CLA-2 CO:R:C:G 082956 MBR

Ms. Margaret R. Polito
Coudert Brothers
200 Park Avenue
New York, NY 10166

RE: Synthetic ruby dot matrix needle guides and ceramic dot matrix needle guides

Dear Ms. Polito:

This is in reply to your letter of October 27, 1988, on behalf of D. H. Technology, Inc., (DHT), requesting a reconsideration of NY Ruling 825330 regarding classification of synthetic ruby and ceramic dot matrix needle guides, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

DHT is a domestic manufacturer of computer terminal dot matrix printers. The needle guides at issue are a component of dot matrix print heads that ensure that the ink needles will strike the paper at the precise location required to form a specific printed character. Synthetic ruby needle guides are composed of two identical halves, or three pieces, of synthetic ruby bonded together either by stainless steel tie bars or aluminum alloy dowel pins, depending on the model. Ceramic needle guides consist of one piece ("Monoblock") of sintered alumina. You state that DHT uses these needle guides principally in the manufacture of computer terminal dot matrix printers and that the needle guides have no other application other than as part of dot matrix print heads.

ISSUE:

What are the classifications of synthetic ruby needle guides and ceramic needle guides under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

Chapter 71 provides for synthetic gemstones. The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

Legal Note 3 (ij) to chapter 71 states:

This chapter does not cover: ...machinery, mechanical appliances or electrical goods, or parts thereof, of section XVI. However, articles and parts thereof, wholly of precious or semiprecious stones (natural, synthetic or reconstructed) remain classified in this chapter.... (emphasis added)

The synthetic ruby needle guides are a part of machinery provided for in section XVI. Additionally, Webster's Dictionary defines "Wholly" as meaning: 1. Entirely. 2. Exclusively. See Webster's II New Riverside University Dictionary, page 1317 (1984). The synthetic ruby needle guides are not entirely or exclusively of precious stones. All of the prospectively imported models have the essential elements (i.e. not de minimis) of either stainless steel tie bars or aluminum alloy dowel pins that hold the part together. Therefore, this office disagrees with New York Ruling 825530. This model of synthetic ruby needle guide cannot be classified in 7116.20.50, HTSUSA.

Chapter 84 provides for automatic data processing machines and units thereof. More specifically, subheading 8471.92.65 provides for: Printer units: Dot matrix. Furthermore, subheading 8473.30.40 provides for: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube. Thus, the synthetic ruby needle guides, as described, are a part of a machine of heading 8471 (printer unit: dot matrix) and are therefore classifiable under subheading 8473.30.40, which provides for parts of machines of heading 8471, not incorporating a cathode ray tube.

However, ceramic dot matrix needle guides are not classifiable in chapter 84. Legal Note 1.(b) states: "This chapter does not cover: Appliances or machinery (for example, pumps) or parts thereof, of ceramic material (chapter 69)."

You argue that ceramic needle guides should be classifiable under subheading 8517.90.70, HTSUSA, as parts of teleprinting machines. However, DHT, the importer of the instant merchandise, is a domestic manufacturer of computer terminal dot matrix printers. Therefore, it would be inappropriate for ceramic dot matrix needle guides imported for the manufacture of computer terminal printers to be classifiable under the provision for parts of teleprinting machines, which are quite separate and distinct from computer terminal printers in terms of classification.

Chapter 69 governs the classification of ceramic products. You argue that the ceramic needle guides are classifiable under a subheading governing ceramic refractory articles. The ceramic needle guides have many of the properties of refractory ceramics such as resistance to abrasion, shock and heat. The Harmonized Commodity and Description and Coding System, Explanatory Notes to Chapter 69, Note (B), page 913, state:

However, to fall in heading 69.02 or 69.03 as refractory goods, articles must not only be capable of resisting high temperatures, they must also be designed for high temperature work. Heading 69.03 would therefore include crucibles of sintered alumina, but textile machine thread guides of the same material would fall in heading 69.09 since they are designed for clearly non-refractory uses.

Therefore, although the ceramic needle guides are capable of withstanding temperatures of 1500 degrees centigrade, they will not be subjected to those temperatures in a computer printer. Refractory articles are products which thermally insulate the furnaces that produce steel, aluminum, and other metals. They also insulate the furnaces that produce steam for the generation of electricity, as well as insulate fireplaces in homes. See McGraw-Hill Encyclopedia of Science & Technology, Vol. 3, page 413 (1987).

Heading 6909, HTSUSA, governs ceramic wares for laboratory, chemical or other technical uses. The Harmonized Commodity Description and Coding System Explanatory Notes to this heading, page 920, state:

This heading covers a range of very varied articles usually made from vitrified ceramics....But articles of a type not designed for high temperature work remain in this heading even if made of refractory materials (e.g., thread guides, grinding apparatus, etc., of sintered alumina).

Thread guides, made of sintered alumina, not designed for high temperature work, even if made of refractory materials, are classifiable here. Therefore, it is Customs position that needle guides, made of sintered alumina, not designed for high temperature work, even if made of refractory materials, remain classifiable in this heading.

HOLDING:

Synthetic ruby dot matrix needle guides which have an essential element other than the synthetic ruby, such as the merchandise in question, are properly classifiable under subheading 8473.30.40. The rate of duty is free.

Ceramic dot matrix needle guides are classifiable under the provision for ceramic wares for laboratory, chemical or other technical uses; Of porcelain or china: Machinery parts, in subheading 6909.11.20, HTSUSA. The rate of duty is 4.7% ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division