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 > 1996 HQ Rulings > HQ 958152 - HQ 958253 > HQ 958225

Previous Ruling Next Ruling
HQ 958225




December 19, 1995

CLA-2 RR:TC:MM 958225 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8473.30.50

Port Director of Customs
Hemisphere Center
Routes 1 & 9 South
Room 200
Newark, NJ 07114

RE: Protest 1001-95-100557; Direct Access Storage Subsystem; Disk Storage Unit; Head Disk Assembly (HDA); Parts of ADP Machines; Legal Note 5(B) to Chapter 84; HQs 957533, 957319, 956750, 955419, 954361, 952952

Dear Port Director:

The following is our decision regarding Protest 1001-95-100557, which concerns the classification of head disk assembly (HDA), part number 823220, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise was invoiced as an automatic data processing (ADP) magnetic disk drive with a diameter exceeding 21 cm, part number 823220, which is separately housed. The protestant claims that this part number refers to an IBM 14 inch head disk assembly (HDA) which will be incorporated into an IBM 9335 Direct-Access Storage Subsystem (i.e., a disk storage unit) after importation. The IBM 9335 disk storage system is then assembled into an IBM 9309 rack enclosure along with other components. According to the information provided by the protestant, the HDA contains only the magnetic read-write heads and aluminum coated platters (disks) on which data is written. The HDA does not contain the following components: a power supply, cooling mechanism, control electronics, operator interfaces, or chassis of covers.

The merchandise was entered under subheading 8471.93.15, HTSUS, as units for physical incorporation into other ADP units. The entries were liquidated on October 28, November 14, 18, 25, and December 9 and 16, 1994, under subheading 8471.93.20, HTSUS, as other storage units not for physical incorporation into ADP units. The protest was timely filed on January 23, 1995.

Classification of the merchandise under subheading 8473.30.50, HTSUS, as parts of ADP machines, is also under consideration.

The subheadings under consideration are as follows:

8471.93: Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: [o]ther: [s]torage units, whether or not entered with the rest of a system: [m]agnetic disk drive units: [f]or a disk of a diameter exceeding 21 cm:

8471.93.10: Without read-write unit assembled therein; read-write units separately entered. . . . .

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

8471.93.15: Units for physical incorporation into automatic data processing machines or units thereof. . . .

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

8471.93.20: Other. . . .

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

8473.30.50 Parts 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 have a general, column one rate of free.

ISSUE:

Whether the HDA, part number 823220, is classifiable as magnetic disk drive units or as parts of ADP machines 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.

To be classified as a unit of ADP machines, merchandise must meet the criteria in Legal Note 5(B) to Chapter 84, HTSUS, which states 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).

In HQ 954361, dated November 2, 1993, Customs classified the XL80 disk drive units, which were to be mounted in a rack enclosure with other units, as storage units. The stated basis for the decision was, as follows:
the disk drives meet the Chapter 84, Legal Note 5(B) requirements for ADP "units" since they are connectable to the CPU through the interface and they accept and deliver data in a form which can be used by the system.

The XL80 disk drives are designed to be mounted in a rack enclosure which consists of a cabinet, power supply, fan cooling and interface. Clearly the rack enclosure itself does not meet the Chapter 84, Legal Note 5(B) requirements for ADP units since the rack itself is not connectable to the CPU and the rack itself is not able to deliver data in a form which can be used by the system. In fact, the rack enclosure would be classifiable in subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines. When the XL80 disk drives are installed in the rack, the rack would then be classifiable as an ADP unit since the disk drives are connectable to the CPU and are able to deliver data. However, the rack enclosure itself is not classifiable as an ADP unit. Thus, the XL80 disk drives cannot be said to be units suitable for physical incorporation into automatic data processing machines or units thereof since the rack is not an ADP unit.

The classification of the XL80 disk drives and similar merchandise was upheld in several rulings. See HQ 956750, dated August 18, 1994; HQ 955419, dated February 3, 1994; HQ 952952, dated October 26, 1993. We believe that the IBM 9335 Direct-Access Storage Subsystem would similarly be classified as a storage unit under subheading 8471.93.20, HTSUS.

However, the issue in this case is whether or not the HDA, which is part of the IBM 9335 Direct-Access Storage Subsystem, is classifiable as a storage unit under heading 8471, HTSUS, or as a part of ADP machines. We find that the HDA does not meet the chapter 84, Legal Note 5(B) requirements for ADP "units" because it cannot accept and deliver data in a form which can be used by the system (i.e., the HDA does not contain the operator interfaces and control electronics). Because the HDA does not meet the definition of an ADP "unit", classification under heading 8471, HTSUS is precluded. However, the HDA is designed to be used solely or principally with ADP machines. Therefore, we find that the HDA is classifiable under subheading 8473.30.50, HTSUS. See HQ 957533, dated March 13, 1995 and HQ 957319, dated March 8, 1995, for similar rulings dealing with the classification of HDAs.

HOLDING:

For the foregoing reasons, the IBM Head Disk Assembly (HDA), part number 823220, is classifiable under subheading 8473.30.50, HTSUS, which provides for: "[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 have a general, column one rate of free.

Because reclassification of the merchandise as indicated above will result in the same rate of duty as claimed, you should GRANT 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, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Tariff Classification Appeals

Previous Ruling Next Ruling

See also: