CLA-2 CO:R:C:M 955235 RFA
Mr. Marty Langtry
Castelazo & Associates
5420 West 104th Street
Los Angeles, CA 90045
RE: Modification of NY 860833; Expansion Unit for Laptop
Computers; Docking Station; Automatic Data Processing
machines; ADP machines; Control or Adapter Units; Legal Note
5(B) to Chapter 84; EN 84.71(I)(D)(4); 8471.99.90
Dear Mr. Langtry:
This is in reference to a ruling issued to you (on behalf of
Epson America) by the Area Director of Customs in New York on
March 1, 1991 (NY 860833), concerning the classification of a
Notebook computer and docking station from Taiwan. We have
recently reviewed the classification of expansion units or
docking stations for laptop computers and, for the following
reasons, find that NY 860833 must be modified in regards to
expansion units for laptop computers under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The subject merchandise is an expansion unit (docking
station) which is designed to enhance the functions of a laptop
computer, and thus convert it into a functional desktop computer.
The docking station is basically an expansion chassis that allows
the laptop computer to mate with the station unit without any
major reconfiguration. The station unit incorporates the
following components: a mounting bay for additional and removable
hard disk drives; two AT compatible 16/8-BIT expansion slots; an
external display connector; a keyboard or numeric keyboard
connector; and supplies power for the laptop computer.
In NY 860833, Customs held that the expansion unit was
classifiable under subheading 8471.99.90, HTSUS, as other units
of automatic data processing (ADP) machines. Goods classifiable
under this provision have a general, column one rate of duty of
3.7 percent ad valorem.
ISSUE:
Whether expansion units or docking stations for laptop
computers are classifiable as control or adapter units of ADPs or
as other units of ADPs under the HTSUS?
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 shall be
determined according to the terms of the headings and any
relative section or chapter notes.
According to the information provided, the expansion unit
provides connectors for display monitors, a keyboard, and for
internal storage devices. These capabilities are designed to
enhance the use of a laptop computer.
Legal Note 5(B) to Chapter 84 defines units of ADP machines
as follows:
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;
(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).
The expansion unit meets the definition of Legal Note 5(B)
because it connects to the laptop computer's central processing
unit (CPU) and it is able to accept or deliver data in a form
which can be used by the system.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. EN 84.71(I)(D), page
1299, describes separately presented ADP units as follows:
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:
(4) Control and adapter units such as those to effect
interconnection of the central processing unit to
other digital data processing machines, or to
groups of input or output units which may comprise
visual display units, remote terminals, etc.
The expansion unit interconnects the CPU of the laptop
computer with input and output units as well as increased data
processing and storage capabilities. Based upon EN 84.71(I)(D),
we find that the expansion unit meets the definition of "control"
or "adaption" functions. Therefore, the expansion unit should be
classified under subheading 8471.99.15, HTSUS, as control and
adapter units for ADP machines.
Based upon the above analysis, we find that subheading
8471.99.15, HTSUS, is a more specific description of the
merchandise because it adapts a laptop computer for use with
other ADP units. Therefore, the holding in NY 860833 concerning
expansion units should be modified accordingly.
HOLDING:
The expansion units or docking stations are classifiable
under subheading 8471.99.15, HTSUS, as control or adapter units
for ADP machines. Goods classifiable under this provision have a
general, column one free rate of duty.
EFFECT ON OTHER RULINGS:
NY 860833, dated March 1, 1991, no longer reflects the
position of Customs and is hereby modified pursuant to section
177.9(d) of the Customs Regulations [19 CFR 177.9(d)].
Sincerely,
John Durant, Director
Commercial Rulings Division