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HQ 966888




May 10, 2004

CLA-2 RR:CR:GC 966888 NSH

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.90.4400

Port Director
555 Battery Street
San Francisco, CA 94111

RE: Protest 2809-03-100237; Printed circuit assemblies

Dear Port Director:

This is our decision on Protest 2809-03-100237, filed by counsel on behalf of Cisco System, against your classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of other networking equipment. The entries under protest were liquidated on March 7, 2003 under subheadings 9013.80.90, HTSUS, and 9013.90.90, HTSUS, and this protest was timely filed on May 29, 2003.

FACTS:

The subject merchandise, part numbers 15454-OC48E-47.72=, 15454-OC48E-49.32=, 15454-DS1-14+, 15454-DS1N-14, 15454-DS3N-12= and 15454-DS3-12, are printed circuit board assemblies for the ONS 15454 series Optical Multiservicing Provisioning Platforms (OMPP). The OMPPs are used in long-haul digital telecommunication systems. Long-haul digital telecommunications systems involve the transmission of data over long distances by the use of electrical signals travelling over either copper cables or an optical network that can carry vastly increased amounts of information. OMPPs link to networks through interface cards such as the printed circuit assemblies at issue. The subject printed circuit assemblies increase the speed of the transmission of signals by meshing multiple signals into one through a process called Dense Wave Division Multiplexing. These printed circuit assemblies are designed for modular incorporation into the ONS 15454 series OMPP platform and provide ports for the transport of optical carrier signals and digital signals at varying transmission speeds.

In HQ 965367, dated September 26, 2002, Customs classified circuit packs used in long-haul digital telecommunication systems under subheading 8517.50.90, HTSUS. In that ruling, Customs found that circuit packs contain optical amplifiers which, if principally used in other applications, could be classified under heading 9013, HTSUS. However, because they were exclusively used in telecommunication digital line systems, they were not classified in chapter 90. As such, Section XVI, Note 1(m), which would have excluded goods of chapter 90 from being classified under heading 8517, HTSUS, was not applicable.

Protestant claims classification under subheading 8517.50.90, HTSUS, which provides for other apparatus, for carrier-current line systems or for digital line systems, or in the alternative under 8517.90.44, 8517.90.56 or 8517.90.66, HTSUS, which provide for parts of telegraphic apparatus.

ISSUE:

What is the tariff classification under the HTSUS of the printed circuit assemblies for the OMPPs?

LAW AND ANALYSIS:

Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the remaining GRIs.

The HTSUS provisions under consideration are as follows:

Note 1(m) to Section XVI states, in pertinent part, as follows:

This section does not cover:

(m) Articles of chapter 90;

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:

Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter; parts and accessories thereof:

The articles at issue are parts for networking equipment. At liquidation, Customs classified the printed circuit assemblies under subheadings 9013.80.90, HTSUS and 9013.90.90, HTSUS, as other optical instruments or devices, and as parts of other optical instruments and devices. Protestant subsequently claims classification of the entries under subheading 8517.50.90, HTSUS, as other apparatus for carrier-current line systems or for digital line systems. In the alternative, Protestant claims classification as parts of telegraphic apparatus under subheadings 8517.90.44, HTSUS, 8517.90.56, HTSUS, or 8517.90.66, HTSUS.

In HQ 965367, dated September 26, 2002, Customs classified transponders and “circuit packs” used in long-haul digital telecommunications systems under subheading 8517.50.90, HTSUS. More specifically, Customs described the circuit packs at issue therein as devices used exclusively in long-haul digital telecommunication systems. Circuit packs are comprised of several components used to boost an incoming optical signal in order to increase that signal’s range. Customs further held that although circuit packs contain optical amplifiers, which may be classified under heading 9013, HTSUS, if principally used in other applications, the circuit packs therein were solely used in digital telecommunication digital systems. As such, at GRI 1, the circuit packs were specifically provided for under heading 8517, HTSUS.

The information submitted by the Protestant reveals that the merchandise at issue are printed circuit assemblies exclusively for use within the type of circuit packs previously classified in HQ 965367 under 8517.50.90, HTSUS. The printed circuit assemblies are for use in the ONS 15454 series Optical Multiservicing Provisioning Platforms (OMPP). These OMPPs are used by telecommunication service providers and by large business enterprises to connect users within large metropolitan area networks and also to connect users to larger public networks. OMPPs transport, channel and integrate signals over Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) protocols. The printed circuit assemblies are designed for modular incorporation into the 15454 series OMPPs and provide ports for the transport of optical carrier signals and digital signals at varying transmission speeds.

Because the printed circuit assemblies at issue are exclusively for use within circuit packs being used in long-haul telecommunications systems under heading 8517, HTSUS, classification under heading 9013, HTSUS, in inapplicable. See HQ 965367. In view of the foregoing, the printed circuit assemblies are parts of long-haul digital communication systems and classified under subheading 8517.90.44, HTSUS, as “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: Parts: Other: Printed circuit assemblies: For telegraphic apparatus.”

HOLDING:

The printed circuit assemblies are parts classified under subheading 8517.90.4400, HTSUS, as “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: Parts: Other: Printed circuit assemblies: For telegraphic apparatus.” The applicable rate of duty is Free.

You are instructed to ALLOW the protest.

In accordance with the Protest/Petition Processing Handbook (CIS HB, January 2002, pp. 18 and 21), 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 CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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