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HQ 953880


February 28, 1994

CLA-2 CO:R:C:M 953880 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8523.20.00

District Director
U.S. Customs Service
555 Battery St., POB 2450
San Francisco, CA 94126

RE: IA 18/93; Automatic Data Processing Hard Disk Cartridges; Prepared Unrecorded Media; Common and Commercial Identity

Dear Sir:

This is in reply to your memorandum dated February 26, 1993, forwarding a request for internal advice submitted by counsel on behalf of the SyQuest Technology, Inc., regarding the classification of ADP Hard Disk Cartridges, under the Harmonized Tariff Schedule of the United States (HTSUS). Consideration was also given to submissions made by counsel directly to Headquarters.

FACTS:

SyQuest manufactures disk drives and removable, interchangeable disk cartridges. Unlike conventional hard disks, which are permanently fixed in the disk drive assembly, these disk cartridges may be removed from one SyQuest drive and inserted into another. The instant disk cartridges are similar to 3.5 inch disks in that they merely consist of a magnetic disk in a hard plastic enclosure, a disk hub, and a spring access door.

The SQ400 hard disk cartridge has a total storage capacity of approximately 55 megabytes. The product is offered for sale, however, as having a user storage capacity of only 44 megabytes because the disk operating system utilizes approximately 10 megabytes of storage space.

The SQ800 removable hard disk cartridge has a total storage capacity of approximately 101 megabytes. However, the product is offered for sale as having a user storage capacity of 88 megabytes because the disk operating system utilizes approximately 13 megabytes.

ISSUE:

What is the classification of the subject ADP disk cartridges, under the Harmonized Tariff Schedule of the United States (HTSUS)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

Beginning in 1992, the instant disk cartridges were assembled in Singapore, and entered under subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines.

On July 1, 1992, Customs issued a Notice of Proposed Action to reclassify the cartridges under subheading 8523.20.00, HTSUS, which provides for prepared unrecorded media. Subsequently, on September 8, 1992, the instant disk cartridges were classified in subheading 8523.20.00, HTSUS, as prepared unrecorded media.

Counsel argues that the formatting, error mapping, etc., which prepares the disk to receive user data, merits a change in classification from prepared unrecorded media to recorded media.

However, all of the recorded data has one purpose, and that is to prepare the unrecorded media to store user data. Furthermore, the formatting, error mapping, etc., do not change the commercial identity of the disk cartridges as prepared unrecorded media.
"The tariff schedules are written in the language of commerce, and the terms used are to be given their commercial or common meaning." See Ameliotex, Inc. v. United States, 65 CCPA 22, 25, C.A.D. 1200, 565 F.2d 674, 677 (1977); Esco Mfg. Co. v. United States, 63 CCPA 71, 73 C.A.D. 1167, 530 F.2d 949, 951 (1976).

The fact that the instant disk cartridges may have more complex or substantial preparations than 3.5 inch disks or floppy disks is due solely to the fact that these disk cartridges are designed to store a larger amount of user data. See Simmon Omega, Inc. v. United States, 83 Cust. Ct. 14, C.D. 4815 (1979), and Trans-Atlantic Co. v. United States, 471 F. 2d 1397, 60 CCPA 100, C.A.D. 1088 (1973), in which the courts have held that technological advancements and "improvement in the design of an article does not militate against its continuing to be a form of the named articles."

Most "blank" disks sold today have been prepared with formatting. However, formatting does not change their commercial identity or classification to recorded media. Similarly, no other operations which are designed to "prepare" the media to receive user data will change the classification from "prepared unrecorded media...."

HOLDING:

The subject disk cartridges are classifiable in subheading 8523.20.00, HTSUS, which provides for: "[p]repared unrecorded media for sound recording or similar recording of other phenomena, other than products of chapter 37: [m]agnetic disks."

The Internal Advice applicant should be advised of this decision.

Sincerely,

John Durant, Director

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