CLA-2 OT:RR:CTF:EMAIN H301201 TPB
Dr. Bo Denysyk
Global USA, Inc.
Suite 650
2121 K Street, N.W.
Washington, D.C. 20037
RE: Revocation of HQ 957189; Classification of anti-reflection coated silicon wafers
Dear Dr. Denysyk:
On January 11, 1995, U.S. Customs and Border Protection (CBP) issued Headquarters (HQ) Ruling Letter 957189 to you, classifying anti-reflection coated silicon wafers under subheading 8541.90.00, HTSUS, as “Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes; mounted piezoelectric crystals; parts thereof...Parts.” After reviewing HQ 957189, we have found it to be in error with respect to the tariff classification.
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, notice proposing to revoke HQ 957189 was published on September 4, 2019, in Volume 53, Number 31, of the Customs Bulletin. No comments were received in response to this Notice.
FACTS:
In HQ 957189, the anti-reflection silicon wafers were described as follows:
“… Kyocera will import Japanese manufactured multi-crystalline silicon wafers [into the United States]. The manufacturing operation in Japan consists of:
1. silicon wafer fabrication;
2. surface treatment;
3. P/N junction formation;
4. back N type layer etching;
5. back surface field formation; and
6. anti-reflection coating.
After importation into the U.S., the anti-reflection coated silicon wafers will be further manufactured into a complete solar panel. The manufacturing operations to be performed in the U.S. entail:
1. patterning;
2. metalization;
3. solder coating;
4. cell inspection;
5. lead wiring;
6. string formation;
7. lamination;
8. curing;
9. framing;
10. joint box fixing; and
11. inspection.
The complete solar panels will then be exported to Mexico and/or Canada.”
ISSUE:
Whether the anti-reflection coated silicon wafers are classified as unfinished diodes or parts of unfinished diodes under the HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). 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 GRIs 2 through 6 may then be applied in order.
In determining the classification of the articles at issue, HQ 957189 determined that the anti-reflection coated silicon wafers were classified under heading 8541 rather than heading 3818 by application of GRI 1. That determination is affirmed in this ruling. With regard to classification under heading 8541, HQ 957189 classified the goods under subheading 8541.40.90, a “parts” provision for photosensitive semiconductor devices. However, considering the condition the anti-reflection coated silicon wafers are in when presented to Customs, an analysis should be made as to whether these are incomplete or unfinished articles, as described by GRI 2(a), which reads:
2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled.
In this case, we must determine whether the articles, as presented to Customs, have the essential character of the complete or finished article. As described above, the articles are imported from Japan having already undergone extensive work, including P/N junction formation, back N type layer etching, back surface field formation, and the addition of the anti-reflection coating. Formation of the P/N junction is critical in the functioning of the solar cell. After the P/N junction is created, the cells can optimally gather photons and produce electricity. The essential characteristic of the solar cell is to convert sunlight into electricity, and it can do so once the P/N junction is put in place.
As such, the subject merchandise are in a state that can convert solar energy into electrical energy, which is the essential character of these goods of subheading 8541.40.60. Therefore, the articles have the essential character of a photosensitive semiconductor devices and should be classified as such, by application of GRI 2(a), under subheading 8541.40.60, HTSUS.
HOLDING:
By application of GRIs 1, 2(a) and 6, the anti-reflection coated silicon wafers are classified under heading 8541, HTSUS, and specifically under subheading 8541.40.60, HTSUS, which provides for “Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells, whether or not assembled in modules or made up into panels; light-emitting diodes; mounted piezoelectric crystals; parts thereof… Other diodes.” The column one, general rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
HQ 957189, dated January 11, 1995, 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,
Myles B. Harmon,
Director,
Commercial and Trade Facilitation Division