CLA-2 CO:R:C:M 950302 LTO
8536.90.00; 8537.10.00; 8544.20.00; 8544.41.00; 8544.51.80
District Director
U.S. Customs Service
9901 Pacific Highway
Blaine, Washington 98230
RE: Protest No. 3004-91-000041; parts of System 51 "Network
Management System"; 8473; 8529; Note 2 to Section XVI; Note
5(A) to Chapter 84; 19 CFR 174.13(5)(6); HQ 086400; HQ
089277
Dear Sir:
This is our response regarding Protest No. 3004-91-000041,
dated February 1, 1991, which concerns the classification of
parts of the System 51 "Network Management System" [hereinafter,
"System 51"] under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
This protest concerns the classification of parts of the
System 51. The System 51 includes the following three systems:
(1) 51RS Remote Station [51RS]; (2) Microtel Spacetel SCPC
Satellite Communications System [Microtel]; and (3) 46A Multiplex
Equipment [46A]. Parts of the three systems which encompass the
System 51 were entered at the port of Blaine, Washington.
The parts of the 51RS were entered under subheading
8473.30.80, HTSUS, which describes parts and accessories suitable
for use solely or principally with the machines of Heading 8471,
HTSUS. The parts of the Microtel and the 46A were entered under
subheading 8529.90.50, HTSUS, which describes parts suitable for
use solely or principally with the apparatus of Headings 8525 to
8528, HTSUS. All of the parts were liquidated under subheading
8517.90, HTSUS, which describes parts of electrical apparatus for
line telephony or telegraphy. - 2 -
The System 51 is a network management system that monitors
the status of remote sites from one central location so that all
surveillance and control functions can be executed from a single
site. It monitors critical points in a geographically dispersed
network and reports their status via communication links to a
centrally located control center. For example, it can monitor
radio pilot levels, noise thresholds, AC and DC power and
environmental conditions. Further, it can administer all facets
of a telecommunications network operation.
The parts of the three systems--51RS, Microtel, and 46A--
which are subject to this protest include the following: a
remote shelf; a terminal block; an alarm and relay control unit;
a control output unit; a service extender unit; an expansion
cable; an external display shelf; a "connectorized" terminal
block panel; a power supply panel and unit; a display power
supply unit; a CPU unit; digital input units; an encoder unit; an
interface unit; an asynchronous buffered multiplexor (ABM) port;
and blank units.
ISSUE:
Whether the parts of the System 51 "Network Management
System" are classifiable as parts of electrical apparatus for
line telephony or telegraphy.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ."
The articles in question were liquidated under subheading
8517.90, HTSUS, which describes parts of electrical apparatus for
line telephony or telegraphy. They were entered under subheading
8473.30.80, HTSUS, which describes parts and accessories suitable
for use solely or principally with the machines of Heading 8471,
HTSUS, and under subheading 8529.90.50, HTSUS, which describes
parts suitable for use solely or principally with the apparatus
of Headings 8525 to 8528, HTSUS.
Note 2 to Section XVI states that "[p]arts which are goods
included in any of the headings of Chapters 84 and 85 . . . are
in all cases to be classified in their respective headings . . .
[emphasis added]." Thus, if the articles in question are goods
included in a chapter 84 or 85 heading, they cannot be classified
as parts under subheading 8473.30.80, 8517.90, or 8529.90.50,
HTSUS.
- 3 -
The Remote Shelf provides mounting facilities for plug-in
units or cards and interconnecting wiring, which encodes a
maximum of 256 inputs and controls a maximum of 32 relays. The
shelf provides communication to and from the Master (HOST) via
the VF Transmit/Receive Unit. The Remote Shelf is classifiable
under Heading 8536, HTSUS, specifically under subheading
8536.90.00, HTSUS, which describes other electrical apparatus for
switching or protecting electrical circuits, or for making
connections to or in electrical circuits, for a voltage not
exceeding 1,000 V.
The Terminal Block is used to connect wiring to another
article, such as, connecting wiring units and shelves together.
