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July 20, 1999

CLA-2-85: RR:NC:1:108 E83898

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.80.9000, 8525.10.9090, 8529.10.9000

Mr. Todd Price
Tachyon, Inc.
6225 Nancy Ridge Dr. #101
San Diego, CA 92121

RE: The tariff classification of the TAP System (Tachyon Access Point) from Japan and Germany.

Dear Mr. Price:

In your letter dated June 17, 1999 you requested a tariff classification ruling.

The product in question is denoted as the TAP System (Tachyon Access Point). The TAP System is composed of three components:

- The Indoor Unit (IDU)
- The Transmit/Receive Radio
- The Antenna with mounts and supports

Although the Tachyon Access Point (TAP) is referred to as a system it is in fact a component of various devices within the Tachyon Net which is a Global Broadband Internet Service System. This system is designed to provide satellite-based carrier service for high speed Internet access. This ruling will cover only the individual components of the TAP.

The indoor Unit (IDU) is a device, which is connected to both the LAN equipment and the antenna. It receives data from the LAN (within the Tachyon Net), encodes, modulates and up converts this data to a usable bandwidth. In the reverse it down converts the signal and decodes it for forwarding to the LAN. It cannot perform other data programming functions. Although performing basically signal conversion functions, the IDU would not meet the definition of a digital-processing unit, as per Legal Note 5(A) to chapter 84. Noting the Explanatory Notes to 8471, this IDU would appear to meet the definition of a “unit” of an ADP system.

The transmit/receive radio is actually a combination of an up-converter, power amplifier and low noise block converter. They are not combined in a single housing nor employ common circuit components for both transmitting and receiving signals. It allows for the up-conversion of L Band signals, the transmission of Ku Band signals and also the receipt and down conversion of Ku-Band signals. Based upon additional U.S. Note 3 of chapter 85 this device does not meet the definition of a transceiver.

The antenna is a standard type dish antenna designed for the transmission/receipt of RF signals to and from a satellite.

Section XVI, Note 4, provides “where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

Upon review of the functions performed by the components, configured as a unit, there is no single defined function covered by an appropriate heading in either chapter 84 or 85. Therefore the components will be classified in each individual appropriate heading.

The applicable subheading for the IDU device will be 8471.80.9000, Harmonized Tariff Schedule of the United States (HTS), which provides for other units of automatic data processing machines. The rate of duty will be free.

The applicable subheading for the transmit/receive radio will be 8525.10.9090, Harmonized Tariff Schedule of the United States (HTS), which provides for Transmission apparatus for radiotelephony, radiotelegraphy, radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras or other video camera recorders: Other  Other. The rate of duty will be 1.1 percent ad valorem.

The applicable subheading for the antenna will be 8529.10.9000 Harmonized Tariff Schedule of the United States (HTS), which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Antennas and antenna reflectors of all kinds; parts suitable for use therein: Other: Other. The rate of duty will be 3 percent ad valorem.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Michael Contino at 212-637-7039.

Sincerely,

Robert B. Swierupski
Director,

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