CLA-2 CO:R:CV:G: 083957 JLV
Gary C. Cooper, Esq.
Law Offices George R. Tuttle
Three Embarcadero Center, Suite 1160
San Francisco, California 94111
RE: Essential character of incomplete components for a laptop
computer
Dear Mr. Cooper:
In a letter of March 2, 1989, on behalf of your client,
Alps Electric U.S.A., Inc., you request a ruling on whether
certain groupings of components for laptop computers
constitute an incomplete or unfinished computers within the
subheading 9903.41.15, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA).
FACTS:
The merchandise consists of various component parts or
subassemblies of laptop computers to be imported on separate
days in the following shipments:
1. Plasma display and upper case, floppy disk
drive and hard disk drive;
2. Motherboard, without CPU and EPROM;
3. CPU and EPROM, keyboard, HDD interface, FDD
interface, power supply, and lower case.
You conclude that none of these shipments of components for a
laptop computer constitutes an incomplete or unfinished
computer having the essential character of a computer for
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purposes of classification in subheading 8471.20.00, HTSUSA,
under the principle of GRI 2(a), HTSUSA, and, therefore, if
these components are imported in the above manner, they will
not be subject to the duty in subheading 9903.41.15, HTSUSA.
ISSUE:
Whether the combination of components for a laptop
computer, as identified in the facts, constitute an unfinished
article having the essential character of a computer for
purposes of classification in subheading 8471.20.00 under the
classification rule set forth in GRI 2(a)?
LAW AND ANALYSIS:
Subheading 8471.20.00 provides for "[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." Subheading 9903.41.15 provides for
"[a]utomatic data processing machines, of the type of which
the constituent units are integrated in the same housing,
whether finished or unfinished . . . (provided for in
subheading 8471.20)."
GRI 2(a) requires that an article that is presented
incomplete or unfinished is to be classified as the complete
or finished article if it has the essential character of the
complete or finished article, even if presented unassembled or
disassembled.
A shipment of a plasma display, upper case, floppy disk
drive and hard disk drive (factual situation 1) would not
constitute an article having the essential character of a
digital automatic data processing machine because it consists
essentially of a display unit and storage units and does not
have the processing features of such a machine. Similarly, a
shipment of a motherboard without a CPU and EPROM (factual
situation 2), or a shipment of the CPU and EPROM, keyboard,
HDD interface, FDD interface, power supply, and lower case
(factual situation 3), does not have the essential character
of a digital automatic data processing machine.
These conclusions, however, are based on the facts as
submitted. Because of the highly technical nature of this
merchandise, and because of the expanding technology in this
area, this ruling applies only to the limited facts presented
by counsel for the importer in this case.
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HOLDING:
Under the facts as presented, none of the shipments of
components for a laptop computer constitute an unfinished
article for purposes of the additional duties on certain
automatic data processing machines in subheading 9903.41.15,
HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: AD NY Seaport
1cc: NIS Art Brodbeck
2cc: Chief, CIE
1cc: Matt Rohde
1cc: DD, San Francisco
1cc: AC, CO
1cc: Director, Commercial Rulings
1cc: reading file