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 0952904 - HQ 0952997 > HQ 0952993

Previous Ruling Next Ruling



HQ 952993


February 8, 1993

CLA-2 CO:R:C:M 952993 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.82.00

Mr. A. J. Spatarella
Kanematsu USA Inc.
114 West 47th Street, 23rd Floor
New York, N.Y. 10036

RE: Hitachi Automatic Teller Machine Switching/Multiplexor; ATM; Switching Node; Multiplexing Node; Data Transmission; Parts of ATM Machines; 8473; 8517

Dear Mr. Spatarella:

This is in reply to your letter of October 13, 1992, on behalf of Hitachi, regarding the classification of the "ATM Switching/Multiplexor," under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was forwarded to this office for reply.

FACTS:

The Hitachi Automatic Teller Machine (ATM) Switching/Multiplexor (SW/MUX) for Hughes Network Systems is described as a switching node for ATM cells in an ATM network, and as a multiplexing node at the stage preceding the ATM switching system (to multiplex cell based DS1 or DS3 signals in such a manner that they will match the ATM system interface).

The ATM SW/MUX has a multiplex bus configuration in which a network bus structure is formed to multiplex cells on the bus, in order to acquire economical extensibility. The bus throughput is approximately 320 MB/s, creating ample capacity for future extension.

ISSUE:

Is the "Hitachi ATM Switching/Multiplexor" classifiable under heading 8517, HTSUS, which provides for: "[e]lectrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems," or is it classifiable under subheading 8473.30.40, HTSUS, which provides for parts and
accessories of automatic data processing machines, or is it classifiable under subheading 8473.40.30, HTSUS, which provides for parts and accessories of the machines of heading 8472 (automatic banknote dispensers)?

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:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

The Hitachi ATM Switching/Multiplexor is prima facie classifiable under the following provisions:

8517 Electrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems:

8517.82.00 Other apparatus: Telegraphic

8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472:

8473.30.40 Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube

8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472:

8473.40.20 Parts and accessories of the machines of heading 8472: Of automatic banknote dispensers and other coin or currency handling machines of subheading 8472.90.20

Since the HTSUS came into effect there has been a great deal of controversy regarding the classification of ADP data transmission and reception apparatus. 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. Customs has recently addressed the issue of data communication between ADP machines and units thereof in HQ 952659, dated October

7, 1992. However, Automatic Teller Machines are not classifiable as ADP machines, or units thereof, even though they may be connected to an ADP network. See HQ 086537, dated April 17, 1990, regarding the classification of ATM machines, and parts thereof. Therefore, the Hitachi ATM SW/MUX is not classifiable under subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines.

However, the Hitachi SW/MUX is still prima facie classifiable both as telegraphic apparatus and parts of automatic banknote dispensers. Legal Note 2(a) to section XVI, which governs both subheadings at issue, provides guidance as follows:

2. Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

It is Customs position that the Hitachi SW/MUX is included in the heading of 8517, HTSUS, and is therefore classifiable in that heading.

HOLDING:

The "Hitachi Switching/Multiplexor" is classifiable in subheading 8517.82.00, HTSUS, which provides for: "[e]lectrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems: [o]ther apparatus: [t]elegrapic." The rate of duty is 4.7% ad valorem.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: