The tariff classification of a motherboard subassembly from Japan.

NY H84083 July 27, 2001 CLA-2-84:RR:NC:1:110 H84083 CATEGORY: Classification TARIFF NO.: 8473.30.5000 Mr. Mitchell Neriah Customs Consulting Services 415 S. Prospect Ave., Ste. 110 Redondo Beach, CA 90277 RE: The tariff classification of a motherboard subassembly from Japan. Dear Mr. Neriah: In your letter dated July 19, 2001, on behalf of your client Toshiba America Information Systems, Inc. (TAIS) you requested a tariff classification ruling. The merchandise under consideration is the Toshiba “SUB MB ASSY” motherboard subassembly. A picture of the “SUB MB ASSY” was submitted with your ruling request. The “SUB MB ASSY” is a subassembly for the Toshiba Model Magnia 7010, a network server for automatic data processing (ADP) machines. This subassembly is designed specifically for the Model Magnia 7010 and will be permanently installed inside the Magnia 7010 cabinet after importation. In its imported condition, the “SUB MB ASSY” subassembly consists of a metal sheeting tray enclosure, onto which the main processor printed circuit assembly (PCA) or motherboard is attached. The “SUB MB ASSY” subassembly is imported without the central processing unit (CPU). Toshiba assembles the Magnia 7010 to customer specification with options such as different CPU’s and storage capacities. With the exception of the CPU, the motherboard is completely populated with a basic input/output system (BIOS) and synchronous dynamic random access memory (SDRAM). The subassembly also includes two cooling fans for the motherboard, mounted near the CPU connector socket. When completely assembled after importation, the Toshiba Model Magnia 7010 server will have a CPU, a basic input/output system (BIOS) used in ADP machine, and 432GB of storage capacity and software. In its completed condition, the Toshiba Model Magnia 7010 server would appear to meet the definition of an ADP machine as defined under chapter 84, Note 5(A)(a). Noting Legal Note 2(b) to Section XVI of the Harmonized Tariff Schedule of the United States (HTS), parts of machines if suitable for use solely or principally with a particular kind of machine, are to be classified with the machines of that kind. The “SUB MB ASSY” motherboard subassembly appears to be principally used as parts of an automatic data processing machine. Customs has consistently held that the CPU is the heart of an ADP system because it performs the processing. It determines the systems power, capacity, and speed at which it will operate. Therefore, it is not possible to have the essential character of an automatic data processing system without the microprocessor chip. In HQ 954411, Customs determined that a laptop personal computer [housing a liquid crystal display (LCD), track ball, keyboard, floppy disk drive, hard disk drive, power supply, main logic board (without the CPU chip)] did not impart the essential character of a finished ADP unit because the processor itself was not imported with the laptop computer. Customs also determined that, in their imported state as subassemblies, this merchandise also did not have the essential character of any of their constituent components/parts. Customs then concluded that this subassembly is necessary to the completion of an ADP system, as an integral, constituent, and component part. Therefore, for tariff purposes, it should be considered “parts” of the machines of 8471, HTSUS. The applicable subheading for the “SUB MB ASSY” will be 8473.30.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other.” 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