HQ 959317 - Protest 0901-95-102850; Tuning Packs; Inductors; Line Traps; Explanatory Note 85.04(III); Section XVI, Notes 2 and 4; Functional Unit; GRI 3(b); Composite Good; 8504.50.00 - United States International Trade Commision Rulings

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HQ 959317

May 13, 1997

CLA-2 RR:TC:MM 959317 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8504.90.90

Port Director of Customs
111 W. Huron Street
Buffalo, NY 14202-2378

RE: Protest 0901-95-102850; Tuning Packs; Inductors; Line Traps; Explanatory Note 85.04(III); Section XVI, Notes 2 and 4; Functional Unit; GRI 3(b); Composite Good; 8504.50.00

Dear Port Director:

The following is our decision regarding Protest 0901-95-102850 concerning your action in classifying and assessing duty on tuning packs under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of tuning packs which are products of Canada. Each pack consists of an assembly of capacitors, resistors, and an adjustable or fixed inductor. The tuning pack is placed parallel to a line trap (main coil), and is used to adjust the frequency of the line trap. A line trap is a parallel-resonant filter. Inserted in a transmission line, it presents a low impedance to power frequencies and a high impedance to power line carrier frequencies. Two or more line traps will isolate a section of transmission line for carrier relaying or communications. The tuning pack ensures that the line trap presents the necessary high impedance at one or more carrier frequencies or bands. The tuning packs are only used with tuned line traps.

The tuning packs were entered on June 15, 1995, under subheading 8504.90.90, HTSUS, as parts of inductors. The entry was liquidated on September 15, 1995, under subheading 8504.50.00, HTSUS, as inductors. The protest was timely filed on December 13, 1995.

The subheadings under consideration are as follows:

8504.50.00: [e]lectrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: [o]ther inductors.

The 1995 general, column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

The rate of duty for goods which are products of Canada and classifiable under this provision is 0.9 percent ad valorem based upon the North American Free Trade Agreement.

8504.90.90: . . . : [p]arts: [o]ther.

The 1995 general, column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

Goods which are products of Canada and classifiable under this provision receive duty-free treatment based upon the North American Free Trade Agreement.

ISSUE:

Whether the tuning packs are classifiable under subheading 8504.50.00, HTSUS, as other inductors, or under subheading 8504.90.90, HTSUS, as parts of inductors.

LAW AND ANALYSIS:

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

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 85.04(III) (p. 1450) states:

(III) INDUCTORS

These consist essentially of a single coil of wires which, inserted in an AC circuit, limits or prevents by its self-induction the flow of the AC. They vary from small
chokes used in wireless circuits, instruments, etc., to large coils often mounted in concrete, used in power circuits (e.g., for limiting the flow of current in the event of a short circuit). . .

As the line trap is essentially a single coil of wire which places impedance in a circuit, it is our position it meets the definition above and is an inductor classifiable under subheading 8504.50.00, HTSUS. The tuning pack ensures that the line trap presents the necessary high impedance at one or more carrier frequencies or bands. Therefore, we also find that, based upon discussions with a member of your staff and an examination of literature provided by the protestant, the tuning packs are parts of the line traps and are described under subheading 8504.90.90, HTSUS.

We must now determine if the tuning packs are also described under subheading 8504.50.00, HTSUS.

Section XVI, note 4, HTSUS, states:

[w]here a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or
Chapter 85, then the whole falls to be classified in the heading appropriate to that function.

Consideration was also given to whether each tuning pack is a functional unit, in that it is a machine consisting of individual components (capacitors, resistors, and an inductor) intended to contribute together to function as an inductor of heading 8504, HTSUS. The tuning packs ensure that the line trap presents the necessary high impedance at one or more carrier frequencies or bands. Based upon discussions with the Customs import specialist assigned to this case, the tuning packs meet neither the definition of inductors given in Explanatory Note 85.04 nor the terms of section XVI, note 4, HTSUS, and, therefore, each tuning pack does not constitute a functional unit classifiable under subheading 8504.50.00, HTSUS.

Section XVI, note 2 states:

[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.

Because the tuning packs are not classifiable under subheading 8504.50.00, HTSUS, or under any other provision in chapter 84 or 85, HTSUS, section XVI, note 2(a), HTSUS, does not apply. As it is our understanding that the tuning packs are parts suitable for use principally with line traps, then, under section XVI, note 2(b), HTSUS, the packs are classifiable with the line traps. Therefore, the tuning packs are classifiable under subheading 8504.90.90, HTSUS.

Because the packs are properly classifiable under subheading 8504.90.90, HTSUS, using section XVI, note 2, HTSUS, for guidance as required by GRI 1, there is no need to resort to classification of the merchandise based upon GRI 3(b), an argument suggested by the Customs import specialist.

HOLDING:

The tuning packs are classifiable under subheading 8504.90.90, HTSUS, as parts of inductors.

The protest should be GRANTED in full. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of this decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act, and other public access channels.

Sincerely,

John Durant, Director
Tariff Classification

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See also:

Tariff No.: 8504.50.00 - Inductors nesi