CLA-2 CO:R:C:M 954291 MBR
District Director
U.S. Customs Service
555 Battery St., POB 2450
San Francisco, CA 94126
RE: Protest Nos. 2809-92-101972 through 2809-92-101977; Seagate
Technology; Parts of ADP Disk Drives; Parts of Motors;
Permanent Magnets; HQ 088226
Dear District Director:
This is our response to Applications for Further Review of
Protests Numbered 2809-92-101972 through 2809-92-101977, regarding
the classification of parts for ADP disk drives, under the
Harmonized Tariff Schedule of the United States (HTSUS). The
subject merchandise was entered between July 28, 1992 and August
21, 1992, and was liquidated between November 13, 1992 and December
12, 1992. The protest was timely filed on December 23, 1992.
FACTS:
The protestant claims that the various parts of ADP disk
drives are classifiable under subheading 8473.30.40, HTSUS, which
provides for parts and accessories of ADP machines, at a Free rate
of duty, and under subheading 8505.11.00, HTSUS, which provides for
magnets, at a 3.2% rate of duty.
However, upon entry the various parts of ADP disk drives were
classified under subheading 8503.00.40, HTSUS, which provides for
parts of motors, at a 10% rate of duty.
The protests pertain to the following parts:
1. The "Bobbin Assembly" and "Arm Bobbin Assembly" which consist
of coils used in voice coil motors.
2. The "Assy Data Bobbins" and "Data Bobbin" which consist of
printed circuit cables with discrete electrical components
including integrated circuits, capacitors and resistors.
-2-
3. The "Magnet Pole Hsg Assy" which consists of two permanent
magnets in a single pole piece.
The subheadings under consideration are as follows:
8473 Parts and accessories (other than covers, carrying cases and
the like) suitable for use solely or principally with the
machines of headings 8469 to 8472:
8473.30.40 Parts and accessories of the machines of heading
8471: Not incorporating a cathode ray tube
* * * * * * * * * * * * * *
8503 Parts suitable for use solely or principally with the machines
of heading 8501 or 8502:
8503.00.40 Parts of motors of under 18.65 W (other than
commutators)
* * * * * * * * * * * * * *
8505 Electromagnets; permanent magnets and articles intended to
become permanent magnets after magnetization...
8505.11.00 Permanent magnets and articles intended to become
permanent magnets after magnetization
ISSUE:
Whether the various parts for ADP disk drives are classifiable
as parts of ADP machines, or as parts of motors, or as permanent
magnets?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
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 instant "Bobbin Assemblies," are prima facie classifiable
in both subheading 8503.00.40, HTSUS, and subheading 8471.30.40,
HTSUS. However, A Manual of Customs Law, Ruth F. Sturm (1974),
page 246 states that:
Merchandise is classifiable under the tariff provision
having requirements which are more difficult to satisfy.
Arthur J. Humphreys et al. v. United States, 56 CCPA 67,
-3-
C.A.D. 956, 407 F.2d 417 (1969); F.L. Smidth & Company v.
United States, 56 CCPA 77, C.A.D. 958, 409 F.2d 1369 (1969).
Thus, in the case first cited it was held that cabinets for
radio-phonograph combinations were classifiable as parts of
such combinations, rather than as parts of furniture because
the requirements for classification as the former were more
difficult to satisfy.
It is Customs position that the provision for "[p]arts of
motors under 18.65 W (other than commutators)," is more difficult
to satisfy than "[p]arts and accessories of the machines of heading
8471: [n]ot incorporating a cathode ray tube," which includes a
myriad of ADP parts and accessories. It is also important to note
that Sturm, page 281, also states that:
Where a particular part of an article is provided for
specifically, a part of that particular part is more
specifically provided for as a part of the part than as a part
of the whole. C.F. Liebert v. United States, 60 Cust. Ct.
677, C.D. 3499, 287 F. Supp. 1008 (1968)(parts of clutches
which were parts of winches held dutiable as parts of clutches
rather than as parts of winches or parts of tractors); Foster
Wheeler Corp. v. United States, 61 Cust. Ct. 166, C.D. 3556,
290 F. Supp. 375 (1968)(parts of converters, whether or not
converters were parts of machines, are classifiable as parts
of converters); Korody-Coyler Corp. v. United States, 66 Cust.
