CLA-2 CO:R:C:M 089042 MBR

Mr. Robert Torresen
Powell, Goldstein, Frazer & Murphy
Sixth Floor
1001 Pennsylvania Avenue, N.W.
Washington, D.C., 20004

RE: "Ferrite Memory Module"; Memory storage in automatic data processing machines; Parts and accessories of the machines of 8471

Dear Mr. Torresen:

This is in reply to your letter of March 26, 1991, on behalf of SCI Systems, Inc., requesting classification of "Ferrite Memory Modules," imported from Hong Kong and Thailand, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

SCI Systems, Inc., intends to import, through the port of Los Angeles, two separate and distinct "Ferrite Memory Modules": (1) the "Core Memory Module," and (2) the "Program Memory Module."

The Core Memory Module (CMM) is used to provide 12 megabits of bulk storage memory to a digital computer used in a military aircraft weapons system. The CMM consists of three distinct subassemblies: (1) a sense-word-inhibit assembly, (2) a timing and control assembly, and (3) a motherboard assembly (without the CPU). These assemblies perform storage, timing, control, interface, and connection functions.

The Program Memory Module (PMM) is used to provide non- volatile information storage memory to a digital computer used in the central interface unit of the F-16A multirole fighter aircraft. It consists of four subassemblies: (1) memory element assembly, (2) memory control assembly, (3) circuit card assembly, and (4)interconnect assembly. They perform storage, -2-

control, and connection functions.

ISSUE:

What is the classification of the following two separate and distinct "Ferrite Memory Modules": (1) the "Core Memory Module," and (2) the "Program Memory Module," under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

You claim that the instant merchandise is classifiable under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and accessories (other than 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 8471: [n]ot incorporating a cathode ray tube." In order to be classifiable here, the CMM and the PMM must be principally used with a machine classifiable in heading 8471, HTSUSA. Chapter 84, Legal Note 5 defines the scope of the term "automatic data processing machine" for the purposes of heading 8471.

Legal Note 5(A)(a), chapter 84, states:

(A) For the 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 the 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.

You state that the CMM "is used to provide 12 megabits of bulk storage memory to a digital computer used in a military aircraft weapon system," and that the PMM "is used to provide non-volatile information storage memory to a digital computer used in the Central Interface Unit of the F-16A Multirole Fighter Aircraft.

You have submitted no information regarding the "digital -3-

computer(s)" that the CMM and PMM will be utilized with. However, due to the complexity and advanced nature of such military aircraft weapons and interfacing computers, and the nature of the instant merchandise, for the purposes of this ruling, it is Customs opinion that such computers would meet the requirements of chapter 84, Legal Note 5(A).

The Computer Glossary, Fourth Edition, Alan Freedman, (1989), describes computer "Memory" as follows:

Oddly enough, the computer's main memory doesn't remember anything when the power is turned off. That's why you have to be sure to save your files before you quit your program. Although there are memory chips that do hold their content permanently, such as ROMs, PROMs, EPROMS, they're used for internal control purposes and not for the user's data. The "remembering" memory in a computer system is its disks and tapes, and they're usually called storage devices in order not to confuse them with the computer's working memory. Terms synonymous with the computer's working memory are RAM, main memory, main storage, primary storage, read/write memory, core and core storage.

The PMM and the CMM provide the "working memory" for the aforementioned digital computer systems, and are essential for the digital computers' operation.

"It is a well-established rule that a 'part' of an article is something necessary to the completion of that article. It is an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article." United States v. Willoughby Camera Stores, Inc., 21 CCPA 322, 324, T.D. 46,851 (1933). In determining whether an item is a part of an article, the courts look to the "nature, function, and purpose of an item in relation to the article to which it is attached or designed to serve...." Ideal Toy Corp. v. United States, 58 CCPA 9, 13, C.A.D. 996, 433 F.2d 801, 803 (1979). See Clipper Belt Lacer Co., Inc. v. United States, Slip Op. 90-22 (March 13, 1990).

The CMM and PMM are utilized as original component parts of ADP operational systems since they are necessary to the completion of those articles, as integral, constituent, component parts. Therefore, for tariff purposes, they should be considered "parts" of the machines of 8471, HTSUSA.

For similar holdings regarding similar merchandise, see HQ 088118, dated February 22, 1991, HQ 087791, dated February 1, 1991, and HQ 083956, dated April 12, 1989.

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Chapter 84, Legal Note 1(b) states: "[t]his chapter does not cover: (b) [a]ppliances or machinery (for example, pumps) or parts thereof, of ceramic material (chapter 69)." Subheading 6909.19.10, HTSUSA, provides for: "[c]eramic wares for laboratory, chemical or other technical uses: [o]ther: [f]errite core memories." However, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to chapter 84, page 1137, state:

On the other hand, the following are, as a rule, to be taken to have lost the character of ceramic articles, laboratory glassware, or machinery or appliances and parts thereof, of ceramic material or of glass:

(i) Combinations of ceramic or glass components with a high proportion of components of other materials (e.g., of metal); also articles consisting of a high proportion of ceramic or glass components incorporated or permanently mounted in frames, cases or the like, of other materials.

(ii) Combinations of static components of ceramic material or glass with mechanical components such as motors, pumps, etc., of other materials (e.g., of metal).

The instant merchandise, CMMs and PMMs, are entire printed circuit board assemblies with numerous components mounted thereon. Therefore, we find the instant merchandise to have lost the character of the ceramic nature of the ferrite core memory.

HOLDING:

The SCI Systems, Inc., "Ferrite Memory Modules" (the "Core Memory Module," and the "Program Memory Module"), are properly classifiable under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and accessories (other than 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 8471: [n]ot incorporating a cathode ray tube." The rate of duty is Free.

Sincerely,

John Durant, Director
Commercial Rulings Division