NY E82962 June 28, 1999 CLA-2-90:RR:NC:MM:105 E82962 CATEGORY: Classification TARIFF NO.: 9031.80.8060; 9031.80.8085 Ms. Laura Denny CBT International, Inc. 110 West Ocean Blvd. Suite 728 Long Beach, CA 90802 RE: The tariff classification of Automotive Testing Devices from China and Taiwan Dear Ms. Denny: In your letter, dated May 9 , 1999, for All Trade, you requested a tariff classification ruling. The first sample's packaging is labeled the “Powerbuilt - Spark Plug Wire Tester”. The mechanic fastens it to the spark plug wire and a ground. While the engine is running, its flashing light indicates a sound wire, no light indicates a defective wire or connection. You propose classification in HTS 9030.39. However, the device does not measure any electrical quantity nor does it exactly “check” it, per se. Also, Explanatory Note 3 to Harmonized System Heading 9031 indicates it includes apparatus for testing and regulating all parts of an automobile's ignition system (coils, spark plugs, etc) even though they obviously operate electrically. The second sample's packaging is labeled “Team Mechanix - Mechanics Stethescope - Great for Pinpointing Worn or Noisy Parts”. We assume from the French and Spanish versions that “Stethoscope” was meant. The item is not a true stethoscope since the first, four inch long, metal shaft is solid, not hollow. It therefore does not transmit sound from the automobile, but vibration. The vibration is apparently converted into sound at the red plastic hemisphere and then, as in a true stethoscope, that sound is transmitted to the user's ears via hollow plastic and metal tubing. The device thus both transmits vibration and transduces it, non-electrically, into sound. Its purpose is not to enable one to measure the vibration, but to hear vibrations more clearly since vibrations are routinely an indication of a defective or poorly fitted part. EN 18 to HS 9031 includes “Apparatus for measuring or detecting vibrations...used on machines, bridges, dams, etc.” This has an analogous function. The applicable subheading for the wire tester will be 9031.80.8060, Harmonized Tariff Schedule of the United States (HTS), which provides for equipment for testing the electrical characteristics of internal combustion engines. The general rate of duty will be 1.7 percent ad valorem. The applicable subheading for the mechanic's stethoscope will be 9031.80.8085, Harmonized Tariff Schedule of the United States (HTS), which provides for “other”, non-“optical”, measuring or checking instruments, appliances and machines. The general rate of duty will be 1.7 percent ad valorem. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 James Sheridan at 212-637-7037. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division


NY F80316 December 27, 1999 CLA-2-85RR:NC:MM:109 F80316 CATEGORY: Classification TARIFF NO.: 8541.60.0020 Mr.James Shaw Panasonic Logistics Co. 2 Panasonic Way Secaucus, NJ 07094 RE: The tariff classification of Mounted Piezoelectric Elements from Japan Dear Mr. Shaw: In your letter dated December 1, 1999, you requested a tariff classification ruling. The merchandise is described in your letter as Mounted Piezoelectric Element Models FEEL, EFER and EFET. These Elements are used in alarm mechanisms in clocks and watches. The units are assembled into a resonance housing (enclosure) to produce a sound and are quartz discs. The discs are coated with silver with a thickness of 3 to 5 micrometers. The silver is painted on both sides of the disc and acts as an electrode. The electrode works as an electrical terminal to contact the piezoelectric crystal with the terminal of the alarm clock circuits in the clock case. These elements are designed to operate at 70 kHz to 200 kHz. A sample of the Piezoelectric Element and watch and a diagram showing the component construction of the product was submitted to this office. Explanatory Note 85.41(D) reads as follows: “They are classified here only if mounted. They are generally in the form of plates, bars, discs, rings, etc. and must, at least, be equipped with electrodes or electric connections.” The applicable subheading for the Mounted Piezoelectric Elements will be 8541.60.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for “Mounted piezoelectric crystals: Quartz designed for operating frequencies of: Not exceeding 1 MHz, except 32.768 kHz.” The rate of duty will be free. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Eileen S. Kaplan at 212-637-7048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division


The tariff classification of a receiver chip from Germany


NY F83421 March 31, 2000 CLA-2-85:RR:NC:MM:109 F83421 CATEGORY: Classification TARIFF NO.: 8504.40.9580 Ms. Heather Litman Stein, Shostak, Shostak & O’Hara Suite 1200 515 South Figueroa Street Los Angeles, CA 90071-3329 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Linear Proportional Load Controllers (LPLCs) from Mexico; Article 509 Dear Ms. Litman: In your letter dated February 1, 2000, you requested a ruling on the status of Linear Proportional Load Controllers from Mexico under the NAFTA. The merchandise is described in your letter and attached descriptive literature as Linear Proportional Load Controllers (LPLCs), Model Nos. 5LPCV2440 and 10LPCV24110. Samples were provided with request. Information on the functioning of these devices was also clarified by Mr. Ismael Talancon, of Crydom de Mexico S.A. de C.V. in a teleconference on March 3, 2000. Silicon Power obtains these two models of LPLCs from Crydom de Mexico S.A. de C.V., who assembles them in Tijuana, Mexico. These devices are principally used to control lighting and heating units. Changes in the input signal linearly vary the firing angle of the thyristor based load control device. Each device has a dc control voltage input and a 20 Vac input. When the control voltage is varied between 0-5 Vdc and 0-10 Vdc respectively the power output to the load is proportionally increased. These devices do not contain any sensors or feedback circuits from the load. The comparator, contained in each device, only compares the input and output of the device itself. Each device contains two subassemblies: the control circuitry or PCB assembly and the power switch or Heatsink assembly. The control circuitry (PCB assembly) contains resistor, capacitors, diodes, transistors, a volt regulator, a comparator, a PCB Control, an optocoupler, etc. The power switch (Heatsink assembly) contains two SCR (silicon controlled rectifiers/thyristors), lead gate, base plate, etc. The Heatsink assembly contains two silicon-controlled rectifiers that are required to maintain alternating current polarity of the electrical output. Detailed information was submitted on the components used to manufacture each LPLC. The country of origin of each component has been provided. The majority of the components are of U.S. or Mexican origin. Based on the submitted information, the non-originating components undergo the required change in tariff classification. The applicable tariff provision for the Linear Proportional Load Controllers (LPLCs), Model Nos. 5LPCV2440 and 10LPCV24110, will be 8504.40.9580, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “[s]tatic converters: [o]ther: [o]ther.” The general rate of duty will be 1.5%. Each of the non-originating materials used to make the Linear Proportional Load Controllers (LPLCs) has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/85.6(A). The Linear Proportional Load Controllers (LPLCs), Model Nos. 5LPCV2440 and 10LPCV24110 will be entitled to a free rate of duty under the NAFTA 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). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. 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 Eileen S. Kaplan at 212-637-7048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division


The tariff classification of Calcium Fluoride from Japan


NY G86065 January 25, 2001 CLA-2-90:RR:NC:MM:114 G86065 CATEGORY: Classification TARIFF NO.: 9031.41.00 Ms. Paula M. Connelly Middleton & Shrull 44 Mall Road, Suite 208 Burlington, MA 01803-4530 RE: The tariff classification of Test Handlers from Switzerland Dear Ms. Connelly: In your letter dated December 12, 2000, on behalf of Alpha Industries, Inc., you requested a tariff classification ruling. The NT-116 high-speed test handler is manufactured by Ismeca (Europe) SA. The NT-116 test handler performs various functions including the following: feeding, trimming, electrical testing, visual inspection, sorting and packaging of semiconductor devices. You indicate that the NT 116 will always include either a trimming function or a bowl feed unit; in both cases, this equipment is mounted on the NT 116 test handler. Concerning the electrical testing, the handler will perform a low voltage electrical test to check the leads on the semiconductor device. The full electrical test to check the device’s entire circuitry is performed by a separately attached testing machine; based on your letter, the full electrical test equipment is not imported with the NT-116. Regarding the visual test portion of the NT 116, there are two optical cameras to perform two visual inspections of the semiconductor devices. One inspection is performed just after the electrical testing process to ensure that the device’s leads are shaped correctly and meets the customer’s specifications. The second visual inspection occurs when the semiconductor device is placed on the carrier tape. The NT 116 also sorts the semiconductor devices to separate the good devices from those that are defective. Finally, the NT 116 packages the semiconductor devices in the desired format. The applicable subheading for the NT 116 test handler will be 9031.41.00, Harmonized Tariff Schedule of the United States (HTS), which provides for other optical measuring or checking instruments and appliances, for inspecting semiconductor wafers or devices or for inspecting photomasks or reticles used in manufacturing semiconductor devices. The rate of duty will be free. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Barbara Kiefer at 212-637-7058. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division


