CLA-2 RR:CR:GC 960922 JAS
David P. Sanders, Esq.
LeBoeuf, Lamb, Greene & MacRae L.L.P.
1875 Connecticut Avenue, N.W.
Washington, D.C. 20009-5728
RE: NY B 81965 Modified; Optical Fiber Connectors, Adapters, and Receptacles not Incorporating Optical Elements; Ceramic Articles Used to Join and Align Connectors to Facilitate Transmission of Signals Through Optical Fiber Cables; Ceramic Ferrules of Porcelain or China, Other Ceramic Articles, Composite Goods, Essential Character, GRI 3; GRI 6
Dear Mr. Sanders:
In a letter, dated September 12, 1997, on behalf of Alcoa
Fujikura, Ltd., you request reconsideration of a ruling on the
classification under the Harmonized Tariff Schedule of the United
States (HTSUS), of certain optical fiber adapters and
receptacles. You presented additional facts and legal arguments
at a meeting in our office on April 23, 1998, which you confirmed
in a memorandum of the same date.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed modification of NY B81965 was published on
July 1, 199, in the Customs Bulletin, Volume 32, Number 26. No
comments were received in response to that notice.
FACTS:
In NY B81965, dated February 28, 1997, the Chief, National
Commodity Specialist Division, New York, held, among other
things, that certain ceramic adapters and receptacles used in the
transmission of signals through optical fibers, were classifiable
in subheading 6914.90.80, HTSUS, as other ceramic articles not of
porcelain or china. The adapters and receptacles in issue were
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found to be composite goods made up of different components, and
that under General Interpretative Rule 3(b), HTSUS, the zirconium
oxide split sleeves or mating sleeves in each imparted the
essential character to the whole. The adapter model C002499 was
held to be classifiable in subheading 7419.99.50, HTSUS, because
the mating sleeve was of phosphor bronze. The classification of
this article is not in issue here.
The adapters in issue are the models C023450, C042420 and
C042404, while the receptacles are the models C024554 and
C024562. Each adapter consists of multiple plastic dust
protection caps, stainless steel mounting clips, and either two,
four or five zirconium oxide tubes called split sleeves or mating
sleeves, with an equal number of sleeve holders. All components
are enclosed in a plastic housing. Optical connectors of the
same or different sizes are press fit into each end of a split
sleeve within each adapter. An optical connector consists of a
plastic housing incorporating a ferrule into which an optical
fiber is fixed. The function of the adapters in issue is to
align the ferrules in both connectors within the split sleeve to
position and connect the fibers, thereby enabling the
transmission of an optical signal. The receptacles in issue
function in the same way to connect standard industry connectors
to active devices such as light emitting diodes (LEDs) to permit
optical signals to travel between them. The zirconium oxide
split sleeves in each adapter and receptacle prevent light loss
which would compromise the strength of the optical signal. It is
noted that the adapters and receptacles in issue will always have
one or more zirconium oxide split sleeves but it is the
connectors that incorporate the ferrules.
You contend that the adapters and receptacles in issue are
classifiable in subheading 6914.90.40, HTSUS, as this provision,
in your opinion, encompasses either ceramic ferrules imported
alone, ceramic ferrules imported with mating sleeves, or ceramic
mating sleeves of alumina or zirconia imported alone.
The provisions under consideration are as follows:
6914 Other ceramic articles:
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Of porcelain or china:
6914.10.40 Ceramic ferrules of porcelain or china, not exceeding 3 mm in diameter or 25 mm in lehgth, having a fiber channel opening and/or ceramic mating sleeves of alumina or zirconia...Free
6914.10.80 Other
6914.90 Other:
6914.90.40 Ceramic ferrules of alumina or zirconia, not exceeding 3 mm in diameter or 25 mm in length, having a fiber channel opening
and/or ceramic mating sleeves of alumina or zirconia...Free
6914.90.80 Other
ISSUE:
Whether the optical fiber adapters and receptacles in issue,
classifiable under GRI 3(b) as if consisting only of the split
sleeve component of zirconium oxide, are described in subheading
6914.90.40.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6. GRI 6 states,
in part, that the classification of goods in the subheadings of a
heading shall be in accordance with the terms of those
subheadings, and that GRIs 1 through 5 may be applied, with
appropriate substitution of terms.
