CLA-2 RR:CR:GC 959125 RFA
Port Director
U.S. Customs Service
300 S. Ferry Street
Terminal Island, CA 90731
RE: Protest 2720-95-101329; PC/FM Board; Reception Apparatus for Radio Broadcasting; Accessories of Automatic Data Processing (ADP) Machines; Accessories; Additional U.S. Rule of Interpretation 1(c); HQs 087704, 956209, 955987, 954914, 950525, 088759, 954660, 955510
Dear Port Director:
The following is our decision regarding Protest 2720-95-101329, which concerns the classification of Packard-Bell PC/FM radio card under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this ruling, we also considered arguments provided in our meeting with counsel on September 24, 1998, and the information provided with counsel’s letter of October 23, 1998.
FACTS:
The subject merchandise consists of Packard-Bell FM radio tuner printed circuit board assembly (PCBA) cards which provide reception of FM radio signals for use exclusively in personal computers [“PC/FM boards”]. The PC/FM Boards allow the user to control the volume, select a radio station, scan, and tune through a computer. The PC/FM Board connects to the computer’s sound card which acts as the amplifier, stereo, sound mixing and processing functions and sends the signal to the computer’s speakers.
The merchandise was entered in 1995 under subheading 8473.30.10, HTSUS, as an accessory to an automatic data processing (ADP) machine. The entries were liquidated on September 1, and November 17, 1995, with classification under subheading 8527.39.00, HTSUS, as other radio broadcasting reception apparatus. The protest was timely filed on November 29, 1995.
The 1995 subheadings and their corresponding duty rates under consideration are as follows:
8473.30.10: Parts and accessories (other than covers, carrying cases and the like) 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: [p]rinted circuit assemblies, other than for power supplies for automatic data processing machines. . . .
Goods classifiable under this provision have a column one, general rate of duty of free.
8527.39.00: Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther radiobroadcast receivers, including apparatus capable of receiving also radiotelephony or radiotelegraphy: [o]ther...
Goods classifiable under this provision have a column one, general rate of duty of 5.4 percent ad valorem.
ISSUE:
Is the PC/FM Board classifiable as radio reception apparatus under heading 8527, HTSUS, or as an accessory for automatic data processing (ADP) machines under heading 8473, 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.
The protestant claims that the subject merchandise is a “part” of an automatic data processing (ADP) machine and should be classified in accordance with Legal Note 2 to Section XVI, HTSUS. Articles are “parts” for tariff purposes if they are integral, constituent and component parts necessary to the completion of the article with which they are used. Technicolor Videocassette, Inc. v. United States, 846 F.Supp. 1005, 18 CIT 181 (1994), vacated on other grounds, 47 F.3d 1183 (Fed.Cir. 1995). The subject merchandise does not meet the definition of a “part” for an ADP machine, as it is not an integral, constituent and component part necessary to the completion of a personal computer. The subject merchandise allow users to add more multimedia capabilities to their computer.
In HQ 087704, dated September 27, 1990, Customs considered the classification of "accessories" under the HTSUS, and stated the following:
The term "accessory" is not defined in either the tariff schedule or the Explanatory Notes. An accessory is generally an article which is not necessary to enable the goods with which it is used to fulfill their intended function. An accessory must be identifiable as being intended solely or principally for use with a specific article. Accessories are of secondary importance, not essential in and of themselves. They must, however, somehow contribute to the effectiveness of the principal article (e.g., facilitate the use or handling of the principal article, widen the range of its uses, or improve its operation).
See also HQ 956209 (July 29, 1994); HQ 955987 (June 30, 1994); HQ 954914 (November 23, 1993); HQ 950525 (February 7, 1992); HQ 088759 (June 18, 1991).
The PC/FM Board meets the term of “accessory” because it is intended for use solely or principally with a computer, but is not essential to the operation of a computer. To classify an “accessory”, we consult Additional U.S. Rule of Interpretation 1(c) which provides that: “[i]n the absence of special language or context which otherwise requires-- . . . . a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory”. Therefore, if the PC/FM Board is provided for more specifically elsewhere in the HTSUS, it cannot be classified under heading 8473, HTSUS, as an accessory to a computer. See HQ 954660.
Customs has addressed the issue of printed circuit board plugged into a computer and capable of accepting signals, in HQ 955510, dated September 16, 1994. In HQ 955510, Customs determined that a GPSCard, plugged into a computer, which received radio signals from a navigational satellite system and calculated its current latitude, longitude, altitude with reference to mean sea level and the system time, was classifiable under heading 8526, HTSUS, as radio navigational aid apparatus.
Just as the merchandise in HQ 955510 met the terms of heading 8526, we find that PC/FM Boards meet the terms of heading 8527, HTSUS, because they receive radiobroadcast signals. See also DD 806785, dated March 3, 1995, for a similar holding on the classification of a PC/FM radio board. By application of Additional U.S. Rule of Interpretation 1(c), the merchandise cannot be classifiable under heading 8473, HTSUS, because the merchandise is a radio receiver which is specifically provided for in heading 8527, HTSUS.
HOLDING:
The Packard Bell PC/FM radio boards are classifiable under subheading 8527.39.00, which provides for: “[r]eception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: [o]ther radiobroadcast receivers, including apparatus capable of receiving also radio-telephony or radiotelegraphy: [o]ther....” Goods classifiable under this provision have a column one, general rate of duty of 5.4 percent ad valorem.
The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division