The tariff classification of Tellurium, Selenium, Undoped Indium Phosphide, Undoped Cadmium Telluride, Doped Indium Phosphide and Doped Cadmium Telluride, Cadmium Metal (unwrought) and Indium Metal (unwrought) from Japan


NY G86582 February 2, 2001 CLA-2-85:RR:NC:MM:109 G86582 CATEGORY: Classification TARIFF NO.: 8504.40.9570 Mr. V. Michael Mc Gee Antec Network Technologies 12273 Gateway West El Paso, TX 79936 RE: The tariff classification of TSP/Total System Power (power supply) from Mexico Dear Mr. Collini: In your letter dated January 17, 2001, you requested a tariff classification ruling. The TSP/Total System Power is an uninterruptible power supply device designed to act as a back up power supply for broadband and telephony applications. This TSP 48 V dc electronics module is compatible with the TSP 22 amp transformer module. During a utility power outage, the TSP 48 V dc electronics module provides a pulsed 48 V dc to the TSP 22 amp transformer module. The battery string provides dc voltage to the TSP 48 V dc electronics module. This dc voltage is provided to the TSP 22 amp transformer module for conversion to 87 V ac that is then supplied to the telecommunications system. The TSP 48 V dc electronics module also supplies a pulsed charging current to the battery string during normal operations. The applicable subheading for the TSP/Total System Power (power supply) is 8504.40.9570, Harmonized Tariff Schedule of the United States (HTS), which provides for “Electrical transformers, static converters and inductors; parts thereof: Static converters: Other; Inverters.” The general rate of duty will be free. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 212-637-7048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division


Application for Further Review of Protest 4198-06-100175

sapphire boule
scandium metal
synthetic sapphire unworked
worked synthetic sapphire
yttrium metal


The merchandise at issue is identified as the Delta Clubman. The Delta Clubman is used to improve vehicle/driver performance around a racing circuit. The Delta Clubman is a data logging machine which contains a central processing unit (CPU) which provides 2MB of logging memory, two built-in accelerometers, six analog channels and three digital channels for recording rate per minute, wheel speed and information from a lap timing beacon. The Delta Clubman also incorporates a number of channels calculated in the logger which can be displayed on a dash. These channels record lateral and inline acceleration, box voltage and box temperature. The Delta Clubman includes software to be used on a desktop or laptop CPU. The Delta Clubman uses the software for setup, direct calibration of the sensors, determining which channels are displayed on the driver's dash, receive configuration information and to upload information from the logger. Data obtained from the Delta Clubman enables drivers to automatically map the circuit on a CPU, analyze speeds through each corner in detail with a map report, compare breaking points on good and bad laps, compare data to the fastest lap, record all channel sensor readings for analysis and engine life, add set-up and track condition details to see what contributed to the fastest lap or what was missing on slower laps. The Delta Clubman is generally sold as part of a kit which includes a Delta Clubman, and “X Sport display”, a fully terminated System Loom and Analogue Sensor Loom, USB download lead, active wheel-speed sensor, 10-channel beacon receiver, software CD and Delta Clubman Logger Management software. The instant entry also included an optional strain gauge for pushrod loads, and unspecified optional sensors used for measuring RPM pickups, high pressure sensors for oil, water and fuel lines, low pressure sensor for measuring turbo pressure, temperature sensors for oil, water and air intake, linear potentiometers for measuring damper displacement or throttle and rotary potentiometers for measuring steering angle.

Classification of Race Car Processing Equipment

Merchandise imported into the United States is classified under the HTSUS. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs 1 through 5. The 2005 HTSUS headings under consideration are as follows: 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: 8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: 9029 Revolution counters, production counters, taximeters, odometers, pedometers and the like; speedometers and tachometers, other than those of heading 9014 or 9015; stroboscopes; parts and accessories thereof: 9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Section XVI, Note 1(m), HTSUS, states that “This section does not cover: Articles of Chapter 90.” Note 5 to Chapter 84 states, in relevant part: (B) Automated data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all the following conditions: (a) It is of a kind solely or principally used in an automatic data processing system; (b) It is connectable to the central processing unit either directly or through one or more other units; and (c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. * * * * (E) Machines performing a specific function other than data processing and incorporating or working in conjunction with an automatic data processing machine are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. Note 2 to Chapter 90, HTSUS, provides in relevant part: Subject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules: Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8485, 8458 or 9033) are in all cases to be classified in their respective headings; Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind; Note 3 to Chapter 90, HTSUS, states that: “[t]he provisions of note 4 to section XVI apply also to this chapter.” Note 4 to section XVI provides as follows: Where a machine (including a combination of machines) consists of individual components … intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function. * * * * The EN to heading 90, (IV) Functional Units, clarifies that the article to which note 4 to section XVI is applied, is classified in Chapter 90.” The EN to heading 84.71, reads, in relevant part: (D) SEPARATELY PRESENTED UNITS This heading also covers separately presented constituent units of data processing systems. These may be in the form of units having a separate housing or in the form of units not having a separate housing and designed to be inserted into a machine (e.g., insertion onto the main board of a central processing unit). Constituent units are those defined in Parts (A) and (B) above and in the following paragraphs, as being parts of a complete system. A unit is to be regarded as being a part of a complete data processing system, if it performs a data processing function and satisfies the following conditions: (a) It is of a kind solely or principally used in an automatic data processing system; (b) It is connectable to the central processing unit either directly or through one or more other units; and (c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. If the unit performs a specific function other than data processing, it is to be classified in the heading appropriate to that function or, failing that, in a residual heading (see Note 5 (E) to this Chapter). The interconnections may be made by material means (e.g., cables) or by non-material means (e.g., radio or optical links). The EN to heading 84.73, provides, in part: Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), this heading covers parts and accessories suitable for use solely or principally with the machines of headings 84.69 to 84.72. Emphasis in original. The EN to heading 90.29, provides in relevant part: (B) SPEED INDICATORS AND TACHOMETERS These instruments differ from the revolution counters and production counters of Part (A) above in that they indicate the number of revolutions, speed, output, etc., per unit of time (e.g., revolutions per minute, miles per hour, kilometres per hour, metres per minute). They are usually mounted on vehicles (cars, motorcycles, bicycles, locomotives, etc.) or machines (motors, turbines, paper making machines, printing machinery, textile machinery, etc.). Emphasis in original. In accordance with Note 1(m) to Section XVI, HTSUS, the Delta Clubman must be excluded from Chapter 90, HTSUS, before consideration can be given to classification within Section XVI. The Delta Clubman is not classifiable in heading 9027, HTSUS, as it is used to record data in addition to RPM. Specifically, the Delta Clubman also records voltage, pressure, temperature, wheel-speed and beacon information. Consequently, heading 9027, HTSUS, does not fully describe the instant merchandise. The terms "measuring" and "checking" of heading 9031, HTSUS, are not defined in the HTSUS or in the ENs. In United States v. Corning Glass Works, 66 CCPA 25, 27, 586 F.2d 822, 825 (1978), the court quoted definitions from Webster's Third New International Dictionary, 381 (1971) (in determining the scope of the provision for measuring and checking Instruments not specially provided for in the predecessor tariff schedule to the HTSUS). "‘Check' is defined as "to inspect and ascertain the condition of, especially in order to determine that the condition is satisfactory; … investigate and insure accuracy, authenticity, reliability, safety, or satisfactory performance of …; to investigate and make sure about conditions or circumstances…." The term "measure" is defined as follows: "[t]o ascertain the quantity, mass, extent, or degree of in terms of a standard unit or fixed amount …; measure the dimensions of; take the measurements of …; to compute the size of ... from dimensional measurements." Webster's Third New International Dictionary, 1400 (1971). See HQ 965639, dated September 12, 2002; HQ 954682, July 14, 1994; HQ 950196, dated January 8, 1992. The requestor maintains that the Delta Clubman is not classifiable in heading 9031, HTSUS, because it does not actually perform any measuring by itself; the primary or dominant function of the system of which it is a part is not to measure any activity and; the recorded information which can be classified as “measured data” is merely to show the driver his performance and not to test anything. The requestor also maintains that the Delta Clubman is factually distinguishable from past rulings in that it does not measure vibrations, it is not connected to computers at the time of recording, it does not record industrial or mechanical processes data to test an automobile or any part of an automobile, it does not record data to enable the driver or mechanical crew to evaluate the automobile's performance and it is not used with data acquisition units which initially analyze and/or process data before transmitting the data to the logger. The Delta Clubman records voltage, pressure, temperature, wheel-speed, beacon information and RPM data. It includes a strain gauge for measuring suspension loading and sensors for measuring RPM pickups, high pressure sensors for oil, water and fuel lines, low pressure sensor for measuring turbo pressure, temperature sensors for oil, water and air intake, linear potentiometers for measuring damper displacement or throttle and rotary potentiometers for measuring steering angle. Though the Delta Clubman itself does not measure or inspect this data, it is used in the process of measuring or checking. In Corning Glass Works, supra, the court stated that the provision for "checking instruments" clearly and unambiguously encompasses machines that carry out steps in a process for inspecting. Consequently, CBP has consistently held that equipment which is principally used in the process of measuring or checking is classifiable under that provision, even if it does not actually perform the measuring or checking operation itself. See HQ 089391, dated February 6,1992; HQ 953382, dated April 15, 1993 and; HQ 953351, dated May 10, 1993. The Delta Clubman enables drivers to map the circuit, analyze speeds, compare breaking points on good and bad laps, compare data to the fastest lap, record all channel sensor readings for analysis and engine life and add set-up and track condition details to see what contributed to their fastest lap or what was missing in slower laps. Additionally, the strain gauge and sensors unequivocally measure suspension load and pressure or temperature etc. As such the Delta Clubman at issue meets the definition of a functional unit because it consists of individual components that contribute together to the clearly defined function of measuring or inspecting the vehicle or driver's performance around a racing circuit to improve that performance. At a minimum the Delta Clubman is utilized with the sensors and the CPU to inspect (i.e., to ascertain the condition of driving or performance, especially in order to determine that the condition is satisfactory.) The Delta Clubman is not factually distinguishable from prior rulings which held certain data recorders to be classified in heading 9031, HTSUS, as the merchandise is used in the process of measuring or inspecting. See HQ 961096, dated June 15, 1998 and HQ 952235, dated November 4, 1992. As such, it squarely meets the terms of heading 9031, HTSUS. The Delta Clubman is excluded from Section XVI by virtue of Note 1(m) to Section XVI, HTSUS. Moreover, it cannot be classified in heading 8471, HTSUS, or heading 8473, HTSUS, inasmuch as it is not of a kind solely or principally used in an automatic data processing system and it performs a specific function other than data processing. The Delta Clubman is equally, if not principally, used with the sensors. Indeed, the sensors are a necessary prerequisite to enable the Delta Clubman to record the data which can later be analyzed on the CPU. Its function is measuring or inspecting not data processing. See Note 5 to Chapter 84, HTSUS.


