The tariff classification of notebook computer subassemblies and daughter boards from Taiwan, Japan, and Mexico

NY B82539 February 27, 1997 CLA-2-84:RR:NC:1:110 B82539 CATEGORY: Classification TARIFF NO.: 8473.30.1000; 8473.30.5000; 8471.30.0000 Ms. Marian Wills Dell Computer Corporation One Dell Way Round Rock, TX 78682 RE: The tariff classification of notebook computer subassemblies and daughter boards from Taiwan, Japan, and Mexico Dear Ms. Wills: In your letter dated February 18, 1997, you requested a tariff classification ruling. The merchandise under consideration involves three configurations of notebook computer subassemblies, and daughter boards for notebook computers, that are shipped in three configurations. The three configurations for the notebook computer subassemblies consist of the following: Configuration 1 Notebook computer(Titanium CD) that includes memory, CPU chip, 12.2" TFT LCD flat panel display, keyboard, and an installed CDROM. It will be imported without the systems BIOS chip, software, and floppy or hard drives. Configuration 2 Notebook computer (Latitude LM133) that includes either a 10.4" or 12.2 TFT LCD flat panel display, keyboard, system BIOS chip, and memory. It will be imported without the CPU processor chip, software, and floppy or hard disk drives. Configuration 3 Notebook computer (Latitude LM8051) which includes either a 10.4" or 12.2" TFT LCD flat panel display, keyboard, system BIOS chip, CPU , and memory. The notebook computer will be imported without the keyboard BIOS chip, software, floppy or hard drives, and CDROM. In both Configuration 1 and 2, the merchandise consisted of a notebook subassembly that was missing either a CPU chip or system BIOS chip. Both of these scenarios have been ruled on in the past, noting HQ 957524, 955608, 954411, 957489, 957287 and NY ruling B80848. Since these subassemblies did not have the "essential character" of a complete or finished digital processing unit, as per Legal Note 5 (A) to Chapter 84 of the HTS, they were ruled to fall under the parts/accessories provision under 8473. Configuration 3 consists of an otherwise complete main board, with CPU, memory, and the system BIOS, in addition to a flat panel display and keyboard. HQ, and the International Trade Court, in Intel vs. U.S., Slip Op. 95-83, have consistently ruled that motherboards that contain a CPU chip, system BIOS, and memory, are themselves an unfinished ADP machine. Since this configuration includes a digital processing unit that meets the definition of Legal Note 5 (A) to Chapter 84, the lack of a keyboard BIOS chip would not preclude it from being considered an unfinished digital processing unit as per GRI-2 (a). The applicable subheading for the notebook computer subassemblies under Configuration 1 and 2 will be 8473.30.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for other parts and accessories of the machines of heading 8471. The rate of duty will be free. The applicable subheading for the unfinished notebook computer under Configuration 3 will be 8471.30.0000, HTS, which provides for portable digital automatic data processing machines, weighing not more than 10kg, consisting of at least a central processing unit, a keyboard, and a display. The rate of duty will be 2.7 percent ad valorem. The daughter boards (models Zermatt and Stratton) for these notebook computers, which will be separately shipped, will be imported under three different scenarios. Under the first scenario, the daughter card could contain both the processor chip and memory. Under the second, the daughter card could contain the processor chip but without memory. Under the third, the daughter card could contain memory but without the processor chip. In all cases though, the daughter card will be imported either without the CPU chip or the BIOS chip. Based on prior rulings, such as HQ 951566, these types of daughter boards have been ruled not to meet the definition of a digital processing unit as per Legal Note 5 (A) to Chapter 84. The applicable subheading for the daughter boards, imported under scenarios 1-3, will be 8473.30.1000, HTS, which provides for printed circuit assemblies. 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 Art Brodbeck at 212-466-5490. Sincerely, Robert B. Swierupski Chief, Metals & Machinery Branch National Commodity Specialist Division