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HQ 961024




January 28, 1998

CLA-2 RR:CR:GC 961024 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.90.38

Port Director of Customs
P.O. Box 619050
DFW Airport, TX 75261

RE: Protest 5501-97-100100; Switching Network; Digital Cross-Connect System; Chapter 84, Note 5(B); HQ 087209; 8471.80.40

Dear Port Director:

The following is our decision regarding Protest 5501-97-100100 concerning your action in classifying and assessing duty on a switching network under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of the M16 201 switching network (M16 201) (model no. 3AL 68840 DAAA). Based upon the limited information provided by the protestant, it is our understanding that the M16 201 is a surface mounted printed circuit assembly (PCA), providing the cross-connect switching network in the 1631 SX Digital Cross- Connect System (1631 SX). It plugs into the end stage shelf or the center stage shelf of the 1631 SX. In a typical 1631 SX application, eight M16 201 assemblies exist in the upper and lower portions of the end/center stage shelves. The protestant states that the M16 201 is an "[e]lectronic module that provides time slot interchange capability for a digital cross-connect system. Time Slot Interchange and Space Switch Interchange involves moving packets of data, voice, video, etc. from one large single bundle to another."

The M16 201 was entered on December 9, 1996, under subheading 8471.80.40, HTSUS, as an other unit suitable for physical incorporation into an automatic data processing (ADP) machine. The entry was liquidated on March 28, 1997, under subheading 8517.90.36, HTSUS, as a PCA for telephonic switching apparatus. The protest was timely filed on April 2, 1997. ISSUE:

Whether the M16 201 is classifiable under subheading 8471.80.40, HTSUS, as an other unit suitable for physical incorporation into an ADP machine, under subheading 8517.90.36, HTSUS, as a PCA for telephonic switching apparatus, or under subheading 8517.90.38, HTSUS, as an other PCA for telephonic apparatus.

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.

The 1996 HTSUS provisions under consideration are as follows:

8471 Automatic data processing machines and units

8471.80 Other units of automatic data processing machines:

Other:

8471.80.40 Units suitable for physical incorporation into automatic data processing machines.

8517 Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof:

8517.90 Parts:

Other:

Printed circuit assemblies:

For telephonic apparatus:

8517.90.36 For switching or terminal apparatus
(other than telephone sets).

8517.90.38 Other.

Because the protestant claims classification of the M16 201 under subheading 8471.80.40, HTSUS, we must determine whether it meets the terms of chapter 84, note 5(B), HTSUS, which states that:

[a]utomatic 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.

Although by claiming classification of the M16 201 under subheading 8471.80.40, HTSUS, the protestant asserts that the M16 201 is an ADP unit, the protestant has not provided any evidence that the M16 201 is principally used in an ADP system, the first requirement for a device to be deemed an ADP unit. Therefore, because it does not meet the definition of an ADP unit, the M16 201 is precluded from classification under subheading 8471.80.40, HTSUS.

Your office claims that the M16 201, which is a part of a digital cross-connect system, is classifiable under subheading 8517.90.36, HTSUS.

In "Newton's Telecom Dictionary", a digital cross-connect system is defined as:

[a] specialized type of high-speed data channel switch. It differs from a normal voice switch, which switches transmission paths in response to dialing instructions. In a digital cross-connect system, you give it separate and specific instructions to connect this line to that. These instructions are given independently of any calls that might flow over the system. This contrasts with a normal voice switching in which switching instructions and conversations go together. Commands to a digital cross-connect system can be given by an operator at a console or can be programmed to switch at certain times. ***

In HQ 087209, dated January 23, 1991, we held digital signal cross-connect equipment to be classifiable under subheading 8517.81.00, HTSUS (now subheading 8517.80.10, HTSUS), as other telephonic apparatus, and not under subheading 8517.30, HTSUS, as telephonic switching apparatus.

Because, as stated in the definition above, the function of a digital cross-connect system differs from that of telephonic switching apparatus, we disagree with your claimed classification of the M16 201 under subheading 8517.90.36, HTSUS. However, in keeping with the holding in HQ 087209 that digital cross-connect equipment is classifiable under subheading 8517.81.00, HTSUS, it is our position that the M16 201 is classifiable under subheading 8517.90.38, HTSUS.

HOLDING:

Based upon the information provided by the protestant, the M16 201 switching network is classifiable under subheading 8517.90.38, HTSUS, as an other PCA for telephonic apparatus.

As the rate of duty under the classification indicated above is the same as the liquidated rate, you should DENY 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 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
Commercial Rulings Division

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