HQ H014565 March 21, 2008 CLA-2 OT: RR: CTF: TCM H014565 RM CATEGORY: Classification TARIFF NO.: 9031.49.9000 Mr. Ross Lappin Vice President, Manufacturing Pacific Laser Systems 2550 Kerner Boulevard San Rafael, California 94901 RE: Request for reconsideration of New York Ruling N009766, dated April 26, 2007; Classification of Laser Levels. Dear Mr. Lappin: This letter is in response to your request of June 11, 2007 for reconsideration of New York Ruling Letter (NY) N009766. In that ruling, U.S. Customs and Border Protection (CBP) determined that the subject laser levels were classified under subheading 9031.49.90, Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed NY N009766 and found it to be correct. FACTS: The subject articles are self-leveling laser alignment tools imported from China. The principal use of these tools is to establish a level reference plane against which measurement can be performed. The product line consists of styles PLS2, PLS3 and PLS 180, which are referred to as “pocket” laser tools because they fit inside a small pouch and can be attached to a tool belt, and PLS 5, HVR 500, and HVR 100, which are hand-held tools that are too large for a tool belt. According to the description provided by the importer, each of the tools utilizes one or more 635 nanometer laser diodes in their operation. The collimated beam from the diode is directed through various mirrors, splitters, cones, etc., to project a reference plane of energy in the horizontal plane (level) or vertical plane (self levels to dead vertical) with a line or spot. The two HVR products are standard self-leveling rotators. They project a level spot that is rotated creating a visual level laser line. All of these tools are equipped with a tripod mount insert. ISSUE: Are the laser levels classifiable under subheading 9031.49.90, HTSUS, which provides for “[m]easuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter;…:[o]ther optical instruments and appliances: [o]ther: [o]ther" or under subheading 9015.30.40, HTSUS, as “surveying instruments (including photogrammetrical surveying)…:[l]evels: [e]lectrical?” 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. The HTSUS provisions under consideration are as follows: 9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: * * * Other optical instruments and appliances: * * * 9031.49 Other: Other… 9015 Surveying (including photogrammetrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders; parts and accessories thereof: * * * Levels: 9015.30.40 Electrical… The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). At issue is whether the subject laser levels are identifiable as electrical “surveying instruments” as understood by heading 9015, HTSUS. The Court of International Trade (CIT) has adopted broad lexicographic definitions of the word “survey” and “surveying instrument” in the past. See Gehrig, Hoban & Co., Inc., v. United States, 61 Cust. Ct. 344, 293 F. Supp. 433, 439 (Cust. Ct. 1968); see also Schlumberger Well Surveying Corp. v. United States, 54 C.C.P.A. 37, 41 (1967) (holding that cartridges designed to determine the dip of subsurface formations for oil exploration are surveying devices); R.W. Smith v. United States, 41 Cust. Ct. 78, 81-82 (1958) (holding that deviation recorders and parts used to measure the angle and the direction from the vertical of an oil well hole are surveying devices); Heli-Support, Inc. v. United States, 26 CIT 352 (2002) (holding that the plaintiff’s interpretation of heading 9015, HTSUS, to include only instruments “used in the practice and science of surveying by a surveyor” was incorrect). Most recently, in Agatec Corp., v. United States, Slip Op. 2007-92, dated June 6, 2007, a case also dealing with laser levels, the CIT drew from three dictionary definitions of the terms “survey” and “surveying” to interpret heading 9015, HTSUS. “Surveying”, according to the Columbia Encyclopedia (2d ed. 1950), is defined as "the science of finding the relative position on or near the earth's surface. Boundaries, areas, elevations, construction lines, and geographical or artificial features are determined by the measurement of horizontal and vertical distances and angles and by computations based in part on the principles of geometry and trigonometry." Encyclopedia Americana (1953) defines "surveying" as “the science of determining the positions of points on the earth's surface for the purpose of making there from a graphic representation of the area. By the term earth's surface is meant all of the earth that can be explored -- the bottoms of seas and rivers, and the interior of mines, as well as the more accessible portions. It includes the measurement of distances and angles and the determination of elevations.” Finally, Webster's Third New International Dictionary of the English Language (1981) ("Webster's") defines “surveying” as: “1. Survey: . . . 2: to determine and delineate the form, extent, and position of (as a tract of land, a coast, or a harbor) by taking linear and angular measurements and by applying the principles of geometry and trigonometry . . . .  2. Survey: . . . 3a: the process of surveying an area of land or water: the operation of finding and delineating the contour, dimensions, and position of any part of the earth's surface whether land or water (a topographic and hydrographic, of a locality) . . . . In Agatec, the CIT found that the similar electrical laser levels were not “surveying instruments” and therefore not classified under heading 9015, HTSUS. Principally, the Court noted that all three dictionary definitions invoked “the earth’s surface” as a benchmark for the surveying measurements, whereas the laser levels being considered “operated chiefly in a construction environment and [were] not principally measuring positions relative to the earth’s surface.” The CIT considered Webster’s alternative definition of “survey” -- which does not mention the earth’s surface but requires instead “the taking of linear and angular measurements and the application of geometric and trigonometric principles” - and found the laser levels to be equally deficient. The laser levels in that case were limited to measurement in one dimension and no evidence was produced to show how geometric or trigonometric principles may be applied to the tool’s measurements. Furthermore, the CIT found the laser levels to be incapable of spatial measurement (they could not measure distance without the help of a mounted receiver device), as required by all three definitions. The levels under consideration in this case are similar in design and function to those described in Agatec. First, like the laser levels in Agatec, the levels in question operate chiefly in a construction environment and are not principally measuring positions relative to the earth’s surface. The laser levels’ instruction manuals and promotional catalogue clearly state that the levels are designed for use by construction contractors for indoor and outdoor job sites. You listed several applications for the tools in your request for reconsideration letter, none of them dealing with measuring the earth’s surface. Second, the laser levels are incapable of spatial measurement, as required by all the aforementioned dictionary definitions of “survey”; the tools are limited to projecting level reference planes (i.e., spots or lines). Third, like the level lasers in Agatec, the tools in question are limited to one-dimensional measurement and cannot measure angles. Moreover, you did not address how geometric or trigonometric principles may be applied to the data obtained from the laser levels’ measurements to determine and delineate the position of objects. Thus, the common dictionary meanings prevent a classification of the laser levels under heading 9015, HTSUS. While it is true that the ENs to heading 9015, HTSUS, explicitly include instruments used “in determining heights above or below some horizontal reference level,” those same ENs conclude with the following limitation: “[t]his heading does not cover...[l]evels (air bubble type, etc) used in building or constructional work (e.g., by masons, carpenters or mechanics), and plumb-lines (heading 90.31).” Thus, as noted by the CIT in Agatec, the ENs “set up a mutually exclusive set of categories: (1) instruments used in determining heights above or below a horizontal reference level, and (2) instruments that are levels used in building or constructional work.” Accordingly, the ENs, while not binding or dispositive, support the conclusion that the laser levels are not classifiable under heading 9015, HTSUS. We now turn to CBP’s contention that the laser levels are classifiable under heading 9031, HTSUS, which includes “[m]easuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter…” In Agatec, the CIT explained that “checking” is the present participle of “check,” which Webster’s defines as “to inspect and ascertain the condition of, esp. in order to determine if the condition is satisfactory” or “to investigate and ensure accuracy, authenticity, reliability, safety, or satisfactory performance of.” Further, "measuring,” is the present participle of "measure," which Webster's defines as "to lay off, mark, or fix (a specified distance or extent) by making measurements" or "to appraise in comparison with something taken as a criterion." The laser levels in this case are optical instruments that aid in leveling, alignment, plumbing, and squaring for building and construction projects. In addition, they can project a vertical line. These functionalities are consistent with Webster's definition of measuring and checking. Moreover, the EN to subheading 9031.49, HTSUS, provides that “[t]his subheading covers not only instruments and appliances which provide a direct aid or enhancement to human vision, but also other instruments and apparatus which function through the use of optical elements or processes.” The goods in question use visible laser beams to aid human sight when leveling. They are therefore classifiable under heading 9031, HTSUS. HOLDING: The subject laser levels are classified under subheading 9031.49.90, HTSUS, which provides for: “[m]easuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: [o]ther optical instruments and appliances: [o]ther: [o]ther.” The general, column one rate of duty is 3.5 percent ad valorem. Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/hts/tata/. EFFECT ON OTHER RULINGS: NY N009766, dated April 26, 2007 is hereby affirmed. NY N004894, dated January 23, 2007 and NY 818367, dated January 31, 1996, and any other ruling inconsistent with Agatec Corp v. United States, CIT, Slip Op. 07-92, have been revoked by operation of law. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division


