HQ 952621: Revocation of HQ 088772; Intel Corporation; Bart Network Interface and Ethernet Controller Board; ADP; Control or Adapter Units; 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 952621
                                                               
                        October 13, 1992

CLA-2 CO:R:C:M  952621 MBR

CATEGORY:  Classification

TARIFF NO.:  8471.99.15

Mr. William J. Maloney, Esq.
Rode & Qualey
Attorneys at Law
295 Madison Avenue
New York, N.Y. 10017

RE:  Revocation of HQ 088772; Intel Corporation; Bart Network
     Interface and Ethernet Controller Board; ADP; Control or
     Adapter Units; HQ 951331;   HQ 952659

Dear Mr. Maloney:

     On October 23, 1991, we issued HQ 088772 to you, regarding the
classification of the Intel Corporation "Bart Network Interface and
Ethernet Controller Board," under the Harmonized Tariff Schedule
of the United States (HTSUS).

     Subsequently, in HQ 951331, dated September 18, 1992, as
modified by HQ 952659, we have reconsidered the classification of
Local Area Network (LAN) equipment.  

FACTS:

     The subject merchandise is described as a network interface
and ethernet controller board which will be physically incorporated
within IBM personal computers (PCs), IBM compatible PCs, and
certain automatic data processing (ADP) units to allow the PCs and
other units to be interconnected to a LAN.

ISSUE:

     What is the classification of the "Bart Network Interface and
Ethernet Controller Board," under the Harmonized Tariff Schedule
of the United States (HTSUS)?






                               -2-

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:
 
     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 your
network interface and ethernet controller boards 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.

     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.




                               -3-

     (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 "Network Interface and Ethernet Controller Board" does 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.

     Our diligent fact finding, and 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 submitted, 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 your "Network Interface
and Ethernet Controller Board," 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 Intel Corporation "Bart Network Interface and Ethernet
Controller Board" is classifiable 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."  The
rate of duty is Free.

EFFECT ON OTHER RULINGS:

     For the reasons stated in HQ 951331, dated September 18, 1992,
(as modified by HQ 952659), HQ 088772, dated October 23, 1991, is
revoked under authority of section 177.9(d), Customs Regulations.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division

ATTACHMENT:  Copy of HQ 951331
             Copy of HQ 952659