ADP machine classification turns on Chapter Notes 5(a) and 5(b); add-on cards and motherboards were treated as parts.

Tariff Heading 84.71 covers automatic data processing machines and their units, but Chapter Notes 5(a) and 5(b) require separately housed units to form part of a complete system, be connectable to the central processing unit, be specifically designed as part of that system, and accept or deliver data in a usable form. Add-on cards and motherboards that could not perform the required functions independently and operated only when connected to other components were therefore treated as parts, not as automatic data processing machines in their own right. The classification adopted below was sustained and the challenge failed.

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Issues: Whether add-on cards and motherboards were classifiable as automatic data processing machines or units thereof under Tariff Heading 84.71, or were only parts of such machines.

Analysis: Tariff Heading 84.71 covers automatic data processing machines and their units. Chapter Note 5(a) defines the scope of such machines, while Chapter Note 5(b) enlarges the heading to include separately housed units only when they form part of a complete system and are connectable to the central processing unit, specifically designed as part of such system, and capable of accepting or delivering data in a form usable by the system. The goods in question were found not to perform the required functions by themselves and had to be connected with other components to operate. Read together, Notes 5(a) and 5(b) did not treat such items as automatic data processing machines in their own right.

Conclusion: The goods were correctly held to be parts of machines falling under Tariff Heading 84.71 and not automatic data processing machines themselves, and the appellant's challenge failed.

Final Conclusion: The classification adopted by the lower authority was sustained and the appeal was rejected.

Ratio Decidendi: Under Tariff Heading 84.71, separately housed units are classifiable as automatic data processing machines only when they satisfy the conditions in Chapter Note 5(b); items that cannot function as such independently are classifiable only as parts.

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