CLA-2 OT:RR:CTF:TCM HQ H247306 TNA
Port Director, Service Port-Seattle
U.S. Customs and Border Protection
1000 Second Ave., Suite 2100
Seattle, WA 98104
Attn: Brett Ewing, Supervisory Import Specialist
RE: Internal Advice Request 13/013; classification of printed circuit board assemblies
Dear Port Director:
This is in response to your letter, dated October 1, 2013, forwarding with comments the Request for Internal Advice submitted by counsel on behalf of Spacelabs Healthcare Inc. (“Spacelabs”), on September 5, 2013, concerning the proper classification of printed circuit board assemblies (“PCBAs”) used in patient monitoring systems under the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
The subject merchandise consists of five types of PCBAs that are used with patient monitoring systems. These patient monitoring systems are a type of diagnostic medical equipment that measures and monitors patients’ vital signs. The subject PCBAs cannot function unless they are connected to other PCBAs, electrical components, and other devices within the patient monitoring systems with which they are used.
Spacelabs is a manufacturer that specializes in medical products such as the patient monitoring systems of which the subject PCBAs are components. Many of these products are used in anesthesia delivery and ventilation, and diagnostic cardiology. Spacelabs only sells its products to hospitals, clinics and physicians’ offices, and does not sell its products to general consumers.
The first item at issue is Part Number 670-9033-01, which is the PCBA for a telemetry receiver module. This module is an external power supply for Spacelabs’ products, and it supplies 20 volts of direct current power. Spacelabs’ submitted literature states that “the external power supply provides regulated +20 volt DC power to Spacelabs products. The external power supply shall be powered from AC mains voltage.” This submitted literature did not specify any specific equipment with which this external power supply is used. To the contrary, according to the literature, this power supply is generally bulk packaged for importation, although it can be shipped individually packaged at the vendor’s option. Part Number 670-0933-01 mates to the other circuit boards within the receiver module via multi-pin connectors, and is screwed into the unit assembly inside the receiver module housing. In particular, Part Number 670-0933-01 is the radio frequency circuit board portion of the telemetry receiver module. It contains a 608-614 MHz radio receiver that tunes to match and sync with a specific patient-worn device’s transmitting frequency.
The port takes the position that Part Number 670-9033-01 should be classified in subheading 8517.62.00, HTSUS, which provides for “Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.”
The second item at issue here is Part Number 670-1513-00. This is a PCBA for the Xprezzon patient Monitor System, which is a bedside monitor that monitors a patient’s vital signs. This monitoring system provides interactive viewing, reviewing, and recording capabilities for parameters, trends and calculations for any monitored patient. Part Number 670-1513-00 routes power to the central processing unit (“CPU”) board from an external power supply. It also routes the synchronous data link control signals from the CPU board to a backplane PCBA, and provides external USB and DSB connection through an on-board USB host controller. Part Number 670-1513-00 also connects to an on/off switch board, providing a switch input to turn the patient monitoring system off. Part Number 670-1513-00 does not act as a power source by itself and only functions as a router to the power source and other PCBAs. The port takes the position that Part Number 670-1513-00 is classified in subheading 8504.40.95, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other.”
The third item at issue here is Part Number 670-1274-05, the CPU PCBA for Spacelabs’ Ultraview Telemetry Patient Monitor, a portable patient monitor that allows medical personnel to monitor a patient’s vital signs from a distance. Part Number 670-1274-05 is screwed into the chassis housing and attached to electrical connectors. It runs the system software, updates the display, and communicates with peripheral devices. The port takes the position that Part Number 670-1274-05 is classified in subheading 8471.90.00, HTSUS, which provides for “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Other.”
The fourth item at issue here is Part Number 670-1488-00, another PCBA for the Xprezzon patient Monitor System. Part Number 670-1488-00 is the CPU printed circuit board for this system. It is screwed into the chassis housing of the patient monitoring system and attached via electrical system connectors. Part Number 670-1488-00 runs the system software, updates the display, and communicates with peripheral devices through the synchronous data link control PCBAs within the patient monitor. The port takes the position that Part Number 670-1488-00 is classified in subheading 8471.90.00, HTSUS, which provides for “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Other.”
