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NY 855267

Aug 16 1990

CLA-2-84:S:N:N1:110 855267

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.99.1500; 8473.30.4000; 8524.90.4080

Mr. Terry Moran
Hitachi Transport System (America), Ltd.
455 West Victoria Street
Compton, CA 90220

RE: The tariff classification of a Disk Cache Controller from Japan

Dear Mr. Moran:

In your letter dated August 7, 1990, you requested a tariff classification ruling.

The merchandise under consideration consists of Model DKC 80IU-3 disk cache controller that is a control unit that connects the central processing unit to the external hard disk storage devices ("DKU"). The principal function of this controller is to receive instructions from the CPU and control the data transferred to and from the DKUs. A magnetic disk subsystem consists of a control unit or DKC, and various varieties of storage devices known as DKUs or AO/DKU. Each disk subsystem must have one DKC and one DKU with an AO interface to function as a storage unit. The DKU responds to the commands from the DKC received through the AO and positions the magnetic heads in the disk assemblies to read and write data on the disk platters.

Model DKC 80IU-3 has in addition to its control functions a cache memory that allows for temporary storage of some data in the controller. When the CPU issues a write command, the data is temporarily stored in the cache memory and also is transferred to the DKU for permanent storage. In addition to the controller, additional memory boards and "firmware" will be imported also. The "firmware" is software on 5-1/2" floppy disks that contains the operating instructions for the system and a diagnostic program.

The first stage of the importations will involve shipments of complete disk cache controllers. After the initial complete shipments, the production of the DKC 80IU-3 control units will be accomplished by the importation of kits, consisting of Large (L), Medium (M) and Small (S) parts groups, which will contain substantially all of the parts necessary for production of a finished DKC 80IU-3.

In Stage 2, the shipments will consist of the following components: L group parts for the cabinet; M parts such as the AC box, cache memory boards, and backplane subasssemblies; S parts group will consist of substantially all of the parts necessary to produce the following subassemblies in the United States- wire harness, the numerous printed circuit boards which perform the functions of the DKC, switching power supply assembly, mechanical subassemblies, the 5" hard disk drive, a 5-1/2" floppy drive, and the "firmware."

In Stage 3, the L parts group will be the same as in stage 2. The M parts group will consist of the backplane assembly and the AC box. In addition to the S parts imported during the stage 2, the S parts group for stage 3 will consist of parts for the cache memory board subassemblies.

In Stage 4, the L parts group will be the same as in stages 2 and 3. The M parts group will consist of only the backplane subassemblies. It is estimated that the shipments of the kits for stages two, three, and four will consist of at least 90% or more of the parts, on a value basis, necessary for production of a complete DKC 80IU-3 controller. Substantially all parts necessary for production of a finished DKC 80IU-3 control unit will be present in the shipments as imported. The kits thus constitute an unfinished and unassembled control unit in its imported condition.

The applicable subheading for the complete control units and the "kits", will be 8471.99.1500, Harmonized Tariff Schedule of the United States (HTS), which provides for other control or adapter units for use with automatic data processing machines. The rate of duty will be free.

The applicable subheading for the additional memory boards will be 8473.30.4000, HTS, which provides for parts and accessories of the machines of heading 8471, not incorporating a cathode ray tube. The rate of duty will be free.

The applicable subheading for the firmware or software will be 8524.90.4080, HTS, which provides for other recorded media. The rate of duty will be 9.7 cents per square meter of recording surface.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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