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HQ 960141




May 23, 1997

CLA-2 RR:TC:MM 960141 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.80.90

Port Director of San Francisco
555 Battery Street
San Francisco, CA 94111

RE: Protest 2809-96-100960; Multi-Bin Mailbox; Unit of an ADP Machine;
Chapter 84, Notes 5(B) and (C); Explanatory Notes 84.71(D) and 84.72;
GRI 3(a); 8471.80.10; 8472.90.90; 8473.30.50

Dear Port Director:

The following is our decision regarding Protest 2809-96-100960 concerning your action in classifying and assessing duty on the Multi-Bin Mailbox under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of the Multi-Bin Mailbox (MBM) (Part #C3764-60100), which is specifically designed for use with the HP LaserJet 5Si series of automatic data processing (ADP) printers. The MBM expands the usefulness of an ADP printer in a large office setting by allowing the output of the printer to be separated by job or user, and increasing the output capacity of the printer. The MBM may be used with an optional printer cabinet or 2,000 sheet input tray.

The LaserJet 5Si series of ADP printers and the MBM utilize a communications link protocol, called the "Clink" protocol. To use the MBM, the printer driver software must be updated, and the existing printer's printed circuit assembly (PCA) board must be remotely configured via the network manager. This allows the controller PCA board contained within the MBM to communicate with the "on board" controller in the optional 2000 sheet input tray, the printer and the ADP machine itself. If the MBM is used without the 2000 sheet input tray, a separate paper handling controller board for the printer is necessary. For its operation, you state that the MBM is totally dependent on connection to an ADP system. The MBMs controller PCA is responsible for decoding signals received from the ADP system; identifying the designated bin number for the particular output; checking the sensors and controlling the appropriate motors and belts which allow the paper to feed to the appropriate bin, informing the ADP system upon completion of any job, and reporting any jams which occur. The MBM is secured to the printer via a lower guide rail and plastic latches. The guide rail is not designed to support the MBM.

The MBM were entered on January 9, 1996, under subheading 8471.80.10, HTSUS, as a control or adapter unit of an ADP machine. The entry was liquidated on April 26, 1996, under subheading 8472.90.90, HTSUS, as an other office machine. The protest was timely filed on July 18, 1996.

The subheadings under consideration are as follows:

8471.80.10: [a]utomatic data processing machines and units thereof; . . . : [o]ther units of automatic data processing machines: [c]ontrol or adapter units.

Goods classifiable under this provision receive duty-free treatment.

8471.80.90: . . . :. . . :[o]ther: [o]ther.

The 1996 general, column one rate of duty for goods classifiable under this provision is 2.2 percent ad valorem.

8472.90.90: [o]ther office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines): [o]ther:
[o]ther.

The 1996 general, column one rate of duty for goods classifiable under this provision is 2.9 percent ad valorem.

8473.30.50: [p]arts and accessories (other than covers, carrying cases and the like) 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.

Goods classifiable under this provision receive duty-free treatment.

ISSUE:

Whether the MBM is classifiable under subheading 8471.80.10, HTSUS, as a control or adapter unit of an ADP machine, under subheading 8471.80.90, HTSUS, as an other unit of an ADP machine, under subheading 8472.90.90, HTSUS, as an other office machine, or under subheading 8473.30.50, HTSUS, as an accessory of an ADP machine.

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.

We must first determine whether the MBM is a unit of an ADP machine. Chapter 84, notes 5(B) and (C), HTSUS, state:

(B) Automatic data processing machines may be in the form of systems consisting of a number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all the following conditions:

(a) It is of a kind solely or principally used in an automatic data processing system;

(b) It is connectable to the central processing unit either directly or through one or more other units; and

(c) It is able to accept or deliver data in a form (coded or signals) which can be used by the system.

(C) Separately presented units of an automatic data processing machine are to be classified in heading 8471.

We find that the MBM constitutes a unit of an ADP machine as defined above. Based upon the information from the protestant, the MBM is of a kind solely used with an ADP system, it is connectable to the central processing unit (CPU) through the ADP printer, and it is able to accept and deliver data in a form which can be used by an ADP system. Also, as stated in chapter 84, note 5(C), HTSUS, even though the MBM is a unit of an ADP machine imported separately, it continues to be classifiable under heading 8471, HTSUS.

The next issue is whether the MBM is classifiable under subheading 8471.80.10, HTSUS, or under subheading 8471.80.90, HTSUS. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 84.71(D)
(pp. 1405 - 1406) states:

(D) SEPARATELY PRESENTED UNITS

. . . 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 purpose of the MBM is to expand the usefulness of an ADP printer in a large office setting, not to perform the functions of a control or adapter unit as defined above. Therefore, the MBM is precluded from classification under subheading 8471.80.10, HTSUS, as a control or adapter unit of an ADP machine, but is described under subheading 8471.80.90, HTSUS, as an other unit of and ADP machine.

You claim that the MBM is classifiable under subheading 8472.90.90, HTSUS. In part, Explanatory Note 84.72 (p. 1409) states that:

[t]his heading covers all office machines not covered by the preceding three headings or more specifically by any other heading of the Nomenclature.

Because the MBM is described under heading 8471, HTSUS, the heading immediately preceding heading 8472, HTSUS, it is precluded from classification under subheading 8472.90.90, HTSUS.

We must now determine whether the MBM is described under any other heading in the HTSUS. NY 812263, dated July 18, 1995, was cited as precedent for classification of the MBM under heading 8472, HTSUS. In that ruling, Customs held that a sorter finisher for a copying machine was classifiable under heading 8472, HTSUS. However, the sorter finisher is distinguishable from the MBM in that it was used with a copying machine and not an ADP machine, and therefore, the requirements of chapter 84, note 5, HTSUS, were not applicable to its classification, as they are to the classification of the MBM.

Consideration was given to classification of the MBM under subheading 8473.30.50, HTSUS, as an accessory of an ADP machine. In part, GRI 3(a) states that:

[t]he heading which provides a more specific description shall be preferred to headings providing a more general description. . .

Because the MBM is a unit of an ADP machine, we find that heading 8471, HTSUS, which provides for ADP machines and units thereof, more specifically describes the MBM than does heading 8473, HTSUS, which provides for parts and accessories suitable for use solely or principally with the machines of headings 8469 to 8472, HTSUS.

Therefore, as the MBM is more specifically described elsewhere in the HTSUS, it is classifiable under subheading 8471.80.90, HTSUS.

HOLDING:

The Multi-Bin Mailbox is classifiable under subheading 8471.80.90, HTSUS, as an other unit of an ADP machine.

You should DENY the protest, except to the extent reclassification of the merchandise as indicated above results in a partial allowance. 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 this 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

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