Request for Reaffirmation of NY N004894
Electronic Laser Level

HQ H021136 October 3, 2008 CLA-2 OT:RR:CTF:TCM H021136 JER CATEGORY: Classification TARIFF NO.: 9031.49.90 Brian Wolfrum Trimble Navigation, Ltd 5475 Kellenburger Road Dayton, OH 45424 RE: Request for Reaffirmation of NY N004894; Electronic Laser Level Dear Mr. Wolfrum: This letter is in response to your request of November 5, 2007, concerning your request for a reaffirmation of New York (“NY”) Ruling Letter N004894, dated January 23, 2007. In that ruling, U.S. Customs and Border Protection (“CBP”) determined that the subject laser levels were classified in subheading 9015.30.40, under the Harmonized Tariff Schedule of the United States (“HTSUS”). We have reviewed NY N004894 and found it to be incorrect. CBP recently addressed the issue concerning the classification of laser levels in Headquarters Ruling Letter (“HQ”) H014565, dated March 21, 2008, which found that laser levels are properly provided for in heading 9031, HTSUS. Specifically, HQ H014565, following the decision in Agatec Corp v. United States, CIT, Slip Op. 07-92; 29 Int'l Trade Rep. (BNA) (1987), classified the laser levels under subheading 9031.49.90, HTSUS, which provides for: “[m]easuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: [o]ther optical instruments and appliances: [o]ther: [o]ther.” In H014565, CBP affirmed NY N009766, dated April 26, 2007 and found that NY 818367, dated January 31, 1996, NY N004894 and any other ruling inconsistent with Agatec, were revoked by operation of law. We find that the decision in H014565 adequately and correctly addressed this issue. Therefore, we reject your request to reaffirm NY N004894 regarding the classification of the Trimble Navigation Electronic Laser Levels. We hope that you find this information helpful. If you have further questions or concerns, please contact John Rhea, of my staff, at (202) 572-8785. Sincerely, Gail A. Hamill, Chief Tariff Classification and Marking Branch


