CLA-2 CO:R:C:M 954695 RFA
Mr. Patrick K. McCooey
Mitsubishi International Corporation
520 Madison Avenue
New York, NY 10022
RE: Fiber Optic Data Link; Optoelectronic Signal Converting
Units; Control or Adapter Units; Automatic Data Processing
(ADP) Machines; Parts; ROSA; TOSA; Legal Note 5(B) to
Chapter 84; HQ 952554; NY 884918
Dear Mr. McCooey:
In letters dated June 14, and July 2, 1993, to the Regional
Commissioner of Customs in New York, you inquired as to the
tariff classification of the RFC4000 series fiber optic data link
with connector under the Harmonized Tariff Schedule of the United
States (HTSUS). Your letters were referred to this office for a
response.
FACTS:
The merchandise, labeled as the RFC4000 series fiber optic
data link with connectors, consists of the following
optoelectronic signal converting modules: the simplex module
RFB4011T (a transmitter optical subassembly or TOSA) which is
composed of a LED transmitter and an integrated circuit (IC) chip
that is placed in a plastic housing; the simplex module RFB4011R
(a receiver optical subassembly or ROSA) which is composed of a
pin detector and an IC chip that is placed in a plastic housing;
and the duplex module RFB4012 which is composed of the receiver
and transmitter modules placed in one plastic housing. The
modules will be imported with their compatible connectors. The
modules will be physically attached to the PC board by soldering
so that no optical design work is required on the board.
The subject merchandise is used to convert electrical
signals to optical signals, and vice versa, in order to allow for
the manipulation and movement of data in optical form without
special design work on the board itself. The submitted
literature notes that the RFC4000 fiber optic data link will be
used in various applications such as industrial control
equipment, medical instruments, office machines, audio equipment,
electronic measuring instruments and robotics.
ISSUE:
Are the fiber optic data links classifiable as parts of
automatic data processing (ADP) machines under heading 8471,
HTSUS or as parts of other telephone or telegraph apparatus under
heading 8517, HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
Legal Note 5(B) to Chapter 84, HTSUS, provides guidance
regarding the classification of ADP machines as follows:
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 the
following conditions:
(a) it is connectable to the central processing unit
either directly or through one or more other
units;
(b) it is specifically designed as part of such a
system (it must, in particular, unless it is a
power supply unit, be able to accept or deliver
data in a form (code or signals) which can be used
by the system).
The RFB4012 duplex module meets the definition of Legal Note
5(B) because when the duplex module is connected to the PC board,
it is able to accept or deliver data in a form which can be used
by the system. See HQ 952554 (January 4, 1993); NY 884918 (April
16, 1993).
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. EN 84.71(I)(D), page
1299, describes separately presented ADP units as follows:
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 adapter 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.
In HQ 952554, Customs held that a complete transmitter and
receiver module like the RFB4012 duplex module has the essential
character of an ADP signal converting unit because it performs
the actual signal conversion, transmission, and reception and as
such is classifiable under heading 8471, HTSUS. Therefore, we
find that the duplex module should be classified under subheading
8471.99.15, HTSUS, as control and adapter units for ADP machines.
The transmitter and receiver simplex modules which are
subassemblies of the duplex module, do not have the essential
character of a finished ADP unit. Therefore, they are
classifiable under heading 8473, HTSUS, which provides for parts
of ADP machines.
Because you claim that the merchandise can be used in
various applications, consideration was given to classifying the
merchandise under heading 8517, HTSUS, as other telegraph
apparatus. Additional U.S. Rules of Interpretation 1(a) states:
[i]n the absence of special language or context which
otherwise requires-- a tariff classification controlled
by use (other than actual use) is to be determined in
accordance with the use in the United States at, or
immediately prior to, the date of importation, of goods
of that class or kind to which the imported goods
belong, and the controlling use is the principal use.
The Court of International Trade in Group Italglass U.S.A.,
Inc. v. United States, CIT Slip Op. 93-208 (Nov. 1, 1993),
recently stated: "The court stresses that it is the principal use
of the class or kind of goods to which the imports belong and not
the principal use of the specific imports that is controlling
under the Rules of Interpretation." (emphasis in original).
Even though the literature does not state that the subject
merchandise is used in conjunction with ADP machines, we find
that based upon Group Italglass's interpretation of Additional U.S. Rules of Interpretation 1(a), we find that the principal use
of the merchandise is that of use with ADP machines. See HQ
952554; NY 884918.
HOLDING:
The RFB4012 duplex module is classifiable under subheading
8471.99.15, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof: [o]ther: [o]ther:
[c]ontrol or adapter units. The general, column one rate of duty
is free.
The RFB4011T transmitter and RFB4011R receiver simplex
modules are classifiable under subheading 8473.30.40, HTSUS,
which provides for: "[p]arts and accessories. . . suitable for
use solely or principally with the machines of heading 8469 to
8472: [p]arts and accessories of the machines of heading 8471:
[n]ot incorporating a cathode ray tube." The general, column one
rate of duty is free.
Sincerely,
John Durant, Director
Commercial Rulings Division