CLA-2 CO:R:C:M 955270 KCC
District Director
U.S. Customs Service
300 South Ferry Street
Terminal Island
Los Angeles, California 90731
RE: Protest 2720-93-100872; magnetic head sliders; thin film and
composite sliders; 8543.80.90; Note 1(b), Chapter 84; Note
1, Chapter 69; ceramic; fired after shaping; General EN to
Chapter 69; GRI 3(b); composite good; essential character;
EN Rule 3(b); HRLs 082097; 086584; 089869, 950623; sensors;
General EN (A) to Chapter 84; parts prevails over basket
provision; United States v. David E. Porter; Ideal Toy
Corporation v. United States
Dear District Director:
This pertains to Protest 2720-93-100872, regarding the
tariff classification of magnetic head sliders under the
Harmonized Tariff Schedule of the United States (HTSUS). Samples
were submitted for our examination. Information presented in an
additional submission dated January 24, 1994, and at a meeting on
June 28, 1994, was considered in rendering this decision.
FACTS:
The articles under consideration are magnetic head sliders,
i.e., thin film sliders and composite sliders. There is no
dispute that the magnetic head sliders are principally used with
Automatic Data Processing Machines (ADP) to read and write from a
magnetic disk. The completed magnetic head sliders may either be
sold as a finished product or may be mounted on a load
beam/support assembly and sold as a "slider/flexure assembly."
In thin film sliders, the slider body consists of a mixture
of ceramic materials, such as aluminum oxide and titanium
carbide. The active sensors or transducer elements are deposited
onto one end of the slider body using semiconductor manufacturing
processes. The processes used to manufacture the thin film
sliders are similar to those used in semiconductor wafer
manufacturing. Approximately two to three hundred discrete steps
are performed, such as sputtering, ion milling, precession
electroplating, and photolithography. These techniques are used
to deposit thousands of sensors on a circular puck, composed of
the ceramic material described above (currently three to six
inches in diameter), which has a value of between $88.00 to
$100.00. After the sensors are deposited, the puck, now known as
a wafer, is worth approximately $20,000.00. The wafer then
undergoes several machining steps which slice the wafer into
individual sliders. The sliders are subsequently lapped and
ground to precision tolerances. The completed thin film sliders
are then ready for use in ADP machines.
Composite sliders are composed of a ceramic slider body into
which a magnetic core has been bonded with epoxy and glass. The
ceramic slider body is a mixture of ceramics, including titanate
and calcium oxide. The magnetic core is made from a different
type of ceramic material, magnetically sensitive ferrite. The
ferrite magnetic core is formed to specific shapes and
dimensions, i.e., "C" and "I" shapes. A proprietary mixture of
various metals including iron, silicon, aluminum and glass are
vacuum-deposited in the gaps between the "C" and "I" shaped
ferrite core. The ferrite core is then inserted into a U-shaped
vertical slot in the slider body by means of epoxy and glass
materials. The composite sliders are transformed into complete
magnetic head sliders by a coil which is wound around the ferrite
core.
Upon importation, the entries of the magnetic head sliders
were liquidated starting on April 30, 1993, under subheading
8543.80.90, HTSUS, as other electrical machines and apparatus,
not specified or included elsewhere. The protestant contends
that the magnetic head sliders are properly classified under
subheading 8473.30.40, HTSUS, as parts and accessories of
machines of heading 8471, not incorporating a cathode ray tube.
The competing subheadings are as follows:
8473.30.40 Parts and accessories (other than covers, carrying
cases and the like) suitable for use solely or
principally with machines of headings 8469 to
8472...Parts and accessories of the machines of
heading 8471...Not incorporating a cathode ray
tube.
8543.80.90 Electrical machines and apparatus, having
individual functions, not specified or included
elsewhere in this chapter; parts thereof...Other
machines and apparatus...Other....
ISSUE:
Are the magnetic head sliders classified as parts and
accessories of machines of heading 8471, not incorporating a
cathode ray tube under subheading 8473.30.40, HTSUS, or as other
electrical machines and apparatus, not specified or included
elsewhere under subheading 8543.80.90, HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states, in part, that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes...."
To be classified under subheading 8473.30.40, HTSUS, the
magnetic head sliders must not be excluded by Note 1(b), Chapter
84, HTSUS, which states that Chapter 84, HTSUS, does not include:
Appliances or machinery (for example, pumps) or parts
thereof, of ceramic material (chapter 69).
Therefore, the magnetic head sliders must not be composed of
the type of ceramic material classifiable under Chapter 69,
HTSUS. Note 1, Chapter 69, HTSUS, states that:
This chapter applies only to ceramic products which have
been fired after shaping.