The Service Extender Unit provides the means to extend all
connections of a shelf position outside the shelf frame, at which
time the unit to be serviced is fully exposed, although fully
operational with its system. The main body of the unit contains
100 test points which are connected pin for pin. The External
Display Shelf provides mounting facilities for external display
units and a display power supply unit. The signals and power
required to interconnect the equipped units are carried by the
printed circuit wiring present on the shelf backplane. The
"Connectorized" Terminal Block Panel provides mounting facilities
for a maximum of four "connectorized" terminal blocks. The
Terminal Block, the Service Extender Unit, the External Display
Shelf and the "Connectorized" Terminal Block Panel are all
classifiable under subheading 8536.90.00, HTSUS, which describes
other electrical apparatus for making connections to or in
electrical circuits, for a voltage not exceeding 1,000 V.
The Alarm and Relay Control Unit is used in the 51RS to
monitor operating parameters, and to select, confirm and
operate/release control output relays. This unit also monitors
CPU activity (such as, low battery or elapsed time of
Remote/Master Communications). In addition, this unit may
initiate the INPUT test, disable the remote communication for
maintenance and rest the CPU. The Alarm and Relay Control Unit
is classifiable under Heading 8537, HTSUS, specifically under
subheading 8537.10.00, HTSUS, which describes boards, panels and
other bases for electric control or the distribution of
electricity, for a voltage not exceeding 1,000 V.
The Control Output Unit provides latching, non-latching or
transistor drive outputs. Each card contains eight relays or
transistor drives, and each has two FORM C relay contact outputs.
This unit is also described by subheading 8537.10.00, HTSUS.
The Expansion Cable allows the 51RS to expand to a CPU
Expansion Shelf (not subject to this protest) for auxiliary
processing capability. The options -01 cable consists of two, 20
- 4 -
pair cables terminated at each end by a 42 pin paddle board. The
cable is described by Heading 8544, HTSUS, which provides for
insulated wire, cable and other insulated electric conductors
fitted with connectors. If coaxial, the cable is classifiable
under subheading 8544.20.00, HTSUS, which describes "[c]oaxial
cable and other coaxial electric conductors." If not, it is
classifiable in either subheading 8544.41.00, HTSUS (if voltage
does not exceed 80 V), or under subheading 8544.51.80, HTSUS (if
voltage exceeds 80 V but not 1,000 V), depending on the cable's
maximum voltage.
The Power Supply Panel provides redundant power supply up to
a total of 135 watts of output power. The Power Supply Unit
provides the circuitry to convert a -20V to -56V unregulated
office battery voltage to a regulated +5V, +15V and -15V outputs.
All outputs have the capability of regulating both output voltage
and output current. The Display Power Supply Unit consists of
two (-5V and -24V) switching type regulators which may be
operated from a -24V input. Both regulators are current limited
and have over-voltage protection of the outputs. Upon failure or
either regulator, a relay is released to signal the failure.
These units are described by Heading 8504, HTSUS, which provides
for electrical transformers, static converters and inductors.
Specifically, they are classifiable under subheading 8504.40.00,
HTSUS, which describes "[s]tatic converters."
The Digital Input Units allow the 51RS Remote Terminal
Assembly to monitor 32 binary inputs in either a normal or data
lock mode. The inputs are protected against overvoltages and the
input circuitry is isolated from the outputs of the unit by the
use of optocouplers. A control byte, programmed by an on-board
switch, informs the CPU during initialization how each byte of
data is to be processed and how the 32 inputs are to be treated.
These units are classifiable under subheading 8471.92.40, HTSUS,
which provides for other input units for automatic data
processing machines, whether or not entered with the rest of a
system and whether or not containing storage units in the same
housing.
The Encoder Unit provides parallel to serial data conversion
(converts signal to coded data form for transmission),
common alarm and status change detection. This unit is
classifiable under subheading 8525.10.80, HTSUS, which describes
other transmission apparatus for radiotelegraphy. See 086400,
dated May 11, 1990 (integrated receiver/decoder for the
transmission of encrypted audio and data communications was
classified under subheading 8525.10.20, HTSUS).
The Interface Unit equips serial data ports and auxiliary
CPU support functions, and communicates with either a computer or
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a printer. The ABM Port is a plug-in unit that mounts directly
into a mini-computer, and provides an interface between a 51H
computer and communication ports.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) to Heading 8517, HTSUS, pg. 1360, state:
The term "electrical apparatus for line telephony
or line telegraphy" means apparatus for the
transmission between two points of speech or
other sounds (or of symbols representing written
messages, images or other data), by variation of
an electric current or of an optical wave flowing
in a metallic or dielectric (copper, optical
fibers, combination cable, etc.) circuit
connecting the transmitting station to the
receiving station. The heading covers all such
electrical apparatus designed for this purpose,
including the special apparatus used for carrier-
current line systems.
