HQ 955728: Power Supply Modules for ADP Machines; Static Converters; Explanatory Notes 85.04(II) and 84.71(D); Chapter 84, Note 5(B); HQs 087907, 083956, 087050, 086513, and 953463; NY 851581; 8504.40.80

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 955728
                          June 29, 1994


CLA-2 CO:R:C:M 955728 DWS

CATEGORY: Classification

TARIFF NO.: 8471.99.32

Mr. Stephen S. Spraitzar
George R. Tuttle, P.C.
Three Embarcadero Center, Suite 1160
San Francisco, CA 94111

RE: Power Supply Modules for ADP Machines; Static Converters; 
    Explanatory Notes 85.04(II) and 84.71(D); Chapter 84, 
    Note 5(B); HQs 087907, 083956, 087050, 086513, and 953463;   
     NY 851581; 8504.40.80

Dear Mr. Spraitzar:

     This is in response to your letters of January 10, May 5, and
June 2, 1994, on behalf of Astec America, Inc., concerning the
classification of power supply modules under the Harmonized Tariff
Schedule of the United States (HTSUS).

FACTS:

     The merchandise consists of power supply modules (model nos.
AM80A, BM80A, AL80A, AL60A, and AK80) which are specifically
designed and principally used for physical incorporation into
automatic data processing (ADP) machines or ADP peripheral systems. 
The principal function of the power supply modules is to supply to
an ADP system a voltage which is highly stabilized and regulated. 


     The AM80A includes linear programming capability and the
ability to monitor circuits.  It also has a computer control
interface, designed to comply with world-wide safety agencies.  It
has a maximum output of 240 watts (W).  The BM80A possesses the
same features as the AM80A, except it has a maximum output of 300
W.  The AL80A operates at a maximum power output of 240 W and
possesses the same features as the AM80A except for over-voltage
programming.  The AL60A has the same features as the AL80A, except
it has a maximum power output of 120 W.  The AK80A is the "low-
end" module with a maximum power output of 240 W, but with fewer
features than the AM80A and the AL80A.

      All of the power supply modules also possess transient
suppression of electromagnetic transmissions; current overload
protection; energy storage; over-voltage, over-current, and over-
temperature protection; computer interface capability; and on-off
capability.

     The subheadings under consideration are as follows:

     8504.40.80: [s]tatic converters: [o]ther.

     The general, column one rate of duty for goods classifiable
     under this provision is 3 percent ad valorem.

     8471.99.32: [a]utomatic data processing machines and units
                 thereof . . . : [o]ther: [o]ther: [p]ower 
                 supplies: [u]nits suitable for physical 
                 incorporation into automatic data processing
                 machines or units thereof.

     Goods classifiable under this provision receive duty-free
     treatment.

ISSUE:

     Whether the power supply modules are classifiable under
subheading 8504.40.80, HTSUS, as other static converters, or under
subheading 8471.99.32, HTSUS, as power supply units suitable for
physical incorporation into ADP machines.

LAW AND ANALYSIS:

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

     In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized.  The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS.  See
T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).  In part,
Explanatory Note 85.04(II) (pp. 1338, 1339) states:

                (II) ELECTRICAL STATIC CONVERTERS

     The apparatus of this group are used to convert electrical
     energy in order to adapt it for further use.  They          
      incorporate converting elements (e.g., valves) of different 
      types.  They may also incorporate various auxiliary devices 
      (e.g., transformers, induction coils, resistors, command   
       regulators, etc.).  Their operation is based on the       
        principle that the converting elements act alternately as 
        conductors and non-conductors. . . 

     This group includes:

     (A)-(C) xxx

     (D) Direct current converters by which direct current is    
          converted to a different voltage. . . 

     This heading also includes stabilised suppliers (rectifiers
     combined with a regulator), except those specifically       
      designed to form a unit of heading 84.71.

     In part, Explanatory Note 84.71(D) (pp. 1299, 1300) states:

                 (D) SEPARATELY PRESENTED UNITS

     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:

     (1)-(5) xxx

     (6) Power supply units, whose main function is to supply
         continuously, under the control of the system to which
         they belong, the appropriate stabilised power level in
         response to the requirements of the various units making 
         up the system.

     Chapter 84, note 5(B), HTSUS, states that:

     (B) 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 power supply modules operate in part as 
static converters.  However, it is our position that with the
ability of the modules to perform other functions, they are not
described under heading 8504, HTSUS.  Therefore, we find that the
merchandise is not classifiable under subheading 8504.40.00, HTSUS. 
Also, even if the power supply modules were described under heading
8504, HTSUS, Explanatory Note 85.04 precludes their classification
in that provision because it is our position that they are
specifically designed to form units of heading 8471, HTSUS.

     In HQ 087907, dated July 26, 1991, a power supply unit similar
to the subject merchandise was held to be classifiable under
heading 8471, HTSUS.  The unit performed the various functions of
transforming higher voltage into lower voltage, controlling
electrical noise, storing power in the event of a power disruption,
causing the computer to store data, and shutting the power supply
down in the event of a malfunction.  See also NY 851581, dated
April 28, 1990, HQ 083956, dated April 12, 1989, and HQ 087050,
dated August 21, 1990.

     It is our position that the power supply modules meet the
terms of heading 8741, HTSUS, and Explanatory Note 87.41.  First
they are units of ADP machines.  In HQ 086513, dated March 2, 1990,
it was stated that:

     [l]egal Note 5(B) denotes that power supplies are units of  
      ADP machines even though they do not accept or deliver code 
      or signals to the system, and that power supplies, entered 
     separately are to be classified in heading 8471 (which
     provides for units) . . . 

     Therefore, classification of power supplies for ADP machines 
     appropriate under subheading 8471.99.30, HTSUSA, which 
     unequivocally provides for ADP power supplies.  (emphasis 
     supplied).

     Therefore, power supplies for ADP machines are units of ADP
machines and are specifically classifiable under heading 8471,
HTSUS.

     Second, the subject power supply modules meet the definition
of power supply units in Explanatory Note 84.71.  It is our
position that the modules supply continuously under the control of
the ADP system to which they belong, the appropriate power level
in response to the requirements of the units making up the ADP
system.  For example, an ADP system exerts control over a power
supply module by causing it, in response to an increased power
demand (i.e., uploading a computer program from the disk drive),
to supply the appropriate power level (current) in response to the
requirements of the system.     

     In HQ 953463, dated September 28, 1993, we held power supply
units, similar to the subject merchandise, which were suitable for
physical incorporation into ADP machines to be classifiable under
subheading 8471.99.32, HTSUS.

     Therefore, in accordance with our previous holdings, it is
our position that the subject power supply modules are classifiable
under subheading 8471.99.32, HTSUS.

HOLDING:

     The power supply modules (model nos. AM80A, BM80A, AL80A,
AL60A, and AK80) are classifiable under subheading 8471.99.32,
HTSUS, as power supply units suitable for physical incorporation
into ADP machines.

                           Sincerely,



                            John Durant, Director