CLA-2-84:RR:NC:1:110 K86190

Mr. Craig M. Schau, LCHB
Menlo Worldwide Trade Services
6940 Engle Road, Suite A
Middleburg Heights, OH 44130

RE: The tariff classification of computer network security products from Australia.

Dear Mr. Schau:

In your letter dated May 17, 2004, on behalf of your client Tenix Datagate, Inc. you requested a tariff classification ruling.

The merchandise under consideration is for Tenix Datagate, Inc.’s, “Interactive Link” computer network security products for multi-level security application. The Interactive Link consists of a Data Diode Device (IL-DDD), Keyboard Switch (IL-KBS) or Multiple Computer Switch (IL-MCS), and Data Pump Applications (DPA) (Software). Each shipment into the United States will consists of some combination of these products.

The Interactive Link computer network security products allow access to physically isolated networks from a single workstation. They provide complete protection of data in a multi-level security environment while operating through a single interface. The Data Diode Device (IL-DDD) is a hardware bridge that allows unidirectional transmission of information from a general-purpose network to a secure network but not vice versa, ensuring integrity of data contained in the secure network. The Data Diode provides a means of importing data from outside sources while preventing data from leaving the secure network.

The Keyboard Switch (IL-KBS) allows a single workstation connection to both a general-purpose and secure networks. The Multiple Computer Switch (IL-MCS) enables the user to switch between two desktop computers of differing security classification levels from a single keyboard, mouse and monitor. These two devices allow access to both secure and unsecured networks form a single keyboard, mouse and monitor. The IL-KBS allows the user to switch between a personal computer (PC) and a general-purpose network server allowing access to both from a single workstation. The IL-MCS allows the user to switch between two desktop computers of differing security classification levels from a single keyboard, mouse and monitor workstation. This prevents any data leakage between networks by blocking any data flow to the keyboard or mouse. Both switches are passive devices and use push-button operation; they do not perform a data processing function.

The DPA (Data Pump Applications) software programs, which enable automatic unidirectional data transmission between a general-purpose network and a secure network, may be deployed by various operating systems. The software is provided in the form of a CD-ROM and must be loaded onto a server within network. As you stated in a phone conversation with this office on June 7, 2004, all computer network security products will be imported packaged together for retail as sets that will include the Data Diode Device, an IL-DBS or IL-MCS Switch and the DPA software. The General Rules of Interpretation (GRIs) of the Harmonized Tariff System (HTS) governs the classification of goods put up in sets for retail sale. GRI 3(b) provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes (ENs) of the HTS provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. According to the ENs for GRI 3(b), “goods put up in sets for retail sale” refers to goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repackaging. Under GRI 3(b), the Interactive Link computer network security products packaged with CD-ROM software meets the definition of a set. The Data Diode Device provides the essential character of these sets.

The CD-ROM software must be classified in accordance with Legal Note 6 to chapter 85. Note 6, which states: “This note does not apply to such media when they are entered with articles other than the apparatus for which they are intended.” The CD-ROM software must be installed into apparatus other than the “Interactive Link” computer network security products. Accordingly, the CD-ROM software need not be separately classified.

The applicable subheading for the “Interactive Link” computer network imported as a set with the Data Diode Device, a IL-DBS or IL-MCS Switch and the DPA software will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof…Other units of automatic data processing machines: Control or adapter units.” The general rate of duty will be free.

The applicable subheading for the Data Diode Device (IL-DDD), if imported separately will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof…Other units of automatic data processing machines: Control or adapter units.” The general rate of duty will be free.

The applicable subheading for either the Keyboard Switch (IL-KBS) or the Multiple Computer Switch (IL-MCS), imported separately, will be 8536.50.9033, Harmonized Tariff Schedule of the United States (HTS), which provides for “Electrical apparatus…for making connections to or in electrical circuits…for a voltage not exceeding 1,000 V: Other switches: Other: Other: Push-button: Rated at not over 5 A: Other.” The general rate of duty will be 2.7 percent ad valorem.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Eileen S. Kaplan at 646-733-3016.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division