CLA-2 CO:R:C:M 954482 MBR
Mr. Sal Delia Ventura
Sony Corporation of America
1 Sony Drive
Park Ridge, New Jersey 07656-8003
RE: Revocation of HQ 953074; Ferrite Core; Electrical Parts of Machinery or Apparatus N.S.P.F.; HQ 950417; HQ 089042; HQ 089263; HQ 089869; HQ 082097
Dear Mr. Delia Ventura:
This is in reference to HQ 954482, issued to you on April 6, 1993, in response to your November 17, 1992, letter submitted on behalf of the Sony Corporation of America, requesting classification of "ferrite cores," under the Harmonized Tariff Schedule of the United States (HTSUS). We have reconsidered this ruling.
FACTS:
As stated in HQ 953074, ferrites are ceramic materials which exhibit a high degree of magnetic sensitivity. Ferrite material is manufactured by combining certain metallic oxides with a binding agent under high temperature and pressure.
Because of their high electrical resistivity and magnetic permeability, magnetically soft ferrites are particularly well suited for the storage, transmission, or reception of magnetic energy. The resistivity of ferrite material also allows those materials to be used in the conversion of electric energy into magnetic energy and vice versa via induction. Because of these capabilities, ferrite material is commonly used in computer memories and electrical components.
The instant ferrite core is in the shape of a donut measuring 3/4 inch in diameter. It has a rubber or plastic sleeve around it. You have stated that the instant ferrite cores are designed to be “slipped over certain electrical current carrying leads to choke out noise and/or distortion.” The U.S. Customs Office of Laboratories & Scientific Services has provided us with new information that the instant type of ferrite cores are a most versatile type of ferrites, and can have many different applications such as: radar, power supplies, core memories and filters for local area networks. Therefore, the instant ferrites cannot be said to have a principal as insulating fittings.
ISSUE:
Is the donut shaped ferrite core an insulating fitting for electrical machines, classifiable in subheading 8547.10.80, HTSUS, or as electrical parts of machinery under subheading 8548.00.00, HTSUS?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:
...classification shall be determined according to the terms of the headings and any relative section or chapter notes...
Customs has addressed the classification of various ferrite apparatus under the HTSUS in HQ 950417, dated January 7, 1992, HQ 089042, dated July 26, 1991, HQ 089263, dated August 15, 1991, HQ 089869, dated October 16, 1991, and HQ 082097, dated March 14, 1989. Each of the prior rulings has dealt with ferrites that have an established principal use.
HQ 953074 held that the instant ferrite cores were principally used for electrical insulation, and as such, were classifiable in subheading 8547.10.80, HTSUS, which provides for: "[i]nsulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating material apart from any minor components of metal (for example, threaded sockets) incorporated during molding solely for the purposes of assembly, other than insulators of heading 8546: [i]nsulating fittings of ceramics: [o]ther."
However, the U.S. Customs Office of Laboratories & Scientific Services has advised us that the instant type of ferrite cores are the most versatile type of ferrites, and can have many disparate applications such as: radar, power supplies, core memories and filters for local area networks. Therefore, a principle use as insulating fittings is not supportable. We now believe that this class of ferrites is principally used as electrical parts of machinery, and is therefore classifiable in the more inclusive heading 8548 (electrical parts of machinery).
It has been asserted that the instant ferrites may also be prima facie classifiable in Chapter 69 (ceramics). However, Legal Note 2(c) to section XVI (regarding the classification of parts) states that "all other parts are to be classified in heading 8485 or 8548." Thus, the instant ferrites are classifiable in subheading 8548.00.00, HTSUS.
HOLDING:
The instant ferrite cores are classifiable in subheading 8548.00.00, HTSUS, which provides for: "[e]lectrical parts of machinery or apparatus, not specified or included elsewhere in this chapter. The rate of duty is 3.9% ad valorem.
EFFECT ON OTHER RULINGS:
HQ 953074, dated April 6, 1993, is revoked under authority of Section 177.9(d), Customs Regulations (19 CFR 177.9(d)).
Sincerely,
John Durant, Director Commercial Rulings Division