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HQ 958372




September 1, 1995

CLA-2 R:C:M 958372 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.15

Mr. Dennis R. Mueller
Quantum Consulting Associates
1375 Florida Avenue, Suite B
Longmont, Colorado 80501

RE: Clarification of HQ 957962; Parallel Port Assembly; Automatic Data Processing (ADP) Units; Control and Adapter Units; Insulated Electrical Conductors, Whether Or Not Fitted With Connectors; Legal Note 5(B) to Chapter 84; Headings 8473, 8544; GRI 3(b); HQs 954695, 952554, 089041, 087868

Dear Mr. Mueller:

This is in reference to HQ 957962 issued to you on August 7, 1995, on behalf of Datasonix Corporation, which classified a parallel port assembly, model number 000022-22, under subheading 8471.99.15, Harmonized Tariff Schedule of the United States (HTSUS), as control or adapter units for automatic data processing (ADP) units. While the holding in HQ 957962 is correct, in reviewing that ruling, we have recognized that the Law & Analysis Section needs to be clarified as set forth below:

FACTS:

The description of the parallel port assembly in HQ 957962 is incorporated by reference.

ISSUE:

Is the parallel port assembly (PPA) classifiable as an insulated cable with connectors, or as an ADP unit under the HTSUS?

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

In HQ 957962, dated August 7, 1995, we reconsidered NY 806816, issued on March 2, 1995, wherein the Area Director, New York Seaport, advised you that the PPA was classified under subheading 8544.41.00, HTSUS, as other electrical conductors fitted with connectors. We determined that this classification was incorrect and that the PPA meets the definition of Legal Note 5(B) to chapter 84, HTSUS, because it connects to a computer's central processing unit (CPU), a printer and the Pereos tape storage unit, and it is able to accept or deliver data in a form which can be used by the system. See HQ 954695 (November 18, 1993) and HQ 952554 (January 4, 1993). After referring to the Harmonized Commodity Description and Coding System Explanatory Notes (EN) for heading 8471, HTSUS, we held that the PPA was an ADP control or adapter unit, classifiable under subheading 8471.99.15, HTSUS. See EN 84.71(1)(D) at page 1299.

While the holding in HQ 957962 is correct, we have determined that the Law and Analysis section needs to be clarified to discuss two other rulings relating to optical fiber cable fitted with connectors and signal converters. In HQ 089041, dated August 1, 1991, affirming HQ 087868, dated December 11, 1990, Customs dealt with the classification of a plastic optical fiber cable fitted on each end with a signal converter and an electrical pin connector. The lengths of cable were made up of individually sheathed fibers and were imported in lengths ranging from 25 to 100 feet. The signal converters transfered the electrical signals sent from the personal computer into optical signals which were then transmitted through the fiber optic cables. The optical signals were converted back to electrical signals by the signal converter on the printer end of the cable. The signal converters also transferrred serial signals to parallel signals and then back to serial signals at the printer end of the cable. By transferring the signal from an electrical medium to an optical medium, there would be no interference from electromagnetic radiation during transmission. This was claimed to increase the quality of the signal and the distance a particular computer may be located from a printer.

In HQ 087868, Customs stated that heading 8544, HTSUS, described fiber optic cables fitted with connectors, but it did not describe such cables fitted with connectors and signal converters. We further stated that:

The signal converters are not "connectors". The signal converters are active devices that convert electrical signals to optical signals, optical signals to electrical signals, serial signals to parallel signals, and parallel signals to serial signals.

The printer cables are composite articles consisting of signal converters and fiber optic cables fitted with connectors. The cables are not the type of merchandise classified as "composite machines" pursuant to Section XVI Note 3. The cables are GRI 3(b) composite goods classified according to the component which gives the article its essential character.

GRI 3(b) provides that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential character. In determining the essential character, Customs found that the printer cable as a whole, was designed to connect computers and printers for the purpose of conducting signals between computers and printers. The fiber optic cable fitted with connectors was the component which connected the computers and printers and acted as the conducting medium. The signal converters assisted in this regard only by preparing the signals for transmission. The signal converters at the printer end of the cable merely transferred the signals back to electrical signals, the same form the signals were in as they were sent from the computer prior to being transmitted through the cables. Based upon these factors, Customs held that the fiber optic cables fitted with connectors was the component which imparted the essential character.

In the present situation, we have a PPA which consists of an ADP adapter or control unit attached to a data cable with connectors. The PPA allows a user to connect the Pereos tape storage unit to a printer and the parallel port connection of a computer. In addition to forming the connection between the three automatic data processing (ADP) units (computer, printer, and tape storage), the PPA directs and helps control the electronic signals between the three units, allowing for the almost simultaneous operations of data retrieval and printing. Because the PPA is a composite good consisting of an ADP controller unit and electrical cable with connectors, we must apply GRI 3(b) as we did in HQs 087868 and 089041. In the present case, we find that the essential character of the PPA is the control or adapter unit because it directs and controls the interconnection of the computer's CPU to the printer and the data storage unit, allowing for the almost simultaneous operations of data retrieval and printing. By application of GRI 3(b), we find that the PPA is classifiable under subheading 8471.99.15, HTSUS, which provides for ADP control or adapter units.

HOLDING:

The parallel port assembly, model number 000022-22, is classifiable under subheading 8471.99.15, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof: [o]ther: [o]ther: [c]ontrol or adapter units. . . ." The general, column one rate of duty is free.

HQ 089041, dated August 1, 1991, and HQ 087868, dated December 11, 1990, are still valid rulings.

Sincerely,

John Durant, Director
Commercial Rulings Division

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