CLA-2 OT:RR:CTF:TCM H122802 TNA
Mr. Todd Kasmirski, President
IsoSense, Inc. P.O. Box #7316
Cave Creek, AZ 85327
RE: Revocation of NY H80199; Classification of Hall-Effect Over Current Detectors
Dear Mr. Kasmirski:
This letter is in reference to New York Ruling Letter (“NY”) H80199, issued to IsoSense, Inc. (“IsoSense”) on May 21, 2001, concerning the tariff classification of IsoSense 50A Over Current Detectors (“OCDs”). In that ruling, U.S. Customs and Border Protection (“CBP”) classified the OCDs under subheading 8542.30.00, Harmonized Tariff Schedule of the United States (“HTSUS”), as “Electronic integrated circuits and microassemblies; parts thereof: Other monolithic integrated circuits.” We have reviewed NY H80199 and found it to be in error. For the reasons set forth below, we hereby revoke NY H80199.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY H80199 was published on November 16, 2011, in Volume 45, Number 47, of the Customs Bulletin. CBP received one comment in response to this notice.
FACTS:
The IsoSense 50A OCDs are Hall-Effect type current sensors- devices that protect power electronic circuits by signaling when current in the circuit has exceed a designated trip point. The OCDs are designed to be mounted to a printed circuit board. Applications for this merchandise include MRI machines, treadmills, motor controllers, inverters, power supplies and various types of electrical conversion apparatus. The output of the OCD is digital while the current it senses is analog.
The basic principle of the Hall-effect is that when a current-carrying conductor is placed into a magnetic field, a voltage will be generated perpendicular to both the current and the field. Thus, when subjected to a magnetic field, Hall-effect type sensors respond to the physical quantity to be sensed (e.g., the current) with an electrical signal that is proportional to the magnetic field strength, which it then supplies to the product to which it is incorporated.
In NY H80199, CBP classified the OCDs under subheading 8542.30.00, HTSUS, as: “Electronic integrated circuits and microassemblies; parts thereof: Other monolithic integrated circuits.”
ISSUE:
Whether the subject OCDs are classified in heading 8542, HTSUS, as electronic integrated circuits, or in heading 8543, HTSUS, as “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof”?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The HTSUS provisions under consideration are as follows:
8542 Electronic integrated circuits; parts thereof:
Electronic integrated circuits:
8542.31.00 Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:
* * *
8543.70 Other machines and apparatus:
* * *
8543.70.40 Electric synchros and transducers; flight data recorders; defrosters and demisters with electric resistors for aircraft
Legal Note 8 to Chapter 85, HTSUS, provides, in pertinent part, that:
For the purposes of headings 8541 and 8542:
(a) “Diodes, transistors and similar semiconductor devices” are semiconductor devices the operation of which depends on variations in resistivity on the application of an electric field;
(b) “Electronic integrated circuits” are:
Monolithic integrated circuits in which the circuit elements (diodes, transistors, resistors, capacitors, inductances, etc.) are created in the mass (essentially) and on the surface of a semiconductor or compound semiconductor material (for example, doped silicon, gallium arsenide, silicon germanium, iridium phosphide) and are inseparably associated…
For the classification of the articles defined in this note, headings 8541 and 8542 shall take precedence over any other heading in the Nomenclature, except in the case of heading 8523, which might cover them by reference to, in particular, their function.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs 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. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
The EN to heading 8542, HTSUS, provides, in pertinent part:
The articles of this heading are defined in Note 8 (b) to the Chapter.
Electronic integrated circuits are devices having a high passive and active element or component density, which are regarded as single units (see Explanatory Note to heading 85.34, first paragraph concerning elements or components to be regarded as “passive” or “active”). However, electronic circuits containing only passive elements are excluded from this heading…
Electronic integrated circuits include :
(I) Monolithic integrated circuits.
These are microcircuits in which the circuit elements (diodes, transistors, resistors, capacitors, inductances, etc.) are created in the mass (essentially) and on the surface of a semiconductor material (doped silicon, for example) and are therefore inseparably associated. Monolithic integrated circuits may be digital, linear (analogue) or digital-analogue.
Monolithic integrated circuits may be presented:
(i) Mounted, i.e., with their terminals or leads, whether or not encased in ceramic, metal or plastics. The casings may be cylindrical, in the form of parallelepipeds, etc.
(ii) Unmounted, i.e., as chips, usually rectangular, with sides generally measuring a few millimetres.
(iii) In the form of undiced wafers (i.e., not yet cut into chips).
Monolithic integrated circuits include :
(i) Metal oxide semiconductors (MOS technology).
(ii) Circuits obtained by bipolar technology.
