HQ 952626: Revocation of HQ 089596; "Aster, Tamarix and Cypress" Networking Cards; Local Area Networking; HQ 951331; 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 952626                             
  
                        October 13, 1992
                               
CLA-2 CO:R:C:M  952626 MBR

CATEGORY:  Classification

TARIFF NO.:  8471.99.15

Ms. Stella C. Hall
Porter International Incorporated
P.O. Box 81488
San Diego, CA 92138

RE:  Revocation of HQ 089596; "Aster, Tamarix and Cypress"
     Networking Cards; Local Area Networking; HQ 951331; HQ 952659

Dear Ms. Hall:

     On September 17, 1991, we issued HQ 089596 to you regarding
the classification of the Lantana Technology, Inc., "Aster, Tamarix
and Cypress" LAN equipment, under the Harmonized Tariff Schedule
of the United States (HTSUS).

FACTS:

     The submitted literature stated that the specific trademarks
of the Lanatana Technology, Inc., local area networking cards are
the "Aster," the "Tamarix" and the "Cypress."  

ISSUE:

     Whether the "Aster, Tamarix and Cypress" local area networking
boards are classifiable under heading 8471, HTSUS, which provides
for "[a]utomatic data processing machines," or under heading 8517,
HTSUS, which provides for "[e]lectrical apparatus for line
telephony or telegraphy"?

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule.  GRI 1
states, in pertinent part:

     ...classification shall be determined according to the terms 
    of the headings and any relative section or chapter notes...

     Legal Note 5(B) to chapter 84, HTSUS, provides guidance
regarding units of automatic data processing machines.  It states:


                               -2-
 
     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).

     It has been asserted that networking systems such as the
"Aster, Tamarix and Cypress" are essential to the ADP systems they
are connected to because they process and format the data of the
computers they serve.  We now agree.  See HQ 951331, dated
September 18, 1992, as modified by HQ 952659, dated October 7,
1992.

     It is also important to note that the ENs, page 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.

               This category includes channel to channel adapters
          used to connect two digital systems to each other.

     (5)  Signal Converting units.  At input, these enable an
          external signal to be understood by the machine, while
          at output, they convert the output signals that result
          from the processing carried out by the machine into
          signals which can be used externally.

     The instant LAN systems do in fact effectuate interconnection
of the CPU unit to other units or ADP machines, thereby serving
control and adaption functions, as well as performing signal
conversion.  Thus, classification is appropriate in subheading
8471.99.15, HTSUS, which provides for ADP control or adapter units.



                               -3-

     Our diligent research and analysis of this issue has been
continually ongoing.  Therefore, we have learned more about this
merchandise, its functions, and its geometrically progressive
technological developments.  

     Therefore, based on the new information acquired, and in an
effort to expeditiously and accurately address this classification
issue, we have reconsidered our position.  It is now our conclusion
that the data processing features of control and adaption do in
fact represent the principal function of the this merchandise,
directing classification 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." 

HOLDING:

     The "Aster, Tamarix and Cypress" LAN networking cards are
properly 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.

EFFECT ON OTHER RULINGS:

     For the reasons stated above, HQ 089596, dated September 17,
1991, is revoked under authority of section 177.9(d), Customs
Regulations.

                              Sincerely,





                              John Durant, Director
                              Commercial Rulings Division

ATTACHMENT:    HQ 951331
               HQ 952659