HQ 954991: PRD 3501-92-100131; Decoder/Encoder Unit, Type A, Type B; Analog/Digital Signal Converting Apparatus Used With Aircraft Passenger Address and Visual Signaling Systems; Heading 8517, Apparatus for Line Telephony or Telegraphy; Section XVI, Note 2(b); Parts of Civil Aircraft, Heading 8803, Civil Aircraft Agreement (CAA); Victoria Distributors v. United States, 57 CCPA 76, 425 F. 2d 759, Clipper Belt Lacer Co., Inc. v. United States, Slip Op. 90-22; HQ 954719

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                

                            HQ 954991

                            FEBRUARY 1, 1994

CLA-2:CO:R:C:M    954991 JAS

CATEGORY:    Classification    

TARIFF NO.:  8531.90.00

Area Director of Customs
110 S. Fourth Street, Rm. 137
Minneapolis, MN 55401

RE:  PRD 3501-92-100131; Decoder/Encoder Unit, Type A, Type B;
     Analog/Digital Signal Converting Apparatus Used With
     Aircraft Passenger Address and Visual Signaling Systems;
     Heading 8517, Apparatus for Line Telephony or Telegraphy;
     Section XVI, Note 2(b); Parts of Civil Aircraft, Heading
     8803, Civil Aircraft Agreement (CAA); Victoria Distributors
     v. United States, 57 CCPA 76, 425 F. 2d 759, Clipper Belt
     Lacer Co., Inc. v. United States, Slip Op. 90-22; HQ 954719

Dear Sir:

     This is our decision on Application for Further Review of
Protest No. 3501-92-100131, filed against your action in
classifying certain Decoder/Encoder Units (DEU) from Germany used
aboard the Airbus A-320 aircraft.  The entry under protest was
liquidated on March 20, 1992, and this protest timely filed on
May 13, 1992.

FACTS:

     The Decoder/Encoder Units (DEU) are designated Type A and
Type B, and are said to be integral components of the A-320's
Cabin Intercommunications Data System (CIDS), apparatus which
controls audio and visual communications between pilot or flight
attendants and passengers.  In HQ 954719, dated February 1, 1994,
we held that the CIDS was classifiable in subheading 8531.80.00,
HTSUS, as other electric sound or visual signaling apparatus. 
The contents of HQ 954719 are incorporated by reference in this
decision.

     The DEU-A and B were entered under a duty-free provision in
heading 8803 for parts of airplanes and helicopters.  Counsel for
protestant supports this classification by arguing that the
described audio and visual communications function contributes to
the safe and efficient operation of the A-320 aircraft, citing - 2 -

Victoria Distributors, Inc. v United States, 57 CCPA 76, 425 F.
2d 759 (1970).  Alternatively, counsel maintains that the process
of decoding data in digital format and converting it to analog
format, and vice versa, is a data processing function appropriate
to goods of heading 8471.  Your office liquidated the entry under
a heading 8517 provision for electrical switching apparatus for
line telephony or telegraphy.   

     The provisions under consideration are as follows:

     8471.10.00     Analog or hybrid automatic data processing
                    machines...Free under the CAA

          *              *              *              *

     8517.30.20     Electric apparatus for line telephony or line
                    telegraphy: Telephonic or telegraphic
                    switching apparatus: Private branch exchange
                    switching apparatus...8.5 percent
     
          **             *              *              *

     8531.20.00     Electric sound or visual signaling apparatus:
                    Parts...2.7 percent

          *              *              *              *    

     8803.30.00     Parts of goods of heading 8801 or 8802: Other
                    parts of airplanes or helicopters...Free

ISSUE:  

     Whether the DEU-A and B are parts principally used with a
machine or apparatus of chapter 85.

LAW AND ANALYSIS:

     Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs).  GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.

     Articles of heading 8471 and articles of chapter 85 are
precluded from classification in subheading 8803.30.00.  Section
XVII, Notes 2(e) and (f), HTSUS.  Therefore, if the DEU-A and B 
are provided for in subheading 8471.10.00 or in any heading of
chapter 85, they cannot be classified in subheading 8803.30.00.   - 3 -

     The classification of goods that are identifiable as parts
of machines of chapters 84 or 85 is governed by Section XVI, Note
2, HTSUS.  As a preliminary issue, data processing machines and
units thereof provided for in heading 8471 handle information of
all kinds in pre-established logical sequences.  These are
machines which utilize pre-established instructions or programs
to furnish data to be used as such or to serve as data for other
processing operations.  While data processing machines use mostly
electronic signals, there is no evidence of, or argument that,
signal converting apparatus such as the ones in issue here
process data for purposes of heading 8471.

     The DEU-A and B are devices that have a functional
interrelationship with larger apparatus that allows both audio
and visual communication with the passengers.  The available
evidence indicates it is the DEU-A and B that initiates this
communication or permits the pilot and flight attendants access
to the audio and visual communications apparatus.  It is
reasonable to conclude, therefore, that the DEU-A and B qualify
as parts for tariff purposes, in that they are integral,
constituent and component parts necessary to the completion and
proper functioning of the larger apparatus with which they are
used.  Clipper Belt Lacer Co., Inc. v. United States, Slip Op.
90-22, decided March 13, 1990.
     
     Analog/digital signal converting apparatus is not provided
for as such in any heading of chapters 84 or 85.  Section XVI,
Note 2(a), HTSUS.  In view of our findings in HQ 954719
concerning the CIDS, we conclude that the DEU-A and B are parts
used principally, if not solely, with visual signaling apparatus
of heading 8531.  Section XVI, Note 2(b), HTSUS.    

HOLDING:

     Under the authority of GRI 1, the Decoder/Encoder Units DEU-
A and B are parts provided for in heading 8531.  They are
classifiable in subheading 8531.90.00, HTSUS.  Because the rate
of duty under this provision is higher than the claimed rate but
less than the liquidated rate you should deny the protest except
to the extent that reclassification of the goods as indicated
results in a partial allowance.  

     In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, you should mail this decision, together with the
Customs Form 19, to the protestant no later than 60 days from the
date of this letter.  Any reliquidation of the entry or entries
in accordance with the decision must be accomplished prior to
mailing the decision.  Sixty days from the date of the decision
the Office of Regulations and Rulings will take steps to make the
decision available to Customs personnel via the Customs Rulings - 4 -

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                              Sincerely,


                              John Durant, Director
                              Commercial Rulings Division