CLA-2 CO:R:C:M 950623 AJS
Michael A. Hertzberg, Esq.
Howrey & Simon
Attorneys at Law
1730 Pennsylvania Ave., N.W.
Washington, D.C. 20006-4793
RE: Reconsideration HQ 089869; Ferrite head cores; Magnetic
recording heads; apparatus; ITT Thompson Industries, Inc., v.
U.S.; The Deseret Co., v. U.S.; Subheading 8543.90.80; Chapter
84, note 1(b); Subheading 8504.90.00; ENs 85.04 (II)(A)-(D).
Dear Mr. Hertzberg:
This is in reply to your letter of November 1, 1991,
requesting reconsideration of HQ 089869 (10/16/91), which
addressed the tariff classification of ferrite head cores
imported by Hitachi Metals America (HMA).
FACTS:
The subject merchandise is a small, rectangular or square
article of ferrite, engineered to exacting tolerances for use in
the assembly of magnetic recording heads for products such as
computer disk and tape drives, videocassette recorders, and tape
recorders. A large majority of these ferrite cores, sold by HMA,
are used to assemble magnetic heads for computer disk and tape
drives. They are used to convert electrical energy into magnetic
energy so that a magnetic head can "write" onto a magnetic tape
or disk, and convert magnetic energy into electrical energy so
that a magnetic head can "read" from a magnetic tape or disk.
The production of the ferrite core begins with the
manufacture of the base ferrite material. This base material may
be in the form of a disk, block, or plate. It is machined into
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"C" and "I" shaped bars and then coated ("sputtered") with a fine
layer of metallic material and glass. The two sputtered bars are
joined and bonded in glass so that non-magnetically permeable
gaps are created at the contact points between the two bars.
These gaps are essential to the function of the magnetic
recording heads. The bonded ferrite bar is machined and sliced
to form the ferrite cores. After importation, the cores are
inserted into a ceramic housing known as a "composite slider"
which are then assembled into magnetic recording heads.
ISSUE:
Whether the ferrite cores are properly classifiable within
subheading 8543.80.90, Harmonized Tariff Schedule of the United
States (HTSUS), which provides for "other" electrical machines
and apparatus which have individual functions and are not
specified or included elsewhere in this chapter; or within
subheading 8543.90.80, HTSUS, which provides for "other" parts of
the machines and apparatus of this heading; or within subheading
8504.90.00, HTSUS, which provides for "parts" of static
converters.
LAW AND ANALYSIS:
In HQ 089869, Customs classified the subject cores in
subheading 8543.80.90, HTSUS. You object to this classification
claiming that the subject cores are not themselves machines or
apparatus. The term "apparatus" is intended to encompass a group
of devices or a collection or set of materials, instruments or
appliances to be used for a particular purposes or a given end.
ITT Thompson Industries, Inc. v. United States, 3 CIT 36, 44, 537
F. Supp. 1272, 1277-78, aff'd 703 F. 2d 585 (Fed. Cir. 1982).
See also The Deseret Co., v. United States, 10 CIT 609, 611
(1986). The subject ferrite cores satisfy this description.
They are a collection of ferrite material formed into a disk,
block or plate which is machined into a bar and then coated with
a fine layer of metallic material and glass. This coating is
essential for creating the gaps which are required for the
functioning of magnetic recording heads, and also to seal the
finished cores. Furthermore, these cores are used in magnetic
recording heads for the particular purpose of converting electric
energy into magnetic energy and vice versa. Accordingly, the
subject cores satisfy the terms of subheading 8543.80.90, HTSUS,
and are classifiable therein.
Subheading 8543.90.80, HTSUS, provides for "other" parts of
electrical machines and apparatus which have individual
functions. You claim that the subject cores satisfy the terms of
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this subheading. However, the cores are not a "part" of a
machine or apparatus classifiable within heading 8543, HTSUS.
They are combined with a composite slider to form a part of a
magnetic recording head, which is itself classifiable within
heading 8473, HTSUS. As stated in HQ 089869, the subject cores
cannot be classified as parts of magnetic recording heads because
they are excluded from this heading by the application of chapter
84, note 1(b). Therefore, the ferrite cores are not properly
classifiable as an "other" part within subheading 8543.90.80,
HTSUS.
You also ask that we reconsider our exclusion of the subject
cores from classification within subheading 8504.90.00, HTSUS,
which provides for parts of static converters. Heading 8504,
HTSUS, provides for "static converters". The Harmonized
Commodity Description and Coding System Explanatory Notes (ENs)
to heading 85.04 state that the term "static converters" includes
certain rectifiers, inverters, alternating current converters,
cycle converters and direct current converters. ENs 85.04 (II)
(A)-(D), p. 1338 (1991). In HQ 089869, we stated that the
ferrite cores do not operate on any of the principles of these
devices, and therefore are not classifiable within heading 8504,
HTSUS. You argue that the subject cores do operate on the same
principles as these devices, but offer no new evidence to
substantiate this claim. Therefore, we continue to adhere to our
conclusion regarding this issue.
HOLDING:
The ferrite cores are classifiable within subheading
8543.80.90, HTSUS, which provides for "other" electrical machines
and apparatus that have an individual function and which are not
specified or included elsewhere in this chapter. HQ 089869 is
affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division