CLA-2 CO:R:C:G 088118 MBR
District Director
U.S. Customs Service
300 South Ferry St Terminal Is
San Pedro, CA 90731
RE: Protest No. 02704-90-001476, dated 4/5/90; Automatic Data-
Processing Machines; ADP; Parts; Motherboard Without CPU;
Input/Output Card; Floppy Disc Drive Card; Computer Cables;
GRI 3(b); Set; 8471; 8473
Dear Sir:
This is our response regarding Further Review of Protest No.
02704-90-001476, dated April 5, 1990, which pertains to the
classification of automatic data processing machine component
parts, under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA).
FACTS:
The merchandise at issue consists of three models of
components for desk-top ADP systems which are described by you
as: model PTM-1230C 286 12MHz "Zero-Wait Mini '286 Mainboard"
(motherboard) imported with two cables attached to the board but
without a central processing unit (CPU), model PII-151B micro
floppy disc drive card with cables (not attached but marketed as
a set), and model PTI-209 286 input/output card with cables (not
attached but marketed as a set).
ISSUE:
What are the classifications of a motherboard without a CPU
(with attached cables), a micro floppy disc drive card (with
unattached cables), and an input/output card (with unattached
cables), for automatic data processing machines, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
-2-
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
The motherboard without a CPU was classified under
subheading 8471.10.00, HTSUSA, which provides for: "[a]utomatic
data processing machines and units thereof: [d]igital automatic
data processing machines, containing in the same housing at least
a central processing unit and an input and output unit, whether
or not combined."
The importer protests this classification and asserts that
the proper classification for the for the motherboard without CPU
is under subheading 8473.30.40, HTSUSA, which provides for:
"[p]arts and accessories (other than covers, carrying cases and
the like) suitable for use solely or principally with the
machines of headings 8469 to 8472: [p]arts and accessories of the
machines of heading 8471: [n]ot incorporating a cathode ray
tube."
We agree. Clearly, without a CPU (which is added by the
consumer after importation), the motherboard is not classifiable
under subheading 8471.10.00, HTSUSA, which requires a CPU.
Section XVI, Legal Note 2(b) provides, in pertinent part:
Other parts, if suitable for use solely or principally with
a particular kind of machine, or with a number of machines
of the same heading (including a machine of heading 8479 or
8543) are to be classified with the machines of that kind...
Therefore, classification of the motherboard with attached
cables is appropriate under subheading 8473.30.40, HTSUSA, which
provides for: "[p]arts and accessories (other than covers,
carrying cases and the like) suitable for use solely or
principally with the machines of headings 8469 to 8472: [p]arts
and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube."
The input/output cards, designed for incorporation into the
processor unit, were classified under subheading 8471.10.00,
HTSUSA, which provides for: "[a]utomatic data processing machines
and units thereof: [d]igital automatic data processing machines,
containing in the same housing at least a central processing unit
and an input and output unit, whether or not combined."
The importer protests this classification and asserts that
the proper classification for the input/output ("I/O") cards is
-3-
under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts
and accessories (other than covers, carrying cases and the like)
suitable for use solely or principally with the machines of
headings 8469 to 8472: [p]arts and accessories of the machines of
heading 8471: [n]ot incorporating a cathode ray tube."
For the same reasons above, we agree. The cable for the
input/output card is not attached when imported, however, they
are sold together as a set. Clearly, the essential character of
this set is the I/O card, and pursuant to GRI 3(b) the set is
classifiable under subheading 8473.30.40, HTSUSA.
The floppy disk drive cards ("FDD") are designed for
incorporation into separately housed floppy disc drives. The FDD
cards were also classified under subheading 8471.20.00, HTSUSA.
The importer protests this classification and argues that the FDD
card is properly classifiable under 8471.93.50, HTSUSA, which
provides for: "[a]utomatic data processing machines and units
thereof: [o]ther: [s]torage units, whether or not entered with
the rest of a system: [o]ther storage units: [n]ot assembled in
cabinets...." We agree that the FDD card is not classifiable
under the provision for ADP machines containing a CPU and an
input/output unit, however, the FDD card does not have the
essential character of a storage unit not assembled in a cabinet.
The FDD card is only one component part of a finished, separately
housed floppy disc drive. Therefore, it is also properly
classifiable under 8473.30.40, HTSUSA. Again, the cable for the
FDD card is not attached when imported, but they are sold
together as a set. Clearly, the essential character of this set
is the FDD card, and pursuant to GRI 3(b) the set is
classifiable under subheading 8473.30.40, HTSUSA.
HOLDING:
Model PTM-1230C 286 12MHz "Zero-Wait Mini '286 Mainboard"
(motherboard) imported with two cables attached to the board but
without a central processing unit is properly classifiable under
subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and
accessories (other than covers, carrying cases and the like)
suitable for use solely or principally with the machines of
headings 8469 to 8472: [p]arts and accessories of the machines of
heading 8471: [n]ot incorporating a cathode ray tube." The rate
of duty is Free.
Model PII-151B micro floppy disc drive card with cables (not
attached but marketed as a set) is properly classifiable under
subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and
accessories (other than covers, carrying cases and the like)
suitable for use solely or principally with the machines of
headings 8469 to 8472: [p]arts and accessories of the machines of
heading 8471: [n]ot incorporating a cathode ray tube." The rate
of duty is Free.
-4-
Model PTI-209 286 input/output card with cables (not
attached but marketed as a set) is properly classifiable under
subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and
accessories (other than covers, carrying cases and the like)
suitable for use solely or principally with the machines of
headings 8469 to 8472: [p]arts and accessories of the machines of
heading 8471: [n]ot incorporating a cathode ray tube." The rate
of duty is Free.
Since reclassification of the merchandise as indicated above
will result in the same rate of duty as claimed, you should allow
the protest in full. A copy of this decision should be attached
to the Form 19 Notice of Action.
Sincerely,
John Durant, Director
Commercial Rulings Division