HQ 951570: Internal Advice 71/91; Retix Remote Bridge; Local Bridge; Board Level Products; Wide Area Networking; WAN; Local Area Networking; LAN; ADP Machine; Control And Adapter Unit; HQ 951331; HQ 952659

us-cbp-cross-rulings-hq-951570HQ 951570: Internal Advice 71/91; Retix Remote Bridge; Local Bridge; Board Level Products; Wide Area Networking; WAN; Local Area Networking; LAN; ADP Machine; Control And Adapter Unit; HQ 951331; HQ 952659Guidance

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 951570
                                
                        October 16, 1992
                               
CLA-2 CO:R:C:M  951570 MBR

CATEGORY:  Classification

TARIFF NO.:  8471.99.15

District Director
U.S. Customs Service
880 Front St., Rm 5-S-9
San Diego, CA 92188

RE:  Internal Advice 71/91; Retix Remote Bridge; Local Bridge;
     Board Level Products; Wide Area Networking; WAN; Local Area
     Networking; LAN; ADP Machine; Control And Adapter Unit; HQ
     951331; HQ 952659

Dear Sir:

     This is in response to  your request for Internal Advice
71/91, dated November 19, 1991, regarding the classification of the
Retix Remote Bridge, the Local Bridge, and the Board Level
automatic data processing machine networking products, under the
Harmonized Tariff Schedule of the United States (HTSUS).

     We have recently reconsidered the classification of Local Area
Network (LAN) equipment. See HQ 951331, dated September 18, 1992,
as modified by HQ 952659, dated October 7, 1992. 

FACTS:

     The Retix Remote/Local Bridges ("Bridges") are stand alone
units.  They are fairly standard local area networking (LAN) and
wide area networking (WAN) merchandise.  They process data to a
generic level in order to network the data and transfer it to other
ADP machines.  The Bridges manage data with respect to origin,
priority, and user ID.  At the time of importation the bridges do
not contain EPROMs, cabinet, or power supply.
  
     The "Board Level Products" ("Boards") are designed for
physical incorporation into ADP machines.  They operate in a
similar manner to the Bridges and are analogous to network
interface boards ("NIBS"). 

ISSUE:

     Whether the Retix Remote/Local Bridges and network interface
boards are classifiable under headings 8471 and 8473, HTSUS, which 

                               -2-

provide for automatic data processing machines and parts thereof,
or under heading 8517, HTSUS, which provides for "[e]lectrical
apparatus for line telephony or telegraphy"?

LAW AND ANALYSIS:

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

     However, Legal Note 5(B) to chapter 84, HTSUS, provides
guidance regarding 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 LAN and WAN Bridges and Boards are essential
to the ADP systems with which they are integrated because they
process and format the data of the computers they serve. 

     The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), pages 1299-1300, describe separately
presented ADP units 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.


                               -3-

     After extensive research and analysis, it is now our opinion
that the principal function of the LAN and WAN Bridges and Boards
is, in fact, to effectuate the interconnection of the CPU unit to
other units or ADP machines, thereby serving "control" and
"adaption" functions, as described by the ENs.  Therefore, the
instant Bridges and Boards are properly classifiable in subheading
8471.99.15, HTSUS, which provides for "Control or adapter units." 
 
     Furthermore, in their condition at importation, without
EPROMs, cabinet, and power supply, pursuant to GRI 2(a), the Retix
Bridges and Boards are determined to have the essential character
of the finished articles.

HOLDING: 

     The Retix Remote/Local LAN and WAN Brides and Boards, are
classifiable in 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
                              Commercial Rulings Division

ATTACHMENT:    HQ 951331

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