HQ 0956525 - Parallel data transfer disc drive; units of ADP machines; Legal Note 5(B) to Chapter 84; HQs 951008 and 089330; PC 866624, modified - United States International Trade Commision Rulings

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HQ 956525

June 28, 1994

CLA-2 CO:R:C:M 956525 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.93.40

Mr. Ronald E. Edelstein
Fujitsu America, Inc.
1741 Junction Avenue
San Jose, CA 95112-1010

RE: Parallel data transfer disc drive; units of ADP machines; Legal Note 5(B) to Chapter 84; HQs 951008 and 089330; PC 866624, modified

Dear Mr. Edelstein:

In a letter dated May 10, 1994, to Customs in San Francisco, you requested reconsideration of Pre-Entry Classification (PC) Ruling 866624, dated September 11, 1991, in which the tariff classification of the Fujitsu model 2380A 8-inch parallel data disc drive was determined under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response.

FACTS:

The Fujitsu Model 2380A 8-inch parallel data disc drive ["model 2380A disc drive"] provides a full gigabyte of storage capacity and permits a total transfer rate of 18.08 megabytes per second. The model 2380A disc drive is designed for incorporation into a 19-inch rack assembly because it has no suitable casing or housing to be set on a desk or table top. The model 2380A disc drive also incorporates an internal automatic power supply that is capable of accepting standard line current from any commercial power source.

ISSUE:

Is the model 2380A disc drive classifiable as an ADP unit with an attached external power supply 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.

In order for the merchandise to be classified as an ADP unit, it must meet the criteria of Legal Note 5(B) to Chapter 84 which reads 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; 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).

The model 2380A disc drive meets the definition of Legal Note 5(B) because it connects to a 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.

In PC 866624, dated September 11, 1991, the District Director of Customs in San Francisco classified the model 2380A disc drive under subheading 8471.93.30, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof. . . : [o]ther: [s]torage units, whether or not entered with the rest of a system: [m]agnetic disk drive units: [o]ther: [n]ot assembled in cabinets, and without attached external power supply. . . ." The column one, general rate of duty for articles classified under this subheading is free. In HQ 951008, dated May 14, 1992, Customs interpreted this provision to mean "storage units without an attached power supply that operates on external power." See also HQ 089330, dated October 7, 1991.

According to the information provided, the model 2380A disc drive incorporates an internal automatic power supply that is capable of accepting standard line current from any commercial power source. Because the model 2380A disc drive has an "attached external power supply", classification is appropriate under subheading 8471.93.40, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof. . .: [o]ther: [s]torage units, whether or not entered with the rest of a system: [m]agnetic disk drive units: [o]ther: [o]ther. . . ."

HOLDING:

Under the authority of GRI 1, the Fujitsu model 2380A 8- inch parallel data disc drive is provided for in heading 8471, HTSUS. It is classifiable under subheading 8471.93.40, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof. . .: [o]ther: [s]torage units, whether or not entered with the rest of a system: [m]agnetic disk drive units: [o]ther: [o]ther . . ." The general, column one rate of duty is 3.7 percent ad valorem.

This ruling should be considered a modification of PC 866624. It is not to be applied retroactively to PC 866624 and will not, therefore, affect past transactions for the importation of merchandise under that determination. However, for the purposes of future transactions in merchandise of this type, PC 866624 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this notice will be classified pursuant to it. If such a situation arises, you may, at your discretion, notify this office and apply for relief from the binding effects of this supersession as may be warranted by the circumstances.

EFFECT ON OTHER RULINGS:

Under the authority of section 177.9(d), Customs Regulations, PC 866624, dated September 11, 1991, is modified as indicated above.
Sincerely,

John Durant, Director
Commercial Rulings Division

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