HQ 955234: Modification of NY 858416; 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

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 955234

                        October 26, 1993

CLA-2 CO:R:C:M 955234  RFA

CATEGORY: Classification

TARIFF NO.: 8471.99.15


Mr. Jaime Benchimol
Ogivar Technologies
7200 Route Transcanadienne
Ville Saint-Laurent
Quebec, Canada H4T 1A3


RE:  Modification of NY 858416; 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


Dear Mr. Benchimol:

     This is in reference to a ruling issued to you by the Area
Director of Customs in New York on December 5, 1990 (NY 858416),
concerning the classification of the Interport 386 Computer from
Canada.  We have recently reviewed the classification of
expansion units or docking stations for laptop computers and, for
the following reasons, find that NY 858416 must be modified in
regards to expansion units for laptop computers under the
Harmonized Tariff Schedule of the United States (HTSUS). 

FACTS:

     The subject merchandise is an Interport Station expansion
unit (docking station) which is designed to enhance the functions
of a laptop computer, and thus convert it into a functional
desktop computer.  The Interport Station is basically an
expansion chassis that allows the laptop computer to mate with
the station unit without any major reconfiguration.  The station
unit incorporates the following components: connectors and
expansion slots for cards and boards; a serial and a parallel
connector; an external display connector; a keyboard or numeric
keyboard connector; and, a mouse or pointing device connector. 

     In NY 858516, Customs held that the Interport Station
expansion unit was classifiable under subheading 8471.99.90,
HTSUS, as other units of automatic data processing (ADP) machines.  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.
  
     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 holding in NY 858416 concerning
expansion units should be 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.  Goods classifiable under this provision have a
general, column one free rate of duty.

EFFECT ON OTHER RULINGS:

     NY 858416, dated December 5, 1990, no longer reflects the
position of Customs and is hereby modified pursuant to section
177.9(d) of the Customs Regulations [19 CFR 177.9(d)].



                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division