HQ 955312: Protest No. 2704-93-101951; Telco Simplex; Keyboards; Combined Input/Output Units; Chapter 84, Note 5(B); HQ 950679; 8471.92.20; 8471.90.90

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 955312
                        January 27, 1994


CLA-2 CO:R:C:M 955312 DWS

CATEGORY: Classification

TARIFF NO.: 8471.92.10

District Director
U.S. Customs Service
300 S. Ferry Street, Rm. 1001
Terminal Island, CA 90731

RE: Protest No. 2704-93-101951; Telco Simplex; Keyboards;        
     Combined Input/Output Units; Chapter 84, Note 5(B); 
    HQ 950679; 8471.92.20; 8471.90.90

Dear District Director:

     The following is our decision regarding the request for
further review of Protest No. 2704-93-101951 concerning your action
in classifying and assessing duty on the 70 ZON 531M M/Telco
Simplex and 50 ZON 530 M/Telco Simplex devices under the Harmonized
Tariff Schedule of the United States (HTSUS).

FACTS: 

     The merchandise consists of the 70 ZON 531M M/Telco Simplex
and 50 ZON 530 M/Telco Simplex devices, which are designed for the
input, collection, and communication of data for computer
integrated manufacturing applications.  Among other applications,
they support inventory and access control, job tracking and
costing, production monitoring, order processing, and labor
reporting.  Each device includes a 16-key alpha-numeric keyboard,
a magnetic strip reader, a 16-character display, and 32K of battery
backed RAM for application programming.  Each device is capable of
supporting two peripheral devices, such as a bar code reader and
a printer.

     Functionally, the devices are remote data input terminals with
an incorporated modem or LAN adapter for communication with a
remote host computer.  They are not designed to receive and display
data from a host computer, and the devices themselves do not
process data for display purposes.

      The merchandise was entered under subheading 8471.92.20,
HTSUS, as keyboards.  The entry was liquidated on March 12, 1993,
under subheading 8471.92.90, HTSUS, as other input units.  The
protest was timely filed on June 11, 1993.

     The subheadings under consideration are as follows:

     8471.92.20: [a]utomatic data processing machines and units
                 thereof; magnetic or optical readers, machines
                 for transcribing data onto data media in coded
                 form and machines for processing such data, not
                 elsewhere specified or included: [o]ther:       
                  [i]nput or output units, whether or not entered
                 with the rest of a system and whether or not
                 containing storage units in the same housing:
                 [o]ther: [k]eyboards.

     Goods classifiable under this provision receive duty-free 
     treatment.

     8471.92.90: [i]nput or output units, whether or not entered
                 with the rest of a system and whether or not
                 containing storage units in the same housing:
                 [o]ther: [o]ther: [o]ther.

     The general, column one rate of duty for goods classifiable
     under this provision is 3.7 percent ad valorem.

     8471.92.10: [i]nput or output units, whether or not entered
                 with the rest of a system and whether or not
                 containing storage units in the same housing:
                 [c]ombined input/output units.

     The general, column one rate of duty for goods classifiable 
     under this provision is 3.7 percent ad valorem.

ISSUE:

     Whether the 70 ZON 531M M/Telco Simplex and 50 ZON 530 M/Telco
Simplex devices are classifiable under subheading 8471.92.20,
HTSUS, as keyboards, under subheading 8471.92.90, HTSUS, as other
input units, or under subheading 8471.92.10, HTSUS, as combined
input/output units.

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 is determined according to the
terms of the headings and any relative section or chapter notes.

     It is our position that, for classification purposes, the
devices are not classifiable under subheading 8471.92.20, HTSUS. 
They are not described as keyboards because, based upon our
understanding, they are not keyboards for automatic data processing
machines.  The devices do not possess full function keys and they
do not operate in the standard typewriter style format.  In fact,
counsel for the protestant refers to the devices as "keyboard input
devices".  The devices possess keypads in addition to many other
components to perform a function different from that of a standard
keyboard classifiable under subheading 8471.92.20, HTSUS.

     We must now determine whether the devices constitute input
and output units classifiable under either subheading 8471.92.90,
HTSUS, or subheading 8471.92.10, HTSUS.  Chapter 84, note 5(B),
HTSUS, states that:

     [a]utomatic 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 of 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 to be 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).

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

     The subject devices meet the above definition of a unit.  They
are connectable to a host computer through the use of modem or LAN
adapter, and they are designed to be part of such a system in that
they deliver data in a form which can be used by the host computer. 
Therefore, the devices act as both input and output units.  Data
is entered into the devices and that data is then converted into
signals to be processed by the host computer.

     For the claim that the devices are classifiable under
subheading 8471.92.90, HTSUS, it has been suggested that the
holding in HQ 950679, dated July 1, 1992, is dispositive.  In that
ruling we held that a "Mountable Trackball" (MT) computer mouse was
classifiable under subheading 8471.92.90, HTSUS.  The MT is used
to generate a cursor on the data or menu selections of a computer
screen or at the place where data is to be input through the
keyboard.  By pushing a selector button on the MT, the data or menu
selection is entered into the computer.  The MT was designed to be
connected directly to a computer.

     It is our position that the MT is distinguishable from the
subject devices.  The output function of the MT was considered
minimal because the "mouse", which was connected to a computer,
was transferring data input directly to the computer.  However,
with regard to the subject devices, the output function is
important, because without the use of a modem or LAN adapter, a
host computer would not be able to receive signals from the
devices.  The devices are not connected directly to a host
computer, a characteristic which makes the devices highly
effective.  As opposed to the MT, we regard the output functions
of the subject devices to be as necessary to the operation of the
devices as are their input functions.  Consequently, we find that
the devices are not classifiable under subheading 8471.92.90,
HTSUS, but are specifically classifiable under subheading
8471.92.10, HTSUS.

HOLDING:

     The 70 ZON 531M M/Telco Simplex and 50 ZON 530 M/Telco Simplex
are classifiable under subheading 8471.92.10, HTSUS.  Because the
rate of duty under the classification indicated above is the same
as the liquidated rate, you are instructed to deny the protest.

     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.

                           Sincerely,



                            John Durant, Director