CLA-2 CO:R:C:G 083588 TLS
TARIFF NOS.: 8471.91.0090; 8471.93.3020; 8471.99.1500;
8473.30.4000
Mr. Joseph A. Black
Dewey, Ballantine, Bushby, Palmer & Wood
1775 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
RE: Components of the AXE 10 Central Office Telephone Switch
Manufactured by Ericsson Telecom AB of Stockholm, Sweden.
Dear Mr. Black:
By letter dated January 10, 1989, you requested a ruling on
the appropriate tariff classification of five components of the
Ericsson AXE 10 central office telephone switch (the AXE 10)
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA).
FACTS:
The AXE 10 is a central office telephone network switching
system. It is composed of printed board assemblies contained in
mechanical frames (termed magazines) which are housed in
cabinets. The magazines are described as "forming the primary
hardware handling unit[s] of the system." All connections to
other magazines are made by plug-connected cables.
The AXE 10 is described in the literature accompanying the
request as being logically divided into two parts: the switching
system, called APT, and the control system, called APZ. The
outline below, summarized from the literature, describes the
complete make-up of the system:
I. Switching System (APT)
A. Subscriber Switching Subsystem (SSS) composed of the
Digital Subscriber Switch, which in turn is composed of Line
Switch Modules.
B. Group Switching Subsystem (GSS) composed of the Time-
Space-Time Digital Switch.
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1. Time-Switch Modules (TSM)
2. Space Switch Modules (SPM)
C. Trunk Signaling Subsystem (TSS)
1. Circuits for Connecting Trunks
2. Signaling Devices
D. Common Channel Signaling Subsystem (CCS) composed of the
Signaling Terminals (ST)
II. Control System (APZ)
A. Central Processing Level composed of the Duplicated
Central Processor
B. Distributed Level composed of the Small Regional
Processors (RP)
Your request seeks a tariff classification ruling on the
following components:
1. An arithmetic logic unit (ALU) (which is part of the
CPU);
2. a hard disk drive;
3. a regional processor handler control unit (RPHU);
4. a data buffer handler; and
5. a microprocessor board.
All five of these components have been identified as units of
the Control System listed in item II above. The machine of which
these units are a part satisfies the requirements of Note 5(A)(a)
to Chapter 84 for classification as an automatic data processing
machine, including the requirement of Note 5(A)(a)(2) that the
ADP machine be freely programmable in accordance with the
requirements of the user.
ISSUE:
Under what tariff provision are units of automatic data
processing machines classified if they are also parts of
electrical apparatus for line telephony separately provided for
elsewhere in the HTSUSA? Under what tariff provision are parts
suitable for use solely or principally with the machines of
heading 8471 (automatic data processing machines) classified if
they are also parts of electrical apparatus for line telephony?
Consequently, under which of the following tariff provisions are
the arithmetic logic unit, hard disk drive, regional processor
handler control unit, data buffer handler, and microprocessor
board of a central office telephone switch properly classified:
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1. Heading 8517, HTSUSA, covering electrical apparatus for line
telephony or telegraphy, including such apparatus for carrier-
current line systems; parts thereof;
2. Heading 8471, HTSUSA, covering automatic data processing
machines and units thereof; magnetic or optical readers, machines
for transcribing data onto data media in coded form and machines
for processing such data, not elsewhere specified or included;
3. Heading 8473, HTSUSA, covering parts and accessories (other
than covers, carrying cases and the like) suitable for use solely
or principally with machines of headings 8469 to 8472.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI) and Additional U.S.
Rules of Interpretation (USRI) govern classification of products
under HTSUSA. GRI 1 requires that classification be determined
according to the terms of the headings and any relative section
or chapter notes. Note 5(B) to Chapter 84 states that heading
8471 does not cover machines incorporating an automatic data
processing machine and performing a specific function. Pursuant
to Note 5(B), such machines are classified in the headings
appropriate to their function. Additionally, Note 4 to Section
XVI states that where a machine consists of individual components
intended to contribute together to a clearly defined function
covered by one of the headings in chapter 84 or chapter 85, the
whole falls to be classified in the heading appropriate to that
function. The function of the AXE 10 is telephone switching.
There is no doubt, therefore, that when all of the components of
the AXE 10 are entered together, the whole is classified as
electrical apparatus for line telephony under heading 8517,
HTSUSA, and more particularly as a telephonic central office
switching apparatus under subheading 8517.30.1500. These
components are entered separately, however, and therefore should
be classified separately as individual articles.
Note 2(a) to Section 16 requires that "[p]arts which are
goods included in any of the headings of chapters 84 and 85
(other than headings 8485 and 8548) are in all cases to be
classified in their respective headings." Additional U.S. Rule
of Interpretation 1(c) states that a specific provision for a
part or accessory shall prevail over a provision for "parts" or
"parts or accessories."
Three of the five components of the AXE 10 can be included in
a specific non-part provision. Since the alternative provision
for these three components is a "part" provision, classification
is appropriate as follows by virtue of Additional U.S. Note 1(c):
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1. The ALU is described in heading 8471, HTSUSA, covering units
of automatic data processing machines. The word "units" as used
in this provision does not have the same meaning as the word
"parts." Within this heading, the ALU is classifiable under
subheading 8471.91.0090, HTSUSA, covering digital processing
units not incorporating a cathode ray tube.
2. The hard disk drive is also described in heading 8471,
HTSUSA, covering units of automatic data processing machines.
Within that heading the hard disk drives are classified as
flexible floppy magnetic disk drive units not assembled in
cabinets, and without attached external power supply, other than
for a disk of a diameter exceeding 21 centimeters, under
subheading 8471.93.3020, HTSUSA.
3. The RPHU is also described in heading 8471, HTSUSA. Within
that heading the RPHU is classifiable as a control or adapter
unit under subheading 8471.99.1500, HTSUSA.
Two of the five components of the AXE 10 are classifiable in
two separate parts provisions. They are classifiable as parts of
ADP machines under heading 8473 or as parts of electrical
apparatus for line telephony under heading 8517. Specifically,
the data buffer handler and the microprocessor board are both
described in heading 8473, HTSUSA, covering parts and accessories
suitable for use solely or principally with the machines of
headings 8469 to 8472. Within that heading they are classifiable
as parts and accessories of the machines of heading 8471, not
incorporating a cathode ray tube, under subheading 8473.30.4000,
HTSUSA. Additional U.S. Note 1(c) requires that, to be
classified as a "part" of an article, the goods must be solely or
principally used as a part of the article. Headquarters has
determined that the data buffer handler and the microprocessor
board are suitable for use with various automatic data processing
machines and not solely or principally with electrical apparatus
for line telephony. The data buffer handler and the
microprocessor board are consequently classified under subheading
8473.30.4000.
HOLDING:
The arithmetic logic unit is classified under subheading
8471.91.0090, HTSUSA, as a digital processing unit not
incorporating a cathode ray tube. The hard disk drive is
classified under subheading 8471.93.3020, HTSUSA, as a
flexible floppy magnetic disk drive unit not assembled in a
cabinet, and without an attached external power supply, other
than for a disk of a diameter exceeding 21 centimeters. The
regional processor handler control unit is classified under
subheading 8471.99.1500, HTSUSA, as a control or adapter unit.
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The data buffer handler and the microprocessor board are
classified under subheading 8473.30.4000, HTSUSA, as parts and
accessories of the machines of heading 8471, not incorporating a
cathode ray tube.
Sincerely,
John Durant, Director
Commercial Rulings Division