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HQ 962672





February 6, 2001

CLA-2 RR: CR: GC 962672 TPB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8536.69.8000

Port Director c/o Chief, Residual Liquidation and Protest Branch 6 World Trade Center, Room 761
New York, NY 10048-0945

RE: Protest 1001-99-100715; Computer Jacks

Dear Port Director:

This is our decision in regard to Protest 1001-99-100715, filed by counsel on behalf of R.J. Enterprises (“Protestant”) concerning the classification of certain computer jacks under the Harmonized Tariff Schedule of the United States (“HTSUS”).

FACTS:

The subject entries were filed between January 1, 1998 and January 2, 1998. The entries were liquidated on November 13, 1998. The protest was filed February 11, 1999.

The protestant describes the computer jacks as follows:

The imported merchandise consists of two types of computer jacks: the Cat.5 and L-7 jacks. The Cat.5 jack is UL-certified to transmit 100 million bits of data (100 megabits) per second. The L-7 jack transmits 1,000 million bits of data (1 gigabit) per second. Both jacks consist of a plastic housing and contact. The housing holds in place a patented printed circuit board (“PCB”), which allows the jacks to transmit and receive an electrical signal and data to and from computers, and determines the speed at which data can be transferred. The contact allows a cord to connect with the PCB in order to transmit and receive data. These jacks are used exclusively for computer systems such as IBM’s Token Ring and Apple’s Apple Talk.

The protestant further states that:

The computer jacks facilitate high-speed communication between computers because, unlike “modem” or “telephone jacks”, they allow for digital to digital signal transmission without having to convert the signal to analog and back.

ISSUE:

What is the proper classification of the computer jacks?

LAW AND ANALYSIS:

We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs 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. The protestant argues that the PCB alone imparts the essential character of the jack, as it facilitates communication with other computers. The protestant feels that Customs erroneously classified the jacks according to the connector portion of the jack, the plastic housing and contact, when it classified the entries under subheading 8536.69.8000, HTSUS, which provides for electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits. It is the protestant’s position that the entries ought to be classified under subheading 8473.30.10, HTSUS, or 8473.30.20, HTSUS, as originally entered, or alternatively, under subheading 8473.30.50, HTSUS, as parts and accessories of the machines of heading 8471. In the alternative, the protestant feels that the merchandise is classifiable as “electronic apparatus for line telephony or line telegraphy: other apparatus, for carrier-current line systems or for digital line systems: modems, of a kind used with data processing machines of heading 8471”, subheading 8517.50.1000, HTSUS (emphasis original).

The HTSUS headings under consideration are as follows:

Parts and accessoriessuitable for use solely or principally with machines of heading 8469 to 8472:

Parts and accessories of the machines of heading 8471:

Not incorporating a cathode ray tube: printed circuit assemblies

Not incorporating a cathode ray tube: parts and accessories, including face plates and lock latches, of printed circuit assemblies

Other

Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunications for carrier-current line systems or for digital line systems

Other apparatus for carrier-current line systems or for digital line systems:

Modems, of a kind used with data processing machines of heading 8471

Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage net exceeding 1000 V:

Other

Other

The 8473.30, HTSUS subheadings, provide for parts and accessories of ADP machines. The protestant claims that the jacks are used exclusively with ADP machines, and therefore should be classified as parts and accessories of ADP machines. However, parts which are goods included in any of the headings of chapters 84 and 85 are in all cases to be classified with their respective headings. Section XVI, Note 2(a). This conclusion is warranted even if the part is specially designed to work as part of a specific machine. Section XVI General EN (II). Therefore, the fact that the computer jacks are designed to work with ADP machines does not preclude them from classification within another heading or chapter. If they are specifically described by the terms of another heading within chapters 84 or 85, they are classifiable in that heading.

Heading 8517 provides for electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunications apparatus for carrier-current line systems or for digital line systems and videophones. Subheading 8517.50.10, HTSUS, includes other apparatus for carrier-current line systems or for digital line systems: modems, of a kind used with data processing machines of heading 8471.

Ralston and Reilly’s Encyclopedia of Computer Science, Third Edition, 1998, defines “modem” as a device used to transmit data between computers, workstations, and other peripheral devices interconnected by means of conventional communication lines supporting analog transmission. It further states that modems transform (modulate) data from a digital device to analog form suitable for transmission over such lines. Since, in general, data flows in both directions, modems are also able to receive an analog signal from some remote device and restore (demodulate) it back to its original digital form. The word “modem” stems from the modulation-demodulation process performed.

The information provided by the protestant indicates that the computer jacks facilitate digital to digital transmission of information. That is the reason that information can be processed as quickly as the jacks allow, i.e. no conversion from digital to analog and vice-versa is necessary. The protestant claims that unlike “modem” or “telephone jacks”, the subject computer jacks do not connect directly or indirectly to the telephone line (i.e. analog signal transmission). Clearly, then, the computer jacks cannot be classified as telephonic apparatus under subheading 8517.50.10, HTSUS, that is, as a “modem”, of a kind used with ADP machines.

Heading 8536, HTSUS, describes electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes). The protestant claims in the information provided that the specially designed layout of the PCB achieves a very difficult function, i.e. “restoring the electrical balance of the signal transmission line and reducing crosstalk between signal transmission lines” (emphasis original). The protestant goes on to indicate that the patent registration states that “[t]he object of the present invention is to provide an electrical signal transmission medium capable of successfully satisfying transmission requirements” Clearly, this description of the product falls within the heading description of 8536 as an electrical apparatusfor making connections to or in electrical circuits. GRI 1 dictates that the entries be classified under this heading. In order to classify the computer jacks properly in heading 8536, we refer to GRI 6.

GRI 6, HTSUS provides as follows:

For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.

Applying GRI 1 at the subheading level, per GRI 6, the computer jacks are properly classifiable under subheading 8536.69.80, HTSUS, as lamp-holders, plugs and sockets: other: other. They function basically as electrical connectors whose principal function is to serve as a connector to allow the transmission of an electrical signal.

HOLDING:

As detailed above, the computer jacks are classified in subheading 8536.69.80, HTSUS.

You are instructed to DENY the protest.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, 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 make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

John Durant, Director
Commercial Rulings Division


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