CLA-2 CO:R:C:M 954361 MBR
District Director
U.S. Customs Service
555 Battery St.
P.O. Box 2450
San Francisco, CA 94126
RE: Protest No. 2809-93-100500; Tandem XL80 Hard Disk Drive
Storage Unit; Automatic Data Processing (ADP) Machine Storage
Device; HQs 952952, 951008, 950238, 089330, 085946
Dear District Director:
This is our response to Protest Number 2809-93-100500,
regarding the classification of the XL80 Tandem Computer ADP disk
drive unit, under the Harmonized Tariff Schedule of the United
States (HTSUS). The subject merchandise was entered on September
22, 1993, and the entry was liquidated on January 4, 1993. The
protest was timely filed on March 16, 1993.
FACTS:
The instant merchandise is a hard disk drive unit for the XL80
Disk Storage Facility. Up to eight XL80 hard disk drive units are
rack mounted in the disk storage facility. The disk storage
facility contains the interfaces and power supplies for the disk
drive units.
However, the hard disk drives are imported separately. They
consist of a disk spindle assembly, which is mounted in the hard
disk assembly ("HDA"). A hub is attached to the top of the
spindle, and eight 9-inch platters are clamped to the hub. The
spindle is driven at 3600 RPM by a direct coupled brushless DC
motor. Also located in the HDA are the rotary actuator assembly
(with closed loop servo control), read/write heads, filters, and
an electronic printed circuit board which directs the servo signal
from the servo disk and data to or from a platter. Other printed
circuit boards within the disk drive provide the electronics for
read/write functions, servo control, and driver/receiver
electronics. The Winchester technology disk drive employs a
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carriage locking mechanism when power is removed.
The Computer Glossary, Alan Freedman (1983), defines a
"Winchester Disk" as follows:
A Winchester disk is a sealed disk technology that was
developed by IBM, which incorporates the access arm,
read/write heads and disk platters into a sealed unit. By
aligning the read/write heads to their own set of disks,
greater storage capacities and accessing speeds are obtainable
than with removable disk cartridges. The Winchester disk was
originally designed as a dual 30-megabyte configuration, and
its 30-30 specification, the same as a Winchester rifle, gave
rise to its name. Although originally a self-contained,
removable module, the term is used today to refer to any fixed
hard disk.
The XL80 storage units are self-contained in their own
housing. Tandem places the disk drives on a specially designed
chassis to facilitate slide in/out installation and removal. Each
drive unit with its chassis weighs approximately 75 pounds.
The subheadings under consideration are as follows:
8471.93.15 Automatic data processing machines and units
thereof: Storage units, whether or not entered with
the rest of a system: Magnetic disk drive units:
For a disk of a diameter exceeding 21 cm: Units for
physical incorporation into automatic data
processing machines or units thereof. (Free rate of
duty)
* * * * * * * * * * * * * *
8471.93.20 Automatic data processing machines and units
thereof: Storage units, whether or not entered with
the rest of a system: Magnetic disk drive units:
For a disk of a diameter exceeding 21 cm: Other.
(3.7% rate of duty)
ISSUE:
Whether the separately imported XL80 disk drive units are
classifiable under the provision for storage units for physical
incorporation, or under the provision for other units?
LAW & ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
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...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
In HQ 952952, dated October 26, 1993, HQ 951008, dated May 14,
1992, HQ 950238, dated November 26, 1991, HQ 089330, dated October
7, 1991, and HQ 085946, dated January 2, 1990, we addressed the
classification of similar rack mounted disk drive units (see also
HQ 088747, dated October 25, 1993). In those rulings we stated
that:
The determination of a unit's state of completion is made by
determining the state of the unit itself and not the final
"completed systems" in which they will ultimately function.
They are fully assembled, have cooling apparatus and their own
power sources. To make them fully functional one need only
plug them in. In fact, it is clear that the only purpose of
rack-mounting the units together is for the convenience of
proximity in connecting them together with cables and,
perhaps, space consolidation. Thus, it is our view that these
units are complete.
