HQ 0954592 - Protest No. 2809-93-100875; Expansion Unit for Laptop Computers; Docking Station; Automatic Data Processing machines; ADP machines; Control or Adapter Units; Legal Note 5(B) to Chapter 84; EN 84.71(I)(D)(4); 8471.99.90; NYs 860833 and 858416, modified - United States International Trade Commision Rulings

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HQ 954592

October 26, 1993

CLA-2 CO:R:C:M 954592 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.15

District Director of Customs
555 Battery Street
P.O. Box 2450
San Francisco, CA 94126

RE: Protest No. 2809-93-100875; Expansion Unit for Laptop Computers; Docking Station; Automatic Data Processing machines; ADP machines; Control or Adapter Units; Legal Note 5(B) to Chapter 84; EN 84.71(I)(D)(4); 8471.99.90; NYs 860833 and 858416, modified

Dear District Director:

The following is our decision regarding the request for further review of Protest No. 2809-93-100875, which concerns the classification of expansion units for laptop computers under the Harmonized Tariff Schedule of the United States (HTSUS). The entries of the subject merchandise were liquidated on April 9, 1993. The protest was timely filed on May 5, 1993.

FACTS:

The subject merchandise is an IBM model 3550 expansion unit (docking station) which provides expandability for the IBM ThinkPad 700 notebook computer and the IBM PS/2 N51 SLC notebook computer into the same usability as a desktop computer system. The expansion unit incorporates the following components: two full size, Micro Channel 16 bit slots; a half-high drive location for an internal storage device; an internal and an external SCSI connector; a serial and a parallel connector; an external display connector; a keyboard or numeric keyboard connector; a mouse or pointing device connector; a display stand; a security lock and built-in security hook; a power supply cable.

The expansion unit or docking station is designed to enhance the functions of a laptop computer, and thus convert it into a functional desktop computer. It provides a mounting bay for additional and removable disk drives, and provides for numerous expansion slots for items such as a keyboard and a display monitor. With the addition of a power cord, that appears to be marketed with this docking station, this device also provides a power supply for the notebook computer.

The merchandise was entered under subheading 8471.99.15, HTSUS, as control or adapter units for automatic data processing (ADP) machines. The entry was liquidated under subheading 8471.99.90, HTSUS, as other units of ADPs.

The subheadings under consideration are as follows:

8471.99: Automatic data processing machines and units thereof . . .: [o]ther: [o]ther:

8471.99.15 Control or adapter units . . . .

Goods classifiable under this provision have a general, column one free rate of duty.

8471.99.90 Other: [o]ther . . . .

Goods classifiable under this provision have a general, column one rate of duty of 3.7 percent ad valorem.

ISSUE:

Whether expansion units or docking stations for laptop computers are classifiable as control or adapter units of ADPs or as other units of ADPs under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

According to the information provided, the expansion unit provides connectors for display monitors, a keyboard, a mouse or pointing device, and for internal storage devices. These capabilities are designed to enhance the use of a laptop computer.

Legal Note 5(B) to Chapter 84 defines units of ADP machines as follows:

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 the following conditions:

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

(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).

The expansion unit meets the definition of Legal Note 5(B) because it connects to the laptop computer's central processing unit (CPU) and it is able to accept or deliver data in a form which can be used by the system.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. EN 84.71(I)(D), page 1299, describes 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 adapter 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.

The expansion unit interconnects the CPU of the laptop computer with input and output units as well as increased data processing and storage capabilities. Based upon EN 84.71(I)(D), we find that the expansion unit meets the definition of "control" or "adaption" functions. Therefore, the expansion unit should be classified under subheading 8471.99.15, HTSUS, as control and adapter units for ADP machines.

The entries were liquidated based upon the holdings in NY 860833, dated March 1, 1991, and NY 858416, dated December 5, 1990. In those rulings, Customs held that expansion units or docking stations were classifiable under subheading 8471.99.90, HTSUS, as other units of ADP machines. Based upon the above analysis, we find that subheading 8471.99.15, HTSUS, is a more specific description of the merchandise because it adapts a laptop computer for use with other ADP units. Therefore, the holdings in NY 860833 and NY 858416 are being modified accordingly.

HOLDING:

The expansion units or docking stations are classifiable under subheading 8471.99.15, HTSUS, as control or adapter units for ADP machines.

You should allow the protest in full. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

EFFECT ON OTHER RULINGS:

NY 860833, dated March 1, 1991, and NY 858416, dated December 5, 1990, no longer reflect the position of Customs and are being modified pursuant to section 177.9(d) of the Customs Regulations [19 CFR 177.9(d)].

Sincerely,

John Durant, Director
Commercial Rulings Division

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