HQ 952993: Hitachi Automatic Teller Machine Switching/Multiplexor; ATM; Switching Node; Multiplexing Node; Data Transmission; Parts of ATM Machines; 8473; 8517

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 952993
                                                               
                        February 8, 1993

CLA-2 CO:R:C:M  952993 MBR

CATEGORY:  Classification

TARIFF NO.:  8517.82.00

Mr. A. J. Spatarella
Kanematsu USA Inc.
114 West 47th Street, 23rd Floor
New York, N.Y. 10036

RE:  Hitachi Automatic Teller Machine Switching/Multiplexor; ATM;
     Switching Node; Multiplexing Node; Data Transmission; Parts
     of ATM Machines; 8473; 8517

Dear Mr. Spatarella:

     This is in reply to your letter of October 13, 1992, on behalf
of Hitachi, regarding the classification of the "ATM
Switching/Multiplexor," under the Harmonized Tariff Schedule of the
United States (HTSUS).  Your letter was forwarded to this office
for reply.

FACTS:

     The Hitachi Automatic Teller Machine (ATM)
Switching/Multiplexor (SW/MUX) for Hughes Network Systems is
described as a switching node for ATM cells in an ATM network, and
as a multiplexing node at the stage preceding the ATM switching
system (to multiplex cell based DS1 or DS3 signals in such a manner
that they will match the ATM system interface).

     The ATM SW/MUX has a multiplex bus configuration in which a
network bus structure is formed to multiplex cells on the bus, in
order to acquire economical extensibility.  The bus throughput is
approximately 320 MB/s, creating ample capacity for future
extension.     

ISSUE:

     Is the "Hitachi ATM Switching/Multiplexor" classifiable under
heading 8517, HTSUS, which provides for: "[e]lectrical apparatus
for line telephony or telegraphy, including such apparatus for
carrier-current line systems," or is it classifiable under
subheading 8473.30.40, HTSUS, which provides for parts and 

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accessories of automatic data processing machines, or is it
classifiable under subheading 8473.40.30, HTSUS, which provides for
parts and accessories of the machines of heading 8472 (automatic
banknote dispensers)?

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule.  GRI 1
states, in pertinent part:

     ...classification shall be determined according to the terms 
    of the headings and any relative section or chapter notes...

     The Hitachi ATM Switching/Multiplexor is prima facie
classifiable under the following provisions:

     8517 Electrical apparatus for line telephony or telegraphy,
          including such apparatus for carrier-current line
          systems:

     8517.82.00     Other apparatus: Telegraphic

*    *    *    *    *    *    *    *    *    *    *    *    *    *

     8473 Parts and accessories (other than covers, carrying cases
          and the like) suitable for use solely or principally with
          machines of headings 8469 to 8472:

     8473.30.40     Parts and accessories of the machines of
                    heading 8471: Not incorporating a cathode ray
                    tube

*    *    *    *    *    *    *    *    *    *    *    *    *    *

     8473 Parts and accessories (other than covers, carrying cases
          and the like) suitable for use solely or principally with
          machines of headings 8469 to 8472:

     8473.40.20     Parts and accessories of the machines of
                    heading 8472: Of automatic banknote dispensers
                    and other coin or currency handling machines
                    of subheading 8472.90.20

     Since the HTSUS came into effect there has been a great deal
of controversy regarding the classification of ADP data
transmission and reception apparatus.  However, there is no clear
classification guidance from either the HTSUS or the Harmonized
Commodity Description and Coding System Explanatory Notes (ENs),
primarily due to the technological advancements in this area.  
Customs has recently addressed the issue of data communication
between ADP machines and units thereof in HQ 952659, dated October 

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7, 1992.  However, Automatic Teller Machines are not classifiable
as ADP machines, or units thereof, even though they may be
connected to an ADP network.  See HQ 086537, dated April 17, 1990,
regarding the classification of ATM machines, and parts thereof. 
Therefore, the Hitachi ATM SW/MUX is not classifiable under
subheading 8473.30.40, HTSUS, which provides for parts and
accessories of ADP machines.

     However, the Hitachi SW/MUX is still prima facie classifiable
both as telegraphic apparatus and parts of automatic banknote
dispensers.  Legal Note 2(a) to section XVI, which governs both
subheadings at issue, provides guidance as follows:

2.   Subject to note 1 to this section, note 1 to chapter 84 and
     to note 1 to chapter 85, parts of machines (not being parts
     of the articles of heading 8484, 8544, 8545, 8546 or 8547) are
     to be classified according to the following rules:

     (a)  Parts which are goods included in any of the headings of
          chapters 84 and 85 (other than headings 8485 and 8548)
          are in all cases to be classified in their respective
          headings;

     It is Customs position that the Hitachi SW/MUX is included in
the heading of 8517, HTSUS, and is therefore classifiable in that
heading.

HOLDING:

     The "Hitachi Switching/Multiplexor" is classifiable in
subheading 8517.82.00, HTSUS, which provides for: "[e]lectrical
apparatus for line telephony or telegraphy, including such
apparatus for carrier-current line systems: [o]ther apparatus:
[t]elegrapic."  The rate of duty is 4.7% ad valorem.

                              Sincerely,




                              John Durant, Director