The fifth item at issue here is Part Number 670-1310-00, which is a PCBA for Spacelabs’ Ultraview Command Module, the CPU for Spacelabs’ Ultraview SL line of Patient Monitors. Part Number 670-1310-00 provides standard cable connection to the patient monitoring system modules on one end, while providing the signal processing electronics connections to the command module on the other end. The port takes the view that Part Number 670-1310-00 is classified in subheading 8536.69.40, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 V; connectors for optical fibers, optical fiber bundles or cables: Lamp-holders, plugs and sockets: Other: Coaxial connectors; cylindrical multicontact connectors; rack and panel connectors; printed circuit connectors; ribbon or flat cable connectors.”
Spacelabs takes the position that all of the PCBAs at issue here should be classified in subheading 9018.19.75, HTSUS, which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof: Other: Other: Printed circuit assemblies for parameter acquisition modules.”
ISSUE:
Where are the subject printed circuit board assemblies classified?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof:
8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 V; connectors for optical fibers, optical fiber bundles or cables:
9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof:
Note 1(m) to Section XVI, HTSUS, which consists of Chapters 84 and 85, HTSUS, states, in pertinent part, the following:
This section does not cover:…
Articles of chapter 90
Note 2 to Section XVI, HTSUS, states the following:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
Parts which are goods included in any of the headings of chapter 84 or 85
(other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
Other parts, if suitable for use solely or principally with a particular kind of
machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
All other parts are to be classified in heading 8409, 8431, 8448, 8466,
8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548
Note 5 to Chapter 84, HTSSU, provides, in pertinent part, the following:
For the purposes of heading 8471, the expression “automatic data processing machines” means machines capable of:
Storing the processing program or programs and at least the dat immediately necessary for the execution of the program;
(ii) Being freely programmed in accordance with the requirements of the user;
(iii) Performing arithmetical computations specified by the user; and
(iv) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.
Note 2 to Chapter 90, HTSUS, provides the following:
Subject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules:
Parts and accessories which are goods included in any of the headings of
this chapter or of chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings;
Other parts and accessories, if suitable for use solely or principally with a
particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind;
(c) All other parts and accessories are to be classified in heading 9033.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, 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. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
The EN to heading 8471, HTSUS, provides, in pertinent part, the following:
(I) AUTOMATIC DATA PROCESSING MACHINES AND UNITS THEREOF
Data processing is the handling of information of all kinds, in pre-established logical sequences and for a specific purpose or purposes.
Automatic data processing machines are machines which, by logically interrelated operations performed in accordance with pre-established instructions (program), furnish data which can be used as such or, in some cases, serve in turn as data for other data processing operations.
This heading covers data processing machines in which the logical sequences of the operations can be changed from one job to another, and in which the operation can be automatic, that is to say with no manual intervention for the duration of the task. These machines mostly use electronic signals but may also use other technologies. They may be self-contained, all the elements required for data processing being combined in the same housing, or they may be in the form of systems consisting of a variable number of separate units.
This heading also covers separately presented constituent units of automatic data processing systems described above.
However, the heading excludes machines, instruments or apparatus incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines, instruments or apparatus are classified in the headings appropriate to their respective functions or, failing that, in residual headings (See Part (E) of the General Explanatory Note to this Chapter).
The EN to heading 8504, HTSUS, provides, in pertinent part, the following:
(II) ELECTRICAL STATIC CONVERTERS
The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors.
The fact that these apparatus often incorporate auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage or current regulators.
This group includes:
(A) Rectifiers by which alternating current (single or polyphase) is converted to direct current, generally accompanied by a voltage change.
(B) Inverters by which direct current is converted to alternating current.
(C) Alternating current converters and cycle converters by which alternating current (single or polyphase) is converted to a different frequency or voltage.
(D) Direct current converters by which direct current is converted to a different voltage.
…
Electrical static converters may be used for different purposes, e.g.:
(1) Converters to supply electricity to drive stationary machines or electric traction vehicles (e.g., locomotives).
(2) Supply converters, such as accumulator chargers (which consist essentially of rectifiers with associated transformer and current control apparatus), converters for galvanising and electrolysis, emergency power packs, converters for installations which supply high-tension direct current, converters for heating purposes and for the current supply to electro-magnets.
The EN to heading 8517, HTSUS, provides, in pertinent part, the following
This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks….
The EN to heading 8536, HTSUS, provides, in pertinent part, the following:
This heading covers electrical apparatus for a voltage not exceeding 1,000 volts generally used for dwellings or industrial equipment. However, heading 85.35 covers the apparatus described below for a voltage exceeding 1,000 volts. This heading also covers connectors for optical fibres, optical fibre bundles or cables.
