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HQ 088157


July 2, 1992

CLA-2 CO:R:C:M 088157 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8542.90.00

District Director
U.S. Customs Service
880 Front Street, Room 5-S-9
San Diego, California 92188

RE: Protest No. 2501-89-000051; Ceramic Pieces; GRI 1; Note 2, Section XVI; 8547.10.80; EN 85.47; insulating fittings; 8546.20.00; EN 85.46; electrical insulators; 089276; 950868; Kyocera International; parts; electronic integrated circuit

Dear Sir:

This is in response to the Application for Further Review of Protest No. 2501-89-000051, dated May 17, 1989, which pertains to the tariff classification of ceramic pieces under the Harmonized Tariff Schedule of the United States (HTSUS). Samples were provided for examination.

FACTS:

The articles under consideration are ceramic pieces. Upon importation, you liquidated the entries for the ceramic pieces under subheading 8546.20.00, HTSUS, which provides for "Electrical insulators of any material...Of ceramics." The protestant, Diacon Inc., contends that the ceramic pieces are properly classified under subheading 8542.90.00, HTSUS, which provides for "Electronic integrated circuits and microassemblies; parts thereof...Parts."

The ceramic pieces are composed of approximately 90 percent alumina and measure 3/4 of an inch by 1/4 of an inch by 1/16 of an inch in size. Upon importation, the ceramic pieces are glazed and the electronic integrated circuit's lead frames are placed on the glaze. Thereafter, additional components are added to create a finished electronic integrated circuit. The protestant states that the ceramic pieces are used exclusively in the semiconductor industry to house electronic integrated circuits.

ISSUE:

What is the proper tariff classification of the ceramic pieces under the HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...." The competing headings in this case are heading 8542, 8546 and 8547, HTSUS. Chapter 85, HTSUS, is within Section XVI, HTSUS, making the Section XVI notes applicable to the classification of this merchandise. Note 2 states that parts of machines are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapter 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

(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....

Subheading 8547.10.80, HTSUS, provides for "Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating material apart from any minor components of metal (for example, threaded sockets) incorporated during molding solely for the purposes of assembly, other than insulators of heading 8546...Insulating fittings of ceramics... Other." Explanatory Note (EN) 85.47 of the Harmonized Commodity Description and Coding System (HCDCS) page 1407, states that this heading "covers all fittings for electrical machinery, appliances or apparatus, provided:

(i) They are wholly of insulating material, or are wholly of insulating material (e.g., plastics) apart from any minor components of metal (screws, threaded sockets, sleeves, etc.) incorporated during moulding solely for purposes of assembly. and (ii) They are designed for insulating purposes even though at the same time they have other functions (e.g., protection)."

Additionally, EN 85.47 states that this "heading does not cover fittings which, even though made wholly of insulating material (or made wholly of insulating material apart from any minor components of metal incorporated during moulding solely for the purposes of assembly), have not been specially constructed for insulating purposes, such as containers, covers and separator plates for accumulators (emphasis added)." HCDCS, Vol. 4, p. 1408. The type of insulating fittings described in EN 85.47 included such fittings as switches, circuit breakers, fuses, parts of lamp holders, spark plug bodies, etc. The Explanatory Notes, although not dispositive, are to be looked to for the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The ceramic pieces do not belong to the class or kind of insulating fittings covered by subheading 8547.10.80, HTSUS. The pieces are constructed of insulating material, i.e., ceramic. However, they are not specially constructed for insulating purposes. The ceramic pieces are specially constructed and function as mounting bases for electronic integrated circuits. As the ceramic pieces are not specially constructed for insulating purposes, they are not properly classified under subheading 8547.10.80, HTSUS.

Subheading 8546.20.00, HTSUS, provides for "Electrical insulators of any material...Of ceramics." EN 85.46 states that "[i]nsulators of this heading are used for the fixing, supporting or guiding of electric current conductors while at the same time insulating them electrically from each other, from earth, etc." HCDCS, Vol. 4, p. 1406. The insulators of this heading include suspension insulators of the type used mainly on outdoor networks which consist of several insulating elements, rigid insulators of the type which are intended to be attached to power or telegraph poles or fitted to walls, ceilings, floors, and leading-in insulators which are used for guiding cables or wires through walls. HCDCS, Vol. 4. p. 1407.

The ceramic pieces are not properly classified under subheading 8546.20.00, HTSUS, as they do not belong to the class or kind of merchandise contemplated by this tariff provision. Although the ceramic is a nonconductive material, the ceramic pieces are designed to function as mounting bases for electronic integrated circuits. The ceramic pieces are not designed to function as electrical insulators used for fixing, supporting or guiding electric current conductors.

As the ceramic pieces are not used for "fixing, supporting or guiding of electric current conductors while at the same time insulating them electrically from each other...," they are not properly classified under subheading 8546.90.00, HTSUS. See also, Headquarters Ruling Letter (HRL) 089276 dated July 24, 1991, which held that packages consisting of cases made of Kovar plated with nickel or nickel and gold in which external electrical leads are attached with a "glass to metal" process and which do not have printed conductor elements or other printed components, are classified as parts of integrated circuits under subheading 8542.90.00, HTSUS, and HRL 950868 dated December 31, 1991, which held that copper bases used to mount a semiconductor device were properly classified as a part of a semiconductor under subheading 8541.90.00, HTSUS.

Subheading 8542.90.00, HTSUS, provides for "Electronic integrated circuits and microassemblies; parts thereof...Parts." After examining the samples and other information concerning the merchandise, we are satisfied that the ceramic pieces belong in the class or kind of goods principally used as mounting parts for electronic integrated ciruits in Heading 8542, HTSUS. As the ceramic pieces are not "[p]arts which are goods included in any of the headings of Chapters 84 and 85" (supra), they are properly classified according to Note 2(b) to Section XVI, for they are "solely or principally" used with the electronic integrated circuit. See also, Kyocera International v. United States, 527 F. Supp. 337 (1981), aff'd, 681 F.2d 797 (1982). In Kyocera, the Court of International Trade classified "ceramic bodies," which consisted of a minute piece of extremely hard ceramic material averaging about 3/4 of an inch by 1/4 of an inch by 1/16 of an inch with attached bonding and brazing pads, in item 687.60, Tariff Schedules of the United States (TSUS), as modified by T.D. 68-9 (the precursor provision to headings 8541 and 8542, HTSUS), as parts of electronic integrated circuits.

HOLDING:

The ceramic pieces are properly classified under subheading 8542.90.00, HTSUS, which provides for "Electronic integrated circuits and microassemblies; parts thereof...Parts." This protest should be granted in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director
Commercial Rulings Division

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