# HQ 964208

**January 4, 2002**

**CLA-2** RR:CR:GC 964208 KBR

**CATEGORY:** Classification

**TARIFF NO.:** 8504.40.95

Port Director

U.S. Customs Service

610 S. Canal Street\
Chicago, IL 60607-4523

**RE:** Protest 3901-99-101514; Uninterruptible Power Supplies

Dear Port Director:

This is our decision on Protest 3901-99-101514, filed on behalf of Best
Power, Division of Invensys plc, concerning the classification, under
the Harmonized Tariff Schedule of the United States (HTSUS), of
uninterruptible power supplies. The entry was liquidated on September 9,
1999, and this protest was timely filed on October 25, 1999.

**FACTS:**

The protest concerns the classification of uninterruptible power
supplies (UPS) imported for Best Power, models UT310, UT315, UT320,
UT330, UT340, UT360, UT380, UT3010, UT3120, UT3160, and UT3220. The
function of these UPS is to provide a reliable, filtered and regulated
source of AC power to secure against disturbances and interruptions from
the main electrical power source. The UPS is associated with a battery
which is used to power an internal static converter. The UPS is
connected to the principal source of power and the critical equipment.
If there is a disruption in the principal supply of power, the UPS
automatically switches to the back-up power source and converts the DC
power from the batteries to usable AC power. Counsel for the importer
filed an additional submission dated May 25, 2000. This submission
included a product brochure describing the features of various products,
including the instant UPS models. In this brochure, at page 30 (*See
also* Brochure at page 5), it describes the UPS models in issue as:

BUILT TO PROTECT:

Large mainframe-oriented data centers

Computer rooms

Small mainframes

Mini-computers

Medical analysis equipment such as MRI and CAT scanners

Centralized or clustered servers

Mission-critical customized applications

Telecommunications applications

Industrial Process Control Equipment

The articles were entered under subheading 8471.49.70, HTSUS, as
automatic data processing machines and units thereof, other digital
automatic processing machines, other, entered in the form of systems:
other: power supplies. Customs liquidated the entries under subheading
8504.40.95, HTSUS, as electrical transformers, static converters and
inductors; static converters: other. The protestant asserts the correct
classification of the articles is under subheading 8504.40.70, HTSUS, or
subheading 8504.40.85, HTSUS.

**ISSUE:**

What is the classification of uninterruptible power supplies?

**LAW AND ANALYSIS:**

Merchandise is classifiable under the Harmonized Tariff Schedule of the
United States (HTSUS) in accordance with the General Rules of
Interpretation (GRIs). The systematic detail of the HTSUS is such that
virtually all goods are classified by application of GRI 1, that is,
according to the terms of the headings of the tariff schedule and any
relative Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and legal
notes do not otherwise require, the remaining GRIs may then be applied.

In interpreting the headings and subheadings, Customs looks to the
Harmonized Commodity Description and Coding System Explanatory Notes
(EN). Although not legally binding, they provide a commentary on the
scope of each heading of the HTSUS. It is Customs practice to follow,
whenever possible, the terms of the ENs when interpreting the HTSUS.
*See* T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS provisions under consideration are as follows:

8471 Automatic 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:

Other digital automatic data processing machines:

8471.49 Other, entered in the form of systems:

Other:

8471.49.70 Power supplies

8504 Electrical transformers, static converters (for example,
rectifiers) and inductors; parts thereof:

8504.40 Static converters:

> Power supplies for automatic data processing machines or units thereof
> of heading 8471:

8504.40.60 Suitable for physical incorporation into automatic data
processing machines or units thereof of heading 8471

8504.40.70 Other

8504.40.85 For telecommunications apparatus

8504.40.95 Other

Although the importer entered the UPS in heading 8471, HTSUS, they now
believe that heading is not the correct heading. Customs liquidated the
UPS in heading 8504, HTSUS, and the importer agrees with this heading.
The importer only questions which subheading correctly describes the
goods.

