CLA-2 CO:R:C:M 955988 DWS
Mr. F. David Foster
Ablondi, Foster, & Sobin, P.C.
1130 Connecticut Avenue, N.W.
Suite 500
Washington, DC 20036
RE: Modification of NY 893295; Heatsink/Heat Spreading
Substrates and Submounts; Electrical Apparatus;
Semiconductor Devices; Electronic Integrated Circuits;
Section XVI, Note 2; 8536.30.00
Dear Mr. Foster:
This is in reference to NY 893295, dated January 20, 1994,
which dealt with the classification of heatsink/heat spreading
substrates and submounts under the Harmonized Tariff Schedule of
the United States (HTSUS). NY 893295 was issued to you, on behalf
of Sumitomo Electric U.S.A. Inc., in response to a letter from your
office dated December 17, 1993, to the Area Director of Customs,
New York Seaport.
FACTS:
The merchandise consists of heatsink/heat spreading substrates
and submounts used in electronic integrated circuits and
semiconductor devices, such as microwave diodes, laser and light
emitting diodes, high frequency transistors, and thyristors. It
is our understanding that 80 percent of the merchandise is
dedicated for use with semiconductor devices, and 20 percent is
dedicated for use with integrated circuits.
The substrates and submounts are made to customer
specifications from a combination of copper-tungsten, copper-
molybdenum, aluminum-silicon, aluminum nitride ceramics,
translucent cubic boron nitride, polycrystalline diamond film, or
synthetic crystal type-1B diamond material. They are often
metallized with nickel-gold, gold-tin, gold, platinum, or titanium
at the request of the customer. The metallization process consists
of the coating of a thick or thin film of precious metal to the outside of the submount to reduce corrosion
and permit metal soldering. Depending upon the customer, the
metallization may form a pattern upon the submount. The
merchandise is designed to absorb, store, and remove excess heat.
The subheadings under consideration are as follows:
8536.30.00: [e]lectrical apparatus for . . . protecting
electrical circuits . . . for a voltage not
exceeding 1,000 V: [o]ther apparatus for
protecting electrical circuits: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5.3 percent ad valorem.
8541.90.00: [d]iodes, transistors and similar semiconductor
devices; photosensitive semiconductor devices,
including photovoltaic cells whether or not
assembled in modules or made up into panels;
light-emitting diodes; mounted piezoelecric
crystals; parts thereof: [p]arts.
Goods classifiable under this provision receive duty free
treatment.
8542.90.00: [e]lectronic integrated circuits and
microassemblies; parts thereof: [p]arts.
Goods classifiable under this provision receive duty free
treatment.
ISSUE:
Whether the heatsink/heat spreading substrates are
classifiable under subheading 8536.30.00, HTSUS, as electrical
apparatus for protecting electrical circuits, under subheading
8541.90.00, HTSUS, as parts of semiconductor devices, or under
subheading 8542.90.00, as parts of electronic integrated circuits.
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 NY 893295, the subject merchandise was held to be
classifiable under subheading 8542.90.00, HTSUS.
It has been suggested that the merchandise is classifiable
under subheading 8536.30.00, HTSUS. It is our position that the
substrates and submounts are not classifiable under subheading
8536.30.00, HTSUS, because they are not "electrical apparatus".
They do not possess electrical properties of any kind, nor do they
possess any circuitry for conducting electricity.
Section XVI, note 2, HTSUS, states that:
[s]ubject 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.
Because the substrates and submounts are not goods
classifiable under either chapters 84 or 85, HTSUS, section XVI,
note 2(a), HTSUS, does not apply. However, under section XVI, note
2(b), HTSUS, because they are suitable for use solely or
principally with semiconductor devices of heading 8541, HTSUS, and
electronic integrated circuits of heading 8542, HTSUS, they are
classifiable under subheading 8541.90.00, HTSUS, and subheading
8542.90.00, HTSUS, respectively.
HOLDING:
The heatsink/heat spreading substrates and submounts are
classifiable under subheading 8541.90.00, HTSUS, as parts of
semiconductor devices, and subheading 8542.90.00, HTSUS, as parts
of electronic integrated circuits, depending upon their dedication
for use.
EFFECT ON OTHER RULINGS:
NY 893295 is modified to reflect the reasoning in this ruling.
Sincerely,
John Durant, Director