The protestant contends that the magnetic head sliders are
not ceramic pursuant to Note 1, Chapter 69, HTSUS, because they
have been shaped after firing. As evidence, the protestant
states that the ceramic material which makes up the slider bodies
is first in a liquid/paste form which is poured into a cylinder
mold. This cylinder mold is fired. Thereafter, the cylinder
ceramic material is cut into thin circular pucks onto which
sensor elements are deposited. Therefore, the protestant
contends that the ceramic material is shaped after firing.
The protestant fails to take into consideration that the
ceramic material in liquid/paste form is initially shaped in the
cylinder mold before firing. In understanding the language of
the HTSUS, Harmonized Commodity Description and Coding System
(HCDCS) Explanatory Notes (ENs) may be consulted. The ENs,
although not dispositive, provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. See, T.D. 89-90, 54
Fed. Reg. 35127, 35128 (August 23, 1989). General EN to Chapter
69, HTSUS, describes the manufacturing process of ceramic
products, in pertinent part, as follows:
(ii) Shaping
The prepared powder or paste is then shaped as nearly as
possible to the desired form.
This is done by extrusion (through an extrusion die),
pressing, moulding, casting or hand-shaping, followed in
some cases by some degree of machining....
(v) Finishing
The finishing processes depend on the intended use of the
ceramic product. Sometimes machine finishing to a high
degree of precision is necessary. Finishing may also
include marking, metallising or impregnation.
The ceramic material at issue is shaped before firing and
then subjected to a finishing process. The shaping process
involves pouring the liquid ceramic into the mold. After firing,
the ceramic cylinder is subject to high degree precision
machining, i.e., finishing process, which involves slicing the
ceramic cylinder into thin pucks. Although the slicing process
appears to be an extensive operation, it is, in fact, a precision
machining operation which determines the width of the slider body
excluding the deposited sensors. Therefore, we are of the
opinion that this is the type of operation contemplated by Note
1, Chapter 69, HTSUS.
To be excluded from Chapter 84, HTSUS, the magnetic head
sliders must be of ceramic material. The magnetic head sliders
are composed of ceramics and electrical sensors. When, by
application of GRI 2, HTSUS, goods are prima facie classifiable
under two or more headings, GRI 3, HTSUS, is applicable. In this
case, classification is determined by application of GRI 3(b),
HTSUS, which provides:
Mixtures, composite goods consisting of different materials
or made up of different components, and goods put up in sets
for retail sale, which cannot be classified by reference to
3(a), shall be classified as if they consisted of the
material or component which gives them their essential
character, insofar as this criterion is applicable.
EN Rule 3(b)(IX)(pg. 4) states that:
For the purposes of this Rule, composite goods made up of
different components shall be taken to mean not only those
in which the components are attached to each other to form a
practically inseparable whole but also those with separable
components, provided these components are adapted one to the
other and are mutually complementary and that together they
form a whole which would not normally be offered for sale in
separate parts (emphasis in original).
We are of the opinion that the magnetic head sliders are
composite goods because the components are adapted one to the
other, mutually complementary, and together form a whole which
would not normally be offered for sale in separate parts.
Therefore, we need to determine which component imparts the
essential character.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, EN Rule 3(b) (pg. 4),
provides further factors which help determine the essential
character of goods. Factors such as bulk, quantity, weight or
value, or the role of a constituent material in relation to the
use of the goods are to be utilized, though the importance of
certain factors will vary between different kinds of goods.
Although not identical to the magnetic head sliders at
issue, we note that Headquarters Ruling Letter (HRLs) 082097
dated March 14, 1989, HRL 086584 dated March 1, 1990, and HRL
089869 dated October 16, 1991, which was affirmed in HRL 950623
dated December 23, 1991, dealt with the classification of similar
articles. HRL 082097 and HRL 086584 classified "flexure arms"
which contained magnetic head sliders under subheading
8473.30.40, HTSUS, and in item 676.54, Tariff Schedules of the
United States (TSUS)(the precursor tariff provision to subheading
8473.30.40, HTSUS). HRL 089869, which was affirmed in HRL
950623, classified the ferrite core which is inserted into a
composite slider housing under subheading 8543.80.90, HTSUS, as
other electrical apparatus, having individual functions not
specified or included elsewhere in this chapter. The ferrite
core of these rulings is the "C" and "I" shaped bars which are
sputtered with metallic material and glass and then bonded in
glass so that non-magnetically permeable gaps are created at the
contact points between the two bars. As the above rulings do not
deal with the classification of magnetic head sliders as
independent articles, we do not find them persuasive.
