CLA-2 R:C:M 957961 DWS
District Director
U.S. Customs Service
44845 Falcon Place
Sterling, VA 20166
RE: Protest 5401-94-100042; Microwave Module; Microassembly;
Chapter 85, Note 5; Explanatory Note 85.42; HQ 086654;
8542.80.00
Dear District Director:
The following is our decision regarding Protest 5401-94-100042 concerning your action in classifying and assessing duty
on a microwave module under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The merchandise consists of a microwave module for use in
cellular mobile communication equipment, designed to amplify
incoming and outgoing electromagnetic signals. The module, which
is mounted on a metal support and contains both passive and
active components, has two field capacitors, a printed circuit
board (PCB), resistors, and transformers.
The microwave module was entered under subheading
8542.80.00, HTSUS, as an other microassembly. The entries were
liquidated on May 13, June 3 and 24, 1994, under subheadings
8529.90.50 (1993) and 8529.90.99 (1994), HTSUS, as other parts
suitable for use solely or principally with the apparatus of
headings 8525 to 8528, HTSUS. The protest was timely filed on
August 9, 1994.
ISSUE:
Whether the microwave module is classifiable under
subheading 8542.80.00, HTSUS, as an other microassembly, or under
subheadings 8529.90.50 and 8529.90.99, HTSUS, as other parts
suitable for use solely or principally with the apparatus of
headings 8525 to 8528, HTSUS.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's).
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
The subheadings under consideration are as follows:
8542.80.00: [e]lectronic integrated circuits and
microassemblies; parts thereof: [o]ther.
The 1993 and 1994 general, column one rates of duty for
goods classifiable under this provision are 3.9 percent
ad valorem and duty-free, respectively.
8529.90.50: [p]arts suitable for use solely or principally
with the apparatus of headings 8525 to 8528:
[o]ther: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5.9 percent ad valorem.
8529.90.99: [p]arts suitable for use solely or principally
with the apparatus of headings 8525 to 8528:
[o]ther: [o]ther: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5.9 percent ad valorem.
In part, chapter 85, note 5, HTSUS, states:
5. For the purposes of headings 8541 and 8542:
(a) xxx
(b) "Electronic integrated circuits and microassemblies"
are:
(i) - (ii) xxx
(iii) Microassemblies of the molded module, micromodule
or similar types, consisting of discrete, active
or both active and passive, components which are
combined and interconnected.
For 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.
Therefore, if the microwave module is described under
heading 8542, HTSUS, then it is so classifiable.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive or
legally binding, provide a commentary on the scope of each
heading of the HTSUS, and are generally indicative of the proper
interpretation of these headings. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (August 23, 1989). In part, Explanatory Note 85.42
(pp. 1400 - 1401) states that:
[t]he articles of this heading are defined in Note 5(b) to
the Chapter.
Electronic integrated circuits and microassemblies are
devices having a high passive and active element or
component density, which are regarded as single units. . .
The articles of this heading (electronic microcircuits) fall
into two groups, according to manufacturing process:
integrated circuits and microassemblies.
(I) xxx
(II) Electronic microassemblies.
Microassemblies are made from discrete, active or both
active and passive components which are combined and
interconnected.
Discrete components are indivisible and are the basic
electronic construction components in a system. They
may have a single active electrical function . . . or a
single passive electrical function . . .
However, components consisting of several electric
circuit elements and having multiple electrical
functions, such as integrated circuits, are not
considered as discrete components.
Microassemblies are normally in the form of modules such
as:
(1) Moulded modules in which the components are encased
in a block . . . generally of plastics.
(2) Micromodules made by superimposing and
interconnecting several rectangular . . .
substrates, each serving as a carrier for one or
more components. . .
. . . the heading excludes assemblies formed by mounting
one or more discrete components on a support formed, for
example, by a printed circuit and assemblies formed by
adding to an electronic microcircuit either one or more
other microcircuits of the same or of different types or
one or more other devices, such as diodes, transformers,
resistors. . .
The microwave module possess one or more discrete components
attached to a metal support incorporating a PCB. Also placed on
this support are other devices, including transformers,
capacitors, and resistors. Therefore, in accordance with
Explanatory Note 85.42, The microwave module is not a
microassembly classifiable under heading 8542, HTSUS. See HQ
086654, dated June 4, 1990, which held similar module
subassemblies precluded from classification under heading 8542,
HTSUS.
There is no question that the microwave module is a part of
a cellular mobile communication equipment classifiable under
heading 8525, HTSUS. Therefore, in accordance with GRI 1, the
module is classifiable under subheadings 8529.90.50 and
8529.90.99, HTSUS.
HOLDING:
The microwave module is classifiable under subheadings
8529.90.50 and 8529.90.99, HTSUS, as other parts suitable for use
solely or principally with the apparatus of headings 8525 to
8528, HTSUS.
The protest should be DENIED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, this decision, together
with the Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Freedom of Information
Act, and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division