CLA-2-85:OT:RR:NCN1:109
Mr. William Thomas Gould, C.C.S., CHB
Attorney-in-fact for Kyocera America, Inc.
3807 W. Sierra Hwy., #6 PMB 4617
Acton, CA 93510-1256
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) for ceramic microelectronic packages from Mexico
Dear Mr. Gould:
In your letter dated November 17, 2010 you requested a determination as to the classification and eligibility of NAFTA duty free preferential treatment on behalf of your client, Kyocera America, Inc., regarding ceramic microelectronic packages that they will import from Mexico. You provided a sample of one of the ceramic microelectronic packages along with a flowchart and all of the components that are utilized during the production. The components that were furnished were a representation of each at various stages of production up to the completed ceramic microelectronic package. The ceramic microelectronic package, various components and the flowchart are being returned to you as per your request.
The merchandise subject to this ruling is a ceramic microelectronic package. The ceramic microelectronic package is utilized by Kyocera’s customers to produce semiconductors. Essentially, the ceramic microelectronic package is the base upon which diodes, transistors, or other semiconductor devices would be built onto. Those semiconductors will ultimately be used in microwave and radio-frequency devices, cellular communications, computers, and many other electronic products.
The ceramic microelectronic packages are produced in Mexico from originating materials from the United States and non-originating material from Japan. The originating materials from the United States are a 2-piece braze of copper/silver, a metalized ceramic frame of beryllium oxide or aluminum oxide and nickel plating, a 1-piece braze frame of copper/silver, and gold plating. The non-originating material from Japan is a lead frame of ferrous nickel, a metalized ceramic frame of molimanganese paste/ink, and a flange of copper nickel-plating.
All of the production for the ceramic microelectronic package is performed in Mexico utilizing the above mentioned originating and non-originating materials. The manufacturing process that occurs in Mexico is as follows:
The process begins with the raw ceramic frame upon which the molimanganese paste/ink is directly applied using a screen printing process.
Portions of the frame are nickel plated.
The assembly is put together using the lead frame made from ferrous nickel, the two small pieces of braze, the metalized ceramic frame, the one-piece braze frame, and the flange.
The components are heated to 900° and brazed together.
The assembly is then plated in gold.
The excess material (the frame that holds the leads) is trimmed from the ceramic microelectronic package/assembly.
The gold from the excess material is re-claimed.
The final ceramic microelectronic package is imported into the United States by Kyocera America, Inc.
As a result of the manufacturing process in Mexico, the finished ceramic microelectronic packages are shipped to Kyocera’s customers in the United States. Kyocera’s customers further manufacture them into diodes, transistors, or other semiconductor devices, utilizing the ceramic microelectronic packages as the base upon which to build the diodes, transistors, or other semiconductor devices.
The applicable tariff provision for the ceramic microelectronic package will be 8541.90.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Diodes, transistors and similar semiconductor devices; ...parts thereof: Parts..” The general rate of duty will be free
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
The ceramic microelectronic package was produced from originating and non-originating goods. However, the non-originating materials used in the production of the ceramic microelectronic package is not required to undergo a change in tariff classification in Mexico, as described in subdivision (r), (s), and (t) of General Note 12 (b) (ii) (B), [specifically GN 12 (b) (ii) (B) (t) Chapter 85, Chapter rule 5, 142.], which states:
“No required change in tariff classification to any of subheadings 8541.10 through 8542.90.”
As such, the ceramic microelectronic package will be entitled to NAFTA duty free preferential treatment upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Linda M. Hackett at (646) 733-3015.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division