CLA-2 CO:R:C:M 956993 RFA
Mr. Stephen S. Spraitzar
Law Offices of George R. Tuttle
Three Embarcadero Center
Suite 1160
San Francisco, CA 94111
RE: Central Processing Boards Without CPU Chips; Automatic Data
Processing (ADP) machines; Chapter 84, Note 5(A)(a);
8471.91; GRI 2(a); EN 84.71; HQ 087695; HQ 950762; HQ
951566; HQ 951443; HQ 950832; HQ 089008
Dear Mr. Spraitzar:
This is in response to your letter dated August 30, 1994, on
behalf of Force Computers, Inc. [hereinafter "Force"] concerning
the tariff classification of certain central processing unit
(CPU) boards without the CPU chips under the Harmonized Tariff
Schedule of the United States (HTSUS). We regret the delay in
responding.
FACTS:
The subject merchandise involves two models of central
processing unit (CPU) boards or sometimes known as
"motherboards", models CPU-5CE and CPU-10/6U, which will be
manufactured without the CPU chips. Force is engaged in the
manufacture and sale of printed circuit board assemblies
("boards") for "embedded systems" market. The "embedded systems"
segment of the computer industry consists of users who due to
their highly specialized needs, are not able to use off-the-shelf
software and ready-made computer hardware.
To make its boards usable for various operating systems,
Force will code the necessary logic in its CPU boards so that
they are compatible with various software programs. Each of the
two models contain one or more microprocessors, memory in the
form of a SRAM or a DRAM, and an operating system. After
importation, the CPU chip will be added.
ISSUE:
Whether the subject microprocessor boards are classifiable
as an unfinished automatic data processing machine or as a part
for an automatic data processing machine under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
In order to qualify as an automatic data processing machine
(ADP), the merchandise must meet the definition of an ADP set
forth in Chapter 84, Note 5(A)(a), HTSUS, which provides that for
the purposes of heading 8471, HTSUS, ADP machines mean:
[d]igital machines, capable of (1) storing the
processing program or programs and at least the data
immediately necessary for execution of the program; (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.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. See T.D. 89-80, 54 FR
35127, 35128 (August 23, 1989). EN 84.71, page 1298, states that
for a digital data processing system to be complete, it must
comprise a central processing unit (CPU), an input unit (i.e.,
keyboard) and an output unit (i.e., computer monitor).
In HQ 087695, dated March 6, 1991, we addressed the issue of
essential character for incomplete or unfinished ADP machines.
In that ruling, we held that an incomplete or unfinished circuit
board (motherboard) without the data processing chips did not
possess the essential character of an ADP machine under heading
8471, HTSUS. This line of reasoning was upheld and affirmed in
other decisions. See HQ 951566 (August 12, 1992); HQ 951443
(April 13, 1992); HQ 950832 (February 11, 1992); HQ 950221
(November 22, 1991).
The subject microprocessor board does not meet the
definition of an ADP machine as set forth in Note 5(A) to Chapter
84, HTSUS, and the rulings cited above, because it lacks the CPU
chip. Therefore, we find that the subject merchandise is
classifiable as parts of a computer under subheading 8473.30.10,
HTSUS.
HOLDING:
For the foregoing reasons, we find that the subject
microprocessor boards are classifiable under subheading
8473.30.10, HTSUS, which provides for: "Parts and accessories
(other than covers, carrying cases and the like) suitable for use
solely or principally with machines of headings 8469 to 8472:
[p]arts and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube: [p]rinted circuit assemblies
other than for power supplies for automatic data processing
machines. . . ." Goods classifiable under this provision have a
general, column one free rate of duty.
Sincerely,
John Durant, Director
Commercial Rulings Division