Reception Apparatus for Televisions; Parts and Accessories of Automatic Data Processing (ADP) Machines; Additional U.S. Rule of Interpretation 1(c);Headings 8473 and 8525; NY 880525 and NY 802809 superseded by 64 F.R. 32915

HQ 959573 June 28, 1999 CLA-2 RR:CR:GC 959573 RFA CATEGORY: Classification TARIFF NO.: 8528.12.93 Mr. Michael A. Lutz Intel Corporation 2200 Mission College Blvd. Santa Clara, CA 95052-8119 RE: Reception Apparatus for Televisions; Parts and Accessories of Automatic Data Processing (ADP) Machines; Additional U.S. Rule of Interpretation 1(c);Headings 8473 and 8525; NY 880525 and NY 802809 superseded by 64 F.R. 32915 Dear Mr. Lutz: This is in response to your letter dated June 17, 1996, to the Area Director of Customs in New York, concerning the tariff classification of an Intel PC/TV Intercast Video and Data Capture Card under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response. We regret the delay. FACTS: The Intel PC/TV Intercast Video and Data Capture Card [“PC/TV card”] is an add-in card for automatic data processing (ADP) machines (i.e., IBM-compatible Pentium personal computers). The card receives signals the same way standard TV signals are received (i.e., cable, transmission tower, or satellite). The user can simultaneously watch TV in an on-screen window and still view standard Internet format information (i.e., Web pages). The subject merchandise can also extract/decode information in the vertical blanking interval of a TV signal. ISSUE: Is the PC/TV Board classifiable as television reception apparatus under heading 8528, HTSUS, or as an accessory for ADP machines under heading 8473, HTSUS? LAW AND ANALYSIS: Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. You claim that the subject merchandise is a “part” of an automatic data processing (ADP) machine and should be classified under heading 8473, HTSUS, in accordance with Legal Note 2 to Section XVI, HTSUS. Articles are “parts” for tariff purposes if they are integral, constituent and component parts necessary to the completion of the article with which they are used. Technicolor Videocassette, Inc. v. United States, 846 F.Supp. 1005, 18 CIT 181 (1994), vacated on other grounds, 47 F.3d 1183 (Fed.Cir. 1995). The subject merchandise does not meet the definition of a “part” for an ADP machine, as it is not an integral, constituent and component part necessary to the completion of a personal computer. The subject merchandise is a printed circuit board assembly (PCBA) which allows a user to add more multimedia capabilities to their computer. Customs has previously addressed the issue of PCBAs that are plugged into a computer but perform a specific function. See HQ 955510, dated September 16, 1994, in which Customs determined that a global positioning system PCB [GPSCard] which was plugged into a computer and was receiving radio signals from a navigational satellite system was classifiable under heading 8526, HTSUS, as radio navigational aid apparatus. The subject merchandise contains a television tuner and audio processing circuitry which allow it to accept a television signal from an antenna or cable. It then processes the television signal so that it is displayable on a computer monitor. We find that the subject merchandise meets the terms of heading 8528, HTSUS, as reception apparatus. In your submission, you also cited to NY 880525 (November 24, 1992) and NY 802809 (October 13, 1994), as support for your classification of the subject merchandise under heading 8473, HTSUS. In both NY rulings, the Area Director of Customs, New York Seaport, classified PC/TV Boards under subheading 8473.30.40, HTSUS, [now subheading 8473.30.10, HTSUS], as accessories of ADP machines. However, the Office of the United States Trade Representative (USTR) issued technical corrections to the HTSUS in 64 F.R. 32915 (June 18, 1999), which reclassified PC/TV cards in subheading 8528.12.93, HTSUS. This correction supersedes the NY rulings and became effective on June 18, 1999. Based upon action by USTR in the Federal Register, we find that the Intel PC/TV Intercast Video and Data Capture Card is classifiable under subheading 8528.12.93, HTSUS. HOLDING: The Intel PC/TV Intercast Video and Data Capture Card is classifiable under subheading 8528.12.93, HTSUS, which provides for: “[r]eception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus . . .: [r]eception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: [c]olor: [o]ther: [o]ther: [o]ther: [p]rinted circuit assemblies incorporating a tuner, of a kind used with data processing machines of heading 8471....” The general, column one rate of duty is free. Sincerely, John Durant, Director Commercial Rulings Division