HQ H025781 January 21, 2010 CLA-2 OT:RR:CTF:TCM  H025781 CKG CATEGORY: Classification TARIFF NO.: 8541.60.00 Judith Holdsworth DeKieffer & Horgan Suite 800 729 Fifteenth Street, NW Washington, DC 20005 RE: Reconsideration of NY N021072; classification of piezoelectric ceramic stack Dear Ms. Holdsworth, This is in response to your letter of March 12, 2008, requesting reconsideration of New York Ruling Letter (NY) N021072, dated December 28, 2007, regarding the tariff classification of a piezoelectric stack imported from Japan by the Kyocera Industrial Ceramics Corporation. In NY N021072, CBP classified the piezoelectric stack in heading 6909, Harmonized Tariff Schedule of the United States (HTSUS) as “Ceramic ware for laboratory, chemical or other technical uses.” You suggest classification under heading 8541.60.00, as “Electrical Machinery and Equipment and Parts Thereof; …Mounted piezoelectric crystal.” We have reviewed that ruling, and for the reasons set forth below, we have determined the initial classification of the piezo ceramic stack to be incorrect. Therefore, we are revoking NY N021072, as it pertains to the classification of the piezo ceramic stack. 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 modify NY N021072 was published on December 10, 2009, in Volume 43, Number 50, of the Customs Bulletin. CBP received one comment in support of the proposed action. FACTS This sample is described as a ceramic piezoelectric stack. A laboratory analysis performed by CBP confirms that the instant article consists of three (3) pieces of a grey material that differ in length. The pieces are octagonal cross section, with adjacent faces of unequal height but alternate faces of essentially equal height. The two smaller faces appear to be partially metallic. It is to be used in fuel injection systems for diesel engines. The sample has a lamellar structure with alternating layers made of two different materials. One layer is a lead zirconate titanate ceramic. Lead zirconate titanate ceramic (also called PZT, an acronym for Pb, the symbol for lead, Zr for zirconium, and Ti for titanium) is a well-known material used in piezoelectric devices. The other layer is PZT mixed with a large amount of silver (Ag). The latter may be considered the internal electrodes of a multilayer (laminated) piezoelectric device. The sample has external electrodes made from silver on two opposing faces to which wires may be attached. After importation, the stack is encapsulated in resin and a lead wire is attached. When an electric current is applied to the ceramic stack, the stress causes a slight displacement or shape change of the stack. In this case, the displacement applies pressure on a small push pin, which in turn opens the injector to inject fuel for combustion in a diesel engine. ISSUE The issue is whether the merchandise at issue is classifiable in heading 6909, HTSUS, as “Ceramic ware for laboratory, chemical or other technical uses,” or heading 8541, HTSUS, as “mounted piezoelectric crystals.” LAW AND ANALYSIS Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the remaining GRIs 2 through 6. The HTSUS provisions at issue are as follows: 6909: Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods: Ceramic wares for laboratory, chemical or other technical uses: 6909.19: Other: * * * * * 8541: 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: 8541.6000: Mounted piezoelectric crystals The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 69.09(2) provides in pertinent part as follows: The heading covers in particular: (2) Ceramic wares for other technical uses, such as pumps, valves EN 85.41(A)(III) provides, in pertinent part: The devices described above fall in this heading whether presented mounted, that is to say with their terminals or leads or packaged (components), unmounted (elements) or even in the form of undiced discs (wafers). However, natural semiconductor materials (e.g., galena) are classified in this heading only when mounted EN 85.41 (D) states: “Piezoelectric crystals… are generally in the form of plates, bars, discs, rings, etc., and must, at least, be equipped with electrodes or electric connections. They may be coated with graphite, varnish, etc., or arranged on supports and they are often inside an envelope (e.g., metal box, glass bulb).” * * * * * In addressing classification of the subject article under heading 8541, HTSUS, as a mounted piezoelectric crystal, we must first establish that the ceramic is a crystal. The website americanpiezo.com (http://www.americanpiezo.com/piezo_theory/index.html) provides the following description of piezoelectric ceramic elements: “A traditional piezoelectric ceramic is a mass of perovskite crystals, each consisting of a small, tetravalent metal ion, usually titanium or zirconium, in a lattice of larger, divalent metal ions, usually lead or barium, and O2- ions” The laboratory analysis confirms that the instant article primarily consists of lead zirconate titanate ceramic. The piezoelectric stack at issue thus conforms to the above description of a piezoelectric crystal. To fall under heading 8541.60, however, the crystal must also be “mounted.” EN 85.41 provides additional clarification. EN 85.41 (D) states that piezoelectric crystals of heading 8541 must at least be equipped with electrodes or electric connections. EN 85.41(A)(III), which refers to diodes, transistors and similar semiconductor devices, describes such devices as “mounted” if containing terminals or leads or if packaged. According to the importer’s supporting materials as well as the lab analysis performed by CBP, the importer’s piezoelectric stack, as imported, is composed of ceramic plates stacked or laminated together with internal and surface electrodes. No leads or terminals are attached to the crystal as imported. Pursuant to EN 85.41(D), the presence of electrodes on the surface of the stack is sufficient to bring it within the scope of heading 8541, as a “mounted” piezoelectric crystal. This conclusion is consistent with prior CBP decisions in which electrodes or electric connections attached to the surface of the crystal were sufficient to deem the crystals “mounted.” See e.g., HQ 957334, dated April 24, 1995; HQ 956905, dated October 26, 1994; and NY F80316, dated December 27, 1999. In the case of NY F80316, for example, crystal quartz discs which were merely painted with silver on both sides, the silver itself acting as an electrode, were classified under subheading 8541.60, HTSUS, as mounted piezoelectric crystals. Furthermore, the “mounted” crystal described in HQ 956905 was virtually identical to the instant article: “The PZT Transducers are made of a polycrystalline ceramic material containing lead, zirconate, and titanite, which gives the material the ability to transduce an electrical charge into mechanical stress, and visa versa.  The PZT material is in the form of plates with nickel-gold electrodes mounted on both surfaces.  As used, when an electrical charge is applied to the electrodes, the vibration of the PZT material pumps ink onto the print medium.” EN 85.41(D) further states, however, that “If…because of the addition of other components, the complete article (mounting plus crystal) can no longer be regarded as merely a mounted crystal but has become identifiable as a specific part of a machine or appliance, the assembly is classified as a part of the machine or appliance in question: e.g., piezo-electric cells for microphones or loudspeakers (heading), sound-heads (heading 85.22)…” Prior CBP decisions have classified similar piezoelectric crystals in heading 8541, but without touching on this particular issue. In HQ 957334, piezoelectric crystals described as a “ceramic resonators” “mounted and equipped with electric connections” were classified under subheading 8541.60, as were the ceramic piezoelectric transducers in HQ 956905. The piezoelectric crystals in this decision were in the form of plates rather than stacks, but as with the subject article, were mounted with electrodes on the surface; an electric charge applied to electrodes mounted on the surface of the crystal caused a vibration which pumped ink onto the print medium. The articles in these cases were similarly designed for use in specific equipment. However, in HQ 953381, dated July 16, 1993, and HQ 955381, dated May 10, 1994, classification in heading 8541 was rejected because of the addition of other components that made the article identifiable as a specific part of a machine. The article in question was a printed circuit board assembly “made of paper phenolic with copper paths and nickel/gold-plated pads.” with a mounted quartz crystal and integrated circuit attached. Because of the presence of these additional components and the configuration of the circuit board itself, CBP held that the assembly was not merely a mounted crystal, but a specific part of a motor classifiable under 8503.00.40 (later reclassified under 9114.90.30 as an assembly for a clock movement by HQ955381). The printed circuit board assembly, however, was clearly more complex that the subject article. Given prior case law and your assertion that “this exact same type of piezoelectric stack is used as an actuator for ink jet printers, piezoelectric resonators, oscillators, ultrasonic motors, filter, acceleration sensors and knocking sensors”, we agree that the subject article, despite being manufactured for a specific diesel fuel injector model, is not a “complete article” that is “identifiable as a specific part of a machine or appliance.” The subject article is thus provided for in heading 8541, HTSUS, at GRI 1. HOLDING The instant piezo ceramic stack is classifiable under subheading 8541.60.00, HTSUS, as a mounted piezoelectric crystal. The 2008 column one, general rate of duty is Free. EFFECT ON OTHER RULINGS: NY N021072, dated December 28, 2007, 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


At issue are various models of photolithography pellicles imported by Shin-Etsu Microsi, specifically: PL6A2HF-AXN-6, PL6HF-AXN-6, PL6A2HF-A2N-6, PL6N2HF-A2G, and PL6A2HF-EXN. Requester indicated that all models are “soft pellicles,” i.e., thin, optically transparent covers made of fluorocarbon-based polymers (e.g., nitrocellulose) that are placed over a photomask during the photolithography process to shield it from dust and other contaminants. They do not alter or in any way affect the light that flows through them. The Port of Anchorage believes that the merchandise is classified under heading 9002, HTSUS, as “Other optical elements, of any material, mounted, being parts of … instruments or apparatus ….” The importer submits that it is classified under heading 8486, HTSUS, as “Machines and apparatus of a kind used solely or principally for the manufacture of … semiconductor devices …; parts and accessories.”

