CLA-2 RR:CR:GC 960415 DWS
Port Director of Customs
33 New Montgomery Street, #1501
San Francisco, CA 94105
RE: Protest 2809-95-101066; Coolant Distribution and Control
Unit; Cooler Header Assembly
Dear Port Director:
The following is our decision regarding Protest 2809-95-101066 concerning your action in classifying and assessing duty
on a cooler distribution and control unit (CDU) and cooler header
assembly under the Harmonized Tariff Schedule of the United
States (HTSUS).
In a facsimile submission dated May 14, 1998, counsel for
the protestant withdrew from the protest the value advance issue
and the issue regarding the classification of a power supply for
the CDU.
FACTS:
The CDU is a unit of the Amdahl mainframe computer system
(Model 5995M). It is housed in a cabinet or frame separate from
the other frames of the 5995M system. A basic CDU frame contains
the following components: a control unit, which contains a
microprocessor board, sensor board, and relay board; a power
unit, which consists of a power supply; a reservoir tank module,
which is a ventilated container which holds water, with water
level and temperature sensors; and coolant distribution modules,
consisting of a fan, heat exchange module, and water pumps and
valves.
The CDU is connected to the central processing unit (CPU)
frame of the 5995M by pipes or a "cooling loop." The CDU
distributes cooled, de-ionized water to the CPU frame. The CPU
frame contains a number of multi-layer glass ceramic assemblies
(MLAs), which are printed circuit boards (PCBs) containing
various large-scale integrated circuit (LSI) chips, circuitry,
connectors, and other items. Each MLA generates a significant
amount of heat in its operation which, if not dissipated, would
destroy the chips and board quickly. Accordingly, a conductive
cooling module (CCM) is attached to each MLA in the CPU frame.
The CCMs cover and mate to the chips on the MLA boards. The CDU
pumps cooled water through a piping system which is connected to
the CCMs in the CPU frame. The coolant circulates through the
CCMs which are attached to each MLA, thereby drawing off the heat
from the MLA. The warmed water is then returned through the
piping system to the CDU, where it is collected in the reservoir
tank module. The reservoir tank module is open and has a
ventilation unit, which allows some heat to dissipate from the
water in the tank.
Warm water returning from the CPU frame is further cooled
when pumped from the reservoir tank module through the heat
exchange module of the CDU. This module consists of a radiator,
or a tube with metal fins or vanes. The radiator is located in
the CDU directly over the customer's below-floor air
conditioning. Fans are installed within the CDU to pull cool air
from the floor air conditioning through the unit and across the
radiator. As the warm water flows through the radiator, its heat
is thereby dissipated. The cooled water is then pumped through
the piping system to the CPU frame.
In addition to monitoring functions, the control unit of the
CDU establishes the correspondence between the pumps, cooling
loops, and other units during the start-up phase of the system,
based on instructions from the service processor (SVP), which is
a mini-computer located in a separate frame of the 5995M. It
also controls the pumps, fans, and valves to distribute coolant,
and it starts, stops, and alternates pumps.
The cooler header assembly is comprised of a metal plate
which is a component of the CCM, which, as previously stated, is
attached to the MLA in the CPU frame of the 5995M.
The CDU and the cooler header assembly were entered on June
3, 10, 12, 17, 24, July 1, and 8, 1991, under subheading
8471.99.90, HTSUS, as an other unit of an automatic data
processing (ADP) machine, and subheading 8473.30.40, HTSUS, as an
other part (not incorporating a cathode ray tube) of machines of
heading 8471, HTSUS, respectively. The entries were liquidated
on June 9, 16, and 23, 1995, under subheading 8419.89.90, HTSUS,
as other machinery for the treatment of materials by a process
involving a change of temperature, and subheading 8419.90.80,
HTSUS, as an
other part of machinery for the treatment of materials by a
process involving a change of temperature, respectively. The
protest was timely filed on August 4, 1995.
ISSUE:
Whether the CDU is classifiable under subheading 8419.89.50,
HTSUS, as other machinery for the treatment of materials by a
process involving a change of temperature, or under subheading
8471.99.90, HTSUS, as an other unit of an ADP machine.
Whether the cooler header assembly is classifiable under
subheading 8419.90.90, HTSUS, as an other part of machinery for
the treatment of materials by a process involving a change of
temperature, or under subheading 8473.30.40, HTSUS, as an other
part (not incorporating a cathode ray tube) of machines of
heading 8471, 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 is determined according to the
terms of the headings and any relative section or chapter notes.
