CLA-2 CO:R:C:M 087025 MBR

Ms. Karin M. Burke
Weil, Gotshal & Manges
767 Fifth Avenue
New York, N.Y. 10153

RE: Ceramic Resonators and Ceramic Substrates; Band Pass Filters; Mobile Cellular Telephone Parts

Dear Ms. Burke:

This is in reply to your letter of March 23, 1990, on behalf of Matsushita Electronic Components Corporation of America, requesting classification of Ceramic Resonators and Ceramic Substrates used as band pass filters in mobile cellular telephones, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

You state that the ceramic resonators and ceramic substrates are used in the manufacture of several types of band pass filters for cellular mobile telephones (CMTs). The filters are used to eliminate unwanted radio frequency (RF) signals while permitting the desired signals within a particular band width to pass through. The band pass filters are mainly composed of two or more dielectric coaxial resonators mounted on a substrate that operate together to filter incoming and outgoing signals either in the receiving (RX) or transmitting (TX) circuitry within the CMT.

The basic configuration of a coaxial resonator is a cylinder (the "outer conductor") with a conductor lying inside the cylinder along its axis (the "inner conductor"). The resonant frequency is determined by the length of the structure. The inner and outer conductors are formed by coating the ceramic with silver. The ceramic is used because it is a poor conductor of electricity. The resonators are mounted directly on the substrates during assembly.

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ISSUE:

What is the classification of Ceramic Resonators and Ceramic Substrates used as band pass filters in mobile cellular telephones, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

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...

The unfinished ceramic resonators and ceramic substrates for mobile cellular telephones are prima facie classifiable under the following headings:

6909 Ceramic wares for laboratory, chemical or other technical uses:

6909.19.50 Ceramic wares for laboratory, chemical or other technical uses: Other: Other

* * * * * * * * * * * * *

8529 Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528 (mobile cellular telephones):

8529.90.50 Other: Other

* * * * * * * * * * * * *

8547 Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating material apart from any minor components of metal (for example threaded sockets) incorporated during molding solely for purposes of assembly...

8547.10.80 Insulating fittings of ceramics: Other

Under the TSUS, certain ceramic resonators were held to be classifiable under item 535.14, TSUS, which provided for ceramic insulators. See HQ 071646 dated July 3, 1984. However, the instant ceramic resonators and substrates are precluded from classification in heading 8547, HTSUSA, by the terms of the heading, which require that items classifiable here must be "fittings wholly of insulating material apart from any minor components of metal (for example threaded sockets) incorporated -3-

during molding solely for purposes of assembly." However, the instant merchandise has a silver (metal) coating both on the exterior and interior surfaces which act as conductors, which is not incorporated during molding or for assembly.

Section XVI, Legal Note 2, provides classification direction here:

Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546, or 8547) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517.

(c) All other parts are to be classified in heading 8485 or 8548.

Clearly, the ceramic resonators and ceramic substrates are not "parts which are goods included in any of the headings of chapters 84 and 85." However, these parts are "suitable for use solely or principally with a particular kind of machine," i.e., "transmission apparatus incorporating reception apparatus." Therefore, Section XVI, Legal Note 2, requires that the ceramic resonators and ceramic substrates are classified in subheading 8529.90.50, HTSUSA.

Counsel for the importer argues that Additional U.S. Rule of Interpretation 1(c) takes precedence over Section XVI, Legal Note 2. Additional U.S. Rule of Interpretation 1(c) states:

1. In the absence of special language or context which otherwise requires--

(c) a provision for "parts" or "parts and accessories" shall not prevail over a specific provision for such part or accessory.

However, there is no conflict between the two rules because -4-

Additional U.S. Rule of Interpretation 1.(c) only applies "In the absence of special language or context which otherwise requires." It is Customs position that Section XVI, Legal Note 2, is "special language" that requires otherwise.

Additionally, it is not clear that the ceramic resonators and substrates would even be classifiable under heading 6909, HTSUSA, which provides for: "Ceramic wares for laboratory, chemical or other technical uses." The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to heading 6909, HTSUSA, page 921, state:

The heading excludes:

(e) Electrical apparatus (switches, junction boxes, fuses, etc.) of headings 85.33 to 85.38, and electrical insulators, insulating fittings, etc., of heading 85.46 or 85.47.

However, this issue need not be addressed since GRI 1 and Section XVI, Legal Note 2, clearly direct classification in heading 8529, HTSUSA.

HOLDING:

The ceramic resonators and ceramic substrates, manufactured for use in mobile cellular telephones, by Matsushita Electronic Components Corporation of America, are properly classifiable under 8529.90.50, HTSUSA, which provides for: "Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Other." The rate of duty is 5.9% ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division