HQ 086513: Your investigation No. 332-273 regarding U.S. Customsclassification of power supplies for ADP machines

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 086513

                          March 2, 1990

CLA-2 CO:R:C:G 086513 MBR

CATEGORY:  Classification

Eugene A. Rosengarden
Director
Office of Tariff Affairs
   and Trade Agreements
500 E St., S.W.
Washington, DC 20436

RE: Your investigation No. 332-273 regarding U.S. Customs
classification of power supplies for ADP machines

Dear Gene:

     In your letter of February 12, 1990, you inquired as to
Customs classification of power supplies for ADP machines in
light of the decision in Digital Equipment Corp. v. U.S., 889
F.2d 267 (1989) (hereafter "DEC").

     The DEC decision was a classification issue under the Tariff
Schedules of the United States (TSUS).  The Harmonized Tariff
Schedule of the United States (HTSUSA) is significantly
different from TSUS in this area.  Thus, although power supplies
for ADP machines were held to be "parts" in the DEC decision, the
DEC decision is not binding on classifications under the present
HTSUSA.

     Under the HTSUSA, power supplies for ADP machines are
provided for, eo nomine, under subheading 8471.99.30, HTSUSA,
which provides for: "Automatic data processing machines and units
thereof; [o]ther: [o]ther: [p]ower supplies."

     Furthermore, Legal Note 5(B) to chapter 84 states:

     (B) Automatic data processing machines may be in the form of
     systems consisting of a variable number of separately housed
     units.  A unit is to be regarded as being a part of the
     complete system if it meets all the following conditions:

          (a) It is connectable to the central processing unit
          either directly or through one or more other units; and

          (b) It is specifically designed as part of such system
          (it must, in particular, unless it is a power supply
          unit, be able to accept or deliver data in a form (code
          or signals) which can be used by the system).

          Such units entered separately are also to be classified
          in heading 8471.

     It is Customs position that the statement: "[a] unit is to
be regarded as being a part of the complete system" means "a unit
is to be regarded as a unit of the complete system."
Additionally, Legal Note 5(B) denotes that power supplies are
units of ADP machines even though they do not accept or deliver
code or signals to the system, and that power supplies, entered
separately are to be classified in heading 8471 (which provides
for units), not 8473 (which provides for parts of units and
accessories).

     Therefore, classification of power supplies for ADP machines
is appropriate under subheading 8471.99.30, HTSUSA, which
unequivocally provides for ADP power supplies.  Please see
attached rulings HQ 083956 (dated April 12, 1989), NY 834022
(dated December 5, 1988) and NY 832482 (dated October 4, 1988).

     If you have any question concerning this issue, please
contact me or Matthew Riley, Esq. (566-8181).

                              Sincerely,




                              Harvey B. Fox, Director
                              Office of Regulations and Rulings