Tariff Classification of Photolithography Pellicles

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. CBP recently changed its position with regard to the classification of soft pellicles. See “Revocation of Two Ruling Letters and Revocation of Treatment Relating to the Tariff Classification of Pellicles” Customs Bulletin, Volume 43, No. 50, dated December 10, 2009. In Headquarters Ruling Letter (“HQ”) H055635 and in HQ H055636, both dated November 23, 2009, we found that soft pellicles are not classified under heading 9002, HTSUS, as “Optical elements, mounted, being parts … for instruments or apparatus …” because they do not alter the light that passes through them. See EN 90.02 (incorporating by reference EN 90.01, which explains that an optical element “does more than merely allow light … to pass through it, rather, the passage of light must be altered in some way, for example, by being reflected, attenuated, filtered, diffracted, collimated, etc.”). Unlike the products described in EN 90.02, soft pellicles are intentionally designed to reduce their reflectivity and to optimize light transmission. The 2010 HTSUS provision under consideration is the following: 8486 Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9 (C) to this chapter; parts and accessories: 8486.90.00 Parts and accessories … * * * Legal Note 2 to Section XVI, HTSUS, provides, in relevant part: Subject to note 1 to this section, note 1 to chapter 84 and note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: Parts which are goods included in any of the heading of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 are to be classified in heading 8517. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The ENs to heading 8486, HTSUS, provide, in part: This heading covers machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays … (B) MACHINES AND APPARATUS FOR THE MANUFACTURE OF SEMICONDUCTOR DEVICES OR OF ELECTRONIC INTEGRATED CIRCUITS This heading covers machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits such as: … Lithography equipment, which transfer the circuit designs to the photoresist-coated surface of the semiconductor wafer such as: Equipment for exposing the photoresist coated wafer with the circuit design (or a part thereof): (i) Using a mask or reticle and exposing the photoresist to light (generally ultraviolet) or, in some instances, X-rays: Contact printers … Proximity aligners … Scanning aligners … Step and repeat aligners, which use projection techniques to expose the wafer a portion at a time. Exposure can be by reduction from the mask to the wafer or 1:1. Enhancements include the use of an excimer laser. (E) PARTS AND ACCESSORIES Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading includes parts and accessories for the machines and apparatus of this heading. Parts and accessories falling in this heading thus include, inter alia, work or tool holders and other special attachments which are solely or principally used for the machines and apparatus of this heading. Heading 8486, HTSUS, provides, in relevant part, for: “Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; … parts and accessories.” The subject pellicles are “parts” of a kind used solely with lithography equipment, which transfers integrated circuit designs to the photoresist-coated surface of a semiconductor wafer. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774, 777 (Fed. Cir. 1997) (“[A]n imported item dedicated solely for use with another article is a ‘part' of that article within the meaning of the HTSUS.”). Specifically, they are parts of step-and-repeat aligners. See EN 84.86 (B)(4)(b)(i)(d). Note 2(b) to Section XVI, HTSUS, provides that parts which are not included in any of the headings of Chapters 84 or 85 (except for some headings not relevant here), and that are suitable for use solely or principally with a particular kind of machine, are to be classified with that machine. The pellicles at issue are not specifically described in either Chapter. As such, we find that they are classified under heading 8486, in subheading 8486.90, HTSUS, as parts of machines and apparatus of a kind used solely for the manufacture of integrated circuits.


You propose to import the AC-4780 Array Test System (“AC-4780”), a machine used to detect defects on liquid crystal display (“LCD”) glass substrates by inspecting and testing their active matrix circuitry, prior to their assembly into flat panel displays. Specifically, you indicated in your submission that testing by the AC-4780 is achieved by applying voltages to the thin film transistor (“TFT”) circuits etched onto the glass substrates, and then, using voltage imaging technology to determine whether the circuitry is operating correctly. Defective pixels on the substrates are identified by type, number, and location. If a repair is required, the glass substrates i.e., the panels, are either passed to a separate machine that repairs them or discarded. The main components of the AC-4780 are: (1) infeed and outfeed air tables; (2) “grippers,” used to move the glass plate along the Y axis; (4) Dual Voltage Imaging Optical System (“VIOS”) stages, sensor heads used to detect and characterize defects; (5) a Defect Review Camera (“DRC”) attached to the VIOS; (6) the “Chuck,” a translucent glass block mounted in a ceramic holder; (7) two probe bars, installed on the infeed and outfeed tables; and (8) the “Environmental Chamber,” which provides clean room during the inspection. You described the machine's sequence of operation as follows: Loading: The glass is loaded onto lift pins by the robot or rolled on through the conveyor (depending on the configuration). The lift pins then lower the glass onto the air table (robot load only). Coarse Alignment (Squaring): The glass is aligned using multi-position edge sensors. The glass is moved by means of grippers. Move to Test: The glass is moved to test the position using infeed grippers. The grippers contact the glass from the back side and move to the test position. Alignment: The glass is aligned via the fiducial marks using the alignment cameras mounted on the VIOS stage. Probe Bar Contact: The probe bar makes contact with the glass. ESS test is performed. Testing: Voltage imaging is done. Move to unload: The glass is moved on the outfeed table and rolled off the system using the conveyor.

