CLA-2 CO:R:C:M 955027 MBR
Ms. Janice Casper
Traffic Manager
IOMEGA Corporation
1821 West 4000 South
Roy, Utah 84067
RE: Automatic Data Processing Hard Disk Cartridges; Prepared
Unrecorded Media; Common and Commercial Identity; Ameliotex,
Inc. v. United States; Esco Mfg. Co. v. United States; Simmon
Omega, Inc. v. United States; Trans-Atlantic Co. v. United
States
Dear Ms. Casper:
This is in response to your letter to U.S. Customs, New York
Seaport, dated August 11, 1993, requesting the classification of
ADP Hard Disk Cartridges, under the Harmonized Tariff Schedule of
the United States (HTSUS). Your letter was forwarded to this
office for reply.
FACTS:
IOMEGA manufactures disk drives and removable, interchangeable
disk cartridges. Unlike conventional hard disks, which are
permanently fixed in the disk drive assembly, these disk cartridges
may be removed from one disk drive and inserted into another, or
may be securely stored elsewhere. The instant disk cartridges are
similar to 3.5 inch disks in that they merely consist of a magnetic
disk in a hard plastic enclosure, and a disk hub.
The disks are prepared with certain servowriting data which
contains operating information such as a sector map, information
regarding disk parameters, and diagnostic information.
ISSUE:
What is the classification of the subject ADP disk cartridges,
under the Harmonized Tariff Schedule of the United States (HTSUS)?
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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...
It has been argued that the formatting, error mapping, etc.,
which prepares the disk to receive user data, merits a change in
classification from "prepared unrecorded media" (subheading
8523.20.00, HTSUS) to "recorded media" (subheading 8524.90.40,
HTSUS).
However, all of the recorded data has one purpose, and that
is to prepare the unrecorded media to store user data.
Furthermore, the formatting, error mapping, etc., do not change the
commercial identity of the disk cartridges as prepared unrecorded
media.
"The tariff schedules are written in the language of commerce, and
the terms used are to be given their commercial or common meaning."
See Ameliotex, Inc. v. United States, 65 CCPA 22, 25, C.A.D. 1200,
565 F.2d 674, 677 (1977); Esco Mfg. Co. v. United States, 63 CCPA
71, 73 C.A.D. 1167, 530 F.2d 949, 951 (1976).
The fact that the instant disk cartridges may have more
complex or substantial preparations than 3.5 inch disks or floppy
disks is due solely to the fact that these disk cartridges are
designed to store a larger amount of user data. See Simmon Omega,
Inc. v. United States, 83 Cust. Ct. 14, C.D. 4815 (1979), and
Trans-Atlantic Co. v. United States, 471 F. 2d 1397, 60 CCPA 100,
C.A.D. 1088 (1973), in which the courts have held that
technological advancements and "improvement in the design of an
article does not militate against its continuing to be a form of
the named articles."
Most "blank" disks sold today have been prepared with
formatting. However, formatting does not change their commercial
identity or classification to recorded media. Similarly, no other
operations which are designed to "prepare" the media to receive
user data will change the classification from "prepared unrecorded
media...."
HOLDING:
The subject IOMEGA automatic data processing removeable hard
disk cartridges are classifiable in subheading 8523.20.00, HTSUS,
which provides for: "[p]repared unrecorded media for sound
recording or similar recording of other phenomena, other than
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products of chapter 37: [m]agnetic disks." The rate of duty is 4.2
percent ad valorem.
Sincerely,
John Durant, Director