Reconsideration of HQ 083588 (September 22, 1989) Regarding The Arithmetic Logic Unit Components of the AXE 10 Central Office Telephone Switch; Modification of HQ 083588 dated September 22, 1989; Automatic Data Processing Machine; Parts

HQ 086399 January 24, 1991 CLA-2 CO:R:C:G 086399 MBR CATEGORY: Classification TARIFF NO.: 8473.30.40 Mr. Joseph A. Black Dewey, Ballantine, Bushby, Palmer & Wood 1775 Pennsylvania Avenue, N.W. Washington, D.C. 20006 RE: Reconsideration of HQ 083588 (September 22, 1989) Regarding The Arithmetic Logic Unit Components of the AXE 10 Central Office Telephone Switch; Modification of HQ 083588 dated September 22, 1989; Automatic Data Processing Machine; Parts Dear Mr. Black: By letter dated January 24, 1990, you requested a reconsideration of Ruling Letter HQ 083588, dated September 22, 1989, regarding the classification of the Arithmetic Logic Unit ("ALU") components of the Ericsson AXE 10 central office telephone switch, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). FACTS: Your request for reconsideration encompasses only the classification of the Arithmetic Logic Unit (part number ROF 137 1663). You have submitted additional information regarding the ALU and its function. The AXE 10 is a central office telephone network switching system. It is composed of printed board assemblies contained in mechanical frames (termed magazines) which are housed in cabinets. The ALU is a component of the central processing unit (CPU) of the control system of the Ericsson Central Office Switch. The circuit board at issue is one of at least 25 circuit boards in the CPU. There are three ALU boards in the CPU; one is in the signal processor and two are in the instructional processor. The signal and instructional processors are not separate processors and can not function independently. All three of these boards contain microprocessors, but each board performs different functions. The board at issue, ROF 137 1663, is one of the ALU boards in the instructional processor. This board contains the register memory, comparison circuits and parity check circuits. ISSUE: Is a board of the Arithmetic Logic Unit (part number ROF 137 1663) properly classifiable under heading 8471, HTSUSA, which provides for automatic data processing machines and units thereof, or under heading 8473, HTSUSA, which provides for parts and accessories suitable for use solely or principally with machines of headings 8469 to 8472. LAW AND ANALYSIS: In HQ 083599, the ALU board was classified under subheading 8471.91.00, HTSUSA, which provides for: "Digital processing units, whether or not entered with the rest of a system...." However, you argue that the ALU is properly classifiable under 8473.30.00, HTSUSA, which provides for: "Parts and accessories of the machines of heading 8471." Legal Note 5(A)(a), chapter 84, states: (A) For the purposes of heading 8471, the expression "automatic data processing machines" means: (a) Digital machines, capable of (1) storing the processing program or programs and at least the data immediately necessary for the execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and (4) executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run. Imported separately, the ROF 137 1663 board that goes into the ALU portion of the CPU would not meet the definition of a digital processing machine as required by Legal Note 5(A)(a) to chapter 84, since this board contains only the register memory, comparison circuits and parity check circuits. Therefore, in light of the additional information you have submitted, we now agree that one board, comprising half of the ALU, cannot constitute the essential character of the CPU. Furthermore, Additional U.S. Rule of Interpretation 1.(a) states: A Tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use. You have persuaded us that part number ROF 137 1663 is of the class or kind used in general purpose ADP machines. Therefore, when imported separately, this part is not classifiable in heading 8517, HTSUSA, which provides for electrical apparatus for line telephony or telegraphy. HOLDING: Part number ROF 137 1663 (one board comprising half of the arithmetic logic unit of the CPU) is classified 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 machines of headings 8469 to 8472: [p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube." EFFECT ON OTHER RULINGS: HQ 083588, dated September 22, 1989, is modified only to reflect that part number ROF 137 1663 is properly classifiable under subheading 8473.30.40, HTSUSA. HQ 083588 is modified under authority of Section 177.9(d), Customs Regulations. Sincerely, John Durant, Director Commercial Rulings Division