(iii) Circuits obtained by a combination of bipolar and MOS technologies (BIMOS technology)…
Except for the combinations (to all intents and purposes indivisible) referred to in Parts (II) and (III) above concerning hybrid integrated circuits and multichip integrated circuits, the heading also excludes assemblies formed by:
(a) Mounting one or more discrete components on a support formed, for example, by a printed circuit;
(b) Adding one or more other devices, such as diodes, transformers, or resistors to an electronic microcircuit; or
(c) Combinations of discrete components or combinations of electronic microcircuits other than multichip-type integrated circuits.
The EN to heading 8543, HTSUS, provides, in pertinent part:
This 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 electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading.
The EN to heading 8479, HTSUS, provides, in pertinent part:
The following are to be regarded as having “individual functions”:
(B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function:
(i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and
(ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity.
In NY H80199, CBP classified the subject OCDs in heading 8542, HTSUS, as monolithic integrated circuits. Legal Note 8 to Chapter 85, HTSUS, defines electronic integrated circuits and their components. Note 8(b)(i) to Chapter 85, HTSUS, provides that “monolithic integrated circuits” are electronic ICs in which the circuit elements are created in the mass and on the surface of a semiconductor or compound semiconductor material and are inseparably associated from that material See Note 8(b)(i). Note 8 further defines “diodes, transistors and similar semiconductor devices” as “…semiconductor devices whose operation depends on variations in resistivity on the application of an electric field.” See Note 8(a) to Chapter 85.
The subject merchandise contains three distinct parts: a Hall effect sensor, a gapped magnetic core, and a plastic case. While we acknowledge that the subject merchandise contains a monolithic integrated circuit (i.e., the Hall-effect sensor), the entire package is not classified as one, because it contains a magnetic core - a component that is not an inseparably associated circuit element, as required by Note 8(b)(1) to Chapter 85, HTSUS. As a result, the OCDs cannot be classified as a monolithic integrated circuit in heading 8542, HTSUS.
Heading 8543, HTSUS, provides for electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85. There is no dispute that the subject OCDs are electrical machines and apparatus, and our discussion above has eliminated them from classification elsewhere in Chapter 85, HTSUS. Furthermore, they have individual functions in that they are designed to be mounted on an integrated circuit board but perform a separate function from that circuit board- i.e., the detection of the magnetic field and response with an electric current. At the same time, the Hall-effect switch can be removed from the circuit board and does not play an integral role in the way the circuit board functions. Thus, it can be regarded as having an individual function. See EN 84.79.
Subheading 8543.70.40, HTSUS, provides in part for electric synchros and transducers. The term transducer is not defined in the text of the HTSUS or in the ENs. When not so defined, terms are construed in accordance with their common and commercial meaning, which are presumed to be the same. Nippon Kogasku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. In HQ 964599, dated December 22, 2000, in considering the classification of optical encoders, we examined the term transducer and determined that it encompasses devices which convert variations in one energy form into corresponding variations in another, usually electrical form. See also HQ 967134, dated July 20, 2004; HQ 967103, dated July 20, 2004. The subject OCD measures changes in the magnetic field and changes them to electric signals so as to protect against over currents in power conversion equipment. As such, it meets the terms of heading 8543, HTSUS, and subheading 8543.70.40, HTSUS, in particular.
Furthermore, CBP has consistently classified similar Hall-effect gear-tooth sensors as transducers under heading 8543, HTSUS. For example, in HQ 967134, CBP classified a sensor composed of a monolithic IC, an aluminum-nickel-cobalt (AINic) magnet, and three electrical conductor wires, all encased in a black plastic housing, in subheading 8543.89.40, HTSUS, as a transducer. See also HQ 967103, dated July 20, 2004. As a result, the subject merchandise is classified as a transducer in heading 8543, HTSUS.
The comment that CBP received in response to the proposed revocation discussed an imported article that is similar to the subject OCD, and questioned the applicability of the proposed revocation to its merchandise. The commenter explained the ways in which its merchandise is distinguishable from the subject OCD, and argued that its merchandise should remain classified in subheading 8542.39.00, HTSUS, even if this revocation of NY H80199 becomes final. Based on the product specifications submitted, however, we do not have enough information to confirm that the commenter’s merchandise is distinguishable from the subject OCD. The commenter is welcome to request a binding ruling or internal advice regarding the classification of its merchandise.
HOLDING:
Under the authority of GRI 1, the IsoSense 50A Over Current Detectors are classified in subheading 8543.70.40, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Electric synchros and transducers; flight data recorders; defrosters and demisters with electric resistors for aircraft.” The 2011 column one general rate of duty is 2.6% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY H80199, dated May 21, 2001, is REVOKED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division