The heading includes:…
(III) APPARATUS FOR MAKING CONNECTIONS TO OR IN
ELECTRICAL CIRCUITS
This apparatus is used to connect together the various parts of an electrical circuit. It includes:…
(B) Other connectors, terminals, terminal strips, etc. These include small squares of insulating material fitted with electrical connectors (dominoes), terminals which are metal parts intended for the reception of conductors, and small metal parts designed to be fitted on the end of electrical wiring to facilitate electrical connection (spade terminals, crocodile clips, etc.).
Terminal strips consist of strips of insulating material fitted with a number of metal terminals or connectors to which electrical wiring can be fixed. The heading also covers tag strips or panels; these consist of a number of metal tags set in insulating material so that electrical wires can be soldered to them. Tag strips are used in radio or other electrical apparatus.
The EN to heading 9018, HTSUS, provides, in pertinent part, the following:
This heading covers a very wide range of instruments and appliances which, in the vast majority of cases, are used only in professional practice (e.g., by doctors, surgeons, dentists, veterinary surgeons, midwives), either to make a diagnosis, to prevent or treat an illness or to operate, etc. Instruments and appliances for anatomical or autoptic work, dissection, etc., are also included, as are, under certain conditions, instruments and appliances for dental laboratories (see Part (II) below). The instruments of the heading may be made of any material (including precious metals)…
The instruments and appliances classified here may be equipped with optical devices; they may also make use of electricity, either as motive power or for transmission, or as a preventive, curative or diagnostic agent….
(V) OTHER ELECTRO-MEDICAL APPARATUS
This heading also covers electro-medical apparatus for preventive, curative or diagnostic purposes, other than X-ray, etc., apparatus of heading 90.22. This group includes:
(1) Electro-diagnostic apparatus, which include:..
(x) Diagnostic apparatus incorporating or operating in conjunction with an automatic data processing machine for processing and visualising clinical data, etc.
Spacelabs has been entering the subject merchandise as medical equipment of heading 9018, HTSUS. The port has been liquidating it under various headings of Chapters 84 and 85, HTSUS, according to the functions of the different PCBAs. Note 1(m) to Section XVI, HTSUS, excludes articles of Chapter 90, HTSUS, from classification in Chapters 84 and 85, HTSUS. See Sharp Microelectronics Technology, Inc. v. United States, 122 F. 3d 1446 (Fed. Cir. 1997) (“if one determines that a [good] belongs in [chapter 90] because it is not more specifically captured elsewhere in the schedule, then Note 1(m) complements the rule of relative specificity by excluding the device from classification in Chapter 84. We prefer the complementary role which we assign to Note 1(m) in the setting of this case.”)
Furthermore, under both Note 2 to Section XVI, HTSUS, and Note 2 to to Chapter 90, HTSUS, parts that are themselves goods (that is, articles) of any of the headings of Chapter 84 or 85, HTSUS, are properly classified in Chapter 84 or Chapter 85. This is consistent with Additional U.S. Rule of Interpretation (AUSRI) 1(c), which provides that “a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory.” See AUSRI 1(c). Thus, we first examine whether the subject PCBAs are articles in their own right.
The subject PCBAs cannot be used by themselves. In order to function, they must be incorporated into the machines with which they are used, and they must be connected to other PCBAs, electrical components, etc. As such, these PCBAs cannot, in their condition as imported, be classified as articles of Chapter 84, 85 or 90, HTSUS.
The courts have considered the nature of “parts” under the HTSUS, and two distinct though not inconsistent tests have resulted. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, (“Bauerhin”) 110 F.3d 774. The first, articulated in United States v. Willoughby Camera Stores, (“Willoughby Camera”) 21 C.C.P.A. 322 (1933) requires a determination of whether the imported item is “an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 778 (quoting Willoughby Camera, 21 C.C.P.A. 322 at 324). The second, set forth in United States v. Pompeo, (“Pompeo”) 43 C.C.P.A. 9 (1955), states that “an imported item dedicated solely for use with another article is a ‘part’ of that article within the meaning of the HTSUS.” Id. at 779 (citing Pompeo, 43 C.C.P.A. 9 at 13). Under either line of cases, an imported item is not a part if it is “a separate and distinct commercial entity.” Id.