Ct. 337, C.D. 4212 (1971)(nozzles classifiable as parts of
fuel injection pumps rather than as parts of the internal
combustion engines of which the pumps are part).
Therefore, the "Bobbin Assemblies" are classifiable as a part
of the motor, rather than as a part of the whole disk drive or ADP
machine. See HQ 088226, dated February 26, 1991, which held that
coils for voice coil motors were properly classifiable as parts of
motors under subheading 8503.00.40, HTSUS. Similarly, the "Arm
Bobbin Assemblies" consist of a voice coil motor coil attached to
an aluminum arm, on which the read/write heads will be mounted
after importation. Pursuant to GRI 3(b), regarding composite
goods, the essential character of this composite good is imparted
by the coil. Therefore, this assembly is classifiable in
subheading 8503.00.40, HTSUS.
The "Assy Data Bobbins" and "Data Bobbin" consist of printed
circuit cables with discrete electrical components including
integrated circuits, capacitors and resistors. These cannot be
considered part of the motor, nor do they rise to the level of an
unfinished disk drive. Therefore, they are properly classifiable
as claimed in subheading 8473.30.40, HTSUS, as parts of ADP
machines.
The "Magnet Pole Hsg Assy" consists of two permanent magnets
connected by a metal spacer which holds the magnets the correct
-4-
distance apart. The magnets are composed of a metallic neodymium
iron alloy. Acting in concert, the magnets create a stable field
of magnetic flux lines. A coil attached to a pivot arm assembly
in the disk drive interacts with the flux lines, thereby
facilitating the positioning of the read/write head on the hard
disk. This article is prima facie classifiable in both subheading
8503.00.40, HTSUS, as a part of the motor, and under subheading
8505.11.00, HTSUS, which provides for permanent magnets. The
Harmonized Commodity Description and Coding System Explanatory
Notes ("ENs") to heading 8505, HTSUS, state as follows:
(2) Permanent magnets and articles intended to become
permanent magnets after magnetization.
Permanent magnets consist of pieces of hard steel,
special alloys or other materials (e.g., barium ferrite
agglomerated with plastics or synthetic rubber) which
have been rendered permanently magnetic. Their shape
varies according to the use for which they are designed.
To reduce the tendency to de-magnetize, horseshoe-shaped
magnets are often furnished with a bar of iron (the
keeper) adhering to the two poles. Permanent magnets
remain classified here whatever their use, including
small magnets used, inter alia, as toys.
Articles intended to become permanent magnets after
magnetization are recognizable as such by their shape and
composition, generally being cubes or discs (tags) of
metal or of agglomerated ferrite (e.g., barium ferrite).
Clearly, the instant magnet assembly is dedicated for use as
a permanent magnet by its shape and composition. Additional U.S.
Rule of Interpretation 1.(c) states: "a provision for parts of an
article covers products solely or principally used as a part of
such articles but a provision for 'parts' or 'parts and
accessories' shall not prevail over a specific provision for such
part or accessory." The magnets and the spacer are a GRI 3(b)
composite good. The essential character is imparted by the
magnets. Therefore, the magnet assembly is properly classifiable
in subheading 8505.11.00, HTSUS, which provides for permanent
magnets.
These articles are shipped in bulk and cannot be considered
functional units.
HOLDING:
The Seagate "Bobbin Assemblies," which consist of coils used
in voice coil motors, are classifiable as assessed in subheading
8503.00.40, HTSUS, which provides for parts of motors.
-5-
The Seagate "Arm Bobbin Assemblies," which consist of a voice
coil motor coil attached to an aluminum arm, are classifiable as
assessed in subheading 8503.00.40, HTSUS, which provides for parts
of motors.
The Seagate "Assy Data Bobbins" and "Data Bobbin," which
consist of printed circuit cables with discrete electrical
components including integrated circuits, capacitors and resistors,
are properly classifiable as claimed in subheading 8473.30.40,
HTSUS, as parts of ADP machines.
The Seagate "Magnet Pole Hsg Assy" is properly classifiable
as claimed in subheading 8505.11.00, HTSUS, which provides for
permanent magnets.
You should deny the protest, except to the extent
reclassification as indicated above results in a net duty reduction
and partial allowance. 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