NY 886637 - The tariff classification of components for a model DKU 881 disk storage unit from Japan. - United States International Trade Commision Rulings

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NY 886637

June 4, 1993

CLA-2-84:S:N:N1:110 886637

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.93.3040; 8471.93.4050; 8473.30.4000

Mr. Kenneth G. Weigel
Baker & Hostetler
1050 Connecticut Avenue N.W.
Washington Square Suite 1100
Washington, D.C. 20036-5304

RE: The tariff classification of components for a model DKU 881 disk storage unit from Japan.

Dear Mr. Weigel:

In your letter dated May 20, 1993, on behalf of Hitachi Computer Products (America), Inc., you requested a tariff classification ruling.

The merchandise under consideration consists of a complete disk storage unit, and components and subassemblies for this disk storage unit. The magnetic disk subsystem consists of a model DKU 881 disk storage unit ("DKU") and a disk control unit ("DKC") for a central processing unit ("CPU"). Stage 1 of these shipments will consist of the complete and assembled DKU 881 disk storage unit in both the 310 and the 304 options. In Stage 2, and Stage 3, the shipments will consist of parts and subassemblies for the DKU units, and will be described as "L" group and "M" group components. All of the S parts will be shipped separately from the "L" and "M" parts, and will be classified individually in accordance with GRI- 1.

The DKU 881 consists of two model series. The 310 model is the main DKU 881. It is composed of the metal frame and cabinet, the AO power supply, AO main board (which controls logic and interfaces the DKC and DKU), power control boards, an operating panel assembly, and switching power supplies. Basically the 310 includes everything but the head disk units (HDUs) and the drive power supplies. The 304 option contains 4 HDUs placed in an HDU box to which a drive power supply is attached. A HDU consists of a head disk assembly, a read/write board, a power supply board and a fan. Each HDU is held in the 310 by metal springs.

During Stage 1, the model 310 and 304 DKU 881s will be imported in their complete and assembled form. Shipments will consist of more 304 options than are or can be installed in the 310s. In Stages II and III, the parts and subassemblies necessary for subassembly manufacture and final DKU assembly in the United States will be imported.

In all stages, Hitachi Japan will assemble the HDAs. An HDA consists of the platter, head, voice coil motor and spindle motor in an enclosed housing. To transform a HDA to an HDU, a read/write or drive main board and DC-DC converter (DC card power supply) board are added to the HDA. In stage 1, four of these HDUs are then placed in a HDU frame. A drive power supply is added to the back of the frame which is used to secure all four HDUs. This assembly is then placed into the 310 for shipment to the United States.

In Stages II and III, HDAs that are temporarily installed in Japan with spring clips in HDU boxes will be imported. After importation, the HDU boxes will be removed from the 310.

The L group parts are the larger, sheet metal parts necessary for the DKU 881. In Stages II and III, these L parts will consist of: 1 - sheet metal parts for the frame; front door, and rear door assemblies of the 310; 2 - HDAs; 3 - HDU sheet metal boxes; and 4 - springs. Prior to importation and to facilitate shipment four HDAs are temporarily placed in an HDU box, which is simply a small sheet metal frame. The HDAs are installed using the springs noted above. The HDU boxes are then placed into the 310 again to facilitate shipment. Up to eight HDU boxes (with 4 HDAs) may be placed in the 310.

In Stage II, the M part for the DKU 881 will consist of the DC card power assembly (switching power supply SX502-A) and bracket. In Stage III there will be no M parts.

The S parts group in Stages II and III will consist of the smaller parts necessary for the final manufacture of the DKU 881. As indicated above, in Stage III the switching power supply assemblies will be imported as S parts.

The applicable subheading for the complete and assembled DKU 881 consisting of the 310 and up to 6 304s will be 8471.93.4050, Harmonized Tariff Schedule of the United States (HTS), which provides for other hard magnetic disk drive units. The duty rate will be 3.7 percent ad valorem.

The applicable subheading for the additional 304s which will be shipped with the 310, will be 8471.93.3040, Harmonized Tariff Schedule of the United States (HTS), which provides for hard magnetic disk drive units not assembled in cabinets, and without attached external power supply. The rate of duty will be free.

The applicable subheading for the "L" parts, which consist of the sheet metal for the frame and door assemblies for the DKU 881, the HDU frame box, and metal springs (in actuality a steel clip), will be 8473.30.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for parts and accessories of the machines of heading 8471 not incorporating a cathode ray tube. The rate of duty will be free.

The HDAs must also be classified as parts under item 8473.30.4000 (HTS). They cannot be classified as disk drives or storage units because they do not have the essential character of disk drives. As noted above, the HDAs as imported will not contain the read/write printed circuit boards nor the DC power supplies. Without these components, the HDA as imported lacks the essential character of a disk drive unit. Similarly, the HDA does not meet the definition of a unit as stated in Legal Note 5 (B) to Chapter 84 of the HTS. Without the AO interface, control panel and other components of the 310 as well as the read/write board, the imported HDA is not connectible to a CPU. Secondly, an HDA alone cannot receive or deliver a signal which can be used by the system. It is not until after importation and assembly of the read/write printed circuit board assembly; and the DC power supply onto the HDA that the HDA becomes an HDU. Thus when the components are added to the 310, it will have the essential character of a disk drive.

Therefore, the applicable subheading for the HDAs will be 8473.30.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for parts and accessories of the machines of heading 8471 not incorporating a cathode ray tube. The rate of duty will be free.

Your inquiry does not provide enough information for us to give a classification ruling on the DC Card Power Assembly. Your request for a classification ruling should include a clarification of the additional functions which the DC/DC converter performs, Although the DC Card Power Assembly appears to be classifiable under 8504.40, a similar issue is currently before Headquarters which prevents us from ruling on this article, at this time.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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