CLA-2-84:RR:NC:1:110 G88524

Mr. David Smith
Red-M
Wexham Springs
Framewood Road
Slough, SL3 6PJ, England

RE: The tariff classification of wireless data network units from England.

Dear Mr. Smith:

In your letter dated February 28, 2001, on behalf of Red-M Company, you requested a tariff classification ruling.

The merchandise under consideration is the Red-M 3000AS access server and the Red-M 1000AP access point. The Red-M 3000AS access server is a Bluetooth network appliance with an integrated Linux-based server and Internet gateway. The Red-M 3000AS access server contains software blocks. It is a closed system and can only be programmed by Red-M Company. It provides a Bluetooth network infrastructure, enabling wireless communication with and between a wide range of devices, including personal digital assistants (PDA’s), laptops and personal computers (PC’s). The Bluetooth technology uses a 20dBm-radio transmitter and enhanced receiver, which allows up to seven Bluetooth-enabled devices to be simultaneously connected to the 3000AS within a range of up to 100 meters. The Red-M 3000AS are equipped with an integral antenna that is omnidirectional, providing uniform wireless coverage for devices within range of the 3000AS. All Bluetooth devices within range are automatically discovered to allow an administrator to configure the level of service for each device. Various levels of security can be configured to prevent unauthorized access and to allow different users access to different levels of service. In environments with an existing local area network (LAN), the 3000AS can be integrated allowing existing service to be extended over the wireless environment.

The Red-M 1000AP is a Bluetooth access point designed to give users mobility in the workplace by extending the Red-M 3000AS access server’s wireless coverage area and number of users. The Red-M 1000AP have an enhanced Bluetooth radio with a high-power transmitter, receiver and imbedded processor. The processor performs protocol conversion between wire and wireless protocols. Up to seven Bluetooth devices can be simultaneously connected to a Red-M 1000AP within a range of 100 meters. The integral antenna provides uniform wireless coverage for devices within range of the Red-M 1000AP. Currently the maximum number of devices that can be supported by the Red-M 3000AS and 1000AP system at one time is 96.

The principal use of the Red-M 3000AS and 1000AP system is to provide a wireless Bluetooth enabled LAN extension. The purpose of a wireless LAN system is to avoid costly wiring and to provide mobility to the users. While this system is designed to network Bluetooth enabled devices such as PDA’s, PC’s, laptop computers and smart phones, it will only handle wireless data, it will not handle voice transmissions. In HQ 953330, Customs concurred that wireless LAN units are control or adapter units designed to effect interconnection of the central processing unit (CPU) to other digital data processing machines, or to groups of input or output units which may comprise visual display units, remote terminals, etc. Customs also agreed that wireless LAN units are essential to an automatic data processing system with which they are integrated because they process and format the data of the computers they serve.

Legal Note 5 to chapter 84, Harmonized Tariff Schedule of the United States (HTS), which provides guidance regarding units of automatic data processing machines (ADP), states:

(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, 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 of a kind solely or principally used in an automatic data processing system;

(b) It is connectable to the central processing unit either directly or through one or more other units; and

(c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.

Separately presented units of an automatic data processing machine are to be classified in heading 8471.

Noting Legal Notes 5 (B) to Chapter 84, HTS, the Red-M 3000AS access server and the Red-M 1000AP access point appear to meet the definition of a unit of an ADP machine as defined above. Based upon the information presented with your ruling request, the Red-M 3000AS and 1000AP is of a kind solely or principally used with an ADP system, is connectable to the CPU, and is able to accept and deliver data in a form which can be used by an ADP system. As stated in Legal Note 5 (C) to Chapter 84, HTS, separately presented units of an ADP machine are to be classified in heading 8471, HTS.

The applicable subheading for the Red-M 3000AS and 1000AP 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 rate of duty will be free.

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 212-637-7019.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division