HQ 953211: Taxan USA Corporation; Local Area Network Micro Transceivers; LAN; Automatic Data Processing Machine; Control or Adapter Units; Unfinished; 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 953211
                                                               
                         April 30, 1993

CLA-2 CO:R:C:M  953211 MBR

CATEGORY:  Classification

TARIFF NO.:  8471.99.15

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

RE:  Taxan USA Corporation; Local Area Network Micro Transceivers;
     LAN; Automatic Data Processing Machine; Control or Adapter
     Units; Unfinished; HQ 952659 

Dear Mr. Marshall:

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

FACTS:

     The instant merchandise is the CentreCOM Micro Transceiver,
model numbers AT-MX25F, and AT-MX26F.  These are described as
Ethernet fiber optic LAN Micro Transceivers which are plug
compatible with most IEEE 802.3 hardware.  They implement all LAN
Ethernet transmit, receive, and collision functions.  This
merchandise will be imported without the chassis and housing.  

ISSUE:

     Are LAN Micro Transceivers, imported without chassis and
housing, 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," or under subheading 8473.30.40,
HTSUS, which provides for parts of ADP machines? 

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

                               -2-

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-

     The instant merchandise will be imported without the chassis
and the housing.  GRI 2(a) provides guidance for the classification
of incomplete and unfinished articles.  It states, in pertinent
part:


     Any reference in a heading to an article shall be taken to
     include a reference to that article incomplete or unfinished,
     provided that, as entered, the incomplete or unfinished
     article has the essential character of the complete or
     finished article....

     It is Customs position that the Micro Transmitters, entered
without the chassis and housing, but complete in every other
aspect, are functional as imported, and therefore, do have the
essential character of the finished article.

HOLDING:

     The Taxan USA Corp., LAN Micro Transceivers, model numbers AT-
MX25F, and AT-MX26F, imported without chassis and housing, 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