HQ 0084217 - Aluminum blanks and substrates for computer memory discs - United States International Trade Commision Rulings

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HQ 084217

June 28, 1989

CLA-2 CO:R:CV:G: 084217 JLV

CATEGORY: CLASSIFICATION

TARIFF NO.: 7616.90.00

Steven W. Baker, Esq.
Bellsey and Baker
100 California Street, Suite 670
San Francisco, California 94111

RE: Aluminum blanks and substrates for computer memory discs

Dear Mr. Baker:

In a letter of February 28, 1989, as supplemented by a letter, with samples, of March 28, 1989, in response to a request for additional information, you request a ruling on behalf of your clients, Marubeni America Corp. (Los Angeles) and James J. Boyle & Co., on the tariff classification for certain aluminum blanks and substrates for computer memory discs. Your request was forwarded to this office for response on the classification issue under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The discs consist of circular flat discs, each of which has a hole in the center, and are made of various aluminum alloys (AA 5086.0, KS 5186-0, KS 5286-0, KS 5386-0, or KS 5586-0). The submitted samples measure 5.25 inches in diameter and 95 centimeters in diameter, although you state that the discs will range in size from 2.5 to 14 inches in diameter. The majority are said to be used in permanent hard disc drives; a smaller number are to be used in data packs which can be inserted into and removed from the drive mechanism.

The primary difference between the blanks and the substrates is the degree or stage to which the discs have been processed prior to importation. The discs are initially
stamped out in a blanking press from cold rolled aluminum coils to the inside and outside diameters; they are then cleaned, stacked, and press annealed in a furnace on a base platen under a load. The resulting disc is a blank that has the tensile strength, yield strength, flatness, and other mechanical features necessary for the production of a finished disc.

Substrates are produced by further processing these blanks. The processing includes annealing, chamfering of the inside and outside edges, and then either rough facing of the surface (facing to proper thickness, washing, and diamond turning, or rough grinding of the surface (grinding to proper thickness), washing, and polishing to a mirror bright surface finish.

The remaining processing consists of plating, polishing, cleaning, further polishing, cleaning, sputter (depositing a thin metallic film), and 100 percent testing. The resulting article is a finished disc for use as indicated.

You state that the blanks and substrates are classifiable as unfinished parts of data processing machines in subheading 8473.30.40, HTSUSA, rather than as other articles of aluminum in subheading 7616.90.00, HTSUSA, as you were advised by the Customs officer at the port through which the goods will be entered.

In a ruling of March 14, 1989 (file 838004), Customs ruled that a polished nickel-plated aluminum ring, a substrate similar to some of the discs in issue, was classified as an article of aluminum in subheading 7616.90.0080, HTSUSA.

ISSUE:

Are the blanks or substrates incomplete or unfinished articles having the essential character of the complete or finished article within the meaning of General Rule of Interpretation (GRI) 2(a), and, therefore, classified in heading 8473 or heading 8523, rather than in heading 7616 or heading 7606?

LAW AND ANALYSIS:

Classification under the HTSUSA is according to the principles set out in the General Rules of Interpretation (GRI). GRI 1 states in pertinent part 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 provisions that follow GRI 1. The blanks and substrates, in this case, are unfinished discs because they lack the magnetic surface finish necessary for their use as memory discs for storage units of heading 8471. GRI 2(a) states, in pertinent part, that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article.

The Explanatory Notes (EN), the official interpretation for the HTSUSA at the international level, state that rule 2(a) applies to blanks which, although not ready for direct use, have the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. In this case, the disc blanks and the substrates have the essential shape of the finished articles, and they do not appear to have any practical use other than completion into the intended memory discs. By virtue of their specific size and shape, these articles have assumed the character of the articles into which they will be completed. Therefore, these articles cannot be classified as plates of heading 7606, HTSUSA. Chapter 76, note 1(d).

Assuming that the blanks and substrates are unfinished parts of storage units of heading 8471, they are precluded from classification as parts of these units by section XVI note 2(a) because heading 8523 specifically provides for prepared unrecorded media for sound recording or similar recording of other phenomena. EN(4) to heading 8523 indicates that the heading includes discs of metal that are capable of being magnetized (magnetic coating on the surface) for recording data for machines of heading 8471.

However, to the extent that these blanks and substrates are not yet prepared for use as media for recording other phenomena, they are precluded from classification in heading 8523. EN(a) to heading 8523. This EN directs the classification according to the material of which the blank is composed. In this case, the blanks and substrates are of alloys of aluminum and other metals. The aluminum predominates by weight over each of the other metals. According to section XV note 3(a), the blanks and substrates are classified as an alloy of aluminum.

Section XV note 4 states that, unless the context requires otherwise, a reference to a base metal includes a reference to alloys which by virtue of note 3 of section XV are to be classified as alloys of that metal. Because these articles are excluded from heading 7606, we conclude that the appropriate provision is heading 7616, subheading 7616.90.00, HTSUSA, for other articles of aluminum. Ruling letter of March 14, 1989 (file 838004), noted and affirmed.

HOLDING:

Disc blanks and substrates of aluminum, not yet prepared for use as media for recording sound or other phenomena, are classified as other articles of aluminum in subheading 7616.90.00, HTSUSA.

Sincerely,

John Durant, Director

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