CLA-2 CO:R:C:G 087956 CMS
8548.00.00
Mr. Dale W. Hornback
Vice President & CFO
Pulse Engineering, Inc.
P.O. Box 12235
San Diego, CA 92112
RE: Lumped Constant Delay Lines; Inductors; Capacitors; Passive;
Active; Analog, Digital, Video, Audio Signals; Automatic Data
Processing Units; Suitable For Use Principally With A Certain
Machine Or Article
Dear Mr. Hornback,
This is in response to your request dated September 4, 1990,
for a classification ruling on certain lumped constant delay
lines under the Harmonized Tariff Schedules of the United States
Annotated (HTSUSA). Our ruling follows.
FACTS:
The merchandise is described by the importer as "lumped
constant delay lines". The articles are passive electromagnetic
devices designed to delay the transmission of a signal. They
typically consist of a ladder network of discrete inductors and
capacitors which are formed and encased on a small circuit
board. The length of a signal delay is determined by the values
of these components.
The delay lines are passive delay lines. They are
distinguished from active delay lines (also referred to as
"modules", "digital delay lines", "digital programmable delay
lines", etc.) which incorporate a delay line and an integrated
circuit.
Lumped constant delay lines are usually smaller than
distributed parameter delay lines and operate at a lower
impedance. They also result in a relatively higher distortion of
the original wave form.
-2-
The lumped constant delay lines are used in many
applications and may be used for analog, digital, video and audio
signals. The principal qualities of passive delay lines are
stability, precision timing, reliability and compactness. The
features of the passive delay lines, including the specific
delayed time range, packaging density and delay to rise time
ratio make them suitable for automatic data processing (ADP)
applications. For example, the delay lines are frequently used
to provide timing control over peripherals interfacing with the
CPU of a computer.
Information submitted on behalf of the importer includes a
survey of five importers who are said to represent 55% of the
U.S. market. The five importers reported that they sell
approximately 80% of their delay lines to manufacturers of
automatic data processing machines and units thereof, including
disk drives. The survey was intended to identify 1) the
technological application of the delay lines (e.g., data
processing, telecommunications, testing, etc.), 2) the particular
machines in which they were used, 3) the users of the delay
lines, and 4) the quantity sold per year for each application.
The survey covered the years of 1988 and 1989.
The results of the survey applied to actual use of both
passive and active delay lines. To the extent possible, only
results relating to passive delay lines were considered in our
review of the survey. Pulse Engineering was one of the
respondents in this survey. Although we were unable to
correlate the part numbers reported on the survey as passive
delay lines with the catalog part numbers for passive delay
lines, the descriptions and part numbers reported in the survey
appear to be sufficient to identify the delay lines as "passive"
delay lines. One of the respondents clearly identified the user,
the product in which its delay lines were used, the type of
delay line (passive), and the quantity used. To the extent that
this respondent has identified all customers of its passive delay
lines, it appears that 95% of its passive delay lines are used in
ADP equipment.
The results of the survey indicate that 1) the respondents
sell passive delay lines to manufacturers of ADP equipment and 2)
approximately 65% to 95% of all these delay lines are used in ADP
equipment by the manufacturers identified by the respondents.
However, the results of the survey alone do not allow us to
conclude that the respondents represent 55% of the market share
in lumped constant delay lines, that the usage in the
telecommunications field has been adequately represented and
compared with the usage in ADP, or that the sales of passive
delay lines (reported by the respondents) represent the total
sales of passive delay lines for 1988 and 1989.
-3-
The five respondents advised in December, 1990, that their
customer base for 1990 was essentially the same as it was for the
years 1988 and 1989.
ISSUE:
Is the merchandise classified as parts of automatic data
processing machines in Heading 8473, or as electrical parts of
machinery or apparatus, not specified or included elsewhere, in
Heading 8548?
LAW AND ANALYSIS:
Heading 8473 in pertinent part describes parts and
accessories suitable for use solely or principally with machines
of Heading 8471. Heading 8471 in pertinent part describes
automatic data processing machines and units thereof.
Heading 8548 describes electrical parts of machinery or
apparatus, not specified or included elsewhere in Chapter 85.
Pursuant to Section XVI Note 2, Heading 8548 does not cover
parts which are suitable for use solely or principally with a
particular kind of machine, or with a number of machines of the
same heading. Thus, if the merchandise is described by Heading
8473 as parts suitable for use solely or principally with data
processing machines, the merchandise is classified in Heading
8473 and not in Heading 8548.
The features of the lumped constant delay lines, the survey,
and additional information obtained by this office support a
finding that lumped constant delay lines are suitable for use
principally with ADP machines and units thereof. The survey, by
itself, does not permit us to conclude that the delay lines are
principally used with ADP equipment. The survey does indicate
that a significant volume of lumped constant delay lines are used
in ADP equipment. Two manufacturers, other than the respondents
on the survey, confirmed that passive delay lines have a
significant use in ADP equipment as well as uses in a wide range
of other applications. A representative for one of the larger
manufacturers confirmed that more than 50% of the total number
are used in ADP equipment.
We recognize that principal use, as in the case of
electronic components that have a potential for multiple uses,
may fluctuate with the trends of a consumer market or
developments in technology. However, this does not preclude a
finding that components are suitable for use principally with a
certain article or machine at the time of their importation, if
the facts support such a finding.
-4-
The lumped constant delay lines under consideration are
classified in 8473.30.40, HTSUSA, as parts suitable for use
solely or principally with the machines of Heading 8471.
HOLDING:
The lumped constant delay lines under consideration are
classified in 8473.30.40, HTSUSA, as parts suitable for use
solely or principally with the machines of Heading 8471.
Sincerely,
John Durant, Director
Commercial Rulings Division