Classification of the AC-4780 Array Test System

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation ("GRIs"). GRI 1 provides, in part, that "for legal purposes, classification shall be determined according to terms of the headings 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 may then be applied in order. Per our telephone conference, the HTSUS provisions under consideration are as follows: 9030 Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9020; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations; parts and accessories thereof: Other instruments and apparatus: 9030.82.00 For measuring or checking semiconductor wafers or devices … 9030.89.01 Other … 9031 Measuring and checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other optical instruments and appliances: 9031.41.00 For inspecting semiconductor wafers or devices for inspecting photomasks or reticles used in manufacturing semiconductor devices … 9031.49 Other: 9031.49.90 Other … Other instruments, appliances and machines: 9031.80.80 Other … The primary issue before CBP is whether the AC-4780 performs a “measuring” or “checking” function and under what heading this function falls within. The terms “measuring” and “checking” are not defined in the HTSUS nor in the Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”). However, CBP has adopted the meaning of the term given by the Court of International Trade (“CIT”) in Agatec Corp. v. United States, Slip Op. 2007-92, 2007 Ct. Intl. Trade LEXIS 90 (Ct. Int'l Trade June 6, 2007). In Agatec Corp., 2007 Ct. Int. LEXIS, at *23, quoting Webster's Third New International Dictionary, 381 (1971), the CIT defined these terms as: “Checking” is the present participle of “check,” which Webster's Dictionary defines as “to inspect and ascertain the condition of, esp. in order to determine if the condition is satisfactory” or “to investigate and ensure accuracy, authenticity, reliability, safety, or satisfactory performance of.” "Measuring” is “the present participle of "measure," which Webster's defines as "to lay off, mark, or fix (a specified distance or extent) by making measurements" or "to appraise in comparison with something taken as a criterion." You argue that the AC-4780 is properly classified in heading 9030, specifically, in subheading 9030.82.00, HTSUS, as: “[O]ther instruments and apparatus for measuring or checking electrical quantities …: Other instruments and apparatus: For measuring or checking semiconductor wafers or devices. “ It is your contention that the principal function of the machine is to check for defects on TFTs etched onto the glass substrates. You submit that the AC-4780 “does not check any characteristics of the glass, but solely the TFTs through electrical charging[.]” In support of this position, you argue that in Headquarters Ruling Letter (“HQ”) 965528, dated August 14, 2002, HQ 958898, dated May 14, 1996, and HQ 961882, dated August 3, 1998, CBP classified functionally similar machines in heading 9030, HTSUS, as “[A]pparatus for measuring and checking electrical quantities[.]” HQ 965528 discussed the “Agilent 3070 In Circuit Test Outsource Series,” a machine designed to test the individual component elements of a printed-circuit board. Specifically, the machine tested the components on the board to verify that they were not shorted or open. HQ 958898 involved the “Hi-Test Rope Tester,” a device designed to check the electrical conductivity of ropes, straps or other materials used near sources of high voltage. Finally, HQ 958934 concerned circuit testers designed to check 6 and 12 volt systems for shorts, grounds, open circuits, etc. Legal Note 3 to Chapter 90, HTSUS, states that: “[t]he provisions of Note 3 and 4 to section XVI apply also to this chapter.” Note 4 to section XVI provides as follows: Where a machine (including a combination of machine) consists of individual components … intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function. The AC-4780 meets the definition of a functional unit because it consists of individual components that contribute together to the clearly defined function of “checking” LCD glass substrates for defects. It does so by testing the TFTs etched on the substrates, after which the substrates are sorted based on their acceptability as to the number of defective pixels found and their location on the panel. As such, the AC-4780 is distinguishable from the machines discussed in the rulings you cite in that it does not function principally to “measure or check electrical quantities.” Accordingly, classification under heading 9030, HTSUS, is precluded. This case is analogous to HQ 954682, dated July 14, 1994, concerning the classification of the “Eisai Ampoule Inspection Machine (AIM),” designed for foreign particulate detection in glass ampules, vials and large infusion bottles. We described the machine's operations as follows: Containers such as ampoules, vials, etc., which are filled with liquid injectables are conveyed onto the slowly rotating inspection table. On the inspection table, the container is spun three times and inspected twice for foreign particulate matter and once for fill. Each container is spun at a high speed and braked just before entering the inspection beam. When in the beam, only the solution inside the glass vials is still rotating. Any particulate matter present in the solution blocks the light. The sensor perceives the light variation caused by the particulate matter and judges the container acceptable or faulty, in accordance with the preset sensitivity level. The containers judged acceptable are collected into a separate hopper. Protestant in that case argued that the machine “measured” the light received on the photodiode array after it was passed through the ampule and was therefore classifiable in heading 9027, HTSUS, as “[I]instruments and apparatus for measuring or checking quantities of … light (including exposure meters)[.]” CBP disagreed. Applying Note 3 to Chapter 90, HTSUS, CBP determined that, while the AIM was a functional machine, it was not “measuring quantities of light,” but rather, checking ampule vials and their liquid fills to determine whether they should be accepted or rejected. Accordingly, CBP found that classification under heading 9027, HTSUS, was precluded, and instead classified the machine under heading 9031, HTSUS. Similarly, in this case, the principal function of the AC-4780 is to check LCD glass substrates for defects to determine if the panels are acceptable for further manufacturing into a display or should be repaired or rejected, not the electrical quantities of the TFTs etched onto the substrates. We conclude, therefore, that because the AC-4780 is not provided for elsewhere in the Nomenclature, it is classified in heading 9031, HTSUS, which provides for “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this Chapter[.]” With regard to the applicable subheading, Additional U.S. Note 3 to Chapter 90, HTSUS, states that: "[f]or the purposes of this chapter, the terms 'optical appliances' and 'optical instruments' refer only to those appliances and instruments which incorporate one or more optical elements, but do not include any appliances or instruments in which the incorporated optical element or elements are solely for viewing a scale or for some other subsidiary purpose." You explained in your submission that the optical elements of the AC-4780, i.e., the VIOS, “help transform the detection of electrical field into a volting image.” Put differently, they transform the data scanned into a format understandable by the end user; they do not perform the measuring or checking functions of the AC-4780. Accordingly, we find that the optical elements of the AC-4780 play a subsidiary role to the “checking” of LCD glass substrates, which is performed electronically. As such, classification in heading 9031 under one of the subheadings that provide for “Other optical instruments and appliances” is precluded. Instead, the AC-4780 is classified in subheading 9031.80.80, HTSUS, which provides for: “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this Chapter …: Other instruments, appliances and machines: Other.”


The merchandise at issue is the Spectra™ 300 mm Wafer FOUP, a box-shaped plastic container with an integrated wafer magazine for storing and transporting up to twenty-five, 300 mm semiconductor wafers. It includes a plastic flange at the top containing kinematic couplings, e.g., pins, rails, holes, and other supports, specially designed to mate mechanically with an automated material handling system (“AMHS”), a machine that transports the FOUPs to the different processing stations in a semiconductor fabrication facility. A plastic door with a lock assembly seals the container and protects the wafers from contaminants. In use, an AMHS transports the FOUP to the loading station of a semiconductor processing tool and places it flush against a tool door having two keys. The tool door, attached to a robotic arm, opens the FOUP door by turning its keys, and unloads the wafers for processing. The wafers are subsequently reloaded into the FOUP and transferred to another station in the facility by the AMHS. You indicated that some facilities use the same AHMS to handle reticle pods in addition to the FOUPs. According to the information provided, in these situations, the FOUPs outnumber the reticle pods such that approximately 80 percent of the AMHS' use would be attributed to carrying FOUPs.

Classification of a Front-Opening Unified Pod ("FOUP")

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation ("GRIs"). GRI 1 provides, in part, that "for legal purposes, classification shall be determined according to terms of the headings 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 may then be applied in order. The HTSUS provision under consideration is as follows: 8486 Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9(C) to this chapter; parts and accessories: 8486.90.00 Parts and accessories … Note 2 to Section XVI, HTSUS, provides, in relevant part: Subject to note 1 to this section, note 1 to chapter 84 and note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: * * * (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 are to be classified in heading 8517; Note 9(C) to Chapter 84, HTSUS, states, in relevant part: Heading 8486 also includes machines and apparatus solely or principally of a kind used for: lifting, handling, loading or unloading of boules, wafers, semiconductor devices, electronic integrated circuits and flat panel displays. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The ENs to heading 8486, HTSUS, provide, in part: (D) MACHINES AND APPARATUS SPECIFIED IN NOTE 9 (C) TO THIS CHAPTER This group covers machines and apparatus solely or principally of a kind used for: (3) lifting, handling, loading or unloading of boules, wafers, semiconductor devices, electronic integrated circuits and flat panel displays (e.g., automated material handling machines for transport, handling and storage of semiconductor wafers, wafer cassettes, wafer boxes, and other material for semiconductor devices). (Emphasis added). (E) PARTS AND ACCESSORIES Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading includes parts and accessories for machines and apparatus of this heading. Parts and accessories falling in this heading include, inter alia, work or tool holders and other special attachments which are solely or principally used for the machines and apparatus of this heading. In Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774 (Fed. Cir. 1997) (hereinafter “Bauerhin”), the court considered the nature of "parts" under the HTSUS and two distinct though not inconsistent tests resulted. See Bauerhin, 110 F.3d at 779 (citing United States v. Willoughby Camera Stores, Inc., 21 C.C.P.A. 322 (1933) and United States v. Pompeo, 43 C.C.P.A. 9 (1955)). The court in Bauerhin explained: As set forth in Willoughby Camera, “an integral, constituent, or component part, without which the article to which it is to be joined could not function as such article” is surely a part for classification purposes. 221 C.C.P.A. at 324. However that test is not exclusive. Willoughby Camera does not address the situation where an imported item is dedicated solely for use with the article. Pompeo addresses that scenario and states that such an item can also be classified as a part. Reconciling Willoughby Camera with Pompeo, we conclude that where, as here, an imported item is dedicated solely for use with another article and is not a separate and distinct commercial entity, Pompeo is a closer precedent and Willoughby Camera does not apply […] Under Pompeo, an imported item dedicated solely for use with another article is a “part” of that article within the meaning of the HTSUS. Applying Bauerhin, we find that a FOUP is a “part” of an automated material handling system (“AMHS”). FOUPs are integral to the machine's function of transporting wafer boxes around semiconductor fabrication facilities in a manner that minimizes the risk of wafer contamination. In turn, an AMHS is a machine of a kind used principally for transporting and handling semiconductor wafers (it carries wafer boxes approximately 80 percent of the time). See Note 9(C)(iii) to Chapter 84, HTSUS. See also EN 84.86(D). Note 2(b) to Section XVI, HTSUS, provides that “parts” not more specifically provided elsewhere, that are suitable for use solely or principally with a particular kind of machine, e.g., a machine solely or principally used to handle wafers (Note 9(C) to Chapter 84, HTSUS), are classified with that machine. FOUPs contain a plastic flange designed specifically for attachment to an AMHS that makes them “suitable” for use solely or principally with a machine of Section XVI, HTSUS. Accordingly, pursuant to Note 2(b) to Section XVI and Note 9(C) to Chapter 84, HTSUS, we conclude that the merchandise is classified in heading 8486, HTSUS, as a “part” of a machine used solely or principally for the transport and handling of semiconductor wafers. This conclusion is further supported by EN 84.86(D)(3), which lists wafer boxes as an exemplar of machines and apparatus solely or principally of a kind used for lifting, handling, loading or unloading of wafers.


