CLA-2 CO:R:C:M 953205 MBR
Mr. John J. Marshall
"K" Air Brokerage, Inc.
40-A Broderick Road
Burlingame, CA 94010
RE: Allied Telesis, Inc.; Local Area Network Transceivers; LAN;
MAU; Automatic Data Processing Machine; Control or Adapter
Units; HQ 952659; Revocation of HQ 951009
Dear Mr. Marshall:
This is in response to your letter of January 7, 1993,
requesting classification of local area network ("LAN")
Transceivers, under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The AT-150, AT-250 and the AT-270 CentreCom Multiport
Transceivers are two port transceivers for users of Ethernet Local
Area Networks ("LANs"). These Transceivers provide the electronic
and physical interface between the Ethernet coaxial cable and the
Ethernet/IEEE 802.3 station Data Terminal Equipment (DTE). They
are also described as "MAUs" which represents "Media Attachment
Unit."
The AT-126 CentreCOM Single Port Transceivers allow the
utilization of fiber optic media and can be combined with existing
coaxial cable Ethernet configurations to allow coax-to-fiber
network connections.
The AT-200 Single Port Transceivers feature five LED
indicators which signal certain conditions such as "Transmit" and
"Receive."
ISSUE:
Are local area network interface boards classifiable under
subheading 8517.82.00, HTSUS, which provides for electrical
apparatus for line telegraphy, or are they classifiable under
-2-
subheading 8471.99.15, HTSUS, which provides for ADP "control or
adapter units"?
LAW AND ANALYSIS:
Since the HTSUS came into effect there has been a great deal
of controversy regarding the classification of LAN equipment.
However, there is no clear classification guidance from either the
HTSUS or the Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), primarily due to the technological
advancements in this area.
In HQ 952659, dated October 8, 1992, regarding LAN boards, we
cited Legal Note 5(B) to chapter 84, HTSUS, which provides guidance
regarding the classification of units of automatic data processing
machines. It states:
Automatic data processing machines may be in the form of
systems consisting of a variable number of separately housed
units. 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 connectable to the central processing unit either
directly or through one or more other units; and
(b) It is specifically designed as part of such a system (it
must, in particular, unless it is a power supply unit,
be able to accept or deliver data in a form (code or
signals) which can be used by the system).
We agree that the Transceivers are connectable to the CPU
either directly or through one or more units. Furthermore, the
Transceivers are designed to be a constituent unit of an ADP
system, and are able to accept and deliver data.
In HQ 952659 we also cited the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs), pages 1299-
1300, which describe separately presented ADP units, in pertinent
part, as follows:
This heading also covers separately presented constituent
units of data processing systems. Constituent units are those
defined in Parts (A) and (B) above as being parts of a
complete system.
Apart from central processing units and input and output
units, examples of such units include:
(4) Control and adaptor units such as those to effect
interconnection of the central processing unit to other
digital data processing machines, or to groups of input
or output units which may comprise visual display units,
-3-
remote terminals, etc.
We agree that the principal function of the instant
Transceivers is, in fact, to effectuate interconnection of the CPU
unit to other units or ADP machines, thereby serving "control" and
"adaption" functions.
HOLDING:
The Allied Telesis, Inc., LAN Transceivers, model numbers AT-
270, AT-250, AT-150, AT-126, and AT-200, are classifiable under
subheading 8471.99.15, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof: [o]ther: [o]ther: [c]ontrol
or adapter units." The rate of duty is Free.
EFFECT ON OTHER RULINGS:
HQ 951009, dated May 1, 1992, held that the "10 Base-T MAU
Adapter - Transceiver" was classifiable in subheading 8517.82.00,
HTSUS, which provides for electrical apparatus for line telegraphy.
For the reasons stated above, HQ 951009 is revoked under authority
of Section 177.9(d), Customs Regulations.
Sincerely,
John Durant, Director