HQ 954592: Protest No. 2809-93-100875; Expansion Unit for Laptop Computers; Docking Station; Automatic Data Processing machines; ADP machines; Control or Adapter Units; Legal Note 5(B) to Chapter 84; EN 84.71(I)(D)(4); 8471.99.90; NYs 860833 and 858416, modified

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 954592

                        October 26, 1993

CLA-2 CO:R:C:M 954592  RFA

CATEGORY: Classification

TARIFF NO.: 8471.99.15


District Director of Customs
555 Battery Street
P.O. Box 2450
San Francisco, CA  94126

RE:  Protest No. 2809-93-100875; Expansion Unit for Laptop
     Computers; Docking Station; Automatic Data Processing
     machines; ADP machines; Control or Adapter Units; Legal Note
     5(B) to Chapter 84; EN 84.71(I)(D)(4); 8471.99.90; NYs
     860833 and 858416, modified


Dear District Director:

     The following is our decision regarding the request for
further review of Protest No. 2809-93-100875, which concerns the
classification of expansion units for laptop computers under the
Harmonized Tariff Schedule of the United States (HTSUS).  The
entries of the subject merchandise were liquidated on April 9,
1993.  The protest was timely filed on May 5, 1993. 

FACTS:

     The subject merchandise is an IBM model 3550 expansion unit
(docking station) which provides expandability for the IBM
ThinkPad 700 notebook computer and the IBM PS/2 N51 SLC notebook
computer into the same usability as a desktop computer system. 
The expansion unit incorporates the following components: two
full size, Micro Channel 16 bit slots; a half-high drive location
for an internal storage device; an internal and an external SCSI
connector; a serial and a parallel connector; an external display
connector; a keyboard or numeric keyboard connector; a mouse or
pointing device connector; a display stand; a security lock and
built-in security hook; a power supply cable. 

     The expansion unit or docking station is designed to enhance
the functions of a laptop computer, and thus convert it into a
functional desktop computer.  It provides a mounting bay for
additional and removable disk drives, and provides for numerous
expansion slots for items such as a keyboard and a display
monitor.  With the addition of a power cord, that appears to be  marketed with this docking station, this device also provides a
power supply for the notebook computer.

     The merchandise was entered under subheading 8471.99.15,
HTSUS, as control or adapter units for automatic data processing
(ADP) machines.  The entry was liquidated under subheading
8471.99.90, HTSUS, as other units of ADPs.

     The subheadings under consideration are as follows:

     8471.99:  Automatic data processing machines and units
               thereof . . .: [o]ther: [o]ther:

     8471.99.15     Control or adapter units . . . .

          Goods classifiable under this provision have a general,
          column one free rate of duty.

     8471.99.90     Other: [o]ther . . . .

          Goods classifiable under this provision have a general,
          column one rate of duty of 3.7 percent ad valorem. 

ISSUE:

     Whether expansion units or docking stations for laptop
computers are classifiable as control or adapter units of ADPs or
as other units of ADPs under the HTSUS?

LAW AND ANALYSIS:

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

     According to the information provided, the expansion unit
provides connectors for display monitors, a keyboard, a mouse or
pointing device, and for internal storage devices.  These
capabilities are designed to enhance the use of a laptop
computer.

     Legal Note 5(B) to Chapter 84 defines units of ADP machines
as follows:

     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; 

     (b)  it is specifically designed as part of such a
          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).

     The expansion unit meets the definition of Legal Note 5(B)
because it connects to the laptop computer's central processing
unit (CPU) and it is able to accept or deliver data in a form
which can be used by the system.

     The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS.  While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings.  EN 84.71(I)(D), page
1299, describes separately presented ADP units as follows:

     This heading also covers separately presented
     constituent units of data processing systems. 
     Constituent units are those defined in Parts (A) and
     (B) above as being parts of a complete system.

     Apart from central processing units and input and
     output units, examples of such units include:

     (4)  Control and adapter units such as those to effect
          interconnection of the central processing unit to
          other digital data processing machines, or to
          groups of input or output units which may comprise
          visual display units, remote terminals, etc.

     The expansion unit interconnects the CPU of the laptop
computer with input and output units as well as increased data 
processing and storage capabilities.  Based upon EN 84.71(I)(D),
we find that the expansion unit meets the definition of "control"
or "adaption" functions.  Therefore, the expansion unit should be
classified under subheading 8471.99.15, HTSUS, as control and
adapter units for ADP machines.
  
     The entries were liquidated based upon the holdings in NY
860833, dated March 1, 1991, and NY 858416, dated December 5,
1990.  In those rulings, Customs held that expansion units or
docking stations were classifiable under subheading 8471.99.90,
HTSUS, as other units of ADP machines.  Based upon the above
analysis, we find that subheading 8471.99.15, HTSUS, is a more
specific description of the merchandise because it adapts a laptop computer for use with other ADP units.  Therefore, the
holdings in NY 860833 and NY 858416 are being modified
accordingly.  

HOLDING:

     The expansion units or docking stations are classifiable
under subheading 8471.99.15, HTSUS, as control or adapter units
for ADP machines.

     You should allow the protest in full.  In accordance with
Section 3A(11)(b) of Customs Directive 099 3550-065, dated August
4, 1993, Subject: Revised Protest Directive, this decision,
together with the Customs Form 19, should be mailed by your
office to the protestant no later than 60 days from the date of
this letter.  Any reliquidation of the entry in accordance with
the decision must be accomplished prior to mailing of 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 Module in
ACS and the public via the Diskette Subscription Service, Lexis,
Freedom of Information Act and other public access channels.

EFFECT ON OTHER RULINGS:

     NY 860833, dated March 1, 1991, and NY 858416, dated
December 5, 1990, no longer reflect the position of Customs and
are being modified pursuant to section 177.9(d) of the Customs
Regulations [19 CFR 177.9(d)].



                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division