply unit, be able to accept or deliver data in a form (code or signals) which can be used by the system).

We agree that the token ring MAUs are essential to the ADP systems with which they are integrated because they process and format the data of the computers they serve.

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), pages 1299-1300, describe separately presented ADP units as follows:

This heading also covers separately presented constituent units of data processing systems. Constituent units are those defined in Parts (A) and (B) above as being parts of a complete system.

Apart from central processing units and input and output units, examples of such units include:

(4) Control and adaptor units such as those to effect interconnection of the central processing unit to other digital data processing machines, or to groups of input or output units which may comprise visual display units, remote terminals, etc.

After extensive research and analysis, it is now our opinion that the principal function of the MAUs is, in fact, to effectuate the interconnection of the CPU unit to other units or ADP machines, thereby serving "control" and "adaption" functions, as described by
the ENs. Therefore, the "Andrew Bridgeport Multi-Station Access Units" are properly classifiable in subheading 8471.99.15, HTSUS, which provides for "Control or adapter units."

HOLDING:

The Andrew Bridgeport Multi-Station Access Units (MAUs) for Token Ring Local Area Networking are classifiable in subheading 8471.99.15, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof: [o]ther: [o]ther: [c]ontrol or adapter units." The rate of duty is Free.

Sincerely,

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