The Interface Unit and the ABM Port are covered by Heading 8517,
HTSUS, and are classifiable under subheading 8517.82.00, HTSUS,
which describes other electrical apparatus for line telephony or
telegraphy. See 089277, dated August 14, 1991.
The CPU Unit provides system timing (CTC), communications
(SIO) circuits and processing for various assemblies depending on
the firmware installed. The on-board memory may be configured to
a maximum of 48K EPROM/16K SRAM by suitable programming of a
decode PROM. Memory configuration is possible according to
customer need. Based on the information provided by the
protestant, this unit does not appear to be "freely
programmable." Thus, according to Note 5(A) to Chapter 84, it
cannot be classified under Heading 8471, HTSUS, and it is
classifiable under subheading 8517.82.00, HTSUS.
HOLDING:
The Remote Shelf, Terminal Block, Service Extender Unit,
External Display Shelf and the "Connectorized" Terminal Block
Panel are classifiable under subheading 8536.90.00, HTSUS, which
provides for "[e]lectrical apparatus for switching or protecting
electrical circuits, or for making connections to or in
electrical circuits . . . for a voltage not exceeding 1,000 V
. . . [o]ther apparatus." The corresponding rate of duty for
articles of this subheading is 5.3% ad valorem.
The Alarm and Relay Control Unit and the Control Output Unit
are classifiable under subheading 8537.10.00, HTSUS, which - 6 -
provides for "[b]oards, panels . . ., consoles desks, cabinets
and other bases . . . for electric control or the distribution of
electricity . . . [f]or a voltage not exceeding 1,000 V." The
corresponding rate of duty for articles of this subheading is
5.3% ad valorem.
The Expansion Cable is classifiable under Heading 8544,
HTSUS, which provides for "[i]nsulated . . . wire, cable
(including coaxial cable) and other insulated electric
conductors, whether or not fitted with connectors . . . ." If
coaxial, the cable is classifiable under subheading 8544.20.00,
HTSUS. If not, it is classifiable under either subheading
8544.41.00, HTSUS, or subheading 8544.51.80, HTSUS, depending on
the cable's maximum voltage. The corresponding rate of duty for
articles of these subheadings is 5.3% ad valorem.
The Power Supply Panel, Power Supply Unit and the Display
Power Supply Unit are classifiable under subheading 8504.40.00,
HTSUS, which provides for "[e]lectrical transformers, static
converters . . . and inductors . . . [s]tatic converters." The
corresponding rate of duty for articles of this subheading is 3%
ad valorem.
The Digital Input Units are classifiable under subheading
8471.92.40, HTSUS, which provides for "[a]utomatic data
processing machines and units thereof . . . [i]nput or output
units, whether or not entered with the rest of a system and
whether or not containing storage units in the same housing . . .
[o]ther . . . [o]ther." The corresponding rate of duty for
articles of this subheading is 3.7% ad valorem.
The Encoder Unit is classifiable under subheading
8525.10.80, HTSUS, which provides for "[t]ransmission apparatus
for radiotelephony, radiotelegraphy, radiobroadcasting or
television, whether or not incorporating reception apparatus or
sound recording or reproducing apparatus . . . [t]ransmission
apparatus . . . [o]ther." The corresponding rate of duty for
articles of this subheading is 6% ad valorem.
The Interface Unit, ABM Port and the CPU Unit are
classifiable under subheading 8517.82.00, HTSUS, which provides
for "[e]lectrical apparatus for line telephony or telegraphy
. . . [o]ther apparatus . . . [o]ther." The corresponding rate
of duty for articles of this subheading is 4.7% ad valorem.
The protestant has not provided sufficient information with
regard to the remainder of the articles to render a
classification determination, and therefore, the protest
concerning those articles should be denied. See Section
174.13(5)(6) of the Customs Regulations [19 CFR 174.13(5)(6)].
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However, the protest should be granted to the extent
reclassification of the merchandise as indicated above results in
a net duty reduction or partial allowance. A copy of this
decision should be attached to the Customs Form 19 and provided
to the protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division