CLA-2 CO:R:C:M 951710 DWS
Mr. Joseph A. Black
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022
RE: Reconsideration and Modification of HQ 951513; Diode Units;
Telephonic Switching Equipment; HQ 084660; Explanatory
Note 85.41; Chapter 85, Note 5; Explanatory Note 85.36;
Explanatory Note 85.37; 8536.30.00; 8541.10.00
Dear Mr. Black:
This is in response to your letters of April 22, 1992, and
October 6, 1992, requesting the reconsideration of HQ 951513, dated
April 17, 1992, concerning the classification of diode units under
the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The subject merchandise, model, no. BMF 630 005/11, is
described as a diode unit. It is an assembly containing at least
one filter for eliminating radio interference, a 315 A main fuse,
a choke for reducing ripple, three parallel power diodes, a printed
circuit board assembly (PCBA) for supervising the function of the
unit, and three circuit breakers. Attached to the front of the
unit are light emitting diodes (LED's) for indicating "On" status,
"Diode Failure" status, "Fuse Failure" status, and "Control Circuit
Fuse" status. The unit allows current of less than 1,000 volts (V)
to pass in one direction from a DC power source to sensitive
telephonic equipment. The unit prevents capacitors from
discharging on momentary voltage decrease along the low-ohmic load.
This enables the capacitors to maintain the voltage level across
the transient-sensitive load.
ISSUE:
Whether the merchandise is classifiable as a diode under
heading 8541, HTSUS, as electrical apparatus for protecting
electrical circuits under heading 8536, HTSUS, or as a board for
electric control or the distribution under 8537, HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In HQ 951513, the merchandise was held to be classifiable
under subheading 8536.30.00, HTSUS, which provides for:
"[e]lectrical apparatus for switching or protecting electrical
circuits, or for making connections to or in electrical circuits,
for a voltage not exceeding 1,000 V: [o]ther apparatus."
It is argued that the merchandise is properly classifiable
under subheading 8541.10.00, HTSUS, which provides for: "[d]iodes,
other than photosensitive or light-emitting diodes."
We do not agree that the subject unit is classifiable as a
diode under subheading 8541.10.00, HTSUS. As was stated in HQ
951513, "[t]he product under consideration may contain diodes, but
as a whole it is an assembly which also contains a filter for
eliminating radio interference, a 315 A main fuse, a choke for
reducing ripple, a printed circuit board assembly for supervising
the function of the unit, and three circuit breakers." Because the
unit incorporates so many more components than just diodes, it
cannot be said that the unit is classifiable as a diode.
It is claimed that the components other than the diodes
perform secondary functions, and Harmonized Commodity Description
and Coding System Explanatory Note 85.41 (p. 1398) is cited to
demonstrate that diodes contained within a housing are still
classifiable under heading 8541, HTSUS.
In understanding the language of the HTSUS, the Explanatory
Notes may be utilized. The Explanatory Notes, although not
dispositive, are to be used to determine the proper interpretation
of the HTSUS. 54 Fed. Reg. 35127, 35128 (August 23, 1989). In
part, Explanatory Note 84.51 states that:
[t]he device described above fall in this heading whether
presented mounted, that is to say with their terminals or
leads or packaged (components), unmounted (elements) or even
in the form of undiced discs (wafers). However, natural
semiconductor materials (e.g., galena) are classified in this
heading only when mounted.
It is our position that the subject unit is not described by
Explanatory Note 84.51. This note merely states that diodes,
whether mounted or unmounted, are classifiable under heading 8541,
HTSUS. However, we find that the subject unit is not a diode unit
for classification purposes.
HQ 084660, dated September 7, 1989, is cited in support of the
classification of the unit under heading 8541, HTSUS. That ruling
dealt with the classification of transistor modules consisting of
two Darlington transistor chips and diode chips. The modules were
held to be classifiable under heading 8541, HTSUS.
We do not find HQ 084660 relevant as to the classification of
the subject unit. The transistor module and the subject unit are
not in the least bit similar. In HQ 084660, the modules were
created by interconnecting the transistor and diode chips by wire
bonding to bus bars and external terminals. The internal parts
were sealed with silicon rubber and epoxy resin, and the modules
were enclosed within plastic covers. In fact, in distinguishing
the modules from integrated circuits, it was stated that the
modules were made up of "discrete indivisible components which can
only perform a single function and not multiple circuits that
perform multiple functions." The unit under consideration
possesses several divisible components which perform multiple
functions.
It is also claimed that due to chapter 85, note 5, HTSUS, the
unit is precluded from classification under heading 8536, HTSUS.
The note, in part states that:
[f]or the classification of the articles defined in this
note, headings 8541 and 8542 shall take precedence over
any other heading in the tariff schedule which might cover
them by reference to, in particular, their function.
It is our position that chapter 85, note 5, HTSUS, is
inapplicable because the merchandise is not a diode. Because the
unit is not described under heading 8541, HTSUS, the note cannot
apply.
We find that the unit is described under heading 8536, HTSUS.
Explanatory Note 85.36 (p. 1390) provides that heading 8536, HTSUS,
covers circuit protecting apparatus such as fuses and devices for
breaking circuits. The subject unit incorporates fuses, circuit
breakers, and other components that function as an assembly to
protect circuits in telephonic apparatus.
The unit prevents capacitors from discharging on momentary
voltage decrease along the low-ohmic load. This enables the
capacitors to maintain the voltage level across the transient-
sensitive load.
However, we do not find that the unit is classifiable under
heading 8536, HTSUS, because it is an assembly of different
components. In part, Explanatory Note 85.36 (p. 1390) states that:
[t]he heading also excludes:
(b) Assemblies (other than simple switching assemblies) of
the apparatus mentioned above (heading 85.37).
Heading 8537, HTSUS, provides for: "[b]oards, panels
(including numerical control panels), consoles, desks, cabinets and
other bases, equipped with two or more apparatus of heading 8535
or 8536, for electric control or the distribution of electricity,
including those incorporating instruments or apparatus of chapter
90, HTSUS, other than switching apparatus of heading 8517."
In part, Explanatory Note 85.37 (p. 1391) states that:
[t]hese consist of an assembly of apparatus of the kind
referred to in the two preceding headings (e.g., switches and
fuses) on a board, panel, console, etc., or mounted in a
cabinet, desk, etc. . . .
Based upon Explanatory Note 85.37, it is our position that the
subject unit is classifiable under subheading 8537.10.00, HTSUS,
which provides for: "[b]oards, panels (including numerical control
panels), consoles, desks, cabinets and other bases, equipped with
two or more apparatus of heading 8535 or 8536, for electric control
or the distribution of electricity, including those incorporating
instruments or apparatus of chapter 90, HTSUS, other than switching
apparatus of heading 8517: [f]or a voltage note exceeding 1,000 V."
HOLDING:
The diode unit is classifiable under subheading 8537.10.00,
HTSUS. The general, column one rate of duty is 5.3 percent ad
valorem.
EFFECT ON OTHER RULINGS
HQ 951513 is modified to reflect classification under
subheading 8537.10.00, HTSUS.
Sincerely,
John Durant, Director