HQ H052564 May 5, 2010 CLA-2: OT:RR:CTF:TCM H052564 KSH CATEGORY: Classification TARIFF NO.: 8523.51.00 Port Director Port of Alaska U.S. Customs and Border Protection 605 W. 4th Avenue, Suite 230 Anchorage, AK 99501 RE: Application for Further Review of Protest No. 3195-08-100355; Security Transponder Dear Port Director: This is in reply to your correspondence forwarding an Application for Further Review (AFR) of Protest No. 3195-08-100355, filed on behalf of NXP Semiconductor USA, Inc (Protestant). The protest is against U.S. Customs and Border Protection’s (CBP) classification and liquidation of five entries of security transponders under heading 8543 of the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The merchandise at issue is a wireless security transponder identified as the “PCF 7936AS.” The PCF 7936AS is used in vehicle immobilization applications. The transponder is mounted within an automobile ignition key. An antenna is mounted around the perimeter of the automobile ignition lock and connects to a base station located in the automobile. When in use, the base station energizes the antenna which creates an electromagnetic induction to power the transponder and is the sole source of power for the transponder. The transponder sends data to the base station via this electromagnetic field. If the information transmitted to the base station from the transponder is authenticated, the automobile will start. Once connected to the electromagnetic field, the transponder also transmits data to and receives data from the automobile’s controller area network including odometer information, seat position and service information. The transponder is composed of four components: (1) a contact-less interface; (2) control logic; (3) a calculation unit and; (4) a 256-bit EEPROM to record and store data received from the base station. The contact-less interface includes a rectifier, power-on reset, clock recovery, a modulator and demodulator. The control logic includes data acquisition and EEPROM access control. Between October 6 and 13, 2007, protestant entered the merchandise subject to this protest in heading 8548, HTSUS, which provides for: “Waste and scrap of primary cells, primary batteries and electric storage batteries; spent primary cells, spent primary batteries and spent electric storage batteries; electrical parts of machinery or apparatus, not specified or included elsewhere in this chapter.” On March 22, 2007, a Request for Information was issued requesting a description of the function of the transponder, its components and the apparatus of which it is a part. On January 11, 2008, a Notice of Action was issued advising the protestant that the merchandise had been reclassified in heading 8543, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof.” The merchandise was liquidated on August 15 and 22, 2008, in heading 8543, HTSUS. On October 14, 2008, protestant filed a Protest and AFR against the classification and liquidation of the merchandise in heading 8543, HTSUS. Protestant now asserts that the security transponder is classified in heading 8523, HTSUS, which provides for: “Discs, tapes, solid-state non-volatile storage devices, 'smart cards' and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37.” In the alternative, protestant argues for classification in heading 8517, HTSUS, which provides for: “Other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof.” The protest was timely filed pursuant to 19 U.S.C. §1514 (c)(3). ISSUE: Whether the security transponder is classified in heading 8517, HTSUS, as other apparatus for the transmission or reception of voice, images or other data, in heading 8523, HTSUS, as a solid-state non-volatile storage device or in heading 8543, HTSUS, as electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85. LAW AND ANALYSIS: Initially, we note that the matter protested is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. The protest was timely filed within 180 days of liquidation. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, §2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further review is warranted pursuant to 19 C.F.R. §§174.24(a) and 174.25 because the protest is alleged to involve questions of law or fact which have not been ruled upon by the Commissioner of Customs or his designee or by the Customs courts. Specifically, protestant alleges that this “matter and class of merchandise [has not been] previously reviewed by CBP.” Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification 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 may then be applied. The 2007 HTSUS headings under consideration are as follows: 8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: 8523 Discs, tapes, solid-state non-volatile storage devices, 'smart cards' and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37: 8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: * * * Note 4 to Chapter 85, HTSUS, states, in relevant part: For the purposes of heading 8523: (a) "Solid-state non-volatile storage devices" (for example, "flash memory cards" or "flash electronic storage cards") are storage devices with a connecting socket, comprising in the same housing one or more flash memories (for example, "FLASH E²PROM") in the form of integrated circuits mounted on a printed circuit board. They may include a controller in the form of an integrated circuit and discrete passive components, such as capacitors and resistors;   The Harmonized Commodity Description and Coding System Explanatory Notes (EN), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The Explanatory Notes to heading 8517, HTSUS, state, in pertinent part, that heading 8517, HTSUS: [C]overs apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks. * * * The EN to heading 8523, HTSUS, provides, in relevant part: Products of this group contain one or more electronic integrated circuits.   Thus, this group includes:   (1)   Solid-state, non-volatile data storage devices for recording data from an external source (See Note 4 (a) to this chapter).  These devices (also known as "flash memory cards" or "flash electronic storage cards") are used for recording data from an external source, or providing data to, devices such as navigation and global positioning systems, data collection terminals, portable scanners, medical monitoring appliances, audio recording apparatus, personal communicators, mobile phones, digital cameras and automatic data processing machines.  Generally, the data are stored onto, and read from, the device once it has been connected to that particular appliance, but can also be uploaded onto or downloaded from an automatic data processing machine.   The media use only power supplied from the appliances to which they are connected, and require no battery.   These non-volatile data storage devices are comprised of, in the same housing, one or more flash memories ("FLASH E2PROM/EEPROM") in the form of integrated circuits mounted on a printed circuit board, and incorporate a connecting socket to a host appliance.  They may include capacitors, resistors and a microcontroller in the form of an integrated circuit. Example of solid state non-volatile storage devices are USB flash drives.   The EN to heading 8543, HTSUS, provides, in relevant part: This heading covers all electrical appliances and apparatus, not falling in any other heading of this Chapter, nor covered more specifically by a heading of any other Chapter of the Nomenclature, nor excluded by the operation of a Legal Note to Section XVI or to this Chapter. * * * This heading excludes :   * * * (c)   "Smart cards" (including proximity cards or tags) as defined in Note 4 (b) to this Chapter (heading 85.23). * * * The security transponder meets the terms of Note 4(a) to Chapter 85, HTSUS. Specifically, the security transponder transmits data using its contact-less interface and records non-volatile data (in its EEPROM chip). The security transponder does not require a battery and includes a capacitor. While it does not have a socket, it is electrically connected via an antenna and the electromagnetic field to the base station via a wireless connection, which performs the same function as a socket. Moreover, the wireless connectivity does not affect the function of the transponder. As such, it is classified in heading 8523, HTSUS. Inasmuch as the security transponder is specifically provided for in heading 8523, HTSUS, in accordance with Note 4(a) to Chapter 85, HTSUS, it cannot be classified in heading 8543, HTSUS, by the terms of that heading. See EN 85.43. In addition, we note that the security transponder is not described by heading 8517, HTSUS, because it performs functions that are not described therein (i.e., recordation, storage and evaluation analysis). Further, it is distinguishable from New York Ruling Letter (NY) L80675, dated November 29, 2004, inasmuch as the transponder at issue therein only executed the functions of reception, conversion and transmission of signals but did not record, store or evaluate those signals. HOLDING: By application of GRI 1 and Note 4(a) to Chapter 85, HTSUS, the security transponder is classified in heading 8523, HTSUS. It is specifically provided for in subheading 8523.51.00 which provides for: “Discs, tapes, solid-state non-volatile storage devices, 'smart cards' and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37: Semiconductor media: Solid-state non-volatile storage devices.” The general column one rate of duty at the time of entry was Free. Since reclassification of the merchandise as indicated will result in a lower rate of duty as claimed you are instructed to allow the protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. No later than 60 days from the date of this letter, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP homepage on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division