CLA-2-85:OT:RR:NC:N1:109
Ms. Shawn Glover
UPS Trade Management Services, Incorporated
2031 S. Centennial Avenue
Aiken, SC 29803
RE: The tariff classification of a Citrix NetScaler
Dear Ms. Glover:
In your letter dated April 12, 2012, on behalf of your client Citrix, you requested a tariff classification ruling.
The merchandise under consideration is referred to as a Citrix NetScaler. It is identified as Item MPX7500. The MPX7500 is a twenty one pound server type appliance, which contains a motherboard, CPU, power supply, hard drive, compact flash, NIC cards, SSL cards, etc., within a 1U chassis.
The Citrix NetScaler (Item MPX7500) is an all-in-one service and application delivery solution that provides information and security to computers simultaneously by accelerating application performance, increasing application availability and application security. The Citrix NetScaler (Item MPX7500) integrates multiple capabilities such as L4 - L7 switching, SSL acceleration, application firewall, load balancing, caching and performance monitoring into a single solution. This allows the implementation of new applications which can be transmitted to numerous data devices.
You have suggested that the classification of the Citrix NetScaler (Item MPX7500) should be Harmonized Tariff Schedule of the United States (HTSUS) subheading 8471.80.1000, which provides for “Automatic data processing machines and units thereof…Other units of automatic data processing machines: Control or adapter units.” However, the Citrix NetScaler (Item MPX7500) is not an automatic data processing machine, a unit thereof, or a control or adapter unit. Rather, it is a server appliance that provides information and security to computers simultaneously, delivers applications and data services to optimize and control all enterprise and cloud services, accelerates application performance, increases application availability, and improves application security. It is not covered by heading 8471 when presented separately, even if it meets all of the conditions in Note 5 (C). Note 5 (D) (ii) to Chapter 84, HTSUS, excludes apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network).
Apparatus that operates within a network and executes these functions are provided for within heading 8517. As such, subheading 8471.80.1000 is inapplicable.
The applicable subheading for the Citrix NetScaler (Item MPX7500) will be 8517.62.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other." The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Linda Hackett at (646) 733-3015.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division