HQ 950832

February 11, 1992

CLA-2 CO:R:C:M 950832 AJS

CATEGORY: Classification

TARIFF NO.: 8473.30.40

District Director

U.S. Customs Service

555 Battery St

P.O. Box 2450

San Francisco, CA 94126

RE: Protest 2809-91-100892; CWS portable unit; Subheading

9903.41.20; Subheading 8471.91.00; GRI 2(a); Section XVI, General

ENs (IV); HQ 087695; HQ 088118.

Dear District Director:

Protest for further review number 2809-91-100892, dated

5/15/91, was filed against the classification of the \"CWS

Portable Unit\" within subheading 9903.41.20, Harmonized Tariff

Schedule of the United States (HTSUS).

FACTS:

The merchandise under protest is the CWS (Compact

Workstation) portable unit. It does not contain a central

processing unit (CPU) microprocessor or ROM (Read Only Memory).

The CWS itself does include all of the other components of a

high-end digital processing unit such as the input, output,

storage and processor portion (main board). The CWS also

contains adapters, cables, power supply, and recorded diskettes.

ISSUE:

Whether the CWS portable unit is properly classifiable

within subheading 8471.91.00, HTSUS, which provides for \"other\"

\"\[d\]igital processing units, whether or not entered with the rest

of a system, which may contain in the same housing one or two of

the following types of units: storage units, input units, output

units.\"; or classifiable within subheading 8473.30.40, HTSUS,

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which provides for \"\[p\]arts and accessories of the machines of

heading 8471: \[n\]ot incorporating a cathode ray tube.\"

Whether the CWS portable unit is additionally classifiable

within subheading 9903.41.20, HTSUS, which provides for

\"\[a\]utomatic data processing machines, of the type of which the

constituent units are separately housed, whether finished or

unfinished, which incorporate a microprocessor-based calculating

mechanism, are capable of handling data words of at least 16-

bits off the micro-processor, designed for use while affixed to

or placed on a table, desk, or similar place: \[h\]aving a micro-

processor-based calculating mechanism capable of directly

handling memory of over 8 megabits (provided for in subheading

8471.91).\"

LAW AND ANALYSIS:

Subheading 8471.91.00, HTSUS, provides for digital

processing units, whether or not entered with the rest of an

automatic data processing \[ADP\] system. The CWS portable unit

does not satisfy this description. It is incomplete because it

does not contain the CPU microprocessor and ROM chips which are

essential for data processing. General Rule of Interpretation

(GRI) 2(a) 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 presented, the

incomplete or unfinished article has the essential character of

the complete or finished article.\" In reference to GRI 2(a), the

Harmonized Commodity and Description Coding System Explanatory

Notes (ENs) state that throughout this Section \[XVI\] any

reference to a machine or apparatus covers not only the complete

machine, but also an incomplete machine (i.e., an assembly of

parts so far advanced that it already has the main essential

features of the complete machines). Section XVI, General ENs

(IV), p. 1132 (1991). The CWS portable unit lacks the essential

character or main essential feature (i.e., the data processing

chips) of a digital processing unit. Therefore, it is not

classifiable as a incomplete or unfinished digital processing

unit within subheading 8471.91.00, HTSUS.

Customs has previously discussed the issue of essential

character for incomplete or unfinished ADP machines which lack

data processing capabilities. In HQ 087695 (3/6/91), Customs

addressed the classification of an incomplete or unfinished main

printed circuit board (motherboard) without any processing chips.

See also HQ 088118 (2/22/91). We stated that this type of device

did not possess the essential character of an ADP machine because

it lacked the essential chips required for data processing.

Accordingly, we similarly ruled that this motherboard also could

not be considered an incomplete or unfinished ADP machine.

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Heading 8473, HTSUS, provides for parts and accessories

suitable for use solely or principally with the machines of

heading 8471. In HQ 087695, we classified the incomplete or

unfinished motherboard within heading 8473, HTSUS, as a part and

accessory of an ADP machine. The subject CWS portable unit also

satisfies this description. It is suitable for use solely or

principally with the CWS, which itself is an ADP machine. More

specifically, the subject CWS portable unit is described within

subheading 8473.30.40, HTSUS, which provides for parts and

accessories of ADP machines which do not incorporate a cathode

ray tube.

Subheading 9903.41.20, HTSUS, provides for \"automatic data

processing machines . . . (provided for in subheading 8471.91).\"

The subject CWS portable unit does not satisfy this description.

It is not an ADP machine because it lacks the essential character

of an ADP machine. As discussed previously, it is a part of an

ADP machine. Accordingly, the subject CWS portable unit is not

properly classifiable within subheading 9903.41.20, HTSUS.

HOLDING:

The CWS portable unit is properly classifiable within

subheading 8473.30.40, HTSUS, which provides for parts and

accessories of ADP machines, not incorporating a cathode ray

tube. You should grant the protest in full. A copy of this

decision should be attached to the Customs Form 19 and provided

to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director

Commercial Rulings Division