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
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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
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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