The importer states that the UPS can be used for automatic data
processing (ADP) machines and for telecommunications applications.
Subheading 8504.40.60, HTSUS, and subheading 8504.40.70, HTSUS, provide
for power supplies for ADP systems. *See* NY D88658 (March 24, 1999).
Subheading 8504.40.85, HTSUS, provides for power supplies for
telecommunications systems. However, the brochure the importer provided
clearly states that the UPS may also be used for medical analysis
equipment, such as MRI and CAT scanners, and for industrial process
control equipment. Power supplies for purposes other than ADP machines
or telecommunications apparatus are classified in subheading 8504.40.95,
HTSUS.

GRI 6 states that:

> For legal purposes, the classification of goods in the subheadings of
> a heading shall be determined according to the terms of those
> subheadings and any related subheading notes and, *mutatis mutandis*,
> to the above rules, on the understanding that only subheadings at the
> same level are comparable. For the purposes of this rule, the relative
> section, chapter and subchapter notes also apply, unless the context
> otherwise requires.

GRI 3(c) states that:

> 3\. When, by application of rule 2(b) or for any other reason, goods
> are, *prima facie*, classifiable under two or more headings,
> classification shall be effected as follows:
>
> \* \* \* \* \*
>
> \(c\) When goods cannot be classified by reference to 3(a) or 3(b),
> they shall be classified under the heading which occurs last in
> numerical order among those which equally merit consideration.

Additional Rule of Interpretation 1(a) states that:

> a tariff classification controlled by use (other than actual use) is
> to be determined in accordance with the use in the United States at,
> or immediately prior to, the date of importation, of goods of that
> class or kind to which the imported goods belong, and the controlling
> use is the principal use

The UPS has multiple uses. The importer's brochures clearly state that
the UPS may be used for purposes other than ADP machines and
telecommunications apparatus. No principal use has been established, and
multiple subheadings within heading 8504 are applicable. Pursuant to GRI
6 and GRI 3(c), the correct classification is the subheading which
occurs last among those provisions noted above, which is 8504.40.95,
HTSUS. *See* PD E81236 (May 21, 1999), and PD E81235 (May 21, 1999);
*see also* NY D88101 (March 11, 1999) and NY D88623 (March 24, 1999).

The importer argues that subheading 8504.40.95, HTSUS, only concerns
rectifiers and rectifying apparatus, which is limited to articles which
convert power to DC. *See* EN 85.04 (II)(A). The importer argues that
subheading 8504.40.95, HTSUS is, therefore, not applicable to the
instant UPS, which convert power to AC. The importer is correct that
rectifiers are objects which convert power to DC, and that the subject
UPS are not rectifiers. However, rectifiers only comprise part of
subheading 8504.40.95, HTSUS. We note that for statistical purposes this
subheading also includes "inverters" (subheading 8504.40.9570, HTSUS)
and "other" (subheading 8504.40.9580, HTSUS), both of which are not
included in the subheading portion for "Rectifiers and rectifying
apparatus". *See* PD E81236 (May 21, 1999), and PD E81235 (May 21, 1999)
(Customs specifically stated in two rulings similar to this matter, that
the correct classification of UPS which were capable of use by ADP
machines, telecommunications apparatus and other types of equipment was
in subheading 8504.40.9580, HTSUS, and that "\[t\]hey are not rectifying
type power supplies.")

**HOLDING:**

In accordance with GRI 6 and the above discussion, the uninterruptible
power supplies imported for Best Power, models UT310, UT315, UT320,
UT330, UT340, UT360, UT380, UT3010, UT3120, UT3160, and UT3220 are
classified in subheading 8504.40.95, HTSUS, as electrical transformers,
static converters and inductors, static converters, other.

The protest should be **DENIED**. In accordance with Section 3A(11)(b)
of Customs Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, you are to mail this decision, together with
the Customs Form 19, to the protestant no later than 60 days from the
date of this letter. Any reliquidation of the entry or entries in
accordance with the decision must be accomplished prior to mailing the
decision.

Sixty days from the date of the decision, the Office of Regulations and
Rulings will make the decision available to Customs personnel, and to
the public on the Customs Home Page on the World Wide Web at
[www.customs.gov](http://www.customs.gov/), by means of the Freedom of
Information Act, and other methods of public distribution.

Sincerely,

John Durant, Director

Commercial Rulings Division