HQ 953209: Allied Telesis, Inc.; Local Area Network Micro Transceivers; LAN; MAU; Automatic Data Processing Machine; Control or Adapter Units; HQ 952659

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

     

 

                            HQ 953209
                                                               
                         April 28, 1993

CLA-2 CO:R:C:M  953209 MBR

CATEGORY:  Classification

TARIFF NO.:  8471.99.15

Mr. John J. Marshall
"K" Air Brokerage, Inc.
40-A Broderick Road
Burlingame, CA 94010 

RE:  Allied Telesis, Inc.; Local Area Network Micro Transceivers;
     LAN; MAU; Automatic Data Processing Machine; Control or
     Adapter Units; HQ 952659 

Dear Mr. Marshall:

     This is in response to your letter of January 7, 1993,
requesting classification of local area network ("LAN") Micro
Transceivers, under the Harmonized Tariff Schedule of the United
States (HTSUS).

FACTS:

     The instant merchandise are the CentreCOM Micro Transceiver
model numbers AT-MX10 10Base2 MAU, AT-MX10S 10Base2 MAU, AT-MX20T
10Base-T MAU, AT-210T 10Base-T MAU, AT-210TS 10Base-T MAU.

     The CentreCOM Micro Transceivers are 10Base2 and 10Base-T
compliant transceivers are designed to reduce Ethernet cabling
costs.  Their compact size allows these transceivers to connect
directly to the workstation, bringing thin Ethernet or Unshielded
Twisted Pair (UTP) wiring directly to the workstations.  They are
also described as "MAUs" which represents "Media Attachment Unit."

ISSUE:

     Are LAN Micro Transceivers classifiable under subheading
8517.82.00, HTSUS, which provides for electrical apparatus for line
telegraphy, or are they classifiable under subheading 8471.99.15,
HTSUS, which provides for ADP "control or adapter units"? 

LAW AND ANALYSIS:

     Since the HTSUS came into effect there has been a great deal
of controversy regarding the classification of LAN equipment.  

                               -2-

However, there is no clear classification guidance from either the
HTSUS or the Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), primarily due to the technological
advancements in this area.  

     In HQ 952659, dated October 8, 1992, regarding LAN boards, we
cited Legal Note 5(B) to chapter 84, HTSUS, which provides guidance
regarding the classification of units of automatic data processing
machines.  It states:
 
     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 of the following conditions:

     (a)  It is connectable to the central processing unit either
          directly or through one or more other units; and

     (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).

     We agree that the Micro Transceivers are connectable to the
CPU either directly or through one or more units.  Furthermore, the
Micro Transceivers are designed to be a constituent unit of an ADP
system, and are able to accept and deliver data. 

     In HQ 952659 we also cited the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs), pages 1299-
1300, which describe separately presented ADP units, in pertinent
part, 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 adaptor 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.

     We agree that the principal function of the instant Micro
Transceivers is, in fact, to effectuate interconnection of the CPU
unit to other units or ADP machines, thereby serving "control" and
"adaption" functions. 


                               -3-

HOLDING:

     The Allied Telesis, Inc., LAN Micro Transceivers, model
numbers AT-MX10 10Base2 MAU, AT-MX10S 10Base2 MAU, AT-MX20T 10Base-
T MAU, AT-210T 10Base-T MAU, AT-210TS 10Base-T MAU, are
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 rate of duty
is Free.

                              Sincerely,




                              John Durant, Director