CLA-2 CO:R:C:M 951008 MBR

Ms. Paula G. Swanson
Customs Administration Manager
Fujitsu America, Inc.
1741 Junction Avenue
San Jose, CA 95112-1010

RE: Revocation of NY 868268, dated October 30, 1991; Disk Drive Module; "Without Attached External Power Supply" Defined; Automatic Data Processing Machine Storage Unit; HQ 089330, dated October 7, 1991; HQ 085946, dated January 2, 1990

Dear Ms. Swanson:

This is in reference to ruling letter NY 868268, dated October 30, 1991, which held that your disk drive module "upgrade kit" for an ADP hard disk drive storage unit was classifiable under subheading 8471.93.30, Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

You stated that you began importing the 6390, a large external hard disk drive, from Fujitsu Limited. This disk drive was initially imported as a finished product and classified under subheading 8471.93.40, HTSUS.

Subsequently you began importing subassemblies for the 6390 disk drive. The instant "Upgrade Kit 4DM M2358H31" (Part Number B03B-7150-B109A) is a subassembly for the 6390 disk drive. This kit consists primarily of a disk enclosure and a power supply for the disk enclosure. The disk enclosure is the hermetically sealed unit which contains the 8" platters as well as the read/write assembly.

The instant class of merchandise consists of ADP magnetic hard disk drive storage units with a disk diameter not exceeding 21 cm, which incorporate a power supply and fan cooling in a single enclosure. After importation, they are frequently mounted in a rack with other similar hard drives and controllers. -2-

ISSUE:

What is the classification of automatic data processing machine hard disk drive module ("upgrade kit") under the Harmonized Tariff Schedule of the United States (HTSUS)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS 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...

In HQ 085946, dated January 2, 1990, we addressed the classification of similar merchandise called the IBM 9335 "Direct Access Storage Device." In that ruling we stated that:

The determination of a unit's state of completion is made by determining the state of the unit itself and not the final "completed systems" in which they will ultimately function. They are fully assembled, have cooling apparatus and their own power sources. To make them fully functional one need only plug them in. In fact, it is clear that the only purpose of rack-mounting the units together is for the convenience of proximity in connecting them together with cables and, perhaps, space consolidation. Thus, it is our view that these units are complete.

Whether separate or joined, each is complete in and of itself and each is a distinct and separate commercial entity. The most that can be said is that they may (or may not) be used together with another particular type of unit of a data processing system, one as support for the other. It does not make them, for tariff classification purposes, a "part" of the ultimate automatic data processing system. United States v. Willoughby Camera Stores, Inc., 21 CCPA 322, T.D. 46075 (1933).

The fact that each unit at issue requires the attachment of another article in order to be capable of performing its function does not render each of them a "part," in that there is no requirement that a machine must be "self-activating." Nord Light, Inc. v. United States, 49 CCPA 12, C.A.D. 786 (1961). Although incapable of functioning unless placed in configuration with certain other devices, they nevertheless are, in and of themselves, peripheral machines used in conjunction with data processing machines, specifically provided for....Westinghouse Electric International Co. v. United States, 28 Cust. Ct. 209, C.D. 1411 (1952), cited with approval by Fairchild Camera & Instrument Corp., Inter- -3-

Maritime Forwarding Co., Inc. v. United States, 53 CCPA 122, 126, C.A.D. 887 (1966). Furthermore, the fact that they are designed to share a common "rack-mounting" does not mandate their classification as a part. General Electric Company v. United States, 2 CIT 84 (1981).

The instant merchandise meets the chapter 84 Legal Note 5.(B) definition of a "unit" of an ADP system. These "drive modules" (units) are imported in an enclosure which incorporates its own power supply for external power (versus deriving power internally from the PC itself). Subheading 8471.93.30, HTSUS, provides for: "[s]torage units, whether or not entered with the rest of a system: [o]ther: [n]ot assembled in cabinets, and without attached external power supply." We interpret this provision to mean storage units without an attached power supply that operates on external power. The instant merchandise has an "attached external power supply." Therefore, as we stated in HQ 089330, dated October 7, 1991, classification is appropriate under subheading 8471.93.40, HTSUSA.

HOLDING:

The Fujitsu disk drive module "Upgrade Kit" 4DM M2358H31 (Part Number B03B-7150-B109A) storage unit for ADP machines, incorporating a power supply for external power, is classifiable under subheading 8471.93.40, HTSUS, which provides for: "[a]utomatic data processing machines and units thereof: [s]torage units, whether or not entered with the rest of a system: [o]ther: [o]ther." The rate of duty is 3.7% ad valorem.

EFFECT ON OTHER RULINGS:

For the above stated reasons, NY 868268, dated October 30, 1991, is revoked under authority of Section 177.9(d), Customs Regulations. The instant ruling will not be applied retroactively, and will not, therefore, affect past importations of your merchandise. We recognize that pending transactions may be adversely affected by this revocation, in that contracts for importations arriving at a port subsequent to the issuance of this ruling will be classified pursuant to this ruling. If such a situation arises, you may notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.

Sincerely,

John Durant, Director
Commercial Rulings Division


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CC: Chief, National Import Specialist Branch 1
U.S. Customs
Suite 716
6 World Trade Center
New York, NY 10048-0945