CLA-2 CO:R:C:M 953208 MBR
Mr. John J. Marshall
"K" Air Brokerage, Inc.
40-A Broderick Road
Burlingame, CA 94010
RE: Allied Telesis, Inc.; Local Area Network Multiport Repeaters;
LAN; Automatic Data Processing Machine; Control or Adapter
Units; HQ 952659
Dear Mr. Marshall:
This is in response to your letter of January 7, 1993,
requesting classification of the local area network ("LAN")
Multiport Repeaters, under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The instant CentreCOM Multiport Repeaters are described as
model numbers AT-3025 (BNC to BNC two port repeater), AT-3027 (BNC
to one fiber, two port repeater), AT-3028 (AUI to two fiber, three
port repeater), AT-3008SL (eight port with one AUI), and AT-3012T
(10Base-T twelve port repeater). They are designed to connect up
to twelve IEEE 802.3 10Base-T LAN network segments. In addition to
the twisted pair interfaces, a single IEEE 802.3 Attachment Unit
Interface (AUI) is provided for attachment to other external
transceivers. In this way, the repeater allows for connection
between the different media (thick or thinnet coaxial, fiber optic,
and twisted pair) with the choice of appropriate transceiver.
ISSUE:
Are LAN Multiport Repeaters ("Repeaters") classifiable under
subheading 8517.82.00, HTSUS, which provides for electrical
apparatus for line telegraphy, or are they classifiable under
subheading 8471.99.15, HTSUS, which provides for ADP "control or
adapter units"?
-2-
LAW AND ANALYSIS:
Since the HTSUS came into effect there has been a great deal
of controversy regarding the classification of LAN equipment.
However, there is no clear classification guidance from either the
HTSUS or the Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), primarily due to the technological
advancements in this area.
In HQ 952659, dated October 8, 1992, regarding LAN boards, we
cited Legal Note 5(B) to chapter 84, HTSUS, which provides guidance
regarding the classification of units of automatic data processing
machines. It states:
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 the
complete system if it meets all of 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 (code or
signals) which can be used by the system).
We agree that the instant Repeaters are connectable to the CPU
either directly or through one or more units. Furthermore, the
Repeaters are designed to be a constituent unit of an ADP system,
and are able to accept and deliver data.
In HQ 952659 we also cited the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs), pages 1299-
1300, which describe the classification scope of the ADP unit
provisions, in pertinent part, as follows:
This heading also covers separately presented constituent
units of data processing systems. Constituent units are those
defined in Parts (A) and (B) above as being parts of a
complete system.
Apart from central processing units and input and output
units, examples of such units include:
(4) Control and adaptor units such as those to effect
interconnection of the central processing unit to other
digital data processing machines, or to groups of input
or output units which may comprise visual display units,
remote terminals, etc.
-3-
We agree that the principal function of the instant Repeaters
is, in fact, to effectuate the interconnection of the CPU unit to
other units or ADP machines, thereby serving "control" and
"adaption" functions.
HOLDING:
The Allied Telesis, Inc., LAN Multiport Repeaters, model
numbers AT-3025 (BNC to BNC two port repeater), AT-3027 (BNC to one
fiber, two port repeater), AT-3028 (AUI to two fiber, three port
repeater), AT-3008SL (eight port with one AUI), AT-3012T (10Base-
T twelve port repeater), are classifiable under subheading
8471.99.15, HTSUS, which provides for: "[a]utomatic data processing
machines and units thereof: [o]ther: [o]ther: [c]ontrol or adapter
units." The rate of duty is Free.
Sincerely,
John Durant, Director