CLA-2 RR:CR:GC 963180 JGB
Ms. Julie Diaz
Rank Shipping of Puerto Rico, Inc.
Cargo Service Corporation Building
A-1, Cargo Area Muniz Air Base
Luis Munoz Marin International Airport
Carolina, PR 00983
RE: Reconsideration and Revocation of NY C81291; Conductive Film
Dear Ms. Diaz:
On December 19, 1997, Customs issued to you, on behalf of DuPont Electronics, New York ruling (NY) C81291 concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of 5 types of conductive thick film. This letter is to inform you that NY C81291 no longer reflects the view of the Customs Service concerning the classification of the thick conductive film and that the following reflects our position for these products.
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, a notice was published on October 13, 1999, in the Customs Bulletin, Volume 33, Number 41, proposing to revoke or modify four ruling letters pertaining to the tariff classification of metallic termination pastes or thick film for printed circuit board manufacture or related electronic applications. Among the four, the notice specifically referred to NY C81291, dated December 19, 1997. Only one comment was received in response to the notice.
FACTS:
The products are used in the electronics manufacturing industry and are said to be applied to a non-conducting substrate to form conductive, resistive or insulating films.
Ruling NY C81291 covers five formulations and classified all the products in subheading 3824.90.70, HTSUS. The products have the following chemical composition:
Code 6177L, 6177, and 6277 silver (60%), palladium (metallic) (10 30%)
Code 1194 silver (60%), terpineol (10 30%)
Code 6838 silver (60%), terpineol (10 30%)
Code 1192 silver (60%), terpineol (10 30%)
Code QS 171 silver (60%), dibutyl phthalate (5 10%)
ISSUE:
Whether the thick film products are classified in heading 3824, HTSUS, as a chemical product or preparation of the chemical or allied industries, or in heading 7115, HTSUS, as articles of precious metal.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRI.
Heading 3824, HTSUS, provides for "...chemical products and preparations of the chemical or allied industries....” Subheading 3824.90.70, HTSUS, specifically provides for “...chemical products and preparations of the chemical or allied industries...: Other: Other: Other: Other: Mixtures of dibromoneopentyl glycol;...;and Electroplating chemicals and electroless plating solutions and other materials for printed circuit boards, plastics and metal finishings.” This is a residual or “basket” provision.
Heading 7115, HTSUS, provides for “Other articles of precious metal or of metal clad with precious metal:.” Note 4 (a-b) to Chapter 71, which includes heading 7115, HTSUS, provides that the expression “precious metal” means silver, gold, and platinum and that the expression “platinum” means platinum, iridium, osmium, palladium, rhodium and ruthenium.” Note 5 to chapter 71 provides as follows:
For the purposes of this chapter, any alloy (including a sintered mixture and an inter-metallic compound) containing precious metal is to be treated as an alloy of precious metal if any one precious metal constitutes as much as 2 percent, by weight, of the alloy. Alloys of precious metal are to be classified according to the following rules:
(a) An alloy containing 2 percent or more, by weight, of platinum is to be treated as an alloy of platinum;
(b) An alloy containing 2 percent or more, by weight, of gold but not platinum, or less than 2 percent, by weight, of platinum, is to be treated as an alloy of gold;
(c) Other alloys containing 2 percent or more, by weight, of silver are to be treated as alloys of silver.
GRI 3(a) provides that “when, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:”
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
Applying these provisions to the matter at hand, the “articles” provisions for the precious metals describe the goods. The goods consist principally of the named metals and they have been shown to be finished articles, as opposed to unwrought or primary forms of the metals. Each contains a discrete amount of the metal which presumably permits a desired level of electrical conductivity. Therefore, as articles of the named metals, they are completely and more specifically described by the articles provisions, than by the residual provision for chemicals. Accordingly, under GRI 3(a), the articles provisions prevail over the chemical provision.
HOLDING:
Code 6177L, 6177, and 6277 are classified in subheading 7115.90.60, HTSUS, the provision for “Other articles of precious metal or of metal clad with precious metal: Other: Other, Other.”
Code 1194, 6838, 1192, and QS 171 are classified in subheading 7115.90.60, HTSUS, the provision for “Other articles of precious metal or of metal clad with precious metal: Other: Other, Other.”
NY C81291 is hereby revoked.
In accordance with 19 U.S.C.1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
John Durant, Director
Commercial Rulings Division