The machines to which these PCBAs are connected would not function without the subject PCBAs. These PCBAs provide power routing, data transmission, and many other essential tasks. They are also manufactured specifically for the machines of which they are a component. As a result, the subject PCBAs are “parts” of the machines with which they are used. This conclusion is consistent with many prior CBP rulings that have classified PCBAs as parts of the machine for which they are intended. See, e.g., HQ 966466, dated October 24, 2003 (classifying printed circuit boards for use with radio frequency generators and impedance matching networks as parts in subheadings 8504.90.75, 8504.90.95, and 8543.90.68, HTSUS); HQ H071900, dated December 29, 2010 (classifying a printed circuit board assembly that was a component of a siren system and includes an amplifier, an embedded modem, an analog to digital converter, a serial port interface, a wireless and hardwired communication interface and a sine wave tone generator as a part of a signaling apparatus in subheading 8531.90.30, HTSUS; HQ H079395, dated October 26, 2009 (classifying an expansion module kit for microcontrollers containing a socket board, three adapter (routing) boards and an AVR microcontroller in subheading 8473.30.11, HTSUS, as parts of machines of heading 8471, HTSUS).
Part Number 670-9033-01 is the PCBA for a telemetry module, the external power supply for Spacelabs’ products. Spacelabs has been importing Part Number 670-9033-01 under heading 9018, HTSUS, as parts of medical equipment. However, because the telemetry module is imported as a general power supply, it cannot be classified as medical equipment of heading 9018, HTSUS. Furthermore, the port was of the opinion that Part Number 670-9033-01 should be classified in heading 8517, HTSUS, which provides for “…other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof.” We acknowledge that Part Number 670-0933-01 is the radio frequency circuit board portion of the telemetry receiver module and that it contains a radio receiver that tunes to match and sync with a specific patient-worn device’s transmitting frequency. However, as imported, the subject PCBAs cannot function on their own and must be connected to other components of the machines with which they are used. As such, in its condition as imported, Part Number 670-9033-01, is not, by itself, capable of receiving, converting, transmitting or regenerating voice, images or other data, as required by the terms of heading 8517, HTSUS.
The telemetry module with which Part Number 670-9033-01 is used is an external power supply for Spacelabs’ products, and it provides 20 volts of direct current power that is powered from alternating current that the module converts to direct current. The energy thus supplied is used for separate medical machinery. As such, telemetry module meets the terms of heading 8504, HTSUS. Because Part Number 670-9033-01 meets the definition of a “part,” as discussed above, it is classified as a part of heading 8504, HTSUS. In particular, it is described by the terms of subheading 8504.90.65, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Parts: Other: Printed circuit assemblies: Of the goods of subheading 8504.40...”
The second item at issue here is Part Number 670-1513-00. This is a PCBA for the Xprezzon patient Monitor System, which is a bedside monitor that monitors a patient’s vital signs. The port takes the position that Part Number 670-1513-00 is classified in subheading 8504.40.95, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other.”
Heading 8504, HTSUS, provides for static converters, a category to which power supplies belong. Part Number 670-1513-00 routes power to the CPU board from an external power supply; it also connects to an on/off switch board, providing a switch input to turn the patient monitoring system off. However, Part Number 670-1513-00 does not act as a power source by itself and only functions as a router to the power source and other PCBAs. Thus, it cannot, by itself, function as a static converter. Thus, it does not meet the terms of heading 8504, HTSUS.
It is not in dispute that Part Number 670-1513-00 is used with a patient monitoring system, one that is used in medical settings to monitor a patient’s vital signs. As such, this monitoring system is described by the terms of heading 9018, HTSUS. As discussed above, Part Number 670-1513-00 meets the definition of a part. As such, it meets the terms of subheading 9018.19.95, HTSUS, which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof: Other: Other: Other.”
Part Number 670-1274-05 is the CPU PCBA for Spacelabs’ Ultraview Telemetry Patient Monitor, a portable patient monitor that allows medical personnel to monitor a patient’s vital signs from a distance. The port takes the position that it is classified in subheading 8471.90.00, HTSUS, as an incomplete or unfinished central processing unit for an automatic data processing unit.
A central processing unit of an ADP machine of heading 8471, HTSUS, is defined as a unit that generally incorporates the main storage, the arithmetical and logical elements and the control elements. See EN 84.71. An ADP machine of heading must be capable of fulfilling simultaneously the conditions of Note 5(A) to Chapter 84, HTSUS. Thus, it must be capable of storing the processing program or programs and at least the data immediately necessary for the execution of the program; being freely programmed in accordance with the requirements of the user; performing arithmetical computations specified by the user; and executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. See Note 5(A) to Chapter 84, HTSUS; EN 84.71. As such, machines which operate only on fixed programs- that is, programs which cannot be modified by the user- are excluded from heading 8471, HTSUS, even though the user may be able to choose between a number of such fixed programs. See EN 8471. ADP machines of heading 8471, HTSUS, also have storage capability and also stored programs which can be changed from job to job. See EN 84.71.
