Digital Equipment Corp. v. US, 85-11-01584.

• Decision Date: 18 October 1988
• Docket Number: No. 85-11-01584.,85-11-01584.
• Citation: 710 F. Supp. 1381
• Parties: DIGITAL EQUIPMENT CORPORATION, Plaintiff, v. UNITED STATES, Defendant.
• Court: U.S. Court of International Trade

710 F. Supp. 1381

DIGITAL EQUIPMENT CORPORATION, Plaintiff, v. UNITED STATES, Defendant.

No. 85-11-01584.

United States Court of International Trade.

October 18, 1988.

Baker & McKenzie (William D. Outman, II and Thomas Peele, Washington, D.C., of counsel), for plaintiff.

John R. Bolton, Asst. Atty. Gen., Joseph I. Liebman, New York City, Atty. in Charge, International Trade Field Office (Saul Davis, Commercial Litigation Branch), for defendant.

Stephen S. Spraitzar, San Francisco, Cal., and George R. Tuttle, Washington, D.C., for amicus curiae Astec USA (HK) Ltd.

MEMORANDUM OPINION

WATSON, Judge:

This case places in issue the tariff classification of merchandise which can be generally described as power supplies for computers. The Customs Service classified this merchandise as "rectifiers and rectifying apparatus" under Item 682.60 of the Tariff Schedules of the United States ("TSUS"). The plaintiff claims that these articles are properly classifiable under a provision which recognizes their use as parts of computers, namely, as "parts of automatic data-processing machines and units thereof" under Item 676.52 (now Item 676.54), TSUS. The resolution of this issue depends on a detailed understanding of the nature and function of the imported merchandise, which for the purpose of this action has been stipulated to be represented by the DEC Model H 7862-C Computer Power Supply. As a result of hearing the expert testimony offered at trial and studying the exhibits, and applying the relevant law to the facts determined, the Court comes to the conclusion that the classification assigned by the government to this merchandise does not adequately describe it by name or function. This conclusion can be best explained by proceeding through the detailed description of the merchandise at issue and relating its operation to that of the computer of which it is a part.

The functions of the imported article can be divided into eight or nine categories. The first is transformation, which in this case involves the conversion of the higher voltage supplied from the outside to a lower voltage. The next function is rectification in its dictionary sense, which is the conversion of alternating current (AC) to direct current (DC). The third function is that of achieving electro-magnetic compatibility. This is the function of controlling the electrical noise generated by the power supply or by the rest of the computer, which, if not controlled, can interfere with the operation of the computer or with the operation of nearby electronic equipment. This function has nothing to do with rectification. The fourth function is the control of the original AC power. This includes an on-off switch and devices for controlling an overload of current. It may also include an input voltage selection switch, for choosing between 110 or 220 AC input voltage. The on-off switch may be considered as incidental to the rectification function, but the protection against overload is an important independent function designed to protect the computer. The fifth function is energy storage, in which capacitors are used to hold sufficient power to ensure the orderly shutdown of the computer in the event of malfunction. The power is stored, not for immediate power supply needs as an adjunct to rectification, but for the essential needs of the computer in the event of a power disruption. In that case the stored energy will be used to save the information stored in the computer memory. The sixth function is that of protection above and beyond that against an overload of the original AC power. This includes protection against excessive voltage, insufficient current and excessive temperature. The seventh function is that of providing for a monitor/computer interface. This establishes communication with the computer so that if a...