CLA-2 CO:R:C:M 951791 MBR
District Director
U.S. Customs Service
Room 137
110 S. Fourth St.
Minneapolis, MN 55401
RE: Protest No. 3501-9X-XXXXXX; Wafer - Ceramic; Seagate
Technology; Sumitomo Special Metals; Other Ceramic Articles;
Further Processed Into Disc Drive Head After Importation
Dear Sir:
This is our response to Protest Number 3501-9X-XXXXXX, dated
January 23, 1992, and Application for Further Review, regarding the
classification of "wafer - ceramics," under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The imported merchandise is described as a "wafer - ceramic."
The wafer is 3.000" X .1105" in size, and consists of 60-75%
aluminum oxide, 20-40% titanium carbide, and 0-5% other refractory
oxides. After importation, the "wafer - ceramic" is machined and
sliced into thin film heads for automatic data processing machine
disc drive heads.
ISSUE:
What is the classification of a "wafer - ceramic," under the
Harmonized Tariff Schedule of the United States (HTSUS)?
LAW AND ANALYSIS:
The "wafer - ceramic" was liquidated at the port of
Minneapolis, Minnesota, under subheading 6914.90.00, HTSUS, which
provides for other ceramic articles (8% ad valorem). Whereas, the
protestant claims that the proper classification is under
subheading 7606.92.60, HTSUS, which provides for aluminum plates,
sheets and strip of a thickness exceeding 0.2 mm (6.5% ad valorem).
-2-
The imported merchandise consists of "wafer - ceramics"
composed of 60-75% aluminum oxide, 20-40% titanium carbide, and 0-
5% other refractory oxides. Although, after importation the wafer
ceramic is machined and sliced into thin film heads for ADP disc
drives, at importation, the "wafer - ceramic" ("wafer") is not
identifiable either as a part of an ADP machine or magnetic disc
drive head.
The importer argues that the wafer is properly classifiable
in subheading 7606.92.60, HTSUS, which provides for aluminum
plates, sheets and strip. However, the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs), page 1062,
state the following:
GENERAL
This chapter covers aluminum and its alloys, and certain
articles thereof.
Aluminum is obtained principally from bauxite, a crude
hydrated alumina (see Explanatory Note to heading 26.06). The
first stage of the extraction is designed to convert the
bauxite into pure aluminum oxide (alumina). For this purpose
the ground ore is calcined and then treated with sodium
hydroxide to produce a solution of sodium aluminate; this is
then filtered to eliminate insoluble impurities (iron oxide,
silica, etc.). The aluminum is then precipitated as aluminum
hydroxide, which is calcined to give pure aluminum oxide in
the form of a white powder. However, aluminum hydroxide and
aluminum oxide are classified in chapter 28. (Emphasis
added).
The instant wafer consists of 60-75% aluminum oxide, which is
classifiable in chapter 28. However, the Legal Notes to chapter
28 state:
1. Except where the context otherwise requires, the headings
of this chapter apply to:
(a) Separate chemical elements and separate chemically
defined compounds, whether or not containing
impurities.
The aluminum oxide in the instant wafer is not a separate
chemically defined compound. Therefore, it is not classifiable in
chapter 28.
Chapter 69, HTSUS, provides for ceramic products. The ENs,
page 911, state that the term "ceramic products" applies to
products obtained: "(A) By firing inorganic, non-metallic materials
which have been prepared and shaped previously at, in general, room
temperature. Raw materials comprise, inter alia, clays, siliceous
materials, materials with a high melting point, such as oxides,
carbides, nitrides, graphite or other carbon, and in some cases
binders such as refractory clays or phosphates." (Emphasis added).
A technical expert at Seagate technology (the importer) has
stated that the instant wafer is a sintered ceramic principally
composed of alumina. Therefore, it is Customs position that the
instant merchandise ("wafer - ceramic") is classifiable in chapter
69 as a ceramic product. Thus, classification is appropriate under
subheading 6914.90.00, HTSUS, which provides for: "[o]ther ceramic
articles: [o]ther."
HOLDING:
The Seagate Technology "wafer - ceramic," manufactured by
Sumitomo Special Metals, is classifiable under subheading
6914.90.00, HTSUS, which provides for: "[o]ther ceramic articles:
[o]ther." The rate of duty is 8% ad valorem.
The protest should be denied in full. A copy of this decision
should be attached to the Customs Form 19 and provided to the
protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director