Protest No. 0712-89-000177, dated 2/27/89; Control Panel; 8537; Electronic; Electrical

HQ 087051 February 28, 1991 CLA-2 CO:R:C:M 087051 MBR CATEGORY: Classification TARIFF NO.: 8537.10.00 District Director U.S. Customs Service 127 North Water St. Ogdensburg, NY 13669 RE: Protest No. 0712-89-000177, dated 2/27/89; Control Panel; 8537; Electronic; Electrical Dear Sir: This is our response regarding Further Review of Protest No. 0712-89-000177, dated February 27, 1989, which pertains to the classification of Digital Equipment Corporation "part number 70- 22007 Control Panel," manufactured by Digital Equipment of Canada, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). FACTS: The merchandise at issue consists of an on/off switch with a power cable attached and a printed circuit board assembly connected to six push button switches and two LEDs. There are no connections between the on/off switch and the printed circuit board with switches. The printed circuit board assembly performs the following operations: Sends and receives digital signals from the processing module of the CPU indicating status of the power supply and disc drive assemblies, as well as the CPU status. An indicator light is displayed if the voltage is sufficient and if the CPU is running. Timing circuitry is included on the circuit board to insure that the status information is accurate. The switches control the following functions: CPU Restart, CPU Halt Enable, Drive O Write Protect, Drive O Ready, Drive 1 Write Protect, and Drive 1 Ready. -2- ISSUE: What is the classification of "Part number 70-22007 Control Panel" for an automatic data processing machine, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)? 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... The control panel was classified under subheading 8536.90.00, HTSUSA, which provides for: "[e]lectrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge supressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 V: [o]ther apparatus." The importer protests this classification and asserts that the proper classification for the control panel is under subheading 8473.30.40, HTSUSA, which provides for: "[p]arts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with the machines of headings 8469 to 8472: [p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube." Section XVI, Legal Note 2(a) provides guidance here: 2. Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546, or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings; Heading 8537, HTSUSA, provides for: "[b]oards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, other than switching apparatus of heading 8517." -3- Clearly, the instant control panel is equipped with two or more apparatus of heading 8536 (electrical apparatus for switching...or for making connections to or in electrical circuits). Pursuant to Section XVI, Legal Note 2(a), even though the control panel is prima facie classifiable under the provision for parts and accessories of the [ADP] machines of 8471, the control panel is a part which is a good included in heading 8537, HTSUSA. Therefore, the control panel is properly classifiable under heading 8537, HTSUSA. The importer argues that the control panel functions are electronic and not electrical. The Computer Glossary, Fourth Edition, by Alan Freedman, defines "electronic" as follows: Electronic is the use of electricity in intelligence-bearing devices, such as telephones, radios, televisions, instrumentation, analog and digital computers and telecommunications. Thus, "electronic" apparatus uses electricity and is consequently "electrical" apparatus. The importer also argues that this control panel is "more than" a control panel. However, all the information presented demonstrates that the instant merchandise is "for electric control or the distribution of electricity," as provided for in heading 8537, HTSUSA. HOLDING: The Digital Equipment "Part number 70-22007 Control Panel" is classifiable under subheading 8537.10.00, HTSUSA, which provides for: "[b]oards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, other than switching apparatus of heading 8517." Since the rate of duty under the classification indicated above is the same as the liquidated rate, you should deny the protest in full. A copy of this decision should be attached to the Form 19 Notice of Action. Sincerely, John Durant, Director Commercial Rulings Division