CLA-2 CO:R:C:M 950343 AJS
TARIFf NO.: 8471.20.00; 9903.41.15
Area Director
U.S. Customs Service
Room 137
110 S. Fourth Street
Minneapolis, Minnesota 55401
RE: Protest 3501-1-100139; Personal computer PC-9801 NS20; lap-
top computer; 80386 SX central processing unit; Chapter 84, note
5(A)(a).
Dear Area Director:
This is our decision on application for further review of
Protest No. 3501-1-100139 dated May 6, 1991, filed against the
classification of a personal computer (PC) within subheading
9903.41.15, Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The merchandise under protest is the model PC-9801 NS20 lap-
top computer from Japan. It incorporates an 80386 SX central
processing unit (CPU) that runs at 12 MHZ. This model
incorporates an 80386 microprocessor, which is considered in the
industry to be within the 32 bit category of CPU chips. It is a
high-speed, advanced computer, which was imported with an
external printer.
ISSUE:
Whether the subject PC is classifiable within subheading
9903.41.15, HTSUS, which 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, which incorporate a microprocessor-based calculating
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mechanism, are capable of handling data words of at least 16-
bits off the microprocessor, and are designed for use with a non
cathode-ray tube (non-CRT) display unit, whether or not capable
of use without an external power source (provided for in
subheading 8471.20)."
LAW AND ANALYSIS:
Heading 8471, HTSUS, provides for automatic data processing
(ADP) machines and units thereof. The term ADP machine means
"[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." Chapter 84, note 5(A)(a). There is
no dispute that the subject PC satisfies this description.
Subheading 8471.20.00, HTSUS, provides for digital ADP machines,
containing in the same housing at least a CPU unit and an input
and output unit, whether or not combined. The subject PC
satisfies the terms of this subheading. It is a lap-top computer
which incorporates in the same housing at least a processor, and
an input and output unit. Accordingly, the subject PC is
classifiable within this subheading.
Footnote 1/ to subheading 8471.20.00, HTSUS, states
"[c]ertain ADP machines and units thereof, the product of Japan,
are subject to increased duty. See subheadings 9903.41.15 . . ."
This subheading provides for ADP machines, of the type of which
the constituent units are integrated in the same housing, whether
finished or unfinished, which incorporate a microprocessor-based
calculating mechanism, are capable of handling data words of at
least 16-bits off the microprocessor, and are designed for use
with a non-CRT display unit, whether or not capable of use
without an external power source (provided for in subheading
8471.20). The subject PC satisfies this description. It
incorporates an 80386 microprocessor, which is within the 32 bit
category of CPU chips. Accordingly, the subject PC is also
properly classifiable within this subheading.
HOLDING:
The PC-9801 NS20 lap-top computer is properly classifiable
within subheading 8471.20.00, HTSUS, which provides for digital
ADP machines containing in the same housing at least a CPU and an
input and output unit. These machines are also classifiable
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within temporary subheading 9903.41.15, HTSUS, which provides for
certain ADP machines provided for within subheading 8471.20,
HTSUS, dutiable at the rate of 100 percent ad valorem.
You should deny the protest in full. A copy of this
decision should be attached to the Customs Form 19 and provided
to the protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division