CLA-2 CO:R:C:M 954856 DWS
Ms. Nancy G. Decker
Import Customs Manager
Tektronix, Inc.
P.O. Box 500
Beaverton, OR 97077-0001
RE: Revocation of PC 885626; Function Generators; Populated Circuit
Boards; Explanatory Note 85.43; HQ 953551; HQ 089391;
HQ 087498; U.S. v. Corning Glass Works; HQ 953382; Chapter 90,
Note 2; 8543.20.00; 8543.90.80
Dear Ms. Decker:
This is in reference to PC 885626, dated May 28, 1993,
involving the classification of function generators and populated
circuit boards under the Harmonized Tariff Schedule of the United
States (HTSUS). The ruling letter has been referred to this office
for reconsideration.
FACTS:
The merchandise consists of function generators (model nos.
CFG250, CFG253, and CFG280) and populated circuit boards used
solely with the generators. All three generators produce sine,
square, and triangle waves, and TTL signals. Model no. CFG250 is
a 2 Mhz generator which produces the waves and signals for testing
amplifiers, filters and circuits. Applications for the 3 Mhz model
no. CFG253 include testing and calibration of audio, ultrasonic,
and servo systems. The 11 Mhz model no. CFG280 is combined with
a 100 Mhz frequency counter. Applications for the generator
include manufacturing testing of electronic products and the repair
and calibration of audio equipment, servomechanisms, and
amplifiers.
None of the generators are capable of performing measuring or
checking functions by themselves. The generators produce waves and
signals which are utilized by corresponding equipment for the
measuring or checking of different electronic systems.
The subheadings under consideration are as follows:
8543.20.00: [e]lectrical machines and apparatus, having
individual functions, not specified or included
elsewhere in this chapter; parts thereof: [s]ignal
generators.
The general, column one rate of duty is 3.9 percent ad
valorem.
8543.90.80: [p]arts: [o]ther.
The general, column one rate of duty is 3.9 percent ad
valorem.
9030.89.00: . . . other instruments and apparatus for
measuring or checking electrical quantities,
excluding meters of heading 9028 . . . : [o]ther
instruments and apparatus: [o]ther.
The general, column one rate of duty is 4.9 percent ad
valorem.
9030.90.80: [p]arts and accessories: [o]ther.
The general, column one rate of duty is 4.9 percent ad
valorem.
ISSUE:
Whether the function generators are classifiable under
subheading 8543.20.00, HTSUS, as signal generators, or under
subheading 9030.89.00, HTSUS, as other instruments and apparatus
for measuring or checking electrical quantities?
Whether the populated circuit boards are classifiable under
subheading 8543.90.80, HTSUS, as parts of signal generators, or
under subheading 9030.90.80, HTSUS, as parts of other instruments
and apparatus for measuring or checking electrical quantities?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
We will first deal with the classification of the function
generators under the HTSUS.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). Explanatory Note
85.43(2) (p. 1402) states that:
[t]he heading includes, inter alia:
(1) xxx
(2) Signal generators. These are apparatus for the production
of electrical signals, of known waveform and magnitude,
at an assignable frequency (high or low frequency, for
example). These include, inter alia: impulse generators,
pattern generators, wobbulators (sweep generators).
However, in part, Explanatory Note 85.43 (p.1402) also states
that:
[t]his heading covers all electrical appliances and apparatus,
not falling in any other heading of this Chapter, nor covered
more specifically by a heading of any other Chapter of the
Nomenclature, nor excluded by the operation of a Legal Note
to Section XVI or to this Chapter. The principal electrical
goods covered more specifically by other Chapters are
electrical machinery of Chapter 84 and certain instruments
and apparatus of Chapter 90.
The function generators are used solely for measuring or
checking electronic systems. Although the generators themselves
do not actually perform any measurement functions, they are
required for certain measuring or checking applications. The
question, then, is whether the function generators are classifiable
under heading 9030, HTSUS, because they are used in the process of
measuring or checking, even though they do not perform the actual
measuring or checking operation.
If the function generators are classifiable under heading
9030, HTSUS, it is because the provision provides for the
merchandise more specifically than does heading 8543, HTSUS.
In HQ 953551, dated May 10, 1993, HQ 089391, dated February
6, 1992, and HQ 087498, dated October 9, 1990, we held that
equipment which is principally used in the process of measuring or
checking is classifiable under that provision, even if it does not
actually perform the measuring or checking operation itself. See
U.S. v. Corning Glass Works, 66 CCPA 25, 586 F.2d 822 (1978), in
which the court stated that the provision for "checking
instruments" clearly and unambiguously encompasses machines that
carry out steps in a process for inspecting. See also HQ 953382,
dated April 15, 1993.
Therefore, even though the function generators do not
themselves perform any measuring or checking functions, because
they are solely used in a process for inspecting electronic
systems, they are classifiable under heading 9030, HTSUS, which
provides for the merchandise more specifically than does heading
8543, HTSUS.
Specifically, we find that the function generators are
classifiable under subheading 9030.89.00, HTSUS.
We will now deal with the classification of the populated
circuit boards which are used in the function generators.
Because the function generators are not classifiable under
heading 8543, HTSUS, as signal generators, the circuit boards are
not be classifiable under subheading 8543.90.80, HTSUS, as parts
of signal generators.
The circuit boards are used solely with the function
generators. In fact, it is our understanding that all of the
components contained within the boards are dedicated for use with
the function generators. The boards are responsible for creating
the waves and signals produced from the generators.
Chapter 90, note 2, HTSUS, states that:
[s]ubject to note 1 above, parts and accessories for machines,
apparatus, instruments or articles of this chapter are to be
classified according to the following rules:
(a) Parts and accessories which are goods included in any of
the headings of this chapter or of chapter 84, 85 or 91
(other than heading 8485, 8548 or 9033) are in all cases
to be classified in their respective headings;
(b) Other parts and accessories, if suitable for use solely
or principally with a particular kind of machine,
instrument or apparatus, or with a number of machines,
instruments or apparatus of the same heading (including
a machine, instrument or apparatus of heading 9010, 9013
or 9031) are to be classified with the machines,
instruments or apparatus of that kind;
(c) All other parts and accessories are to be classified in
heading 9033.
Because the circuit boards are not goods included in any of
the headings in chapters 90, 84, 85, or 91, HTSUS, they do not
satisfy the requirements of chapter 90, note 2(a), HTSUS. However,
the circuit boards do satisfy the requirements of note 2(b), HTSUS.
Because the circuit boards are parts suitable for use solely with
the function generators of heading 9030, HTSUS, they are
classifiable under subheading 9030.90.80, HTSUS.
HOLDING:
The function generators are classifiable under subheading
9030.89.00, HTSUS, as other instruments and apparatus for measuring
or checking electrical quantities.
The populated circuit boards are classifiable under subheading
9030.90.80, HTSUS, as parts of other instruments and apparatus for
measuring or checking electrical quantities.
Accordingly, we are revoking PC 885626 pursuant to 19 CFR
177.9(d)(1). The revocation will not be applied retroactively to
PC 885626 [19 CFR 177.9(d)(2)], respectively, and will not,
therefore, affect past transactions under those rulings. However,
for the purposes of future transactions in merchandise of this
type, PC 885626 will not be valid precedent. We recognize that
pending transactions may be adversely affected by this revocation,
in that current contracts for importations arriving at a port
subsequent to this decision will be classified pursuant to it. If
such a situation arises, you may apply for relief from the binding
effects of this decision as may be warranted by the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: National Import Specialist Robert Losche