HQ 958728: Protest 3304-95-100055; Remote terminal unit components; relay panels; circuit board assemblies; section XVI, note 1(m); chapter 90, note 6; 19 CFR 174.13; uniform and established practice

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 958728

                           June 7, 1996
                                                               


CLA-2 RR:TC:MM  958728 LTO

CATEGORY:  Classification

TARIFF NO.:  8537.10.90; 8538.90.20

Port Director
U.S. Customs Service
P.O. Box 789
Great Falls, Montana 59403

RE:  Protest 3304-95-100055; Remote terminal unit components; 
     relay panels; circuit board assemblies; section XVI, note   1(m); chapter 90, note 6; 19 CFR 174.13; uniform and       established practice

Dear Port Director:

     The following is our decision regarding Protest 3304-95-100055, which concerns the classification of components for
remote terminal units under the Harmonized Tariff Schedule of the
United States (HTSUS).  The subject merchandise was entered
between March 28, 1994, through May 1, 1995, and the entries were
liquidated on various, though unlisted (on the Customs Form 19),
dates.  The protest was filed on October 30, 1995.

FACTS:

     The subject merchandise is described as follows:  "Western
D20 K12 relay panels" and "D20 Configuration (Circuits Boards for
remote terminal units)."  The relay panels and circuit board
assemblies are components of a distributed remote terminal unit
(RTU) known as the "WESDAC D20 Substation System."  The system is
generally used by power utility companies to provide "supervisory
control and data acquisition" (it is often referred to as "SCADA"
equipment).  The system, which is at the same location as the
particular utility (i.e., a dam), relays data to and from the
master station, which is at another location.  The data generally
concerns power surges, faults, lack of power, etc.                              - 2 -

     The relay panels and circuit boards include the D20M Main
Processor, D20A Analog Inputs, D20K Control Outputs, D20S Status
Inputs and D20C Combination I/O boards.  The D20M is the main
processor for the RTU and peripheral modules.  It handles data
collection and delivery to the host, runs local automation
algorithms and maintains I/O data in the RTU database.  The D20A
continuously scans all 32 inputs, while the D20K offers several
hardware/software control configurations, including Trip/Close,
Raise/Lower, Form C contact and solid-state open drain outputs. 
The D20S accepts 64 optically isolated inputs in eight groups. 
Each input can be configured from a downloaded database to be a
status point, binary coded decimal, sequence of event or pulse
accumulator.  The D20C is ideal for small point count
applications.  It combines the features of the D20A, D20K and
D20S to provide 16 status inputs, eight momentary or dual control
outputs and an optional eight analog inputs/outputs or 16 analog
inputs.

     The articles in question were entered under subheading
9032.90.60, HTSUS, which provides for other parts for automatic
regulating or controlling instruments and apparatus (see
subheading 9905.90.25, HTSUS, which provides for parts and
accessories of electronic logic panels for multi-zone controls,
automatic regulation or control instruments, and fan and humidity
controls of subheading 9032.89.60 (provided for in subheading
9032.90.60), HTSUS).  The relay panels were classified upon
liquidation under subheading 8537.10.90, HTSUS, which provides
for other bases for electric control or the distribution of
electricity, while the circuit boards were classified under
subheading 8538.90.20, HTSUS, which provides for other parts
suitable for use solely or principally with the apparatus of
heading 8537, HTSUS.

ISSUE:

1.   Whether there is a uniform and established practice of
classifying the relay panels and circuit boards for the WESDAC
D20 Substation System as parts for automatic regulating or
controlling instruments and apparatus under subheading
9032.90.60, HTSUS.

2.   Whether the relay panels and circuit boards are classifiable
under heading 9032, HTSUS, or as bases for electric control or
the distribution of electricity under heading 8537, HTSUS, and
parts suitable for use solely or principally with this apparatus
under heading 8538, HTSUS.

                              - 3 -

LAW AND ANALYSIS:

   1. Uniform and Established Practice

     The protestant contends that a uniform and established
practice exists with respect to the liquidation of the relay
panels and circuit boards under subheading 9032.90.60, HTSUS,
which provides for parts for automatic regulating or controlling
instruments.  This claim is based on a total of six entries (two
at Sweetgrass, Montana, three at Cleveland, Ohio, and one at
Romulus, Michigan) that were liquidated as entered under this
subheading between July 30, 1993, and May 13, 1994.

