CLA-2 CO:R:C:M 088772 AJS
William J. Maloney, Esq.
Rode & Qualey
Attorneys at Law
295 Madison Avenue
New York, N.Y. 10017
RE: Network interface and ethernet controller board; heading
8471; HQ 086615; HQ 086105.
Dear Mr. Maloney:
This is in reply to your requests of January 29 and July
1, 1991, for the tariff classification of network interface
and controller boards under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA).
FACTS:
The subject merchandise is described as a network
interface and ethernet controller board which will be
physically incorporated within IBM personal computers (PCs),
IBM compatible PCs, and certain automatic data processing
(ADP) units to allow such PCs and other units to be
interconnected to form, or to be added to, a local area
network (LAN).
The subject boards are populated printed circuit boards
upon which various electronic components including programmed
chips, resistors, transistors, and logic devices are mounted.
The board cannot be operated independently of its host
machine, and will be located within the PC or other unit on
the expansion bus. It will be interconnected with peripheral
devices in the LAN by coaxial cable which will be plugged
into the connector board. The board is designed to support
LAN systems based on Ethernet 802.3 and incorporates as its
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principal electronic component an ethernet controller chip
which is responsible for Ethernet LAN protocol
implementation.
The boards at issue are operated with networking
software that will be sold with the boards and which will be
stored on the memory or memory storage of the PC within which
the board is installed. The boards will receive data from
the PC's central processing unit (CPU) in binary format.
This data will be stored in the boards buffer storage pending
conversion, processing, and formation of such data. The
board will then control the transmission of this data.
ISSUE:
Whether the subject boards are classifiable within
heading 8471, HTSUSA, which provides for ADP machines and
units thereof; or classifiable within heading 8517, HTSUSA,
which provides for electrical apparatus for line telephony or
line telegraphy.
LAW & ANALYSIS:
In HQ 086615 (4/20/90), Customs addressed the
classification of various ARCNET boards used in local area
networks. We ruled that these boards were classifiable
within subheading 8517.82.00, HTSUSA, based on the conclusion
that they were used for the transmission of data. We are of
the view that the subject boards are similar to the ARCNET
boards because they perform similar data communications
functions. Accordingly, the subject boards are properly
classifiable within subheading 8517.82.00, HTSUSA. For
rulings on similar merchandise see HQ 089596 (9/17/91), HQ
089597 (9/5/91), HQ 089277 (8/14/91), HQ 089227 (7/24/91), HQ
086035 (8/2/90), HQ 086478 (4/9/90), HQ 087468 (1/8/91), HQ
086615 (4/20/90), and HQ 085661 (2/15/90).
It is claimed that the subject boards are not different
in any material respect from the network interface boards
(NIBs) considered in HQ 086105 (May 7, 1990). As stated
previously, we are of the view that the subject boards are
similar to boards classifiable within heading 8517, HTSUSA.
In HQ 086105, Customs was of the opinion that the principal
function of the NIBs was data processing. However, we are
presently reviewing this issue. In the instance case, it is
our view that the subject boards are principally used for the
transmission of data and classifiable within heading 8517,
HTSUSA.
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HOLDING:
The subject boards are properly classifiable within
subheading 8517.82.00, HTSUSA, which provides for
"[e]lectrical apparatus for line telephony or telegraphy . .
. other apparatus . . . telegraphic."; currently dutiable at
the General Column 1 rate of 4.7 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division