# **HQ 966888**

May 10, 2004

## 

### CLA-2 RR:CR:GC 966888 NSH

**CATEGORY:** Classification

**TARIFF NO.:** 8517.90.4400

Port Director

555 Battery Street

San Francisco, CA 94111

**RE:** Protest 2809-03-100237; Printed circuit assemblies

Dear Port Director:

This is our decision on Protest 2809-03-100237, filed by counsel on
behalf of

Cisco System, against your classification, under the Harmonized Tariff
Schedule of the United States (HTSUS), of other networking equipment.
The entries under protest were liquidated on March 7, 2003 under
subheadings 9013.80.90, HTSUS, and 9013.90.90, HTSUS, and this protest
was timely filed on May 29, 2003.

**FACTS:**

The subject merchandise, part numbers 15454-OC48E-47.72=,
15454-OC48E-49.32=, 15454-DS1-14+, 15454-DS1N-14, 15454-DS3N-12= and
15454-DS3-12, are printed circuit board assemblies for the ONS 15454
series Optical Multiservicing Provisioning Platforms (OMPP). The OMPPs
are used in long-haul digital telecommunication systems. Long-haul
digital telecommunications systems involve the transmission of data over
long distances by the use of electrical signals travelling over either
copper cables or an optical network that can carry vastly increased
amounts of information. OMPPs link to networks through interface cards
such as the printed circuit assemblies at issue. The subject printed
circuit assemblies increase the speed of the transmission of signals by
meshing multiple signals into one through a process called Dense Wave
Division Multiplexing. These printed circuit assemblies are designed for
modular incorporation into the ONS 15454 series OMPP platform and
provide ports for the transport of optical carrier signals and digital
signals at varying transmission speeds.

In HQ 965367, dated September 26, 2002, Customs classified circuit packs
used in long-haul digital telecommunication systems under subheading
8517.50.90, HTSUS. In that ruling, Customs found that circuit packs
contain optical amplifiers which, if principally used in other
applications, could be classified under heading 9013, HTSUS. However,
because they were exclusively used in telecommunication digital line
systems, they were not classified in chapter 90. As such, Section XVI,
Note 1(m), which would have excluded goods of chapter 90 from being
classified under heading 8517, HTSUS, was not applicable.

Protestant claims classification under subheading 8517.50.90, HTSUS,
which provides for other apparatus, for carrier-current line systems or
for digital line systems, or in the alternative under 8517.90.44,
8517.90.56 or 8517.90.66, HTSUS, which provide for parts of telegraphic
apparatus.

**ISSUE:**

What is the tariff classification under the HTSUS of the printed circuit
assemblies for the OMPPs?

**LAW AND ANALYSIS:**

Merchandise is classifiable under the HTSUS in accordance with the
General Rules of Interpretation (GRIs). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes and, provided such
headings or notes do not otherwise require, according to the remaining
GRIs.

The HTSUS provisions under consideration are as follows:

Note 1(m) to Section XVI states, in pertinent part, as follows:

1.  This section does not cover:

> ...
>
> \(m\) Articles of chapter 90;
>
> ...

8517. Electrical apparatus for line telephony or line telegraphy,
      including line telephone sets with cordless handsets and
      telecommunication apparatus for carrier-current line systems or
      for digital line systems; videophones; parts thereof:

> \* \* \* \* \* \*

9013. Liquid crystal devices not constituting articles provided for more
      specifically in other headings; lasers, other than laser diodes;
      other optical appliances and instruments, not specified or
      included elsewhere in this chapter; parts and accessories thereof:

The articles at issue are parts for networking equipment. At
liquidation, Customs classified the printed circuit assemblies under
subheadings 9013.80.90, HTSUS and 9013.90.90, HTSUS, as other optical
instruments or devices, and as parts of other optical instruments and
devices. Protestant subsequently claims classification of the entries
under subheading 8517.50.90, HTSUS, as other apparatus for
carrier-current line systems or for digital line systems. In the
alternative, Protestant claims classification as parts of telegraphic
apparatus under subheadings 8517.90.44, HTSUS, 8517.90.56, HTSUS, or
8517.90.66, HTSUS.

In HQ 965367, dated September 26, 2002, Customs classified transponders
and "circuit packs" used in long-haul digital telecommunications systems
under subheading 8517.50.90, HTSUS. More specifically, Customs described
the circuit packs at issue therein as devices used exclusively in
long-haul digital telecommunication systems. Circuit packs are comprised
of several components used to boost an incoming optical signal in order
to increase that signal's range. Customs further held that although
circuit packs contain optical amplifiers, which may be classified under
heading 9013, HTSUS, if principally used in other applications, the
circuit packs therein were solely used in digital telecommunication
digital systems. As such, at GRI 1, the circuit packs were specifically
provided for under heading 8517, HTSUS.

The information submitted by the Protestant reveals that the merchandise
at issue are printed circuit assemblies exclusively for use within the
type of circuit packs previously classified in HQ 965367 under
8517.50.90, HTSUS. The printed circuit assemblies are for use in the ONS
15454 series Optical Multiservicing Provisioning Platforms (OMPP). These
OMPPs are used by telecommunication service providers and by large
business enterprises to connect users within large metropolitan area
networks and also to connect users to larger public networks. OMPPs
transport, channel and integrate signals over Synchronous Optical
Network (SONET) and Synchronous Digital Hierarchy (SDH) protocols. The
printed circuit assemblies are designed for modular incorporation into
the 15454 series OMPPs and provide ports for the transport of optical
carrier signals and digital signals at varying transmission speeds.

Because the printed circuit assemblies at issue are exclusively for use
within circuit packs being used in long-haul telecommunications systems
under heading 8517, HTSUS, classification under heading 9013, HTSUS, in
inapplicable. *See* HQ 965367. In view of the foregoing, the printed
circuit assemblies are parts of long-haul digital communication systems
and classified under subheading 8517.90.44, HTSUS, as "Electrical
apparatus for line telephony or line telegraphy, including line
telephone sets with cordless handsets and telecommunication apparatus
for carrier-current line systems or for digital line systems;
videophones; parts thereof: Parts: Other: Printed circuit assemblies:
For telegraphic apparatus."

**HOLDING:**

The printed circuit assemblies are parts classified under subheading
8517.90.4400, HTSUS, as "Electrical apparatus for line telephony or line
telegraphy, including line telephone sets with cordless handsets and
telecommunication apparatus for carrier-current line systems or for
digital line systems; videophones; parts thereof: Parts: Other: Printed
circuit assemblies: For telegraphic apparatus." The applicable rate of
duty is *Free*.

> You are instructed to ALLOW the protest.

In accordance with the Protest/Petition Processing Handbook (CIS HB,
January 2002, pp. 18 and 21), 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 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 make the decision available to CBP personnel, and to the
public on the CBP Home

Page on the World Wide Web at [www.cbp.gov](http://www.cbp.gov/), by
means of the Freedom of Information Act, and other methods of public
distribution.

Sincerely,

Myles B. Harmon, Director

Commercial Rulings Division