HQ 953212: Taxan USA Corporation; Local Area Network Micro Repeaters; LAN; Automatic Data Processing Machine; Control or Adapter Units; HQ 952659; Unfinished

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 953212
                                                               
                         April 30, 1993

CLA-2 CO:R:C:M  953212 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 Repeaters;
     LAN; Automatic Data Processing Machine; Control or Adapter
     Units; HQ 952659; Unfinished 

Dear Mr. Marshall:

     This is in response to your letter of January 7, 1993,
requesting classification of unfinished local area network ("LAN")
Micro Repeaters, model numbers AT-MR111T and AT-MR112T, under the
Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

     The instant Micro Repeaters, model numbers AT-MR111T (AUI to
RJ45) and AT-MR112T (BNC to RJ45), are two port media
converters/media extenders which are designed for coax media and
Unshielded Twisted Pair (UTP) media.  These repeaters provide for
connection to UTP (10Base-T), thin coax (10Base2), and thick coax
(10Base5), in any combination of media.

     The instant Repeaters are imported without the chassis and
housing.  Additionally, the AT-MR112T is imported without the
internal power supply.

ISSUE:

     Are unfinished 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"? 





                               -2-

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-

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.



                               -3-

     We agree that the principal function 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. 

     The instant Repeaters will be imported without the chassis and
the housing.  Additionally, model AT-MR112T will be imported
without an internal power supply.  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 unfinished Micro Repeaters,
entered without the chassis and housing (and internal power supply
for model AT-MR112T), but complete in every other aspect, contain
all the functional elements, and as such, do have the essential
character of the finished article.
     
HOLDING:

     The Taxan USA Corporation unfinished LAN Micro Repeaters,
model numbers AT-MR111T and AT-MR112T, 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