The tariff classification of a Small Computer System Interface Card (SCSI) from Singapore or Korea.

NY G87362 March 2, 2001 CLA-2-84:RR:NC:1:110 G87362 CATEGORY: Classification TARIFF NO.: 8471.80.1000 Ms. Jill Franze Hewlett-Packard Company Customs Department 3000 Hanover St., MS 20BG Palo Alto, CA 94304 RE: The tariff classification of a Small Computer System Interface Card (SCSI) from Singapore or Korea. Dear Ms. Franze: In your letter dated February 8, 2001, on behalf of Hewlett-Packard Company you requested a tariff classification ruling. The merchandise under consideration is the Hewlett-Packard Company (HP) products number “A6703A ULTRA-160,” a Small Computer System Interface, hereafter referred to under its commercially recognized acronym, “SCSI.” The HP “A6703A, ULTRA-160” SCSI is a printed circuit board (PCB) populated with a SCSI controller that provides an interface between the server and SCSI devices (i.e. disk drives, tape drives, CD-ROMs, DVD-ROMs, etc.). SCSI cards are adapters by virtue of enabling the transfer of data from the host computer to the peripherals and vice-versa, where the data remains intact and the adapting function is to implement the standard protocols on both sides of the transfer. The HP “A6703A ULTRA-160” SCSI contains a memory chip that stores identification information, power source, diodes, resistors, capacitors, and buffers used for driving current. The HP “A6703A ULTRA-160” SCSI supports a 68-pin high density SCSI connector for internal connection, incorporates a 68-pin VHDCI SCSI connector for external connection, enables hi-speed data transfers and is capable of supporting up to 30 SCSI devices from its dual-port adapter. In regard to your inquiry as to published rulings addressing the classification of SCSI cards under heading 8471, “Automatic data processing machines and units thereof…” (emphasis added) or heading 8473, “Parts and accessories…with machines of headings 8469 to 8472…” (emphasis added). It is noted that classification of merchandise under the Harmonized Tariff Schedule of the United States (HTS) is in accordance with the General Rules of Interpretation (GRI’s). 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 HTS, the Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) which constitute the official interpretation of the Harmonized Tariff Schedule at the international level may be utilized. The EN’s although not dispositive or legally binding, provides a commentary on the scope of each heading of the HTS, and is generally indicative of the proper interpretation of these headings. Legal Note 5(B) to chapter 84, HTS, which provides guidance regarding units of automatic data processing machines, states “Automatic data processing machines may be in the form of systems consisting of a variable number of separate units.” A unit is to be regarded as being a part of the complete system if it meets all of the following conditions: It is of a kind solely or principally used in an automatic data processing system; It is connectable to the central processing unit either directly or through one or more other units; and It is able to accept or deliver data in a form (codes or signals) which can be used by the system. Not every article used with another article or machine is a “part” for tariff purposes, United States v. Cody Manufacturing Co., Inc., 44 CCPA 67, C.A.D. 639 (1957). A part is defined as committed for use and necessary to the operation of the machine. To be considered a part of an ADP machine, the item must be an integral, constituent component essential to the operation of the machine. The fact that this SCSI card needs to be incorporated within a system housing or chassis does not mandate its classification as a part. General Electric Company v. United States, 2 CIT 84, (1981). The Hewlett-Packard A6703A, ULTRA-160 SCSI card meets the definition of a unit as per Legal Note 5(B) to chapter 84, HTS. Explanatory Notes for 84.71 list control and adaptor units as a type of automatic data processing units. The applicable subheading for the Hewlett-Packard “A6703A ULTRA-160” will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Automatic data processing machines and units thereof… Other units of automatic data processing machines: Control or adapter units.” The rate of duty will be free. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Eileen S. Kaplan at 212-637-7019. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division