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HQ 954291


September 27, 1993

CLA-2 CO:R:C:M 954291 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8503.00.40; 8473.30.40; 8505.11.00

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

RE: Protest Nos. 2809-92-101972 through 2809-92-101977; Seagate Technology; Parts of ADP Disk Drives; Parts of Motors; Permanent Magnets; HQ 088226

Dear District Director:

This is our response to Applications for Further Review of Protests Numbered 2809-92-101972 through 2809-92-101977, regarding the classification of parts for ADP disk drives, under the Harmonized Tariff Schedule of the United States (HTSUS). The subject merchandise was entered between July 28, 1992 and August 21, 1992, and was liquidated between November 13, 1992 and December 12, 1992. The protest was timely filed on December 23, 1992.

FACTS:

The protestant claims that the various parts of ADP disk drives are classifiable under subheading 8473.30.40, HTSUS, which provides for parts and accessories of ADP machines, at a Free rate of duty, and under subheading 8505.11.00, HTSUS, which provides for magnets, at a 3.2% rate of duty.

However, upon entry the various parts of ADP disk drives were classified under subheading 8503.00.40, HTSUS, which provides for parts of motors, at a 10% rate of duty.

The protests pertain to the following parts:

1. The "Bobbin Assembly" and "Arm Bobbin Assembly" which consist of coils used in voice coil motors.

2. The "Assy Data Bobbins" and "Data Bobbin" which consist of printed circuit cables with discrete electrical components including integrated circuits, capacitors and resistors.

3. The "Magnet Pole Hsg Assy" which consists of two permanent magnets in a single pole piece.

The subheadings under consideration are as follows:

8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with the machines of headings 8469 to 8472:

8473.30.40 Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube

8503 Parts suitable for use solely or principally with the machines of heading 8501 or 8502:

8503.00.40 Parts of motors of under 18.65 W (other than commutators)

8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization...

8505.11.00 Permanent magnets and articles intended to become permanent magnets after magnetization

ISSUE:

Whether the various parts for ADP disk drives are classifiable as parts of ADP machines, or as parts of motors, or as permanent magnets?

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...

The instant "Bobbin Assemblies," are prima facie classifiable in both subheading 8503.00.40, HTSUS, and subheading 8471.30.40, HTSUS. However, A Manual of Customs Law, Ruth F. Sturm (1974), page 246 states that:

Merchandise is classifiable under the tariff provision having requirements which are more difficult to satisfy. Arthur J. Humphreys et al. v. United States, 56 CCPA 67,

C.A.D. 956, 407 F.2d 417 (1969); F.L. Smidth & Company v. United States, 56 CCPA 77, C.A.D. 958, 409 F.2d 1369 (1969). Thus, in the case first cited it was held that cabinets for radio-phonograph combinations were classifiable as parts of such combinations, rather than as parts of furniture because the requirements for classification as the former were more difficult to satisfy.

It is Customs position that the provision for "[p]arts of motors under 18.65 W (other than commutators)," is more difficult to satisfy than "[p]arts and accessories of the machines of heading 8471: [n]ot incorporating a cathode ray tube," which includes a myriad of ADP parts and accessories. It is also important to note that Sturm, page 281, also states that:

Where a particular part of an article is provided for specifically, a part of that particular part is more specifically provided for as a part of the part than as a part of the whole. C.F. Liebert v. United States, 60 Cust. Ct. 677, C.D. 3499, 287 F. Supp. 1008 (1968)(parts of clutches which were parts of winches held dutiable as parts of clutches rather than as parts of winches or parts of tractors); Foster Wheeler Corp. v. United States, 61 Cust. Ct. 166, C.D. 3556, 290 F. Supp. 375 (1968)(parts of converters, whether or not converters were parts of machines, are classifiable as parts of converters); Korody-Coyler Corp. v. United States, 66 Cust. Ct. 337, C.D. 4212 (1971)(nozzles classifiable as parts of fuel injection pumps rather than as parts of the internal combustion engines of which the pumps are part).

Therefore, the "Bobbin Assemblies" are classifiable as a part of the motor, rather than as a part of the whole disk drive or ADP machine. See HQ 088226, dated February 26, 1991, which held that coils for voice coil motors were properly classifiable as parts of motors under subheading 8503.00.40, HTSUS. Similarly, the "Arm Bobbin Assemblies" consist of a voice coil motor coil attached to an aluminum arm, on which the read/write heads will be mounted after importation. Pursuant to GRI 3(b), regarding composite goods, the essential character of this composite good is imparted by the coil. Therefore, this assembly is classifiable in subheading 8503.00.40, HTSUS.

The "Assy Data Bobbins" and "Data Bobbin" consist of printed circuit cables with discrete electrical components including integrated circuits, capacitors and resistors. These cannot be considered part of the motor, nor do they rise to the level of an unfinished disk drive. Therefore, they are properly classifiable as claimed in subheading 8473.30.40, HTSUS, as parts of ADP machines.

The "Magnet Pole Hsg Assy" consists of two permanent magnets connected by a metal spacer which holds the magnets the correct
distance apart. The magnets are composed of a metallic neodymium iron alloy. Acting in concert, the magnets create a stable field of magnetic flux lines. A coil attached to a pivot arm assembly in the disk drive interacts with the flux lines, thereby facilitating the positioning of the read/write head on the hard disk. This article is prima facie classifiable in both subheading 8503.00.40, HTSUS, as a part of the motor, and under subheading 8505.11.00, HTSUS, which provides for permanent magnets. The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") to heading 8505, HTSUS, state as follows:

(2) Permanent magnets and articles intended to become permanent magnets after magnetization.

Permanent magnets consist of pieces of hard steel, special alloys or other materials (e.g., barium ferrite agglomerated with plastics or synthetic rubber) which have been rendered permanently magnetic. Their shape varies according to the use for which they are designed. To reduce the tendency to de-magnetize, horseshoe-shaped magnets are often furnished with a bar of iron (the keeper) adhering to the two poles. Permanent magnets remain classified here whatever their use, including small magnets used, inter alia, as toys.

Articles intended to become permanent magnets after magnetization are recognizable as such by their shape and composition, generally being cubes or discs (tags) of metal or of agglomerated ferrite (e.g., barium ferrite).

Clearly, the instant magnet assembly is dedicated for use as a permanent magnet by its shape and composition. Additional U.S. Rule of Interpretation 1.(c) states: "a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for 'parts' or 'parts and accessories' shall not prevail over a specific provision for such part or accessory." The magnets and the spacer are a GRI 3(b) composite good. The essential character is imparted by the magnets. Therefore, the magnet assembly is properly classifiable in subheading 8505.11.00, HTSUS, which provides for permanent magnets.

These articles are shipped in bulk and cannot be considered functional units.

HOLDING:

The Seagate "Bobbin Assemblies," which consist of coils used in voice coil motors, are classifiable as assessed in subheading 8503.00.40, HTSUS, which provides for parts of motors.

The Seagate "Arm Bobbin Assemblies," which consist of a voice coil motor coil attached to an aluminum arm, are classifiable as assessed in subheading 8503.00.40, HTSUS, which provides for parts of motors.

The Seagate "Assy Data Bobbins" and "Data Bobbin," which consist of printed circuit cables with discrete electrical components including integrated circuits, capacitors and resistors, are properly classifiable as claimed in subheading 8473.30.40, HTSUS, as parts of ADP machines.

The Seagate "Magnet Pole Hsg Assy" is properly classifiable as claimed in subheading 8505.11.00, HTSUS, which provides for permanent magnets.

You should deny the protest, except to the extent reclassification as indicated above results in a net duty reduction and partial allowance. 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,


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