CLA-2 CO:R:C:M 955413 LTO
Ms. Peggy Nguyen
Apple Computer, Inc.
20525 Mariani Avenue
M/S 36-I/E
Cupertino, California 95014
RE: Flexible Circuit Assemblies; heading 8536; heading 8544; EN
85.34; EN 85.44; section XVI, note 2; chapter 85, note 4
Dear Ms. Nguyen:
This is in response to your letter of February 21, 1993, to
Customs in New York, requesting the classification of flexible
circuit assemblies under the Harmonized Tariff Schedule of the
United States (HTSUS). You also submitted a letter dated November
3, 1993, which contained additional information concerning the
assemblies in question. Both letters were referred to this office
for a response.
FACTS:
The articles in question are referred to as Flexible Circuit
Assemblies (Part 630-5241, 630-0534, 630-6272), which are used in
the manufacture of Apple's personal computers (PCs). The country
of origin of these assemblies is either Japan or Thailand. The
assemblies are described as follows:
Part No. Description
630-5241 Flexible Circuit Assembly with thermistor
for PC, Battery
630-0534 Flexible Circuit Assembly for PC, Hard
Drive
630-6272 Flexible Circuit Assembly for PC, Display - 2 -
The assemblies consist of a flexible circuit (tracings in a
polyamide material), a strip of stiffener on at least one end of
the connector, and silver-coated fingers which serve as a male
connector, on at least one side of the assembly. In addition, part
630-5241 has two thermistors soldered to one end and adhesive to
allow the assembly to be attached to a battery. Part 630-0534 has
an adhesive strip in the middle of the assembly and an electronic
connector at one end. Part 630-6272 has two flat ferrite beads
glued around the flexible circuit. You state that all of the
assemblies are designed and dedicated exclusively for use as part
of Apple's PCs and perform the function of processing signals and
power between the computer logic board and the internal hard drive
disk, battery or flat panel display.
In part 630-5241, the thermistors monitor the heat of the
battery system, and generate a DC-level signal which changes
amplitude very slowly with the temperature. This monitors the heat
of the battery and identifies the useful life. A Mitsubishi 50753
microcontroller receives and processes the signal generated by the
thermistor assembly, and automatically shuts off the computer when
necessary. Part 630-0534 is attached to the PC's hard drive and
logic board. It transmits both data and power between the disk
drive and logic board. Part 630-6272 transmits video signals from
the logic board to the display. The ferrite beads are used to
minimize electromagnetic interference with the video signal and
prevents the video signal from exceeding FCC limits.
ISSUE:
Whether the Flexible Circuit Assemblies are classifiable as
parts of automatic data processing (ADP) machines under heading
8473, HTSUS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and any
relative section or chapter notes . . . ."
You contend that the Flexible Circuit Assemblies are
classifiable as parts of ADP machines under heading 8473, HTSUS.
Note 2 to section XVI governs the classification of parts in
chapters 84 and 85. Note 2(a) provides as follows:
(a) Parts which are goods included in any of the
headings of chapters 84 and 85 (other than
8485 and 8548) are in all cases to be
classified in their respective headings.
- 3 -
Accordingly, if the assemblies are goods included in any chapter 84
or 85 heading, they cannot be classified as parts under heading
8473, HTSUS.
Heading 8534, HTSUS, provides for printed circuits. Note 4 to
chapter 85, HTSUS, states that for the purposes of heading 8534,
HTSUS, "'printed circuits' are circuits obtained by forming on an
insulated base, by any printing process (for example, embossing,
plating-up, etching) or by the 'film circuit' technique, conductor
elements, contacts or other printed components (for example
inductances, resistors, capacitors) alone or interconnected
according to a pre-established pattern, other than elements which
can produce, rectify, modulate or amplify an electrical signal (for
example, semiconductor elements)." The note further states that
"[t]he term 'printed circuits' does not cover circuits combined
with elements other than those obtained during the printing
process. Printed circuits may, however, be fitted with non-printed
connecting elements."
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Co-operation
Council's official interpretation of the Harmonized System. While
not legally binding, the ENs provide a commentary on the scope of
each heading of the Harmonized System, and are generally indicative
of the proper interpretation of these headings. See T.D. 89-80, 54
Fed Reg. 35127, 35128 (Aug. 23, 1989).
