HQ 953210: Allied Telesis, Inc.; Local Area Network Micro Repeaters; LAN; Fiber Optic Inter Repeater Link; 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 953210
                                                               
                         April 30, 1993

CLA-2 CO:R:C:M  953210 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 Repeaters; LAN;
     Fiber Optic Inter Repeater Link; 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 the local area network ("LAN") Micro
Repeaters, under the Harmonized Tariff Schedule of the United
States (HTSUS).

FACTS:

     Model AT-MR116F CentreCOM Micro Repeater is a two port media
converter designed for the Fiber Optic Inter Repeater Link
("FOIRL") to coaxial cable media.  It provides for connection of
a FOIRL segment to either a thinnet (10Base2) coaxial segment with
the AT-MR117F, or to an AUI (10Base5) coaxial segment with the AT-
MR116F.  Segments on either side of the unit support full length,
fully repeated transmission, and it provides the maximum number of
nodes specified by the IEEE.

     Models AT-MR410T (four port with external power supply) and
AT-MR820T (eight port with internal power supply), are twisted pair
repeaters intended to connect up to eight IEEE 802.3 10Base-T
network segments.  In addition to the twisted pair interfaces, an
IEEE 802.3 Attachment Unit Interface (AUI) is provided for
attachment to other LAN media through an external transceiver.

     The AT-MR860T (eight port 10Base-T) micro repeater is a
twisted pair repeater designed for connection of up to eight IEEE
802.3 10Base-T network segments to one coaxial tap.  The inter-
changeable taps provide for connection to both thinnet (10Base2)


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and thicknet (10Base5) cable.  They are equipped with external
power supplies.

     The AT-MR122T (BNC to RJ45 repeater with internal power
supply) is a two port media extender designed for coaxial media and
unshielded twisted pair.  This repeater provides for connection to
UTP (10Base-T), thin coax (10Base2), and thick coax (10Base5), in
any combination of media.

ISSUE:

     Are LAN Micro Repeaters ("Repeaters") 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. 
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 instant Repeaters are connectable to the CPU
either directly or through one or more units.  Furthermore, the
Repeaters 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-



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1300, which describe the classification scope of the ADP unit
provisions, 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 use of the instant Repeaters is,
in fact, to effectuate the interconnection of the CPU unit to other
units or ADP machines, thereby serving "control" and "adaption"
functions.  However, it is important to note that there are certain
"repeaters" whose principal use is not the interconnection of the
CPU unit to other units or ADP machines.  For instance, telephonic
repeaters would not be classifiable under heading 8471, HTSUS.

     Some of the Repeaters include external power supplies. 
Section XVI, Legal Note 4 provides as follows:

     Where a machine (including a combination of machines) consists
     of individual components (whether separate or interconnected
     by piping, by transmission devices, by electric cables or by
     other devices) intended to contribute together to a clearly
     defined function covered by one of the headings in chapter 84
     or chapter 85, then the whole falls to be classified in the
     heading appropriate to that function.

     Therefore, since the power supplies are imported with the
Repeaters, and are intended to contribute together to a clearly
defined function, they are classified together in subheading
8471.99.15, HTSUS.

HOLDING:

     The Allied Telesis, Inc., LAN Micro Repeaters (with or without
power supplies), model numbers AT-MR410T, AT-MR820T, AT-MR122T, AT-
MR116F, AT-MR860T, are classifiable under subheading 8471.99.15,
HTSUS, which provides for: "[a]utomatic data processing machines 






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and units thereof: [o]ther: [o]ther: [c]ontrol or adapter units." 
The rate of duty is Free.

                              Sincerely,




                              John Durant, Director