CLA 2 RR:CR:GC:962155 AML
Patrick Pascarella
Viking Sea/Air Freight, Inc.
191 South Franklin Avenue
Suite 607
Valley Stream, New York 11581
RE: Reconsideration of New York Ruling Letter (NY) C85678; magnetic actuators for laser
printers
Dear Mr. Pascarella:
This is in response to your request, on behalf of Aromat Corp., in a letter dated June 18, 1998, for reconsideration of New York Ruling Letter (NY) C85678, issued to you on April 20, 1998, which determined that magnetic actuators for laser printers were classified under subheading 8505.20.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for electromagnetic couplings, clutches and brakes. Literature was submitted for our review.
FACTS:
The actuator consists of an electromagnet contained in a housing with a movable arm. It is used in a laser printer and serves as a solenoid which activates a clutch to control a roller which moves paper from a tray to the laser printer head.
ISSUE:
Whether the magnetic actuators for laser printers are classifiable as electromagnetic couplings, clutches and brakes under subheading 8505.20.00, HTSUS, or as electromagnets under subheading 8505.90.80, HTSUS?
LAW AND ANALYSIS:
CLASSIFICATION
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, provides, in part, that “for legal purposes, classification shall be determined according to terms of the headings and any relative section or chapter notes[.]”
The HTSUS subheadings under consideration are as follows:
8505 Electromagnets; permanent magnets and articles
intended to become permanent magnets after
magnetization; electromagnetic or permanent
magnet chucks, clamps and similar holding
devices; electromagnetic couplings, clutches
and brakes; electromagnetic lifting heads;
parts thereof:
Permanent magnets and articles intended to
become permanent magnets after magnetization:
8505.20.00 Electromagnetic couplings, clutches and brakes:
8505.90 Other, including parts:
8505.90.80 Other.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the ENs should always be consulted. See T.D. 89 80. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The EN to 85.05 states, in pertinent part, that:
This heading covers electro magnets, those electro magnet operated appliances specially listed in the heading, permanent magnets and permanent magnet work holders.
(1) Electro magnets.
These are of various sizes and shapes according to the use for which they are intended. They consist essentially of a coil of wire wound around a core of soft iron, this core being either in one piece or laminated. The passing of electric current in the coil confers magnetic properties on the core, which can then be used either for attraction or repulsion.
This article is classifiable pursuant to GRI 1. The magnetic actuator works in conjunction with, rather than performs the function of, an electromagnetic clutch. It is an electromagnet and is provided for in the HTSUS and the ENs.
MARKING
The imported magnetic actuators are assembled into laser printers in the U.S. and function as electro-magnetic magnets that activate a clutch to allow a roller to complete one rotation, which feeds one paper sheet from the multi-purpose paper tray into the main printer body. The actuators are assembled into the printers with screws. Aromat states that there are several hundred parts in the printers. The actuators are shipped to the U.S. in an outer carton which contains four inner carton boxes. There is a country of origin marking on the outer boxes. You state that the articles are sold exclusively to Canon Virginia in the outer boxes. We note that in the information you provide, the country of origin of the articles is inconsistently stated to be China and Japan.
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. Pursuant to 19 CFR 134.35(a), an article used in the U.S. in manufacture that is substantially transformed is excepted from marking. The outermost containers of the imported articles shall be marked in accord with this part. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character or use. U.S. v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940).
In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. For instance, Customs has ruled that the complex assembly of a large number of fabricated components onto a printed circuit board results in a substantial transformation. This case involved the assembly of more than 50 components which took approximately 20 minutes and a number of assembly steps, and required skilled operators which increased the value of the PCBA’s by approximately 10 percent. See C.S.D. 85-25, dated September 25, 19984.
Although we have received limited descriptive information concerning the assembly of the printer, based upon our experience in such matters, we find that the assembly in the U.S. of numerous components (several hundred, according to Aromat), including the magnetic actuators, to create a finished printer constitutes a complex assembly operation which results in a substantial transformation of the actuators. Therefore, pursuant to 19 CFR 134.35(a), the article would be excepted from individual marking. The outermost container of the imported articles must be marked to indicate the country of origin of the articles.
HOLDING:
The magnetic actuators for laser printers are classifiable under subheading 8505.90.80, HTSUS, as electromagnets.
EFFECT ON OTHER RULINGS:
NY C85678 is hereby revoked.
Sincerely,
John Durant, Director
Commercial Rulings Division