HQ 083957: Essential character of incomplete components for a laptop computer

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 083957

                                      July 11, 1989

             CLA-2 CO:R:CV:G:  083957 JLV

             CATEGORY:  Classification

             TARIFF NO.:  9903.41.15

             Gary C. Cooper, Esq.
             Law Offices George R. Tuttle
             Three Embarcadero Center, Suite 1160
             San Francisco, California 94111

             RE:  Essential character of incomplete components for a laptop
                  computer

             Dear Mr. Cooper:

                  In a letter of March 2, 1989, on behalf of your client,
             Alps Electric U.S.A., Inc., you request a ruling on whether
             certain groupings of components for laptop computers
             constitute an incomplete or unfinished computers within the
             subheading 9903.41.15, Harmonized Tariff Schedule of the
             United States Annotated (HTSUSA).

             FACTS:

                  The merchandise consists of various component parts or
             subassemblies of laptop computers to be imported on separate
             days in the following shipments:

                        1.    Plasma display and upper case, floppy disk
                              drive and hard disk drive;

                        2.    Motherboard, without CPU and EPROM;

                        3.    CPU and EPROM, keyboard, HDD interface, FDD
                              interface, power supply, and lower case.

             You conclude that none of these shipments of components for a
             laptop computer constitutes an incomplete or unfinished
             computer having the essential character of a computer for
















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             purposes of classification in subheading 8471.20.00, HTSUSA,
             under the principle of GRI 2(a), HTSUSA, and, therefore, if
             these components are imported in the above manner, they will
             not be subject to the duty in subheading 9903.41.15, HTSUSA.

             ISSUE:

                  Whether the combination of components for a laptop
             computer, as identified in the facts, constitute an unfinished
             article having the essential character of a computer for
             purposes of classification in subheading 8471.20.00 under the
             classification rule set forth in GRI 2(a)?

             LAW AND ANALYSIS:

                  Subheading 8471.20.00 provides for "[d]igital automatic
             data processing machines, containing in the same housing at
             least a central processing unit and an input and output unit,
             whether or not combined."  Subheading 9903.41.15 provides for
             "[a]utomatic data processing machines, of the type of which
             the constituent units are integrated in the same housing,
             whether finished or unfinished . . . (provided for in
             subheading 8471.20)."

                  GRI 2(a) requires that an article that is presented
             incomplete or unfinished is to be classified as the complete
             or finished article if it has the essential character of the
             complete or finished article, even if presented unassembled or
             disassembled.

                  A shipment of a plasma display, upper case, floppy disk
             drive and hard disk drive (factual situation 1) would not
             constitute an article having the essential character of a
             digital automatic data processing machine because it consists
             essentially of a display unit and storage units and does not
             have the processing features of such a machine.  Similarly, a
             shipment of a motherboard without a CPU and EPROM (factual
             situation 2), or a shipment of the CPU and EPROM, keyboard,
             HDD interface, FDD interface, power supply, and lower case
             (factual situation 3), does not have the essential character
             of a digital automatic data processing machine.

                  These conclusions, however, are based on the facts as
             submitted.  Because of the highly technical nature of this
             merchandise, and because of the expanding technology in this
             area, this ruling applies only to the limited facts presented
             by counsel for the importer in this case.















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             HOLDING:

                  Under the facts as presented, none of the shipments of
             components for a laptop computer constitute an unfinished
             article for purposes of the additional duties on certain
             automatic data processing machines in subheading 9903.41.15,
             HTSUSA.

                                          Sincerely,




                                          John Durant, Director
                                          Commercial Rulings Division


















































































             6cc:  AD NY Seaport
             1cc:  NIS Art Brodbeck
             2cc:  Chief, CIE
             1cc:  Matt Rohde
             1cc:  DD, San Francisco
             1cc:  AC, CO
             1cc:  Director, Commercial Rulings
             1cc:  reading file