CLA-2 RR:CR:GC 961024 DWS
Port Director of Customs
P.O. Box 619050
DFW Airport, TX 75261
RE: Protest 5501-97-100100; Switching Network; Digital Cross-Connect System;
Chapter 84, Note 5(B); HQ 087209; 8471.80.40
Dear Port Director:
The following is our decision regarding Protest 5501-97-100100 concerning your action in classifying and assessing duty
on a switching network under the Harmonized Tariff Schedule of
the United States (HTSUS).
FACTS:
The merchandise consists of the M16 201 switching network
(M16 201) (model no. 3AL 68840 DAAA). Based upon the limited
information provided by the protestant, it is our understanding
that the M16 201 is a surface mounted printed circuit assembly
(PCA), providing the cross-connect switching network in the 1631
SX Digital Cross- Connect System (1631 SX). It plugs into the
end stage shelf or the center stage shelf of the 1631 SX. In a
typical 1631 SX application, eight M16 201 assemblies exist in
the upper and lower portions of the end/center stage shelves.
The protestant states that the M16 201 is an "[e]lectronic module
that provides time slot interchange capability for a digital
cross-connect system. Time Slot Interchange and Space Switch
Interchange involves moving packets of data, voice, video, etc.
from one large single bundle to another."
The M16 201 was entered on December 9, 1996, under
subheading 8471.80.40, HTSUS, as an other unit suitable for
physical incorporation into an automatic data processing (ADP)
machine. The entry was liquidated on March 28, 1997, under
subheading 8517.90.36, HTSUS, as a PCA for telephonic switching
apparatus. The protest was timely filed on April 2, 1997.
ISSUE:
Whether the M16 201 is classifiable under subheading
8471.80.40, HTSUS, as an other unit suitable for physical
incorporation into an ADP machine, under subheading 8517.90.36,
HTSUS, as a PCA for telephonic switching apparatus, or under
subheading 8517.90.38, HTSUS, as an other PCA for telephonic
apparatus.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
The 1996 HTSUS provisions under consideration are as
follows:
8471 Automatic data processing machines and units
thereof; ***:
8471.80 Other units of automatic data processing
machines:
Other:
8471.80.40 Units suitable for physical
incorporation into automatic data
processing machines.
* * * * *
8517 Electrical apparatus for line telephony or line
telegraphy, including
line telephone sets with cordless handsets and
telecommunication
apparatus for carrier-current line systems or for
digital line
systems; videophones; parts thereof:
8517.90 Parts:
Other:
Printed circuit assemblies:
For telephonic apparatus:
8517.90.36 For switching or
terminal apparatus
(other than telephone sets).
8517.90.38 Other.
Because the protestant claims classification of the M16 201
under subheading 8471.80.40, HTSUS, we must determine whether it
meets the terms of chapter 84, note 5(B), HTSUS, which states
that:
[a]utomatic data processing machines may be in the form of
systems consisting of a number of separate units. Subject
to paragraph (E) below, a unit is to be regarded as being a part
of a complete system if it meets all the following conditions:
(a) It is of a kind solely or principally used in an
automatic data processing system;
(b) It is connectable to the central processing unit either
directly or through one or more other units; and
(c) It is able to accept or deliver data in a form (coded
or signals) which can be used by the system.
Although by claiming classification of the M16 201 under
subheading 8471.80.40, HTSUS, the protestant asserts that the M16
201 is an ADP unit, the protestant has not provided any evidence
that the M16 201 is principally used in an ADP system, the first
requirement for a device to be deemed an ADP unit. Therefore,
because it does not meet the definition of an ADP unit, the M16
201 is precluded from classification under subheading 8471.80.40,
HTSUS.
Your office claims that the M16 201, which is a part of a
digital cross-connect system, is classifiable under subheading
8517.90.36, HTSUS.
In "Newton's Telecom Dictionary", a digital cross-connect
system is defined as:
[a] specialized type of high-speed data channel switch. It
differs from a normal
voice switch, which switches transmission paths in response
to dialing
instructions. In a digital cross-connect system, you give
it separate and specific
instructions to connect this line to that. These
instructions are given
independently of any calls that might flow over the system.
This contrasts with a
normal voice switching in which switching instructions and
conversations go
together. Commands to a digital cross-connect system can be
given by an
operator at a console or can be programmed to switch at
certain times. ***
In HQ 087209, dated January 23, 1991, we held digital signal
cross-connect equipment to be classifiable under subheading
8517.81.00, HTSUS (now subheading 8517.80.10, HTSUS), as other
telephonic apparatus, and not under subheading 8517.30, HTSUS, as
telephonic switching apparatus.
Because, as stated in the definition above, the function of
a digital cross-connect system differs from that of telephonic
switching apparatus, we disagree with your claimed classification
of the M16 201 under subheading 8517.90.36, HTSUS. However, in
keeping with the holding in HQ 087209 that digital cross-connect
equipment is classifiable under subheading 8517.81.00, HTSUS, it
is our position that the M16 201 is classifiable under subheading
8517.90.38, HTSUS.
HOLDING:
Based upon the information provided by the protestant, the
M16 201 switching network is classifiable under subheading
8517.90.38, HTSUS, as an other PCA for telephonic apparatus.
As the rate of duty under the classification indicated above
is the same as the liquidated rate, you should DENY the protest
in full. In accordance with Section 3A(11)(b) of Customs
Directive 099 3550-065, dated August 4, 1993, Subject: Revised
Protest Directive, this decision, together with the Customs Form
19, should be mailed by your office to the protestant no later
than 60 days from the date of this letter. Any reliquidation of
the entry in accordance with the decision must be accomplished
prior to mailing of this decision. Sixty days from the date of
the decision the Office of Regulations and Rulings will take
steps to make the decision available to Customs personnel via the
Customs Rulings Module in ACS and the public via the Diskette
Subscription Service, Freedom of Information Act, and other
public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division