CLA-2 RR:CR:GC 960082 RFA
Port Director
U.S. Customs Service
605 W. Fourth Avenue
Anchorage, Alaska 99501
RE: Protest 3196-95-100218; Faraday Rotator Film for Optical
Isolators; HQ 954255; NY A80542
Dear Port Director:
The following is our decision regarding Protest 3196-95-100218, which concerns the classification of Faraday Rotator Film
under the Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The subject merchandise are Faraday Rotator Films (models
YTd3V and YT5V), measuring 2.0mm x 2.0mm, which are made from
rare earth iron garnet (RIG) films grown on gadolinium gallium
garnet (GGG) substrates. The wavelengths in which the Faraday
Rotators operate are 1310 nanometers (nm) for Model YTd3V, and
1550 nm for Model YT5V). The limited information provided states
that Faraday Rotators are used in optical isolators which are key
components supporting the dependability of optical communications
equipment, optical measuring instruments, CATV and other advanced
optical products. The Faraday Rotator Films are used to rotate
the plane of polarization of light to prevent light from
reentering a laser.
The merchandise was entered under subheading 7104.10.00,
HTSUS, as piezo electric quartz. The entry was liquidated as
entered on June 2, 1995. The importer filed a timely protest on
August 1, 1995, claiming that the merchandise is properly
classified under subheading 8541.50.00, HTSUS, as other
semiconductor devices.
The 1995 subheadings under consideration are as follows:
7104.10.00: Synthetic or reconstructed precious or
semi-precious stones, whether or not worked
or graded but not strung, mounted or set;
ungraded synthetic or reconstructed precious
or semi-precious stones, temporarily strung
for convenience of transport:
[p]iezo-electric quartz. . . .
Goods classifiable under this provision have a general,
column one rate of duty of 5.4 percent ad valorem.
8541.50.00 Diodes, transistors and similar semiconductor
devices; photo-sensitive semiconductor
devices, including photovoltaic cells whether
or not assembled in modules or made up into
panels; light-emitting diodes; mounted piezo-electric crystals. . . : [o]ther semi-conductor devices. . . .
Goods classifiable under this provision have a general,
column one rate of duty of free.
9001.90.90 Optical fibers and optical fiber bundles;
optical fiber cables other than those of
heading 8544; sheets and plates of polarizing
material; lenses (including contact lenses),
prisms, mirrors and other optical elements,
of any material, unmounted, other than such
elements of glass not optically worked:
[o]ther: [o]ther: [o]ther . . . .
Goods classifiable under this provision have a general,
column one rate of duty of 7.3 percent ad valorem.
ISSUE:
Whether the Faraday Rotator Films are classifiable as piezo-
electric quartz, or as other semiconductor devices, or as other
optical elements under the 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 shall be determined according to
the terms of the headings and any relative section or chapter
notes.
The protestant claims that the subject merchandise is
classifiable under heading 8541, HTSUS, as other semiconductor
devices. To be classified under heading 8541, HTSUS, the
merchandise must meet the terms of Legal Note 5 to Chapter 85,
HTSUS. However, the protestant has submitted no evidence to
support the classification claim under heading 8541, nor is there
any other evidence of record from which we can independently
determine the validity of that claim. Therefore, classification
under heading 8541 is precluded. We also note that there is no
information in the protest that supports a claim that the subject
merchandise is piezo-electric quartz.
According to the limited information provided, the Faraday
rotators are to be used in optical isolators. In HQ 954255,
dated June 8, 1993, Customs stated that optical isolators are
mounted in a laser semiconductor module in the light path between
the laser chip and the transport medium (optical fibers). It
operates to transmit a forward beam and shut off a backward beam
in optical communication and measuring instruments. Based upon
these facts, Customs held that optical isolators which contained
a Faraday rotator, were classified under subheading 9013.80.60,
HTSUS, as other optical instruments because the optical isolator
met the definition of an "optical instrument" under Additional
U.S. Note 3 to chapter 90. See also NY A80542, dated March 14,
1996. Additional U.S. Note 3 to chapter 90 states that: "[f]or
the purposes of this chapter, the terms optical appliances' and
optical instruments' refer only to those appliances and
instruments which incorporate one or more optical elements, but
do not include any appliances or instruments in which the
incorporated optical element or elements are solely for viewing a
scale or for some other subsidiary purpose."
Based upon the definition in Additional U.S. Note 3 to
chapter 90 and the holding in HQ 954255, we find that the Faraday
Rotator Films which are used in optical isolators to rotate the
plane of polarization of light to prevent light from reentering a
laser, are classifiable as an optical element. Optical elements
are provided for under heading 9001. The subject Faraday Rotator
Films are classifiable under subheading 9001.90.90, HTSUS, as
other optical elements.
HOLDING:
The Faraday Rotator Films are classifiable under subheading
9001.90.90, HTSUS, as other optical elements. Goods classifiable
under this provision have a general, column one rate of duty of
7.3 percent ad valorem.
Because the rate of duty under the classification indicated
above is more than the liquidated rate, you should DENY the
protest in full. 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