In the present case, Part Number 670-1274-05 is screwed into the chassis housing and attached to electrical connectors. It runs the system software, updates the display, and communicates with peripheral devices of the Ultraview Telemetry Patient Monitor. It is also called a central processing unit in the submitted literature. However, in order to be classified as a CPU of heading 8471, HTSUS, Part Number 670-1274-05 must be a CPU for an ADP machine. The Ultraview Telemetry Patient Monitor cannot be freely programmed and does not execute a program whose execution can be modified by logical decision making during the processing run. It also runs on a single program that cannot be modified by the user; this machine’s sole purpose is to allow medical personnel to monitor a patient’s vital signs. As a result, it does not meet the definition of an ADP machine. As such, Part Number 670-1274-05 cannot be classified as a CPU of heading 8471, HTSUS, and we examine alternate headings.
It is not in dispute that Part Number 670-1274-05 is used with a patient monitoring system, one that is used in medical settings to monitor a patient’s vital signs. As such, this monitoring system is described by the terms of heading 9018, HTSUS. As discussed above, Part Number 670-1274-05 meets the definition of a part. As such, it meets the terms of subheading 9018.19.95, HTSUS, which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof: Other: Other: Other.” Because Part Number 670-1274-05 is classified in heading 9018, HTSUS, under GRI 1, we do not reach the question of whether it can be classified as an incomplete or unfinished CBP of heading 8471, HTSUS, under GRI 2(a).
The fourth item at issue here is Part Number 670-1488-00, another PCBA for the Xprezzon Patient Monitor System. Part Number 670-1488-00 is the CPU printed circuit board for this system. It is screwed into the chassis housing of the patient monitoring system and attached via electrical system connectors. Part Number 670-1488-00 runs the system software, updates the display, and communicates with peripheral devices through the synchronous data link control PCBAs within the patient monitor. Here as well, the port takes the position that Part Number 670-1488-00 is classified in subheading 8471.90.00, HTSUS, as an incomplete or unfinished central processing unit for an automatic data processing unit.
Referring once more to the definitions of a CPU and an ADP cited above, we find that whereas Part Number 670-1488-00 may meet the definition of a CPU, it cannot be said to be a CPU for an ADP. The Xprezzon Patient Monitor System, with which Part Number 670-1488-00 is used, allows medical professions to review and monitor a variety of patients’ vital signs. A medical professional could not freely program this monitoring system; nor could this professional modify the single program that is on this machine. As a result, the Xprezzon Patient Monitor System does not meet the definition of an ADP machine, and Part Number 670-1488-00 cannot be classified as a CPU of an ADP machine of heading 8471, HTSUS.
It is not in dispute that Part Number 670-1488-00 is used with a patient monitoring system, one that is used in medical settings to monitor a patient’s vital signs. As such, this monitoring system is described by the terms of heading 9018, HTSUS. As discussed above, Part Number 670-1488-00 meets the definition of a part. As such, it meets the terms of subheading 9018.19.95, HTSUS, which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof: Other: Other: Other.” Because Part Number 670-1488-00 is classified in heading 9018, HTSUS, under GRI 1, we do not reach the question of whether it can be classified as an incomplete or unfinished CBP of heading 8471, HTSUS, under GRI 2(a). Furthermore, the classification of the subject PCBAs in heading 9018, HTSUS, is consistent with prior CBP rulings that have classified PCBAs that are parts of medical equipment in heading 9018, HTSUS. See, e.g., HQ 562402, dated September 5, 2002; NY N234669, dated November 19, 2012.
The last item at issue here is Part Number 670-1310-00, which is a PCBA for Spacelabs’ Ultraview Command Module, the CPU for Spacelabs’ Ultraview SL line of Patient Monitors. The port takes the view that Part Number 670-1310-00 is classified in heading 8536, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 V; connectors for optical fibers, optical fiber bundles or cables.”