EN 85.34, pg. 1386, provides that, in accordance with note 4
to chapter 85, heading 8534, HTSUS, covers:
circuits which are made by forming on an insulated
base, by any printing process (conventional printing
or embossing, plating-up, etching, etc.), conductor
elements (wiring), contacts or other printed
components such as inductances, resistors and
capacitors ("passive" elements), other than elements
which can produce, rectify, detect, modulate or
amplify electric signals, such as diodes, triodes or
other "active" elements.
Because they are combined with elements other than those
obtained during the printing process, part 630-5241, which is
assembled with thermistors, and part 630-6272, which is assembled
with ferrite beads, are excluded from heading 8534, HTSUS.
However, part 630-0534, which consists of a flexible printed
circuit fitted with a non-printed, electric connection at one end,
is classified under subheading 8534.00.00, HTSUS.
Part 630-5241 and 630-6272 are also not classifiable under
heading 8536, HTSUS, which provides for electrical apparatus for
making connections to or in electrical circuits. Because part - 4 -
630-5241 includes thermistors, which are used to monitor the heat
of the battery system, and generate a DC-level signal which changes
amplitude very slowly with the temperature, and part 630-6272
includes ferrite beads, which are used to minimize electromagnetic
interference with the video signal and prevent the video signal
from exceeding FCC limits, they are not simply electrical
connectors, and therefore, are not covered by the terms of heading
8534, HTSUS.
Heading 8544, HTSUS, provides for insulated wire, cable and
other insulated electrical conductors. It is our opinion that
electrical conductors printed on rigid or flexible substrate are
not the type of conductor contemplated by this heading. EN 85.44,
pg. 1404, states that "[p]rovided they are insulated, this heading
covers wire, cable and other conductors (e.g., braids, strip, bars)
used as conductors in electrical machinery, apparatus or
installations [emphasis in original]." The note further lists the
type of articles that fall into heading 8544, HTSUS. The one
characteristic shared by all of the exemplars--lacquered wire,
enamelled wire, anodized wire, telephone cable, telegraph cable,
aerial cable, armored underground cables, cables for use in wire
shafts, plaited wire, insulated strip and optical fiber cables--is
that they possess at least a single strand of wire. In describing
the characteristics of the goods of heading 8544, HTSUS, the note
states:
The goods of this heading are made up of the following
elements:
(A) A conductor - this may be single strand or
multiple, and may be wholly of one metal or
of different metals.
EN 85.44 further states that:
The insulated wires, cables, etc., of this heading may
be in the form of:
(i) Single or multiple strand insulated wire.
(ii) Two or more such insulated wires twisted
together.
(iii) Two or more insulated wires assembled together
in a common insulating sheath.
Conductor elements printed onto the polyamide-based substrate
of the flexible circuit assemblies do not come within the
descriptions set forth in EN 85.44. Moreover, a flexible circuit
assembly is not a braid, strip or bar, nor is it similar to these
articles which are listed as exemplars of "other insulated electric
conductors."
- 5 -
Accordingly, part 630-5241 and 630-6272 are not classifiable under
heading 8544, HTSUS.
The assemblies in question are designed and dedicated
exclusively for use as part of Apple's portable computers. They
process signals and power between the computer logic board and the
internal hard disk drive, battery or flat panel display. These
assemblies are therefore "solely or principally used" with the
goods of heading 8471, HTSUS, which provides for automatic data
processing machines (ADP) and units thereof. Parts of automatic
data processing machines, which are not classifiable according to
note 2(a) to section XVI, are classifiable under heading 8473,
HTSUS. Accordingly, part 630-5241 and 630-6272 are classifiable
either under subheading 8473.30.10, HTSUS, which provides for
printed circuit assemblies, other than for power supplies for ADP
machines, or subheading 8473.30.35, HTSUS, which provides for
printed circuit assemblies for power supplies for ADP machines.
HOLDING:
The Flexible Circuit Assembly for PC, Hard Drive, part 630-
0534, is classifiable under subheading 8534.00.00, HTSUS. The
corresponding rate of duty for articles of this subheading is 5.3%
ad valorem.
The Flexible Circuit Assembly with thermistor for PC, Battery,
part 630-5241, and Flexible Circuit Assembly for PC, Display, part
630-6272, are classifiable either under subheading 8473.30.10 or
8473.30.35, HTSUS. The corresponding rate of duty for articles of
these subheadings is free.
Sincerely,
John Durant, Director
Commercial Rulings Division