CLA-2 CO:R:C:G 086615 JMH

Steven W. Baker, Esq.
Bellsey and Baker
100 California Street, Suite 670
San Francisco, CA 94111

RE: AQ-PCA 100 ARCNET adaptor board, AQ-PSA 100 ARCNET adaptor board, AQ-HUB 8, 8 port ARCNET active hub, AQ-HUB 4, 4 port ARCNET passive hub

Dear Mr. Baker:

Your January 26, 1990, request for reconsideration of New York Ruling 835428 (NY 835428) for the AQ-PCA 100 ARCNET adaptor board, the AQ-PSA 100 ARCNET adaptor board, the AQ-HUB 8, 8-port ARCNET active hub, and the AQ-HUB 4, 4-port ARCNET passive hub, on behalf of Aquila Communications, Inc., has been referred to this office for a reply.

FACTS:

The articles in question, the AQ-PCA 100 ARCNET adaptor board, the AQ-PSA 100 ARCNET adaptor board, the AQ-HUB 8, 8 port ARCNET active hub, and the AQ-HUB 4, 4 port ARCNET passive hub are to be imported by Aquila Communications, Inc. The items are used in a local area network.

The AQ-PCA 100 ARCNET (AQ-PCA 100) adaptor board is designed for use with the IBM PC, XT, AT and other compatible computers. It is compatible for use with all existing ARCNET networks using 93 ohm coaxial cable. The AQ-PCA 100 is fully compatible with Novell NetWare and enables network bridging.

The AQ-PSA 100 ARCNET (AQ-PSA 100) adapter board uses 16 bit path architecture to connect an ARCNET system to an IBM Micro- Channel product. It is fully compatible with all ARCNET networks using 93 ohm coaxial cable. This adaptor board enables the user to select configuration options from a menu on the CRT. The AQ- PSA 100 is fully compatible with Novell Netware.

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The AQ-HUB 8, 8-port ARCNET active hub (AQ-HUB 8) supports up to eight RG-62/U coaxial ports. Each port can be connected to either a network adaptor card or another active or passive hub. The AQ-HUB 8 provides electrical isolation and signal regeneration. It enables a network expansion of up to a 20,000 foot span.

The AQ-HUB 4, 4 port ARCNET passive hub links a maximum of four work systems of a network. The work systems must be within a 100 foot radius of the hub.

NY 835428 classified the articles in question within subheading 8517.82.00, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as " Electrical apparatus for line telephony or telegraphy...Other apparatus...Telegraphic..." You believe that the components are properly classified within heading 8471, HTSUSA, as units of automatic data processing systems.

ISSUE:

Whether the AQ-PCA 100, the AQ-PSA 100 ARCNET, the AB-HUB 8, and the AQ-HUB 4 are properly classified within heading 8471, HTSUSA, as automatic data processing units, or within heading 8517, HTSUSA, as electrical apparatus for line telegraphy.

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and...according ..to the following provisions."

The headings in contention are headings 8471 and 8517, HTSUSA. Heading 8471 describes:

8471 Automatic data processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included...

You state that the "imported products are designed to implement communication between digital data processing systems." For classification within heading 8471, a unit must further the processing of data. This processing involves input, output and storage. The instant articles do not further the processing of

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data. They do not enhance the input, output or storage capabilities of the data processing unit. Therefore, these items are not properly classified within heading 8471.

These local area network components simply relay data throughout a system. The sending or signaling of messages is described by heading 8517, HTSUSA.

8517 Electrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems; parts thereof...

NY 835428 is upheld. The AQ-PCA 100, the AQ-PSA 100 ARCNET, the AQ-HUB 8, and the AQ-HUB 4 are properly classified within subheading 8517.82.00, as "Electrical apparatus for line telephony or telegraphy...Other apparatus...Telegraphic..."

HOLDING:

The AQ-PCA 100 ARCNET adaptor board, the AQ-PSA 100 ARCNET adaptor board, the AQ-HUB 8, 8-port ARCNET active hub, and the AQ-HUB 4, 4-port ARCNET passive hub are used to relay data. They do not further the processing of data. The appropriate classification for the components is within subheading 8517.82.00, HTSUSA, as "Electrical apparatus for line telephony or telegraphy...Other apparatus...Telegraphic..."

Sincerely,

John Durant, Director
Commercial Rulings Division