CLA-2 CO:R:C:M 957178 RFA
Ms. Lisa Cortes
AST Research Inc.
16215 Alton Parkway
Building #3 MS 3-44
Irvine, CA 92718
RE: Notebook computers without CPU chips; Automatic Data
Processing (ADP) machines; heading 8471; Legal Note 5(A) to
chapter 84; GRI 2(a); HQs 085894, 951438, 954307, 954411
Dear Ms. Cortes:
This is in response to your letter dated October 14, 1994,
concerning the tariff classification of the Ascentia 1000 series
notebook computer under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The Ascentia 1000 series notebook computer will contain the
following components: a TFT panel (flat panel display);
trackball; keyboard; floppy disk drive; hard disk drive; power
supply; and the main logic board (motherboard) without the
central processing unit (CPU) chip. The Ascentia 1000 series
notebook computer is assembled, missing only the CPU chip.
ISSUE:
Is the notebook computer, missing only the CPU chip
classifiable as an automatic data processing (ADP) machine under
the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
To be classified as an ADP machine, merchandise must meet
the criteria in Legal Note 5(A)(a) to Chapter 84, HTSUS, which
provides as follows:
For purposes of heading 8471, the expression "automatic
data processing machines" means:
(a) Digital machines, capable of (1) storing the
processing program or programs and at least the
data immediately necessary for execution of the
program; (2) being freely programmed in accordance
with the requirements of the user; (3) performing
arithmetical computations specified by the user;
and, (4) executing, without human intervention, a
processing program which requires them to modify
their execution, by logical decision during the
processing run. . . .
An ADP "motherboard" is the main interconnecting circuit
board in an electronic device, to which the various
subassemblies, such as printed circuit boards, are plugged or
wired. See Webster's New World Dictionary, Third College Edition
(1988), page 886. See also HQ 085894, dated February 14, 1990.
Complete ADP "Motherboards" with central processing unit
(CPU) chips have been consistently deemed to possess the
essential character of an ADP processing unit. Therefore, a
"motherboard" containing a CPU is properly classifiable in
subheading 8471.91.00, HTSUS, which provides for: "[a]utomatic
data processing machines and units thereof: [o]ther: [d]igital
processing units, whether or not entered with the rest of a
system...."
The classification of a "motherboard" without a CPU was
addressed in HQ 088118, dated February 22, 1991, which held that
it was classifiable under subheading 8473.30.40, HTSUS, which
provides for: "[p]arts and accessories (other than covers,
carrying cases and the like) suitable for use solely or
principally with the machines of headings 8469 to 8472: [p]arts
and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube."
GRI 2(a) provides direction regarding unfinished and
incomplete articles. It states that:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete
or unfinished article has the essential character of
the complete or finished article. It shall also
include a reference to that article complete or
finished (or falling to be classified as complete or
finished by virtue of this rule), entered unassembled
or disassembled.
Therefore, the question arises whether an ADP subassembly
can have the essential character of an automatic data processing
machine if it does not contain the microprocessor chip (CPU).
In HQ 954411, dated October 19, 1993, Customs consulted The
Computer Glossary for the definition of a CPU, which states in
pertinent part:
(Central Processing Unit) The CPU, also called the
central processor, or simply processor, is the
computing part of the computer. It is made up of the
control unit and arithmetic/logic unit. The control
unit extracts the instructions out of memory and
executes them. The arithmetic/logic unit performs the
arithmetic calculations and comparisons.
A minicomputer CPU is contained on from one to
several printed circuit boards. A mainframe CPU is
contained on many printed circuit boards. In a
personal computer, the CPU is contained on a single
chip, called a microprocessor....
Customs has consistently held that the CPU is the heart of
an ADP system because it performs the processing. It determines
the systems power, capacity, and speed at which it will operate.
Therefore, it is not possible to have the essential character of
an automatic data processing personal computer without the
microprocessor chip. See HQ 954307, dated October 5, 1993, for a
ruling regarding an ADP subassembly missing only the CPU,
oscillator, and hard disk drive, which held that the subassembly
was classifiable in subheading 8473.30.40, HTSUS, which provides
for parts of ADP machines.
The classification of an ADP subassembly missing the CPU,
hard disk drive and memory module, was also addressed in HQ
951438, dated March 2, 1993. That decision determined that a
similar ADP subassembly did not rise to the level of an
incomplete processor unit since it did not have the main
essential features of the complete processor unit.
In HQ 954411, Customs determined that a laptop personal
computer [housing a liquid crystal display (LCD), track ball,
keyboard, floppy disk drive, hard disk drive, power supply, main
logic board (without the CPU chip)] did not impart the essential
character of a finished ADP unit because the processor itself was
not imported with the laptop computer. Customs also determined
that, in their imported state as subassemblies, this merchandise
also did not have the essential character of any of their
constituent components/parts. Customs then concluded that this
subassembly is necessary to the completion of an ADP system, as
an integral, constituent, and component part. Therefore, for
tariff purposes, it should be considered "parts" of the machines
of 8471, HTSUS.
Based upon HQ 954411, we find that the subject merchandise
is classifiable under subheading 8473.30.50, HTSUS, which
provides for: "Parts and accessories . . . suitable for use
solely or principally with machines of headings 8469 to 8472:
[p]arts and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube: [o]ther: [o]ther. . . . "
HOLDING:
The Ascentia 1000 series notebook computer without the CPU
chip is classifiable under subheading 8473.30.50, HTSUS, which
provides for: "Parts and accessories . . . suitable for use
solely or principally with machines of headings 8469 to 8472:
[p]arts and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube: [o]ther: [o]ther. . . . " The
general, column one rate of duty is free.
Sincerely,
John Durant, Director
Commercial Rulings Division