After examining the information present, we are of the
opinion that the ceramic slider body does not impart the
essential character to the magnetic head sliders. The ceramic
used in the magnetic head slider's body is of minor consequences
in terms of what performs the magnetic head sliders function and
in terms of what gives the magnetic head sliders its identity.
The ceramic merely acts as a base unit to support the sensors on
an air bearing above the magnetic disk. The essential character
of the magnetic head sliders is imparted by the sensors. The
sensors are the component entirely responsible for the ability of
the magnetic head sliders to perform their sole function of
reading and writing information on a magnetic disk. In the thin
film sliders, the active sensor is the multi-turn coil deposited
onto the slider body using semiconductor manufacturing processes.
In the composite slider, the active sensor is the magnetic core
composed of ferrite that is inserted into the U-shaped vertical
slot in the slider body by means of epoxy and glass materials.
Wire is then wrapped around the core to form the electromagnetic
sensor.
As further evidence that the magnetic head sliders have lost
the character of a ceramic article, we need only to look to the
sophisticated and complex manufacturing processes. Both types of
magnetic head sliders are manufactured using complex
semiconductor type manufacturing operations, such as sputtering,
ion milling, precession electroplating, and photolithography,
etc. This is evidenced by the fact that the ceramic puck costs
between $88.00 and $100.00, whereas the value of a completed
wafer (puck with the deposited sensors) is approximately
$20,000.00.
Additionally, we note that General EN (A) to Chapter 84 (pg.
1137), states that:
Since machinery or appliances (for example, pumps) of
ceramic material and ceramic parts of machinery or
appliances of any material (Chapter 69), laboratory
glassware (heading 70.17) and machinery and appliances and
parts thereof, of glass (heading 70.16 or 70.20) are
excluded from this Chapter, it follows that even if a
machine or mechanical appliance is covered, because of its
description or nature, by a heading of this Chapter it is
not to be classified therein if it has the character of an
article of ceramic materials or of glass (emphasis in
original).
This applies, for example, to articles of ceramic material
or of glass, incorporating components of minor importance of
other materials, such as stoppers, joints, taps, etc.,
clamping or tightening bands or collars or other fixing or
supporting devices (stands, tripods, etc.).
The magnetic head slider bodies do not contain components of
minor importance, such as those listed in General EN (A) to
Chapter 84. The sensor components are entirely responsible for
the ability of the magnetic head sliders to perform their sole
function of reading and writing information on a magnetic disk.
Therefore, the essential character of the magnetic head sliders
cannot be the ceramic slider body.
There is no dispute that the magnetic head sliders are
principally used with Automatic Data Processing Machines (ADP) to
read and write from a magnetic disk. Since the magnetic head
sliders are not of a ceramic material, they are not excluded from
classification under Chapter 84, HTSUS. EN 84.73 (pg. 1304),
states that:
Subject to the general provisions regarding the
classification of parts (see the General Explanatory Note to
Section XVI), this heading covers parts and accessories
suitable for use solely or principally with the machines of
heading 84.69, 84.70, 84.71 or 84.72.
The magnetic head sliders are used in automatic data
processing machines, which are classified under heading 8471,
HTSUS. The protestant has provided information stating the
magnetic head sliders at issue are solely used with automatic
data processing machines. Therefore, we are of the opinion that
the magnetic head sliders are classified under subheading
8473.30.40, HTSUS, as parts and accessories of machines of
heading 8471, not incorporating a cathode ray tube.
Classification under subheading 8543.80.90, HTSUS, is
inappropriate because a provision for parts prevails over one for
an article "not specifically provided for," i.e., a basket
provision. United States v. David E. Porter, 68 CCPA 15, C.A.D.
1259, 645 F.2d 52 (1981); Ideal Toy Corporation v. United States,
58 CCPA 9, C.A.D. 996, 433 F.2d 801 (1970). The language in
subheading 8543.80.90, HTSUS, "electric machines and apparatus,
having individual functions not specified or included elsewhere"
is not a specific provision providing for a part or accessory,
but is a basket provision. Therefore, parts and accessories of
machines of heading 8471, not incorporating a cathode ray tube
under subheading 8473.30.40, HTSUS, prevails over other
electrical apparatus, having individual functions not specified
for included elsewhere in this chapter under subheading
8543.80.90, HTSUS.
HOLDING:
The magnetic head sliders are classified under subheading
8473.30.40, HTSUS, as parts and accessories of machines of
heading 8471, not incorporating a cathode ray tube.
The protest is GRANTED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, this decision should
be mailed, with the Customs Form 19, by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Lexis, Freedom of
Information Act, and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division