HQ 955695: ADP Subassembly Configurations; GRI 2(a); HQ 954411; Chapter 85, Note 6

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 955695
                          March 27, 1995


CLA-2 CO:R:C:M 955695 DWS

CATEGORY: Classification

TARIFF NO.: 8473.30.50; 8524.90.40

Mr. Eric S. C. Wong
Dynasty Customs Broker Inc.
901 Sneath Lane, Suite 206
San Bruno, CA 94066

RE: ADP Subassembly Configurations; GRI 2(a); HQ 954411;
    Chapter 85, Note 6

Dear Mr. Wong:

     This is in response to your letters of November 12, 1993, to the Area Director of Customs,
New York Seaport, and January 4, 1994, to this office, on behalf of Compac Microelectrics Inc.,
concerning the classification of various automatic data processing (ADP) machine subassembly
configurations under the Harmonized Schedule of the United States (HTSUS).  We regret the
delay in responding.

FACTS:

     The proposed ADP subassemblies for lap-top computers are as follows:

CONFIGURATION 1

     - Monochrome liquid crystal display (LCD) notebook computer          without a central
processing unit (CPU) chip and hard disk         drive.

CONFIGURATION 2

     - Color LCD notebook computer without a CPU chip and hard
       disk drive.

CONFIGURATION 3

     - Monochrome notebook computer without a CPU chip, hard
       disk drive, floppy disk drive, and memory.

CONFIGURATION 4

     - Color LCD notebook computer without a CPU chip, hard 
       disk drive, floppy disk drive, and memory.

     It is our understanding that each of the subassembly configurations are imported with software
diskettes.

     The subheadings under consideration are as follows:

     8473.30.50: [p]arts and accessories . . . 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: [o]ther:
[o]ther.

     Goods classifiable under this provision receive duty-
     free treatment.

     8524.90.40: . . . other recorded media for sound or other
                 similarly recorded phenomena . . . : [o]ther:
                 [o]ther.

     The general, column one rate of duty for goods classifiable
     under this provision is 9.7 cents per m2 of recording 
     surface.

ISSUE:

     Whether the subject four ADP subassembly configurations are classifiable under subheading
8473.30.50, HTSUS, as other parts of the machines of heading 8471, HTSUS, not incorporating
a cathode ray tube.

     Whether the software diskettes are classifiable under subheading 8524.90.40, HTSUS, as other
recorded media for sound or similarly recorded phenomena.

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in accordance with the General Rules of
Interpretation (GRI's).  
GRI 1 provides that classification is determined according to the terms of the headings and any
relative section or chapter notes.

     Because the subassembly configurations may be unfinished machines, GRI 2(a) must be
consulted.  It states that:

     [a]ny reference in a heading to an article shall be taken to
     include a reference to that article incomplete or                  unfinished, provided that, as
entered, the incomplete or
     unfinished article has the essential character of the
     complete or finished article.  It shall also include a             reference to that article complete or
finished (or falling         to be classified as complete or finished by virtue of this         rule), entered
unassembled or disassembled.

      In HQ 954411, dated October 19, 1993, we held that similar merchandise, imported without a
CPU chip, were classifiable under heading 8471, HTSUS.  In that ruling, we stated that:

     [c]ustoms has consistently held that the CPU is the heart of
     an ADP system since it performs the processing.  It 
     determines the systems power, capacity, and speed at which
     it will operate.  Therefore, it is not possible to have the
     essential character of an automatic data processing 
     personal computer without the microprocessor chip.

     Because the subject subassembly configurations do not possess CPU chips, they do not impart
the essential character of finished ADP machines.  Therefore, they cannot be classifiable as ADP
machines.  Also, we find that, in their imported state as subassemblies, the configurations do not
impart the essential character of any of their constituent components.

     Consequently, the subassembly configurations are classifiable under subheading 8471.30.50,
HTSUS.

     With regard to the software diskettes, chapter 85, note 6, HTSUS, states that:

     [r]ecords, tapes and other media of heading 8523 or 8524
     remain classified in those headings, whether or not they
     are entered with the apparatus for which they are intended.

     Therefore, the software diskettes are classifiable under subheading 8524.90.40, HTSUS.

HOLDING:

     The four ADP subassembly configurations described herein are classifiable under subheading
8473.30.50, HTSUS, as other parts of heading 8471, HTSUS, not incorporating a cathode ray
tube.

     The software diskettes are classifiable under subheading 8524.90.40, HTSUS, as other
recorded media for sound or similarly recorded phenomena.

                            Sincerely,



                            John Durant, Director
                            Commercial Rulings Division