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HQ 963249





July 23, 2001

CLA-2 RR:CR:GC 963249 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.80.10

Ms. Susan Kohn Ross
Ross & Associates
5777 West Century Blvd.
Suite 520
Los Angeles, CA 900455659

RE: "TROLI" Module; ADP Unit; Control or Adapter Unit; LAN Equipment; Chapter 84, Note 5(B); Headings 8471 and 8517; HQ 955907, modified

Dear Ms. Ross:

This is in reference to HQ 955907, dated July 6, 1994, which was issued to you on behalf of Pulse Engineering, Inc., classifying the “TROLI” module for local area network (LAN), as automatic data processing (ADP) control and adapter units under heading 8471 of the Harmonized Tariff Schedule of the United States (HTSUS). In the course of examining other types of network equipment, we found that the “Law and Analysis” Section in that ruling needs to be modified. This modification will not affect the “Holding” Section.

Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice was published on December 8, 1999, in the Customs Bulletin, Volume 33, Number 49, proposing to modify HQ 955907. Five comments were received in response to this notice, but only two comments specifically address this ruling and agree with Customs proposed modification.

FACTS:

The "TROLI” Module (Token Ring Optimized Interface) is a module that is mounted on a Network Interface Board "NIB" to provide an analog connection between a Texas Instruments COMMprocessor and the connector used to transmit and receive encoded signals over either 150 Ohm standard twisted pair ("STP") cable or 100 Ohm UTP cable. The TROLI module performs the major portion of the local area networking ("LAN") interface board and facilitates the encoding and decoding of information moving to and from the personal computer ("PC").

ISSUE:

Whether the “TROLI” Module is classifiable under subheading 8471.80.10, HTSUS, as ADP control or adapter units?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

In the “Law and Analysis” section of HQ 955907, dated July 6, 1994, Customs stated that: “[i]t is our opinion that rather than "processing" being the principal function of such Local Area Network ("LAN") and Wide Area Network ("WAN") equipment, their principal function is, in fact, to effectuate interconnection of the CPU unit to other units or ADP machines, thereby serving "control" and "adaption" functions.” (Emphasis added). In reviewing HQ 955907, we find that the subject merchandise is used solely within a LAN system. Therefore, that portion in the “Law and Analysis” section of HQ 955907, referring to WAN equipment shall be removed. As the merchandise in HQ 955907 is not WAN equipment, but is LAN equipment, this modification will not affect the “Holding” section.

HOLDING:

The “TROLI” Module is classifiable under subheading 8471.80.10, HTSUS, which provides for: “[a]utomatic data processing machines and units thereof;...: [o]ther units of automatic data processing machines: [c]ontrol or adapter units...”

EFFECT ON OTHER RULINGS:

HQ 955907, dated July 6, 1994, is modified. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.

Sincerely,

John Durant, Director
Commercial Rulings Division

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