CLA-2 CO:R:C:M 953463 DWS
Mr. Stephen S. Spraitzar
George R. Tuttle, P.C.
Three Embarcadero Center, Suite 1160
San Francisco, CA 94111
RE: DC/DC Power Supplies for ADP Machines; Static Converters;
85.04(II) and 84.71(D); Chapter 84, Note 5(B); HQ's 087907,
083956, 087050, and 086513; NY 851581; 8504.40.00
Dear Mr. Spraitzar:
This is in response to your letters of January 8 and April 8,
1993, on behalf of Computer Products, Inc., to the Regional
Commissioner of Customs, New York, concerning the classification
of DC/DC power supplies under the Harmonized Tariff Schedule of the
United States (HTSUS). Your letters and sample have been referred
to this office for a response.
FACTS:
The merchandise consists of DC/DC power supplies (model no.
WR24T05-12/55K) specifically designed for computer applications and
physical incorporation into automatic data processing (ADP)
machines. The principal function of the power supply is to supply
to an ADP system a voltage which is highly stabilized and
regulated. This is accomplished in the following manner: the DC
voltage is chopped into a high frequency pulse by the switching
transistor. The switching pulse is then fed into the transformer,
and is thereafter transformed into a pulsed voltage just above the
level of the desired output voltage. The resulting internal
rectification of the pulse output voltage is converted to a rough
DC voltage by rectifiers. The output voltage is then filtered by
an inductor and a capacitor, and the end-result is a smooth and
steady voltage, usually 5 or 12 volts.
The power supply also possesses mechanisms for the functions
of transient suppression of electromagnetic transmissions, current
overload protection, energy storage, over-voltage detection, and
over-current protection, remote sensing, remote on-off, voltage
adjustment.
The subheadings under consideration are as follows:
8504.40.00: [s]tatic converters.
The general, column one rate of duty is 3 percent ad valorem.
8471.99.32: [a]utomatic data processing machines and units
thereof . . .: [o]ther: [o]ther: [p]ower supplies:
[u]nits suitable for physical incorporation into
automatic data processing machines or units
thereof.
Goods classifiable under this provision receive duty-free
treatment.
ISSUE:
Whether the DC/DC power supplies are classifiable under
subheading 8504.40.00, HTSUS, as static converters, or under
subheading 8471.99.32, HTSUS, as power supplies.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 85.04(II) (pp. 1338, 1339) states:
(II) ELECTRICAL STATIC CONVERTERS
The apparatus of this group are used to convert electrical
energy in order to adapt it for further use. They incorporate
converting elements (e.g., valves) of different types. They
may also incorporate various auxiliary devices (e.g.,
transformers, induction coils, resistors, command regulators,
etc.). Their operation is based on the principle that the
converting elements act alternately as conductors and non-
conductors. . .
This group includes:
(A)-(C) xxx
(D) Direct current converters by which direct current is
converted to a different voltage. . .
This heading also includes stabilised suppliers (rectifiers
combined with a regulator), except those specifically designed
to form a unit of heading 84.71.
In part, Explanatory Note 84.71(D) (pp. 1299, 1300) states:
(D) SEPARATELY PRESENTED UNITS
This heading also covers separately presented constituent
units of data processing systems. Constituent units are
those
defined in Parts (A) and (B) above as being parts of a
complete system.
Apart from central processing units and input and output
units, examples of such units include:
(1)-(5) xxx
(6) Power supply units, whose main function is to supply
continuously, under the control of the system to which
they belong, the appropriate stabilised power level in
response to the requirements of the various units making
up the system.
Chapter 84, note 5(B), HTSUS, states that:
(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 of 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 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.
We agree that the power supply does in part operate as a
static converter. However, it is our position that with the
ability of the power supply to perform other functions, it is not
described under heading 8504, HTSUS. Therefore, we find that the
merchandise is not classifiable under subheading 8504.40.00, HTSUS.
Also, even if the DC/DC power supply was described under heading
8504, HTSUS, Explanatory Note 85.04 precludes its classification
in that provision because it is our position that it is
specifically designed to form a unit of heading 8471, HTSUS.
In HQ 087907, dated July 26, 1991, a power supply unit similar
to the subject merchandise was held to be classifiable under
heading 8471, HTSUS. The unit performed the various functions of
transforming higher voltage into lower voltage, controlling
electrical noise, storing power in the event of a power disruption,
causing the computer to store data, and shutting the power supply
down in the event of a malfunction. See also NY 851581, dated
April 28, 1990, HQ 083956, dated April 12, 1989, and HQ 087050,
dated August 21, 1990.
It is our position that the power supply meets the terms of
heading 8741, HTSUS, and Explanatory Note 87.41. First the power
supply is a unit of an ADP machine. In HQ 086513, dated March 2,
1990, it was stated that:
[l]egal 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) . . .
Therefore, classification of power supplies for ADP machines
appropriate under subheading 8471.99.30, HTSUSA, which
unequivocally provides for ADP power supplies. (emphasis
supplied).
Therefore, power supplies for ADP machines are units of ADP
machines and are specifically classifiable under heading 8471,
HTSUS.
Second, the subject power supply meets the definition of power
supply units in Explanatory Note 84.71. It is our position that
the power supply supplies continuously under the control of the ADP
system to which it belongs, the appropriate power level in response
to the requirements of the units making up the ADP system. For
example, an ADP system exerts control over the power supply by
causing it, in response to an increased power demand (i.e.
uploading a computer program from the disk drive), to supply the
appropriate power level (current) in response to the requirements
of the system.
Consequently, we find that the power supply is classifiable
under subheading 8471.99.32, HTSUS.
HOLDING:
The DC/DC power supply is classifiable under subheading
8471.99.32, HTSUS, as power supplies.
Sincerely,
John Durant, Director