HQ 958225: Protest 1001-95-100557; Direct Access Storage Subsystem; Disk Storage Unit; Head Disk Assembly (HDA); Parts of ADP Machines; Legal Note 5(B) to Chapter 84; HQs 957533, 957319, 956750, 955419, 954361, 952952

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 958225

                        December 19, 1995

CLA-2 RR:TC:MM 958225  RFA

CATEGORY: Classification

TARIFF NO.: 8473.30.50


Port Director of Customs
Hemisphere Center 
Routes 1 & 9 South
Room 200 
Newark, NJ 07114

RE:  Protest 1001-95-100557; Direct Access Storage Subsystem;
     Disk Storage Unit; Head Disk Assembly (HDA); Parts of ADP
     Machines; Legal Note 5(B) to Chapter 84; HQs 957533, 957319,
     956750, 955419, 954361, 952952


Dear Port Director:

     The following is our decision regarding Protest 1001-95-100557, which concerns the classification of head disk assembly
(HDA), part number 823220, under the Harmonized Tariff Schedule
of the United States (HTSUS). 

FACTS:

     The subject merchandise was invoiced as an automatic data
processing (ADP) magnetic disk drive with a diameter exceeding 21
cm, part number 823220, which is separately housed.  The
protestant claims that this part number refers to an IBM 14 inch
head disk assembly (HDA) which will be incorporated into an IBM
9335 Direct-Access Storage Subsystem (i.e., a disk storage unit)
after importation.  The IBM 9335 disk storage system is then
assembled into an IBM 9309 rack enclosure along with other
components.  According to the information provided by the
protestant, the HDA contains only the magnetic read-write heads
and aluminum coated platters (disks) on which data is written. 
The HDA does not contain the following components: a power
supply, cooling mechanism, control electronics, operator
interfaces, or chassis of covers.

     The merchandise was entered under subheading 8471.93.15,
HTSUS, as units for physical incorporation into other ADP units. 
The entries were liquidated on October 28, November 14, 18, 25,
and December 9 and 16, 1994, under subheading 8471.93.20, HTSUS,
as other storage units not for physical incorporation into ADP
units.  The protest was timely filed on January 23, 1995. 

     Classification of the merchandise under subheading
8473.30.50, HTSUS, as parts of ADP machines, is also under
consideration.

     The subheadings under consideration are as follows:

     8471.93:  Automatic data processing machines and units
               thereof; magnetic or optical readers, machines for
               transcribing data onto data media in coded form
               and machines for processing such data, not
               elsewhere specified or included: [o]ther:
               [s]torage units, whether or not entered with the
               rest of a system: [m]agnetic disk drive units:
               [f]or a disk of a diameter exceeding 21 cm: 

     8471.93.10:         Without read-write unit assembled
                         therein; read-write units separately
                         entered. . . . .

                         Goods classifiable under this provision
                         have a general, column one rate of duty
                         of free. 

     8471.93.15:         Units for physical incorporation into
                         automatic data processing machines or
                         units thereof. . . . 

                         Goods classifiable under this provision
                         have a general, column one rate of duty
                         of free. 

     8471.93.20:         Other. . . .

                         Goods classifiable under this provision
                         have a general, column one rate of duty
                         of 3.7 percent ad valorem.

     8473.30.50     Parts and accessories. . . suitable for use
                    solely or principally with machines of
                    headings 8469 to 8472: [p]arts and
                    accessories of the machines of heading 8471:
                    [n]ot incorporating a cathode ray tube:
                    [o]ther: [o]ther. . . . .

                         Goods classifiable under this provision
                         have a general, column one rate of free.

ISSUE:

     Whether the HDA, part number 823220, is classifiable as
magnetic disk drive units or as parts of ADP machines under the
HTSUS?

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's).  GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.

     To be classified as a unit of ADP machines, merchandise must
meet the criteria in Legal Note 5(B) to Chapter 84, HTSUS, which
states as follows:

     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 the
     following conditions:

     (a)  it is connectable to the central processing unit
          either directly or through one or more other
          units; 

     (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).

     In HQ 954361, dated November 2, 1993, Customs classified the
XL80 disk drive units, which were to be mounted in a rack
enclosure with other units, as storage units. The stated basis
for the decision was, as follows: 

     the disk drives meet the Chapter 84, Legal Note 5(B)
     requirements for ADP "units" since they are connectable
     to the CPU through the interface and they accept and
     deliver data in a form which can be used by the system. 
     

     The XL80 disk drives are designed to be mounted in a
     rack enclosure which consists of a cabinet, power
     supply, fan cooling and interface.  Clearly the rack
     enclosure itself does not meet the Chapter 84, Legal
     Note 5(B) requirements for ADP units since the rack
     itself is not connectable to the CPU and the rack
     itself is not able to deliver data in a form which can
     be used by the system.  In fact, the rack enclosure
     would be classifiable in subheading 8473.30.40, HTSUS,
     which provides for parts and accessories of ADP
     machines.  When the XL80 disk drives are installed in
     the rack, the rack would then be classifiable as an ADP
     unit since the disk drives are connectable to the CPU
     and are able to deliver data.  However, the rack
     enclosure itself is not classifiable as an ADP unit. 
     Thus, the XL80 disk drives cannot be said to be units
     suitable for physical incorporation into automatic data
     processing machines or units thereof since the rack is
     not an ADP unit.

     The classification of the XL80 disk drives and similar
merchandise was upheld in several rulings. See HQ 956750, dated
August 18, 1994; HQ 955419, dated February 3, 1994; HQ 952952,
dated October 26, 1993.  We believe that the IBM 9335 Direct-Access Storage Subsystem would similarly be classified as a
storage unit under subheading 8471.93.20, HTSUS.

     However, the issue in this case is whether or not the HDA,
which is part of the IBM 9335 Direct-Access Storage Subsystem, is
classifiable as a storage unit under heading 8471, HTSUS, or as a
part of ADP machines.  We find that the HDA does not meet the
chapter 84, Legal Note 5(B) requirements for ADP "units" because
it cannot accept and deliver data in a form which can be used by
the system (i.e., the HDA does not contain the operator
interfaces and control electronics).  Because the HDA does not
meet the definition of an ADP "unit", classification under
heading 8471, HTSUS is precluded.  However, the HDA is designed
to be used solely or principally with ADP machines.  Therefore,
we find that the HDA is classifiable under subheading 8473.30.50,
HTSUS. See HQ 957533, dated March 13, 1995 and HQ 957319, dated
March 8, 1995, for similar rulings dealing with the
classification of HDAs.  

HOLDING:

     For the foregoing reasons, the IBM Head Disk Assembly (HDA),
part number 823220, is classifiable under subheading 8473.30.50,
HTSUS, which provides for: "[p]arts and accessories. . . suitable
for use solely or principally with machines of headings 8469 to
8472: [p]arts and accessories of the machines of heading 8471:
[n]ot incorporating a cathode ray tube: [o]ther: [o]ther. . . . " 
Goods classifiable under this provision have a general, column
one rate of free.

     Because reclassification of the merchandise as indicated
above will result in the same rate of duty as claimed, you should
GRANT the protest in full.   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 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