The 1991 HTSUS provisions under consideration are as
follows:
8419 Machinery, plant or laboratory equipment, whether or not
electrically heated, for the treatment of materials by a
process
involving a change in temperature such as heating, cooking,
roasting, distilling, rectifying, sterilizing, pasteurizing,
steaming,
drying, evaporating, vaporizing, condensing or cooling,
other than
machinery or plant of a kind used for domestic purposes;
instantaneous or storage water heaters, nonelectric; parts
thereof:
Other machinery, plant or equipment:
8419.89 Other:
8419.89.50 Other.
8419.90 Parts:
8419.90.90 Other.
* * * * * * * * *
8471 Automatic data processing machines and units thereof; * * *
* * :
Other:
8471.99 Other:
Other:
8471.99.90 Other.
* * * * * * * * *
8473 Parts and accessories (other than covers, carrying cases and
the like) suitable
for use solely or principally with machines of headings 8469
to 8472:
8473.30 Parts and accessories of the machines of heading 8471:
8473.30.40 Not incorporating a cathode ray tube.
* * * * * * * * *
The protestant claims that, because the CDU operates with
the 5995M, it is an ADP unit. In determining whether a good is
an ADP unit, we must consult chapter 84, note 5(B), HTSUS. It
states that:
(A) xxx
(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 a 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; 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 (coded or signals)
which can be used by the system).
Such units entered separately are also to be classified in heading
8471.
Based upon the information supplied by the protestant, the
CDU meets the requirements of an ADP unit in chapter 84, note
5(B), HTSUS. Therefore, the CDU is described under subheading
8471.99.90, HTSUS.
We must now ascertain whether the CDU is described in
heading 8419, HTSUS. 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 or legally binding, provide a commentary
on the scope of each heading of the HTSUS, and are generally
indicative of the proper interpretation of these headings. See
T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In
part, Explanatory Note 84.19 (p. 1271) states that:
. . . the heading covers machinery and plant designed to submit
materials (solid, liquid or gaseous) to a heating or cooling process
in order to cause a simple change of temperature, or to cause a
transformation of the materials resulting principally from the temperature
change . . . But the heading excludes machinery and plant in which the
heating or cooling, even if essential, is merely a secondary function
designed to facilitate the main mechanical function of the machine or plant,
e.g., machines for coating biscuits, etc., with chocolate, and conches
(heading 84.50 or 84.51), machines for spreading and tamping bituminous
road-surfacing materials (heading 84.79).
We find that, based upon Explanatory Note 84.19, the 5995M
is described in heading 8419, HTSUS, in that it is designed to
submit the circulating water to a cooling process to cause a
simple change in temperature. The principal function of the CDU
is to chill and channel water throughout the 5995M in such a way
as to dissipate heat.
It is our position that this function of the CDU is not
secondary so as to preclude it from classification in heading
8419, HTSUS. The principal purpose of the CDU is to subject
water to a cooling process to dissipate heat arising in the
5995M. Without the chilled water, the 5995M could not operate
properly for an extended period of time. Such a function is not
secondary for a machine which is described as a coolant
distribution and control unit.
Counsel for the protestant cites HQ 958017, dated February
13, 1996, which dealt with the classification of humidifiers, as
precedent for excluding the CDU from classification in heading
8419, HTSUS. In that ruling, we held that a machine whose
purpose was to create steam is not a good of heading 8419. We
find that the holding in HQ 958017 is not binding upon the
classification of the CDU, as the two machines are different in
both design and function. Again, the purpose of the CDU is to
subject water to a cooling process to dissipate heat arising in
the 5995M. This is a function covered by heading 8419, HTSUS.
We note that heat exchange units are specifically provided
for in heading 8419, HTSUS. However, because the CDU consists of
a heat exchange unit and several other components, we find that
it is better described under subheading 8419.89.50, HTSUS.
Chapter 84, note 2, HTSUS, states that:
[s]ubject to the operation of note 3 to section XVI, a machine or
appliance which answers to a description in one or more of the headings 8401
to 8424 and at the same time to a description in
one or more of the headings 8425 to 8480 is to be classified under the
appropriate heading of the former group and not the latter.
As it is our understanding that the CDU is a machine which
is described in headings 8471 and 8419, HTSUS, chapter 84, note
2, HTSUS, is applicable. Based upon the note, the CDU is
classifiable in heading 8419, HTSUS, under subheading 8419.89.50,
HTSUS.
In the alternative, the protestant claims that the CDU is a
part of an ADP machine classifiable in heading 8473, HTSUS.
Based upon chapter 84, note 2, classification of the CDU in
heading 8473, HTSUS, is precluded. See also section XVI, note 2,
HTSUS.
In HQ 960980, dated October 28, 1997, we held a power and
coolant distribution unit, the main function of which is the same
as that of the subject CDU, to be classifiable in heading 8419,
HTSUS.
With regard to the cooler header assembly, as it is our
understanding that it is a metal plate specifically designed as a
component piece for the CCM, we find that it is a part of the CDU
classifiable under subheading 8419.90.90. See section XVI, note
2, HTSUS.
HOLDING:
The coolant distribution and control unit is classifiable
under subheading 8419.89.50, HTSUS, as other machinery for the
treatment of materials by a process involving a change of
temperature.
The cooler header assembly is classifiable under subheading
8419.90.90, HTSUS, as an other part of machinery for the
treatment of materials by a process involving a change of
temperature.
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 in accordance with the decision
must be accomplished prior to mailing of this decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Freedom of Information
Act, and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division