CLA-2 CO:R:C:M 087077 MBR
District Director
U.S. Customs
10 Causeway Street, Room 603
Boston, MA 02222-1056
RE: Internal Advice 25/90; Chromatography Server; 9027;
Instruments and Apparatus for Physical or Chemical Analysis;
8471; Automatic Data Processing Machine; Control and Adapter
Units; Signal Converter; Functional Unit
Dear Sir:
This is in reply to your request for Internal Advice 25/90,
dated March 13, 1990, regarding classification of the
Chromatography Server, under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA).
FACTS:
The Chromatography Server ("Server") is imported by VG
Instruments, Inc., as a component of the Chromatography Data
Management System. The Server acts as an interface between the
actual chromatograph and the automatic data processing unit
("ADP"). The Server accepts analog data from the chromatograph,
converts that information to digital data, stores the data in its
cache memory until the ADP is ready to receive it, and then
transmits the digital data to the ADP.
There are four proposed import configurations: 1) Server; 2)
Server, Chromatograph, and Computer; 3) Server and Chromatograph;
4) Server and Computer.
ISSUE:
What is the classification of a Chromatography Server, under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
-2-
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 Server is prima facie classifiable in the following
headings:
9027 Instruments and apparatus for physical or
chemical analysis...; parts and accessories
thereof:
9027.90.40 Microtomes; parts and accessories: Parts
and accessories: Of electrical
instruments and apparatus: Of articles
of subheading 9027.20.40
(Chromatographs)
* * * * * * * * * * * * *
8471 Automatic data processing machines and units
thereof:
8471.99.15 Other: Other: Control or adapter units
* * * * * * * * * * * * *
8471 Automatic data processing machines and units
thereof:
8471.99.90 Other: Other: Other: Other
There are four proposed import configurations of the Server:
1) Server; 2) Server, Chromatograph, and Computer; 3) Server and
Chromatograph; 4) Server and Computer.
It has been argued that the Server, imported separately, is
properly classifiable under subheading 8471.99.15, HTSUSA, which
provides for control or adapter units for ADP machines.
Legal Note 5(B), chapter 84, delineates "units" of automatic
data processing (ADP) systems. Legal Note 5(B) 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:
-3-
(a) It is connectable to the central processing
unit...
(b) It is specifically designed as part of such a
system...
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN), for heading 8471, page 1299, state:
(D) SEPARATELY PRESENTED UNITS
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, remote
terminals, etc. (emphasis added).
However, the Chromatograph is not an "other digital data
processing machine" or a "group of input or output units."
Therefore, since the Server is designed to interconnect the
Chromatograph and the CPU, it cannot be considered a control or
adapter unit for an ADP system. See HQ 087902, dated January 14,
1991, regarding control and adapter units of ADP systems.
The Server functions by accepting analog data from the
chromatographs. Then, utilizing its A/D converter board, the
Server converts the analog signals to the digital signals which
can be processed by the ADP machine.
The ENs which provide for "Separately Presented Units" of
ADP machines, page 1300, include:
(5) Signal converting units. At input, these enable an
external signal to be understood by the machine, while
at output, they convert the output signals that result
from the processing carried out by the machine into
signals which can be used externally.
Therefore, it is Customs position that the Server is, in
fact, a "signal converting unit" and is thus properly
classifiable under subheading 8471.99.90, HTSUSA, which provides
for: "Automatic data processing machines and units thereof:
Other: Other: Other: Other."
-4-
HQ 086851, dated April 9, 1990, held that a Chromatograph
and a Computer, imported together, were a functional unit
intended to contribute to the clearly defined function of
Chromatography.
Section XVI, Note 4, requires the classification of
"functional units" to be within the heading appropriate to the
function of the unit. Chapter 90, Note 3, HTSUSA provides that
Section XVI, Note 4 also applies to Chapter 90. Thus, Section
XVI, Note 4 is applicable to heading 9027. Section XVI, Note 4,
states:
Where a machine...consists of individual components
(whether separate or interconnected by piping, by
transmission devices, by electric cables or by other
devices) intended to contribute together to a clearly
defined function covered by one of the headings in
chapter 84 or chapter 85, then the whole falls to be
classified in the heading appropriate to that function.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN), page 1133, states that a "functional
unit" covers only those "machines and combination of machines
essential to the performance of the function specific to the
functional unit as a whole..." The function specific to the
goods in question is clearly Chromatography.
Therefore, the Server, Chromatograph and Computer
configuration is properly classifiable under subheading
9027.20.40, HTSUSA, which provides for: "Instruments and
apparatus for physical or chemical analysis...;parts and
accessories thereof: Chromatographs and electrophoresis
instruments: Electrical."
When the Server and the Chromatograph are imported together,
they cannot be considered a functional unit without the ADP
machine because there no are Legal Notes or ENs that provide for
"unfinished functional units." Therefore, the Server would be
classifiable under subheading 8471.99.90, HTSUSA, and the
Chromatograph would be classifiable under 9027.20.40, HTSUSA.
No information has been submitted regarding the
configuration of the ADP machine itself. However, when the
Server is imported with the ADP machine, the Server would still
be classifiable under subheading 8471.99.90, HTSUSA, and the ADP
machine would be classifiable under the appropriate subheadings
of 8471, HTSUSA.
-5-
HOLDING:
The VG Instruments, Inc., Chromatography Server is
classifiable under subheading 8471.99.90, HTSUSA, which provides
for: "Automatic data processing machines and units thereof:
Other: Other: Other: Other." The rate of duty is 3.7% ad
valorem.
The Chromatography Server imported with the Chromatograph
and the ADP System is classifiable as a functional unit under
subheading 9027.20.40, HTSUSA, which provides for: "Instruments
and apparatus for physical or chemical analysis...;parts and
accessories thereof: Chromatographs and electrophoresis
instruments: Electrical." The rate of duty is 4.9% ad valorem.
When the Chromatography Server is imported with the
Chromatograph, the Server is classifiable under 8471.99.90,
HTSUSA, and the Chromatograph is separately classifiable
under 9027.20.40, HTSUSA.
When the Chromatography Server is imported with the ADP
machine, the Server is classifiable under subheading 8471.99.90,
HTSUSA, and the ADP machine is classifiable under the appropriate
subheadings of 8471, HTSUSA.
The Internal Advice applicant should be advised of this
decision.
Sincerely,
John Durant, Director
Commercial Rulings Division