CLA-2 CO:R:C:G 086399 MBR
Mr. Joseph A. Black
Dewey, Ballantine, Bushby, Palmer & Wood
1775 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
RE: Reconsideration of HQ 083588 (September 22, 1989) Regarding
The Arithmetic Logic Unit Components of the AXE 10 Central
Office Telephone Switch; Modification of HQ 083588 dated
September 22, 1989; Automatic Data Processing Machine; Parts
Dear Mr. Black:
By letter dated January 24, 1990, you requested a
reconsideration of Ruling Letter HQ 083588, dated September 22,
1989, regarding the classification of the Arithmetic Logic Unit
("ALU") components of the Ericsson AXE 10 central office
telephone switch, under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA).
FACTS:
Your request for reconsideration encompasses only the
classification of the Arithmetic Logic Unit (part number ROF 137
1663). You have submitted additional information regarding the
ALU and its function.
The AXE 10 is a central office telephone network switching
system. It is composed of printed board assemblies contained in
mechanical frames (termed magazines) which are housed in
cabinets.
The ALU is a component of the central processing unit (CPU)
of the control system of the Ericsson Central Office Switch. The
circuit board at issue is one of at least 25 circuit boards in
the CPU. There are three ALU boards in the CPU; one is in the
signal processor and two are in the instructional processor. The
signal and instructional processors are not separate processors
and can not function independently. All three of these boards
contain microprocessors, but each board performs different
functions. The board at issue, ROF 137 1663, is one of the ALU
boards in the instructional processor. This board contains the
register memory, comparison circuits and parity check circuits.
ISSUE:
Is a board of the Arithmetic Logic Unit (part number ROF 137
1663) properly classifiable under heading 8471, HTSUSA, which
provides for automatic data processing machines and units
thereof, or under heading 8473, HTSUSA, which provides for parts
and accessories suitable for use solely or principally with
machines of headings 8469 to 8472.
LAW AND ANALYSIS:
In HQ 083599, the ALU board was classified under subheading
8471.91.00, HTSUSA, which provides for: "Digital processing
units, whether or not entered with the rest of a system...."
However, you argue that the ALU is properly classifiable under
8473.30.00, HTSUSA, which provides for: "Parts and accessories of
the machines of heading 8471."
Legal Note 5(A)(a), chapter 84, states:
(A) For the purposes of heading 8471, the expression
"automatic data processing machines" means:
(a) Digital machines, capable of (1) storing the
processing program or programs and at least the data
immediately necessary for the execution of the program;
(2) being freely programmed in accordance with the
requirements of the user; (3) performing arithmetical
computations specified by the user; and (4) executing,
without human intervention, a processing program which
requires them to modify their execution, by logical
decision during the processing run.
Imported separately, the ROF 137 1663 board that goes into
the ALU portion of the CPU would not meet the definition of a
digital processing machine as required by Legal Note 5(A)(a) to
chapter 84, since this board contains only the register memory,
comparison circuits and parity check circuits.
Therefore, in light of the additional information you have
submitted, we now agree that one board, comprising half of the
ALU, cannot constitute the essential character of the CPU.
Furthermore, Additional U.S. Rule of Interpretation 1.(a)
states:
A Tariff classification controlled by use (other than actual
use) is to be determined in accordance with the use in the
United States at, or immediately prior to, the date of
importation, of goods of that class or kind to which the
imported goods belong, and the controlling use is the
principal use.
You have persuaded us that part number ROF 137 1663 is of the
class or kind used in general purpose ADP machines. Therefore,
when imported separately, this part is not classifiable in
heading 8517, HTSUSA, which provides for electrical apparatus for
line telephony or telegraphy.
HOLDING:
Part number ROF 137 1663 (one board comprising half of the
arithmetic logic unit of the CPU) is classified under subheading
8473.30.40, HTSUSA, which provides for: "[p]arts and accessories
(other than covers, carrying cases and the like) suitable for use
solely or principally with machines of headings 8469 to 8472:
[p]arts and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube."
EFFECT ON OTHER RULINGS:
HQ 083588, dated September 22, 1989, is modified only to
reflect that part number ROF 137 1663 is properly classifiable
under subheading 8473.30.40, HTSUSA. HQ 083588 is modified under
authority of Section 177.9(d), Customs Regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division