CLA-2 CO:R:C:G 086513 MBR

Eugene A. Rosengarden
Director
Office of Tariff Affairs
and Trade Agreements
500 E St., S.W.
Washington, DC 20436

RE: Your investigation No. 332-273 regarding U.S. Customs classification of power supplies for ADP machines

Dear Gene:

In your letter of February 12, 1990, you inquired as to Customs classification of power supplies for ADP machines in light of the decision in Digital Equipment Corp. v. U.S., 889 F.2d 267 (1989) (hereafter "DEC").

The DEC decision was a classification issue under the Tariff Schedules of the United States (TSUS). The Harmonized Tariff Schedule of the United States (HTSUSA) is significantly different from TSUS in this area. Thus, although power supplies for ADP machines were held to be "parts" in the DEC decision, the DEC decision is not binding on classifications under the present HTSUSA.

Under the HTSUSA, power supplies for ADP machines are provided for, eo nomine, under subheading 8471.99.30, HTSUSA, which provides for: "Automatic data processing machines and units thereof; [o]ther: [o]ther: [p]ower supplies."

Furthermore, Legal Note 5(B) to chapter 84 states:

(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separately housed units. A unit is to be regarded as being a part of the complete system if it meets all the following conditions:

(a) It is connectable to the central processing unit either directly or through one or more other units; and

(b) It is specifically designed as part of such system (it must, in particular, unless it is a power supply unit, be able to accept or deliver data in a form (code or signals) which can be used by the system).

Such units entered separately are also to be classified in heading 8471.

It is Customs position that the statement: "[a] unit is to be regarded as being a part of the complete system" means "a unit is to be regarded as a unit of the complete system." Additionally, Legal Note 5(B) denotes that power supplies are units of ADP machines even though they do not accept or deliver code or signals to the system, and that power supplies, entered separately are to be classified in heading 8471 (which provides for units), not 8473 (which provides for parts of units and accessories).

Therefore, classification of power supplies for ADP machines is appropriate under subheading 8471.99.30, HTSUSA, which unequivocally provides for ADP power supplies. Please see attached rulings HQ 083956 (dated April 12, 1989), NY 834022 (dated December 5, 1988) and NY 832482 (dated October 4, 1988).

If you have any question concerning this issue, please contact me or Matthew Riley, Esq. (566-8181).

Sincerely,

Harvey B. Fox, Director
Office of Regulations and Rulings