HQ 961024

January 28, 1998

CLA-2 RR:CR:GC 961024 DWS

CATEGORY: Classification

TARIFF NO.: 8517.90.38

Port Director of Customs

P.O. Box 619050

DFW Airport, TX 75261

RE: Protest 5501-97-100100; Switching Network; Digital Cross-Connect
System;

Chapter 84, Note 5(B); HQ 087209; 8471.80.40

Dear Port Director:

The following is our decision regarding Protest 5501-97-100100
concerning your action in classifying and assessing duty

on a switching network under the Harmonized Tariff Schedule of

the United States (HTSUS).

FACTS:

The merchandise consists of the M16 201 switching network

(M16 201) (model no. 3AL 68840 DAAA). Based upon the limited

information provided by the protestant, it is our understanding

that the M16 201 is a surface mounted printed circuit assembly

(PCA), providing the cross-connect switching network in the 1631

SX Digital Cross- Connect System (1631 SX). It plugs into the

end stage shelf or the center stage shelf of the 1631 SX. In a

typical 1631 SX application, eight M16 201 assemblies exist in

the upper and lower portions of the end/center stage shelves.

The protestant states that the M16 201 is an \"\[e\]lectronic module

that provides time slot interchange capability for a digital

cross-connect system. Time Slot Interchange and Space Switch

Interchange involves moving packets of data, voice, video, etc.

from one large single bundle to another.\"

The M16 201 was entered on December 9, 1996, under

subheading 8471.80.40, HTSUS, as an other unit suitable for

physical incorporation into an automatic data processing (ADP)

machine. The entry was liquidated on March 28, 1997, under

subheading 8517.90.36, HTSUS, as a PCA for telephonic switching

apparatus. The protest was timely filed on April 2, 1997.

ISSUE:

Whether the M16 201 is classifiable under subheading

8471.80.40, HTSUS, as an other unit suitable for physical

incorporation into an ADP machine, under subheading 8517.90.36,

HTSUS, as a PCA for telephonic switching apparatus, or under

subheading 8517.90.38, HTSUS, as an other PCA for telephonic

apparatus.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in

accordance with the General Rules of Interpretation (GRI\'s). GRI

1 provides that classification is determined according to the

terms of the headings and any relative section or chapter notes.

The 1996 HTSUS provisions under consideration are as

follows:

8471 Automatic data processing machines and units

thereof; \*\*\*:

8471.80 Other units of automatic data processing

machines:

Other:

8471.80.40 Units suitable for physical

incorporation into automatic data

processing machines.

\* \* \* \* \*

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:

8517.90 Parts:

Other:

Printed circuit assemblies:

For telephonic apparatus:

8517.90.36 For switching or

terminal apparatus

(other than telephone sets).

8517.90.38 Other.

Because the protestant claims classification of the M16 201

under subheading 8471.80.40, HTSUS, we must determine whether it

meets the terms of chapter 84, note 5(B), HTSUS, which states

that:

\[a\]utomatic data processing machines may be in the form of

systems consisting of a number of separate units. Subject

to paragraph (E) below, a unit is to be regarded as being a part

of a complete system if it meets all the following conditions:

\(a\) It is of a kind solely or principally used in an

automatic data processing system;

\(b\) It is connectable to the central processing unit either

directly or through one or more other units; and

\(c\) It is able to accept or deliver data in a form (coded

or signals) which can be used by the system.

Although by claiming classification of the M16 201 under

subheading 8471.80.40, HTSUS, the protestant asserts that the M16

201 is an ADP unit, the protestant has not provided any evidence

that the M16 201 is principally used in an ADP system, the first

requirement for a device to be deemed an ADP unit. Therefore,

because it does not meet the definition of an ADP unit, the M16

201 is precluded from classification under subheading 8471.80.40,

HTSUS.

Your office claims that the M16 201, which is a part of a

digital cross-connect system, is classifiable under subheading

8517.90.36, HTSUS.

In \"Newton\'s Telecom Dictionary\", a digital cross-connect

system is defined as:

\[a\] specialized type of high-speed data channel switch. It

differs from a normal

voice switch, which switches transmission paths in response

to dialing

instructions. In a digital cross-connect system, you give

it separate and specific

instructions to connect this line to that. These

instructions are given

independently of any calls that might flow over the system.

This contrasts with a

normal voice switching in which switching instructions and

conversations go

together. Commands to a digital cross-connect system can be

given by an

operator at a console or can be programmed to switch at

certain times. \*\*\*

In HQ 087209, dated January 23, 1991, we held digital signal

cross-connect equipment to be classifiable under subheading

8517.81.00, HTSUS (now subheading 8517.80.10, HTSUS), as other

telephonic apparatus, and not under subheading 8517.30, HTSUS, as

telephonic switching apparatus.

Because, as stated in the definition above, the function of

a digital cross-connect system differs from that of telephonic

switching apparatus, we disagree with your claimed classification

of the M16 201 under subheading 8517.90.36, HTSUS. However, in

keeping with the holding in HQ 087209 that digital cross-connect

equipment is classifiable under subheading 8517.81.00, HTSUS, it

is our position that the M16 201 is classifiable under subheading

8517.90.38, HTSUS.

HOLDING:

Based upon the information provided by the protestant, the

M16 201 switching network is classifiable under subheading

8517.90.38, HTSUS, as an other PCA for telephonic apparatus.

As the rate of duty under the classification indicated above

is the same as the liquidated rate, you should DENY the protest

in full. 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 this 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, Freedom of Information Act, and other

public access channels.

Sincerely,

John Durant, Director

Commercial Rulings Division