CLA-2 CO:R:C:G 087050 MBR
District Director
U.S.Customs Service
511 N.W. Broadway Federal Building
Portland, OR 97209
RE: Application for Further Review of Protest No. 2904-9-000103
of September 20, 1989, on behalf of Fujitsu America, Inc.,
regarding the classification of computer power supplies, under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
Dear Sir:
This is our response regarding Further Review of Protest No.
2904-9-000103, which pertains to the HTSUSA classification of
computer power supplies.
FACTS:
The merchandise at issue is computer power supplies (model
B14L-5105-0257A). No samples or descriptive materials are
available.
ISSUE:
What is the HTSUSA classification of a computer power
supply? Is it classifiable under 8473.30.40, HTSUSA, which
provides for: "[p]arts and accessories...of headings 8469 to
8472: [p]arts and accessories of the machines of heading 8471:
[n]ot incorporating a cathode ray tube," or is it more properly
classifiable under 8471.99.30, HTSUSA, which provides for:
"[a]utomatic data processing machines and units thereof;
[o]ther: [o]ther: [p]ower supplies."?
LAW AND ANALYSIS:
The computer power supplies were entered at the port of
Portland, Oregon, and liquidated under 8471.99.30, HTSUSA, which
provides for: "[a]utomatic data processing machines and units
thereof; [o]ther: [o]ther: [p]ower supplies." 3 percent ad
valorem. The protestant claims that the merchandise should be
classified under 8473.30.40, HTSUSA, which provides for:
"[p]arts and accessories...of headings 8469 to 8472: [p]arts and
accessories of the machines of heading 8471: [n]ot incorporating
a cathode ray tube." Free rate of duty.
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Legal Note 5.(B) to chapter 84 states:
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 of the following conditions:
(a) It is connectable to the central processing unit
either directly or through one or more units; and
(b) It is specifically designed as part of such a
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). (Emphasis added).
Such units entered separately are also to be classified
in heading 8471.
The Protestant does not argue that Legal Note 5.(B) does not
apply. Therefore, it is Customs position that the power supplies
at issue are automatic data processing machine units as
delineated by this Legal Note, and thus are properly classifiable
in heading 8471.
Furthermore, Note 1 (c), Additional U.S. Rules of
Interpretation, states:
a provision for parts of an article covers products solely
or principally used as a part of such articles but a
provision for "parts" or "parts and accessories" shall not
prevail over a specific provision for such part or
accessory;
Subheading 8471.99.30, HTSUSA, specifically provides for
power supplies for automatic data processing machines, whereas
subheading 8473.30.40, HTSUSA, provides for: "[p]arts and
accessories...of headings 8469 to 8472: [p]arts and accessories
of the machines of heading 8471: [n]ot incorporating a cathode
ray tube.
HOLDING:
Computer power supplies are properly classifiable under
8471.99.30, HTSUSA, which provides for: "[a]utomatic data
processing machines and units thereof; [o]ther: [o]ther: [p]ower
supplies." The rate of duty is 3 percent ad valorem.
You should deny the protest in full. A copy of this
decision should be attached to the Form 19 Notice of Action.
Sincerely,
John Durant, Director
Commercial Rulings Division