HQ 954146: Protest No. 5301-92-100422; Compaq Computer Corporation; Keyboards; ADP Desktop System; Units; HQ 950221

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 954146
                                                              
                        January 25, 1994

CLA-2 CO:R:C:M  954146 MBR

CATEGORY:  Classification

TARIFF NO.: 8471  

District Director
U.S. Customs Service
701 San Jacinto
P.O. Box 52790
Houston, Texas 77052

RE:  Protest No. 5301-92-100422; Compaq Computer Corporation;
     Keyboards; ADP Desktop System; Units; HQ 950221

Dear District Director:

     This is our response to Protest Number 5301-92-100422,
regarding the classification of keyboards for desktop Automatic
Data Processing ("ADP") machines, under the Harmonized Tariff
Schedule of the United States (HTSUS).  The subject merchandise was
entered on April 24, and April 29, 1992, and the entries were
liquidated on August 14, 1992.  The protest was timely filed on
November 12, 1992.

FACTS:

     The importer states that the entries at issue consisted of
desktop ADP systems which comprised three separate units; a
processor unit, a cathode ray tube output display unit and a
keyboard input unit.  

     The systems were classified under subheading 8471.20.00,
HTSUS, which provides for: "[a]utomatic data processing machines
and units thereof: [d]igital automatic data processing machines,
containing in the same housing at least a central processing unit
and an input and an output unit, whether or not combined," at a
duty rate of 3.9% ad valorem.

     The protestant claims that the keyboards are separately
classifiable under subheading 8471.92.20, HTSUS, which provides for
ADP keyboards, at a free rate of duty.

     The subheadings under consideration are as follows:

8471      Automatic data processing machines and units thereof...


                               -2-

8471.20.00     Digital automatic processing machines, containing
               in the same housing at least a central processing
               unit and an input and output unit, whether or not
               combined (3.9% ad valorem)

*    *    *    *    *    *    *    *    *    *    *    *    *    *

8471.92.20     Other: Input or output units, whether or not entered
               with the rest of a system and whether or not
               containing storage units in the same housing: Other:
               Keyboards  (Free rate of duty)

*    *    *    *    *    *    *    *    *    *    *    *    *    *

8471.92.40     Other: Input or output units, whether or not entered
               with the rest of a system and whether or not
               containing storage units in the same housing: Other:
               Display units: Other  (3.7% ad valorem)

ISSUE:

     Whether the ADP desktop systems are classifiable separately
according to their constituent units, or are they classifiable
together in a single provision?

LAW AND ANALYSIS:

          The General Rules of Interpretation (GRI's) to the HTSUS
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...

     The instant desktop computer systems are not classifiable
under subheading 8471.20.00, HTSUS, because this provision provides
exclusively for ADP machines containing in the same housing at
least a CPU and an input and output unit.  The instant desktop
systems do not contain an input or output unit in the same housing
with the CPU.  Subheading 8471.20.00, HTSUS, provides for what is
commonly and commercially known as laptop computers, which contain
the display and keyboard in the same housing with the CPU.

     Therefore, the ADP desktop units are separately classifiable
in their constituent headings. See HQ 950221, dated November 22,
1991, for a similar holding regarding similar merchandise.

HOLDING:

     The processor unit is classified in subheading 8471.91.00,
HTSUS, which provides for: "[d]igital processing units, whether or 


                               -3-

not entered with the rest of a system...", at a rate of 3.9% ad
valorem.

     The cathode ray tube display unit is classifiable in
subheading 8471.92.40, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof: Other: Input or output
units, whether or not entered with the rest of a system and whether
or not containing storage units in the same housing: Other: Display
units: Other," at a rate of 3.7% ad valorem.

     The ADP desk top system keyboards are classifiable in
subheading 8471.92.20, HTSUS, which provides for: "[a]utomatic data
processing machines and units thereof: Other: Input or output
units, whether or not entered with the rest of a system and whether
or not containing storage units in the same housing: Other:
Keyboards," at a Free rate of duty. 

     Since reclassification of the merchandise as indicated above
will result in a lower rate of duty then claimed, you should allow
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 this decision must
be accomplished prior to the mailing of this decision.  Sixty days
from the date of this decision the Office of Regulations and
Rulings will take steps to make this decision available to Customs
personnel via the Customs Rulings Module in ACS and the public via
the Diskette Subscription Service, Lexis, Freedom of Information
Act and other public access channels. 

                              Sincerely,





                              John Durant, Director