CLA-2 CO:R:C:G 087902 MBR
District Director
U.S. Customs Service
127 North Water Street
Ogdensburg, New York 13669
RE: Protest No. 0712-90-000226, dated 3/26/90; Manual Matrix
Switches; Control or Adapter Units of ADP Systems; 8471
Dear Sir:
This is our response regarding Further Review of Protest No.
0712-90-000226, dated March 26, 1990, which pertains to the
classification of Manual Matrix Switches, under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The Manual Matrix Switch ("Switch") operates as a sharing
device for peripheral automatic data processing (ADP) units. The
Switch acts as a channel through which data, in coded form, is
transferred from a ADP central processing unit (CPU) to and ADP
peripheral output device, such as a laser printer, dot matrix
printer, plotter, etc. The Switch establishes a link between a
digital computer and another digital computer for the exchange of
information, or between a digital computer and an ADP output
device, such as a printer. The purpose of this device is to
optimize the usage of digital computers and output devices in a
network configuration.
ISSUE:
What is the classification of Manual Matrix Switches for
automatic data processing unit interconnection, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
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 Manual Matrix Switches were classified in subheading
8537.10.00, HTSUSA, which provides for: "[b]oards, panels
(including numerical control panels), consoles, desks, cabinets
and other bases, equipped with two or more apparatus of heading
8535 or 8536, for electric control or the distribution of
electricity, including those incorporating instruments or
apparatus of chapter 90, other than switching apparatus of
heading 8517: [f]or a voltage not exceeding 1,000 v."
The importer protests this classification and asserts that
the proper classification for the Switches is under subheading
8473.30.40, HTSUSA, which provides for: "[p]arts and accessories
(other than covers, carrying cases and the like) suitable for use
solely or principally with the machines of headings 8469 to 8472:
[p]arts and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube."
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:
(a) It is connectable to the central processing
unit...
(b) It is specifically designed as part of such a
system...
The Switch is connectable to a central processing unit, and
is specifically designed as a part of an ADP system. In fact,
the Switch's very design and function requires connection to a
central processing unit, and the Switch's sole purpose is as a
unit of an ADP 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).
This category includes channel to channel adaptors used
to connect two digital systems to each other.
In HQ 085661, dated February 15, 1990, we defined the scope
of the term "channel" in relation to this EN. Here we stated
that a "channel" is described as that portion of the central
processing unit (CPU) of a computer which connects input and
output devices to the CPU. Van Nostrand's Scientific
Encyclopedia, (7th ed. 1988), p. 565.
Clearly, the Switch is designed to effectuate the
interconnection of the central processing unit(s) to an output
unit(s). Furthermore, control units are described as
intermediary control devices which link peripheral units to the
CPU. C.J. and R.J. Sippl, Computer Dictionary and Handbook, (3rd
ed. 1980), p. 115. Control units are used to interface (i.e.,
interact or interconnect) computers and peripheral devices.
Myles E. Walsh, Understanding Computers: What Managers Need to
Know, (1981), p. 36. See HQ 087468, dated January 8, 1991, and
HQ 086105, dated May 7, 1990.
Therefore, since the Switch interconnects peripheral units
to the CPU, it is classifiable as a control unit for an ADP
system.
HOLDING:
The Matrix Manual Switch is properly classifiable under
subheading 8471.99.15, HTSUSA, 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.
Since reclassification of the merchandise as indicated above
will result in the same rate of duty as claimed, you are
instructed to allow the protest in full. A copy of this
decision should be attached to the Form 19 Notice of Action.
Sincerely,
John Durant, Director
Commercial Rulings Division