Whether separate or joined, each is complete in and of itself
and each is a distinct and separate commercial entity. The
most that can be said is that they may (or may not) be used
together with another particular type of unit of a data
processing system, one as support for the other. It does not
make them, for tariff classification purposes, a "part" of the
ultimate automatic data processing system. United States v.
Willoughby Camera Stores, Inc., 21 CCPA 322, T.D. 46075
(1933).
The fact that each unit at issue requires the attachment of
another article in order to be capable of performing its
function does not render each of them a "part," in that there
is no requirement that a machine must be "self-activating."
Nord Light, Inc. v. United States, 49 CCPA 12, C.A.D. 786
(1961). Although incapable of functioning unless placed in
configuration with certain other devices, they nevertheless
are, in and of themselves, peripheral machines used in
conjunction with data processing machines, specifically
provided for....Westinghouse Electric International Co. v.
United States, 28 Cust. Ct. 209, C.D. 1411 (1952), cited with
approval by Fairchild Camera & Instrument Corp., Inter-
Maritime Forwarding Co., Inc. v. United States, 53 CCPA 122,
126, C.A.D. 887 (1966). Furthermore, the fact that they are
designed to share a common "rack-mounting" does not mandate
their classification as a part. General Electric Company v.
United States, 2 CIT 84 (1981).
Therefore, even though the XL80 disk drive units do not
contain their own power supply or fan cooling, they are not
classifiable under the provision for "parts." Chapter 84, Legal
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Note 5(B) delineates requirements for the classification of
machines as ADP "units":
(B) 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).
The XL80 disk drives meet the Chapter 84, Legal Note 5(B)
requirements for ADP "units" since they are connectable to the CPU
through the interface and they accept and deliver data in a form
which can be used by the system.
The XL80 disk drives are designed to be mounted in a rack
enclosure which consists of a cabinet, power supply, fan cooling,
and interface. Clearly the rack enclosure itself does not meet the
Chapter 84, Legal Note 5(B) requirements for ADP units since the
rack itself is not connectable to the CPU and the rack itself is
not able to deliver data in a form which can be used by the system.
In fact, the rack enclosure would be classifiable in subheading
8473.30.40, HTSUS, which provides for parts and accessories of ADP
machines. When the XL80 disk drives are installed in the rack, the
rack would then be classifiable as an ADP unit since the disk
drives are connectable to the CPU and are able to deliver data.
However, the rack enclosure itself is not classifiable as an ADP
unit. Thus, the XL80 disk drives cannot be said to be units
suitable for physical incorporation into automatic data processing
machines or units thereof since the rack is not an ADP unit.
Therefore, the Tandem XL80 ADP disk drive storage unit is
classifiable under subheading 8471.93.20, HTSUS, which provides
for: "[a]utomatic data processing machines and units thereof:
[s]torage units, whether or not entered with the rest of a system:
[m]agnetic disk drive units: [f]or a disk of a diameter exceeding
21 cm: [o]ther."
The protestant cites HQ 950238, dated November 26, 1991,
regarding ADP tape storage units which were held classifiable in
subheading 8471.93.50, HTSUS. However, this is different
merchandise involving different tariff provisions. Therefore, HQ
950238 is not precedential for the current classification question.
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HOLDING:
The Tandem XL80 ADP disk drive storage unit, is classifiable
under subheading 8471.93.20, HTSUS, which provides for:
"[a]utomatic data processing machines and units thereof: [s]torage
units, whether or not entered with the rest of a system: [m]agnetic
disk drive units: [f]or a disk of a diameter exceeding 21 cm:
[o]ther." The rate of duty is 3.7% ad valorem.
For the reasons stated above, this protest should be denied
in full. In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision, together with the Customs Form 19, should
be mailed by your office to the protestant no later than 60 days
from the date of this letter. Any reliquidation of the entry in
accordance with this decision must be accomplished prior to the
mailing of this decision. Sixty days from the date of this
decision the Office of Regulations and Rulings will take steps to
make this decision available to Customs personnel via the Customs
Rulings Module in ACS and the public via the Diskette Subscription
Service, Lexis, Freedom of Information Act and other public access
channels.
Sincerely,
John Durant, Director