CLA-2 RR:CR:GC 963688 JGB
Ms. Lena Defazio
Shenkers International
380 Turner Way
Aston, PA 19014
RE: Reconsideration and Modification of HQ 963179; Conductive Film
Dear Ms. Defazio:
On November 23, 1999, Customs issued to you, on behalf of E.I. Dupont De Nemours Co., a modification of New York ruling (NY) B83870, issued September 8, 1997, concerning the classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of 5 types of conductive thick film. We have reviewed that ruling and determined that the classification set forth for Type 5704 is in error. This letter is to inform you of the correct classification for Type 5704. This matter was brought to our attention by BDP International Inc., Dupont Import Operations.
FACTS:
Type 5704 conductive film and the other products described in HQ 963179 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.
NY B83870 covered five formulations. The modification in HQ 963179 pertained only to four of the five conductive films. Due to a mistake of fact, Customs mistook aluminum oxide for aluminum and classified Type 5704 as if it were in part of aluminum. Type 5704 should remain classified in subheading 3824.90.70, HTSUS, as originally provided in B83870. The products have the following chemical composition:
TYPE 4596 gold (30 60%), platinum (10 30%);
TYPE 5704 aluminum oxide (10 30%), glass/ceramic ingredients (30 60%);
TYPE 6177T silver (>60%), palladium (10 30%), glass/ceramic ingredients (10 30%);
TYPE 9998 silver (>60%), terpineol (10 30%).
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 dibromo neopentyl glycol;...;and Electroplating chemical 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.
With respect to Type 5704, which does not contain a metal, the provision for articles of a named metal would not apply and the appropriate subheading within the
residual heading for chemicals, heading 3824, HTSUS, does apply.
HOLDING:
Type 4596 is 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.”
Type 5704 is classified in subheading 3824.90.70, HTSUS, the provision for “...chemical products and preparations of the chemical or allied industries...: Other: Other: Other: Other: Mixtures of dibromo neopentyl glycol;...;and Electroplating chemical and electroless plating solutions and other materials for printed circuit boards, plastics and metal finishings.”
Type 6177T is 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.”
Type 9998 is classified in subheading 7115.90.40, HTSUS, the provision for “Other articles of precious metal or of metal clad with precious metal: Other: Other: Of silver, including metal clad with silver.”
HQ 963179 is modified as set forth in this ruling.
Sincerely,
John Durant, Director
Commercial Rulings Division