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HQ 954768

January 4, 1994

CLA-2 CO:R:C:M 954768 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8517.90.80

Mr. John M. Peterson
Neville, Peterson & Williams
2300 N Street, N.W.
Washington, DC 20037

RE: Thermal Imaging Cartridges for Facsimile Machines; Parts; Kores Manufacturing Inc. v. United States; Section XVI, Note 2; Additional U.S. Rule of Interpretation 1(c); HQ's 953141, 088950, and 089172; 9612.10.90

Dear Mr. Peterson:

This is in response to your letter of August 3, 1993, on behalf of Xerox Corporation, concerning the classification of thermal imaging cartridges under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of thermal imaging cartridges, manufactured in Mexico, used exclusively in facsimile machines. The cartridge is comprised of a plastic frame incorporating two spools of ribbons, designed for insertion into a facsimile machine. The function of the thermal imaging spool within the cartridge is to reproduce an image of text or graphics that is transmitted digitally by one facsimile machine to a receiving machine.

After installation into the facsimile machine, the imaging cartridge serves a function in printing reproductions of documents received thereon. The original "hard copy" document is generally scanned by the transmitting unit, which reduces the image to a digitized data pattern. The transmitting unit then sends the digitized data to a receiving facsimile machine, over telephone lines with capacity to transmit data. The receiving facsimile machine either stores the received digital data in memory, or decodes the data in order to print a reproduction of the original image. The thermal transfer spool of the cartridge comes into contact with a print head on the receiving facsimile machine. Through the application of heat, the print head causes an image of the received document to be transferred from the imaging spool to plain paper stored in the facsimile machine. The result is a "plain paper" copy of the digitized data received by the facsimile machine.

As the imaging spool is consumed, it unwinds from its main reel to a take-up reel. The magnetic strip painted on the imaging spool is detected by a sensor in the facsimile machine; when the spool is exhausted, the magnetic strip is no longer detectable, and the sensor causes the facsimile machine's printer head to deactivate, thereby preventing damage to the printer head. At that point, the cartridge is removed and replaced by the facsimile machine operator.

If the cartridge is removed from the facsimile machine, the machine cannot print a "hard copy" of documents received, print confirmation slips or activity logs, or make photocopies.

The subheadings under consideration are as follows:

9612.10.90: [t]ypewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges . . . : [r]ibbons: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 9 percent ad valorem.

8517.90.80: [e]lectrical apparatus for line telephony or telegraphy, including such apparatus for carrier-current line systems; parts thereof: [p]arts: [o]f telegraphic apparatus: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 4.7 percent ad valorem.

ISSUE:

Whether the thermal imaging cartridges are classifiable under subheading 9612.10.90, HTSUS, as ribbons, or under subheading 8517.90.80, HTSUS, as parts of facsimile machines.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

We must first determine whether, for classification purposes, the cartridges constitute parts of facsimile machines. Whether an article is a part of another article depends on the nature of the so-called "part" and its usefulness, function and purpose in relation to the article in which it is designed to serve. Kores Manufacturing Inc. v. United States, 3 CIT 178, 179 (1982), aff'd appeal No. 82-83 (C.A.F.C. 1983).

As has been noted, without the thermal imaging cartridge, it is impossible for a facsimile machine to operate effectively. Therefore, because the cartridges are essential to the operation of facsimile machines, it is our position that they are parts of facsimile machines.

Section XVI, note 2, HTSUS, states that:

[s]ubject to note 1 to this section, note 1 to chapter 84 and to 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:

(a) Parts which are goods included in any of the headings of chapters 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. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;

(c) All other parts are to be classified in heading 8485 or 8548.

Although the cartridges are described under heading 9612, HTSUS, they are not parts which are goods included in any of the headings of chapters 84 or 85, HTSUS. Therefore, we must resort to section XVI, note 2(b), HTSUS. Because the cartridges are parts suitable for use solely with facsimile machines, they are to be classifiable with the facsimile machines under the HTSUS. Consequently, the thermal ribbon cartridges are classifiable under subheading 8517.90.80, HTSUS.

It has been suggested that additional U.S. rule of interpretation 1(c), HTSUS, is dispositive as to the classification of the cartridges under the HTSUS. It states that:

[i]n the absence of special language or context which otherwise requires -

(c) 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 and accessory.

(emphasis supplied).

The above rule does not apply to the classification of the cartridges because section XVI, note 2(b), HTSUS, is the "special language or context which otherwise requires". Note 2(b), HTSUS, states that the cartridges are to be classifiable with the facsimile machines under heading 8517, HTSUS. Therefore, additional U.S. rule of interpretation 1(c), HTSUS, is inapplicable in this case. See HQ 953141, dated February 8, 1993.

It has also been suggested that the holdings in HQ 088950, dated July 1, 1991, which dealt with the classification of ribbon for printers under the HTSUS, and HQ 089172, dated August 14, 1991, which dealt with the classification of ribbon for laser printers, direct that the cartridges are to be classifiable under heading 9612, HTSUS. However, Harmonized Commodity Description and Coding System Explanatory Note 84.73 precludes ribbon of heading 9612, HTSUS, from classification as a part under heading 8473, HTSUS. Therefore, in both of the above rulings, the ribbon was classifiable under heading 9612, HTSUS. With regard to the subject cartridges, none of the notes to heading 8517, HTSUS, preclude the classification of them in that heading as parts. Consequently, HQ 088950 and HQ 089172 are inapplicable to the classification of the merchandise under the HTSUS.

HOLDING:

The thermal imaging cartridges are classifiable under subheading 8517.90.80, HTSUS, as parts of facsimile machines.

Sincerely,

John Durant, Director

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