CLA-2 CO:R:C:M 089263 MBR

District Director
U.S. Customs Service
Room 137
110 S. Fourth St.
Minneapolis, Minnesota 55401

RE: Protest No. 3501-0-000164, dated June 20, 1990; "Bootstrap Memory Module"; Memory storage in automatic data processing machines; Parts and accessories of the machines of 8471

Dear Sir:

This is our response regarding Further Review of Protest No. 3501-0-000164, dated June 20, 1990, which pertains to the classification of UNISYS "Bootstrap Memory Modules," imported from Canada, under the Tariff Schedules of the United States (TSUS), and the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The protestant states that the "Bootstrap Memory Module" is one of the fundamental building blocks of the military ADP equipment designed and built by UNISYS. The "Bootstrap Memory Module" is a small Read Only Memory (ROM) which contains the instructions necessary to initialize the computer when it is first turned on. It requires a chassis to plug into and it is referenced (READ) by the Central Processor Unit (CPU). The CPU, in turn, uses the instructions to perform the initialization of the computer at power-up.

There are two distinct types of "Bootstrap Memory Modules" used in the UNISYS military computers. The first type utilizes small ferrite memory cores to store the necessary data. The module consists of drive and selection circuits consisting of transistors, diodes, resistors, etc., which drive the cores in order to perform the Read function. The cores and components are mounted on small printed circuit cards and enclosed within covers to form a complete replaceable assembly with an interface -2-

connector on the bottom.

The second type of "Bootstrap Memory Module" utilizes integrated circuit Read Only Memory (ROM) chips to store the required data. These ROM cells are programed by electrically burning open selected paths within each cell such that the desired data is permanently stored in each address. The ROM chips and all additional drive circuitry are mounted on small printed circuit cards and enclosed as described above.

The two types of modules perform the identical task within the computer and in a few cases are used interchangeably. These "Bootstrap Modules" are used exclusively on computers designed for various data processing functions on U.S. Navy ships, submarines and aircraft.

ISSUE:

What is the classification of the "Bootstrap Memory Module," under the Tariff Schedules of the United States (TSUS), and the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

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 protestant claims that the instant merchandise is classifiable under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and accessories (other than 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 8471: [n]ot incorporating a cathode ray tube." In order to be classifiable here, the "Bootstrap Memory Module" must be principally used with a machine classifiable in heading 8471, HTSUSA. Chapter 84, Legal Note 5 defines the scope of the term "automatic data processing machine" for the purposes of heading 8471.

Legal Note 5(A)(a), chapter 84, states:

(A) For the purposes of heading 8471, the expression "automatic data processing machines" means:

(a) Digital machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for the execution of the program; -3-

(2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and (4) executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.

You state that UNISYS manufactures "Bootstrap Memory Modules" specifically for use with its particular computers, and that the "Bootstraps" are designed and manufactured according to specifications which make them capable of operation only with the particular UNISYS computers for which they are intended.

You state that: "The computers UNISYS builds using these modules meet all of the requirements of the Harmonized Tariff Schedule Heading 8471 relating to digital data processing machines. They are capable of: storing programs and data, being freely programed for a variety of tasks, performing arithmetical computations, and executing a logical decision making program without human intervention. These Bootstrap Memory Modules are essential elements which are used in the initial start-up of the computer and serve no useful function as stand alone items."

In HQ 089042, dated July 26, 1991, regarding "Ferrite Memory Modules" (for defense application computers), Customs stated:

...due to the complexity and advanced nature of such military aircraft weapons and interfacing computers, and the nature of the instant merchandise, for the purposes of this ruling, it is Customs opinion that such computers would meet the requirements of chapter 84, Legal Note 5(A).

The Computer Glossary, Fourth Edition, Alan Freedman, (1989), describes computer "Memory" as follows:

Oddly enough, the computer's main memory doesn't remember anything when the power is turned off. That's why you have to be sure to save your files before you quit your program. Although there are memory chips that do hold their content permanently, such as ROMs, PROMs, EPROMS, they're used for internal control purposes and not for the user's data. The "remembering" memory in a computer system is its disks and tapes, and they're usually called storage devices in order not to confuse them with the computer's working memory. Terms synonymous with the computer's working memory are RAM, main memory, main storage, primary storage, read/write memory, core and core storage.

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The Computer Glossary, defines "Boot" and "Bootstrap," in pertinent part, as follows:

Boot means start the computer. It comes from "bootstrap," since bootstraps help you get your boots on; booting the computer helps it get its first instructions. In personal computers, there's a small bootstrap routine in a ROM chip that is automatically executed when the computer is turned on or reset. The bootstrap routine searches for the operating system, loads it and then passes control over to it. In larger computers, the bootstrap procedure may require a more elaborate sequence of button pushing and keyboard input. (Emphasis added).

Thus, the "Bootstrap Memory Module" provides the bootstrap routine which searches for the operating system, loads it and then passes control over to it. Therefore, the "Bootstrap Memory Module" is essential for the operation of the aforementioned digital computers.

"It is a well-established rule that a 'part' of an article is something necessary to the completion of that article. It is an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article." United States v. Willoughby Camera Stores, Inc., 21 CCPA 322, 324, T.D. 46,851 (1933). In determining whether an item is a part of an article, the courts look to the "nature, function, and purpose of an item in relation to the article to which it is attached or designed to serve...." Ideal Toy Corp. v. United States, 58 CCPA 9, 13, C.A.D. 996, 433 F.2d 801, 803 (1979). See Clipper Belt Lacer Co., Inc. v. United States, Slip Op. 90-22 (March 13, 1990).

The "Bootstrap Memory Modules" are utilized as original component parts of ADP operational systems since they are necessary to the completion of those articles, as integral, constituent, component parts. Therefore, for tariff purposes, they should be considered "parts" of the machines of heading 8471, HTSUSA.

For similar holdings regarding similar merchandise, see HQ 089042, dated July 26, 1991, HQ 088118, dated February 22, 1991, HQ 087791, dated February 1, 1991, and HQ 083956, dated April 12, 1989.

Chapter 84, Legal Note 1(b) states: "[t]his chapter does not cover: (b) [a]ppliances or machinery (for example, pumps) or parts thereof, of ceramic material (chapter 69)." Subheading 6909.19.10, HTSUSA, provides for: "[c]eramic wares for laboratory, chemical or other technical uses: [o]ther: [f]errite core memories." However, the Harmonized Commodity Description -5-

and Coding System Explanatory Notes (ENs) to chapter 84, page 1137, state:

On the other hand, the following are, as a rule, to be taken to have lost the character of ceramic articles, laboratory glassware, or machinery or appliances and parts thereof, of ceramic material or of glass:

(i) Combinations of ceramic or glass components with a high proportion of components of other materials (e.g., of metal); also articles consisting of a high proportion of ceramic or glass components incorporated or permanently mounted in frames, cases or the like, of other materials.

(ii) Combinations of static components of ceramic material or glass with mechanical components such as motors, pumps, etc., of other materials (e.g., of metal).

The instant "Bootstrap Memory Modules," are entire printed circuit board assemblies with numerous components mounted thereon. Therefore, we find the instant merchandise to have lost the character of the ceramic nature of any ferrite core memory elements.

HOLDING:

The UNISYS "Bootstrap Memory Modules" are properly classifiable under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and accessories (other than 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 8471: [n]ot incorporating a cathode ray tube." The rate of duty is Free.

The UNISYS "Bootstrap Memory Modules" are properly classifiable under item 676.54, TSUS, which provides for: "[p]arts of automatic data-processing machines and units thereof, other than parts incorporating a cathode ray tube."

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