Heading 8536, HTSUS, includes electrical apparatus for making connections to or in electrical circuits. See EN 85.36. This type of apparatus is used to connect together the various parts of an electrical circuit and includes plugs, sockets and other contacts for connecting a movable lead or apparatus to an installation which is usually fixed. See EN 85.36. It also includes a broad range of other connectors, terminals, terminal strips, etc. See EN 85.36.
In the present case, Part Number 670-1310-00 is a PCBA for the Ultraview SL Command Module, the CPU of a patient monitor system. When connected to the Ultraview SL Command Module, Part Number 670-1310-00 provides standard cable connection to the patient monitoring system modules on one end. It also provides the signal processing electronics connections to the command module on the other end. As such, it meets the terms of heading 8536, HTSUS, and will be classified there. Although Part Number 670-1310-00 meets the definition of a “part” as defined above, because it performs a function of a heading in Chapter 85, HTSUS, it must be classified there. See Note 2(a) to Section XVI. Furthermore, because it is described by heading 8536, HTSUS, Part Number 670-1310-00 is precluded from classification in Chapter 90, HTSUS. See Note 2 to Chapter 90, HTSUS.
Lastly, we note that in requesting this Internal Advice, Spacelabs argued for classification in subheading 9018.19.75, HTSUS, as “Printed circuit assemblies for parameter acquisition modules.” The terms of this subheading are not defined by any of the relevant tariff headings, legal notes or ENs. As a result, CBP is permitted to consult dictionaries and other lexicographic materials to determine the term’s common meaning. See, e.g., Lonza, Inc. v. United States, 46 F.3d 1098 (Fed. Cir. 1995). The term in question is then construed in accordance with its common and commercial meanings, which are presumed to be the same. See, e.g., Nippon Kogasku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982); Toyota Motor Sales, Inc. v. United States, 7 C.I.T. 178 (Ct. Int’l Trade 1984); Carl Zeiss, Inc. v. United States, 195 F.3d 1375 (Fed. Cir. 1999); Lonza, 46 F.3d 1098.
In particular, the Oxford English Dictionary defines the term “module” as “any of a series of independent units or parts of a more complex structure, produced to a standard design in order to facilitate assembly and allow mass production. More generally: any more or less self-contained unit which goes to make up a complete set, a finished article, etc.” See www.oed.com. Furthermore, Webster’s New World College Dictionary defined “module,” as it pertains to electronics, as “a compact assembly that is part of a larger unit.” See Webster’s New World College Dictionary (Fourth Edition) at page 926. Thus, a “parameter acquisition module” of subheading 9018.19.75, HTSUS, is a unit that, by itself, acquires parameters such as a patient’s blood pressure, pulse rate, etc., and is a unit that is incorporated into a larger machine. Any PCBA that is classified in this subheading must thus be a PCBA for this specialized unit.
By contrast, the subject PCBAs are components of larger machines- i.e., of the full patient monitoring systems with which they are used. There is no evidence that these patient monitoring systems contain a smaller module that acquires the patient’s parameters. To the contrary, the evidence presented shows that the machine as a whole acquires this information through various functions. As a result, the subject PCBAs are parts of the larger patient monitoring systems, rather than being PCBAs for parameter acquisition modules. As such, they cannot be classified in subheading 9018.19.75, HTSUS.
HOLDING:
By application of GRI 1, Part Number 670-9033-01 is classified in heading 8504, HTSUS. It is specifically provided for in subheading 8504.90.65, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Parts: Other: Printed circuit assemblies: Of the goods of subheading 8504.40...” The Column 1, general rate of duty is free.
By application of GRI 1, Part Number 670-1513-00, Part Number 670-1274-05, and Part Number 670-1488-00 are classified in heading 9018, HTSUS. They are specifically provided for in subheading 9018.19.95, HTSUS, which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments; parts and accessories thereof: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters); parts and accessories thereof: Other: Other: Other.” The column 1, general rate of duty is free.
By application of GRI 1, Part Number 670-1310-00 is classified in heading 8536, HTSUS. It is specifically provided for in subheading 8536.69.40, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 V; connectors for optical fibers, optical fiber bundles or cables: Lamp-holders, plugs and sockets: Other: Coaxial connectors; cylindrical multicontact connectors; rack and panel connectors; printed circuit connectors; ribbon or flat cable connectors.” The column 1, general rate of duty is free.
Duty rates are provided for your convenience and are subject to change. You are to mail this decision to the Internal Advice requester no later than 60 days from the date of the decision. At that time, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel and to the public on CBP’s website, located at www.cbp.gov by means of the Freedom of Information Act and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division