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 > 1995 HQ Rulings > HQ 955527 - HQ 955749 > HQ 955695

Previous Ruling Next Ruling
HQ 955695



March 27, 1995

CLA-2 CO:R:C:M 955695 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.50; 8524.90.40

Mr. Eric S. C. Wong
Dynasty Customs Broker Inc.
901 Sneath Lane, Suite 206
San Bruno, CA 94066

RE: ADP Subassembly Configurations; GRI 2(a); HQ 954411; Chapter 85, Note 6

Dear Mr. Wong:

This is in response to your letters of November 12, 1993, to the Area Director of Customs, New York Seaport, and January 4, 1994, to this office, on behalf of Compac Microelectrics Inc., concerning the classification of various automatic data processing (ADP) machine subassembly configurations under the Harmonized Schedule of the United States (HTSUS). We regret the delay in responding.

FACTS:

The proposed ADP subassemblies for lap-top computers are as follows:

CONFIGURATION 1

- Monochrome liquid crystal display (LCD) notebook computer without a central processing unit (CPU) chip and hard disk drive.

CONFIGURATION 2

- Color LCD notebook computer without a CPU chip and hard disk drive.

CONFIGURATION 3

- Monochrome notebook computer without a CPU chip, hard disk drive, floppy disk drive, and memory.

CONFIGURATION 4

- Color LCD notebook computer without a CPU chip, hard disk drive, floppy disk drive, and memory.

It is our understanding that each of the subassembly configurations are imported with software diskettes.

The subheadings under consideration are as follows:

8473.30.50: [p]arts and accessories . . . suitable for use solely or principally with machines of headings 8469 to 8472: [p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube: [o]ther: [o]ther.

Goods classifiable under this provision receive duty- free treatment.

8524.90.40: . . . other recorded media for sound or other similarly recorded phenomena . . . : [o]ther: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 9.7 cents per m2 of recording surface.

ISSUE:

Whether the subject four ADP subassembly configurations are classifiable under subheading 8473.30.50, HTSUS, as other parts of the machines of heading 8471, HTSUS, not incorporating a cathode ray tube.

Whether the software diskettes are classifiable under subheading 8524.90.40, HTSUS, as other recorded media for sound or similarly recorded phenomena.

LAW AND ANALYSIS:

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

Because the subassembly configurations may be unfinished machines, GRI 2(a) must be consulted. It states that:

[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

In HQ 954411, dated October 19, 1993, we held that similar merchandise, imported without a CPU chip, were classifiable under heading 8471, HTSUS. In that ruling, we stated that:

[c]ustoms has consistently held that the CPU is the heart of an ADP system since it performs the processing. It determines the systems power, capacity, and speed at which it will operate. Therefore, it is not possible to have the essential character of an automatic data processing personal computer without the microprocessor chip.

Because the subject subassembly configurations do not possess CPU chips, they do not impart the essential character of finished ADP machines. Therefore, they cannot be classifiable as ADP machines. Also, we find that, in their imported state as subassemblies, the configurations do not impart the essential character of any of their constituent components.

Consequently, the subassembly configurations are classifiable under subheading 8471.30.50, HTSUS.

With regard to the software diskettes, chapter 85, note 6, HTSUS, states that:

[r]ecords, tapes and other media of heading 8523 or 8524 remain classified in those headings, whether or not they are entered with the apparatus for which they are intended.

Therefore, the software diskettes are classifiable under subheading 8524.90.40, HTSUS.

HOLDING:

The four ADP subassembly configurations described herein are classifiable under subheading 8473.30.50, HTSUS, as other parts of heading 8471, HTSUS, not incorporating a cathode ray tube.

The software diskettes are classifiable under subheading 8524.90.40, HTSUS, as other recorded media for sound or similarly recorded phenomena.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: