June 20, 2007 CBP Bulletin Notice on KVM Switches Used with Computer Networks
In the June 20, 2007 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 41, No. 26), CBP published a notice revoking two classification rulings and treatment as follows:
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Revocation of rulings; revocation of treatment.CBP is revoking two rulings on the classification of KVM switches attached to computer network systems that are used to control those networks. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the revocations are effective for merchandise entered or withdrawn from warehouse for consumption on or after August 19, 2007.
KVM switches. The Dell KVM Console Switch (in NY L81751) is described as a rack mounted solid-state electronic device that will be utilized by a system administrator. The KVM console switch has local access ports for hooking up to a monitor, keyboard and mouse, 8 or 16 RJ45 ports for server hookup. There is also an additional RJ45 port for connecting to another KVM unit, and a DB9 interface for delivery of upgrade firmware. The KVM console switch allows the system administrator to view and control several servers through the use of one or two monitors, keyboards and mouse. It utilizes a combination of solid state switching and software to switch the input signals from various servers that are connected to the switch. It switches between ports of the switch.
The Dell Embedded KVM Switch (in NY L82985) is described as a printed circuit assembly (PCA) in a metal frame. It is intended for internal installation in an Original Equipment Manufacturer (OEM) chassis containing multiple servers. This KVM switch allows a keyboard, monitor and mouse to be connected to and switch between multiple servers. The KVM switch and servers connect into the OEM chassis backplane. The switch uses solid-state switching to switch between the server video signals. It has a connector for the backplane on the back and two connectors, a RJ45 connector for connecting to another unit and a KVM connector on the front.
CBP is issuing HQ W967696 in order to revoke NY L81751 and NY L82985 and reclassify the KVM switches in subheading 8471.80.10 as control or adapter units of ADPs rather than in subheading 8537.10.90, as "boards, panels, consoles . . . for the electric control or distribution of electricity."
CBP makes this change based on their finding that the devices meet the terms of Chapter 84, Notes 5(C), and do not fall within the exceptions provided in Chapter 84, Notes 5 (D) and 5 (E). CBP takes the position that the KVM switches' function is a data processing function, but not involved in transmitting and receiving data. Therefore, based on GRI 1 and Chapter 84, Note 5, the switches are properly classified in 8471.80.1000.
new: 8471.80.1000, duty-free ; previous: 8537.10.9070, 2.7%
(See ITT's Online Archives or 05/07/07 news, 07050745, for BP summary of proposed HQ W967696.)
June 20, 2007, CBP Bulletin (Vol. 41, No. 26) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/