CLA-2 R:C:M 957962 RFA
Mr. Dennis R. Mueller
Quantum Consulting Associates
1375 Florida Avenue, Suite B
Longmont, Colorado 80501
RE: Parallel Port Assembly; Automatic Data Processing (ADP)
Units; Control and Adapter Units; Insulated Electrical
Conductors, Whether Or Not Fitted With Connectors; Legal
Note 5(B) to Chapter 84; Headings 8473, 8544; HQs 954695,
952554; NY 806816, modified
Dear Mr. Mueller:
This is in regards to New York (NY) 806816 issued to you on
March 2, 1995, on behalf of Datasonix Corporation, by the Area
Director, New York Seaport, which classified a parallel port
assembly under subheading 8544.41.00, Harmonized Tariff Schedule
of the United States (HTSUS), as other insulated electrical
conductors, whether or not fitted with connectors, for a voltage
not exceeding 80 V. In a letter, dated May 4, 1995, you
requested that we review that ruling along with the additional
information submitted. Pursuant to section 625(c)(1), Tariff Act
of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of
Title VI (Customs Modernization) of the North American Free Trade
Agreement Implementation Act (Pub. L. 103-182, 107 Stat.
2057)(1993), notice of the proposed modification of NY 806816 was
published on July 5, 1995, in the Customs Bulletin, Volume 29,
Number 27.
FACTS:
The subject merchandise is a parallel port assembly ("PPA"),
model number 000022-22, which consists of the following
components: data cable with an attached parallel port 25-pin
connector; printed circuit board ("PCB") that contains resistors,
capacitors, integrated circuit (IC) chips, two connector ports
for the attachment to an automatic data processing (ADP) printer
and the Datasonix Pereos tape storage unit; and two plastic
covers for the PCB assembly. The Pereos tape storage unit is a
small, compact and lightweight (approximately 10 ounces) ADP
storage unit which stores data on a miniature tape cartridge with
a capacity of 1.25 gigabytes.
The PPA allows a user to connect the Pereos tape storage
unit to a printer and the parallel port connection of a computer.
In addition to forming the connection between the three automatic
data processing (ADP) units (computer, printer, and tape
storage), the PPA directs and helps control the electronic
signals between the three units, allowing for the almost
simultaneous operations of data retrieval and printing.
ISSUE:
Is the parallel port assembly classifiable as an insulated
cable with connectors, or as an ADP unit under the 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 shall be determined according to
the terms of the headings and any relative section or chapter
notes.
In NY 806816, dated March 2, 1995, Customs determined that
the PPA was classifiable under subheading 8544.41.00, HTSUS,
which provides for other insulated electrical conductors, whether
or not fitted with connectors, for a voltage not exceeding 80 V.
You claim that the PPA is properly classifiable under
heading 8473, HTSUS, as parts and accessories of ADP machines.
To be classified as an ADP machine, merchandise must meet the
criteria in Legal Note 5(B) to Chapter 84, HTSUS, which defines
units of ADP machines as follows:
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 the
following conditions:
(a) it is connectable to the central processing unit
either directly or through one or more other
units;
(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).
The PPA meets the definition of Legal Note 5(B) because it
connects to a computer's central processing unit (CPU), a printer
and the Pereos tape storage unit, and it is able to accept or
deliver data in a form which can be used by the system. See HQ
954695 (November 18, 1993) and HQ 952554 (January 4, 1993).
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs 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 FR
35127, 35128 (August 23, 1989). EN 84.71(I)(D), page 1299,
describes separately presented ADP units 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 adapter 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.
We believe that the PPA acts as a control and adapter unit
to effect interconnection of the computer's CPU to the printer
and the data storage unit and is therefore, classifiable under
subheading 8471.99.15, HTSUS, as control and adapter units for
ADP machines. Because the PPA is classifiable as an ADP control
unit under heading 8471, HTSUS, classification under heading
8473, HTSUS, as a part of an ADP unit is precluded.
HOLDING:
The parallel port assembly, model number 000022-22, is
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 general, column one rate of duty is
free.
EFFECT ON OTHER RULINGS:
NY 806816, dated March 2, 1995, is modified as to the
classification of the PPA. In accordance with 19 U.S.C.
1625(c)(1), this ruling will become effective 60 days after
publication in the Customs Bulletin. Publication of rulings or
decisions pursuant to 19 U.S.C. 1625(c)(1) does not constitute a
change of practice or position in accordance with section
177.10(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].
Sincerely,
John Durant, Director
Commercial Rulings Division