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It is well settled that drafters of statutory provisions are
presumed to be versed in ordinary rules of grammatical
construction. However, where a statutory provision is ambiguous
or susceptible of more than one construction, the interpretation
that removes the ambiguity and which represents the more likely
legislative intent is preferred.
The decision in NY B81965 with respect to the adapters and
receptacles in issue was predicated on the belief that subheading
6914.90.40, HTSUS, as drafted, encompassed only ceramic ferrules
having the requisite dimensions, imported either with a fiber
channel opening or a ceramic mating sleeve of alumina or
zirconia. In all cases, it was felt, the ferrule must be
present, so that a ceramic mating sleeve, imported alone, or an
article classifiable as if consisting only of a ceramic mating
sleeve, could not be classified in that subheading.
You now cite a draft memorandum from the United States
International Trade Commission (USITC) to the House Ways and
Means Committee that, in your opinion, is a source of legislative
history that reflects the proper interpretation of the provision.
The memorandum provided technical comments on a proposal to
create a new heading 9902.69.14, HTSUS, to temporarily suspend
duty on ceramic ferrules and mating sleeves of either alumina or
zirconia. Although the proposed new heading was never enacted,
it is clearly linked to the Presidential Proclamation
subsequently issued to create subheadings 6914.10.40 and
6914.90.40. Accordingly, the following explanation, which
appears in the draft memorandum under the heading Product
description(s) and uses, is relevant:
The subject goods are parts of connectors used
to join and align optical fibers. A ceramic ferrule
is a tubular object whose inside diameter is precisely
sized to accommodate a single optical fiber, one of
which is inserted at each end of the ferrule. A
mating sleeve is a larger tubular object with a
longitudinal slit, and is designed to hold a ferrule
in place (Emphasis added).
It is clear from the draft memorandum that the connectors are not
made in the United States and that the relatively high cost of
the ferrules and the mating sleeves represents a large portion of
the total cost of the connectors. Thus, the proposed legislation
sought duty-free status both for the ferrules and for the mating
sleeves.
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The application of ordinary rules of grammatical
construction, together with our understanding of the apparent
intent of the legislation, as reflected in the draft USITC
memorandum, leads us to conclude that subheading 6914.90.40,
HTSUS, accords duty-free entry to: (1) separately imported
ceramic ferrules of alumina or zirconia having both the requisite
dimensions and a fiber channel opening; (2) such ferrules and
ceramic mating sleeves of alumina or zirconia imported together,
whether or not in even numbers; and, (3) ceramic mating sleeves
of alumina or zirconia imported separately.
Zirconium oxide mating sleeves are described both in
subheading 6914.10.40, HTSUS, and in subheading 6914.90.40,
HTSUS. Neither subheading provides a description for the good
that is more specific than the other. Under the authority of GRI
3(c), HTSUS, made applicable at the subheading level by GRI 6,
the optical fiber adapters and receptacles in issue, classifiable
as if consisting of the zirconium oxide mating sleeves, are
classifiable in subheading 6914.90.40, HTSUS, as that subheading
occurs last in numerical order among those which equally merit
consideration.
HOLDING:
Optical fiber adapter models C023450, C042420 and C042404,
and receptacle models C024554 and C024562, all classifiable as if
consisting only of a zirconium oxide mating sleeve, are provided
for in heading 6914. They are classifiable in subheading
6914.90.40, HTSUS.
NY B81965, dated September 12, 1997, is modified
accordingly. In accordance with 19 U.S.C. 1625(c)(1), this
ruling will become effective 60 days after its publication in the
Customs Bulletin. Publication of rulings or decisions pursuant
to 19 U.S.C. 1625(c)(1) does not constitute a change of practice
or position in accordance with section 177.10(c)(1), Customs
Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division