     It is our opinion that, by merely relying on the treatment
of six entries by one importer at three separate ports, the
protestant has not established the existence of a uniform and
established practice.  In fact, more substantial treatments of
entries have not resulted in the finding of uniform and
established practices.  See, e.g., Kalan Inc. v. United States,
12 C.I.T. 1142 (1988) (nine liquidations over a one-year period);
United States v. H. Reeve Angel & Co., Inc., 33 CCPA 114 (1946)
(two importers' entries at two ports); Siemens America, Inc., et
al. v. United States, 2 CIT 136, aff'd. 692 F. 2d 1382 (1981) (a
classification ruling letter and 100 subsequent entries);
Washington Handle Co. v. United States, 34 CCPA 80 (1946) (28
shipments at two ports). 


   2. Classification

     The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule.  GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ."

     The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized System.  While not legally binding, and therefore
not dispositive, the ENs provide a commentary on the scope of
each heading of the Harmonized System, and are generally
indicative of the proper interpretation of these headings.  See
T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

     The headings under consideration are as follows:

     8537  Boards, panels, consoles, desks, cabinets and 
           other bases, equipped with two or more                                    - 4 -

           apparatus of heading 8535 or 8536, for electric
           control or the distribution of electricity, 
           including those incorporating instruments or 
           apparatus of chapter 90, and numerical control 
           apparatus, other than switching apparatus of 
           heading 8517

     8538  Parts suitable for use solely or principally 
           with the apparatus of heading 8535, 8536 or 
           8537

     9032  Automatic regulating or controlling instruments
           and apparatus . . . 

     The protestant contends that the WESDAC D20 Substation
System, and the relay panels and circuit boards, as parts, are
classifiable under heading 9032, HTSUS.  Regarding the
classification of the WESDAC system, note 1(m) to section XVI,
HTSUS, states that the section, which includes chapters 84 and
85, does not cover articles of chapter 90.  Thus, if the system
is classifiable under heading 9032, HTSUS, it cannot be
classified under headings 8537, HTSUS.  

     Note 6 to chapter 90, HTSUS, provides that heading 9032,
HTSUS, applies only to the following:

     (a)  Instruments and apparatus for automatically 
          controlling the flow, level, pressure or other
          variables of liquids or gases, or for 
          automatically controlling temperature, whether 
          or not their operating depends on an electrical
          phenomenon which varies according to the factor   
          to be automatically controlled; and
     (b)  Automatic regulators of electrical quantities, 
          and instruments or apparatus for automatically
          controlling non-electrical quantities the 
          operation of which depends on an electrical 
          phenomenon varying according to the factor to
          be controlled.

     There is no indication in the file to conclude that the
WESDAC system automatically controls the flow, level, etc., of
liquids or gases, temperature or non-electrical quantities, or
automatically regulates electrical quantities.  The system is
generally used by power utility companies to provide "supervisory
control and data acquisition."  The system, which is at the same
location as the particular utility (i.e., a dam), relays data
concerning power surges, faults, lack of power, etc., to and from                               - 5 -

the master station, which is at another location.  While the
system can, for example, shut off the system in the event of a
power failure, it is not classifiable under heading 9032, HTSUS. 
Because the system cannot be classified under heading 9032,
HTSUS, the relay panels and circuit boards cannot be classified,
as parts, under subheading 9032.90.60, HTSUS.

     While it appears that the relay panels and circuit boards
are classifiable within heading 8537, HTSUS (or, if parts,
heading 8538, HTSUS), there is not enough information to render a
definitive classification opinion.  The file does not contain
"[a] specific description of the merchandise affected by the
decision as to which protest is made," or, beyond the uniform and
established practice claim, "[t]he nature of, and justification
for the objection set forth distinctly and specifically with
respect to each category, payment, claim, decision, or refusal." 
See 19 CFR 174.13(5)(6) (regarding "contents of protest").

HOLDING:

     The relay panels are classifiable under subheading
8537.10.90, HTSUS, while the circuit boards are classifiable
under subheading 8538.90.20, HTSUS.

     The protest should be DENIED.  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 the mailing of the 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
                         Tariff Classification Appeals Division