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HQ 965764




August 13, 2002

CLA-2 RR: CR: GC 965764 TPB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8543.89.9695

Mr. Pete Mento
Expeditors Tradewin, LLC
1015 3rd Avenue, 12th Floor
Seattle, WA 98104

RE: Hall-Effect Gear Tooth Sensor

Dear Mr. Mento:

This is in response to your letter dated May 14, 2002, to the Director, National Commodity Specialist Division (“NCSD”), New York, on behalf of Honeywell, Inc., Microswitch Division (“Honeywell”), requesting classification of a Hall-Effect Gear Tooth Sensor under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your request was forwarded to this office for consideration.

FACTS:

The merchandise under consideration is a Hall-Effect Gear Tooth Sensor (“sensor”). The sensor is composed of the following elements:

Flex Circuit, composed of the following elements: One Analogue Monolithic Integrated Circuit (“IC”), described at Honeywell as a “Solid State Switch.” The IC is protected within a black plastic case. Five leads protrude from the IC case and are attached to the Flex Circuit at five solder points. The protruding leads are attached to the Flex Circuit by four 99.99% gold bonding wires with a diameter of 0.0001 inch each; Four ceramic multi-layer capacitor chips of varying size and capacities; A series of solder points, including three solder joints at one end of the Flex Circuit, used for attaching the conductor wires to the circuit. A standard Aluminum Nickel Cobalt magnet (AINic). A plastic mold surrounding the magnet.
Three electrically insulated conductor wires. Two wires are to be connected to a printed circuit board (“PCB”), such as an on-board automotive computer. Honeywell does not provide this PCB. The third wire is used for grounding purposes. Epoxy resin, which fills air spaces and holds the components in place. A hard black plastic housing.

The sensor is used in situations where the Hall-Effect technology is required, such as in an automotive engine cam or crankshaft areas, to accurately gauge the rotational position of a spinning metal object, such as a gear wheel. The gear tooth sensor is positioned perpendicular to the spinning target. The sensor is attached either through a hole existing on the outside of the engine, or it is secured via a mounting bracket. As the wheel spins, the Hall-Effect IC within the sensor detects the presence or absence of a metallic or spatial feature in the wheel, such as a gear tooth, due to the magnetic fields generated by the magnet inside the sensor and altered by a metal gear tooth. Once an anomaly is detected, the IC transmits an electrical signal via the conductor wires to the external PCB. The PCB, in turn, initiates or ceases an action within the automotive engine.

The gear tooth sensor is mostly used in automotive engines, however, it is also marketed for industrial uses, such as chain link conveyor speed and distance, sprocket speed and stop motion detection.

ISSUE:

What is the proper classification of the Hall-Effect Gear Tooth Sensor?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs 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.

The HTSUS provisions under consideration are as follows:

Electronic integrated circuits and microassemblies; parts thereof:

8543 Electrical machines and apparatus having individual functions not specified or included elsewhere in this chapter:

In its condition as imported, the sensor is a finished device that detects the presence of a metallic or spatial anomaly, and transmits an electrical signal during the detection of the anomaly. It is clear that this merchandise is more than just an analogue monolithic integrated circuit. The Hall-Effect IC, along with four ceramic multi-layer capacitor chips, are mounted on a flex circuit, which is bent around the plastic mold that encases the magnet in such a manner as to position the IC in close proximity to the wall of the plastic housing. This housing, connected to three electrically insulated conductor wires forms a complete electronic device.

Chapter 85 Note 5(b)(iii), HTSUS, gives a definition for microassemblies. It states, in pertinent part, as follows:

For the purposes of headings 8541 and 8542:

“Electronic integrated circuits and microassemblies” are:

Microassemblies of the molded module, micromodule or similar types, containing discrete, active or both active and passive, components which are combined and interconnected.

EN 85.42 (II) goes on to further describe electronic microassemblies, in pertinent part, as follows: Microassemblies are made from discrete, active or both active and passive components which are combined and interconnected.

Discrete components are indivisible and are the basic electronic construction components in a system. They may have a single active electrical function (semiconductor devices defined by Note 5(A) to Chapter 85) or a single passive electrical function (resistors, capacitors, interconnections, etc.).

However, components consisting of several electric circuit elements and having multiple electric functions, such as integrated circuits, are not considered discrete components.

Also, the ENs to 85.42 describe certain articles which are excluded from classification under that heading. They read, in pertinent part:
the heading also excludes assemblies formed by mounting one or more discrete components on a support formed, for example, by a printed circuit and assemblies formed by adding an electronic microcircuit either one or more other microcircuits of the same or different types or one or more other devices, such as diodes, transformers, resistors. (Emphasis original)

2002 HTSUS ENs, 1701.

The article before us is an assembly that contains two types of microcircuits (i.e., the IC and the four capacitor chips) mounted on a flex circuit. This type of assembly would therefore be precluded from classification under heading 8542, HTSUS, based on the above exclusionary note.

Since this device does not provide any sort of measurement data or readout to the PCB, the sensor is properly classified under heading 8543, which provides for electrical machines and apparatus having individual functions, not specified or included elsewhere in this chapter.

You claim that the gear tooth sensor is properly classified as an analog monolithic integrated circuit. However, in its condition as imported, the sensor is a finished device with a Hall Effect IC and four capacitors mounted on a flex circuit that gauges the rotational position of a spinning metallic object, such as a gear wheel. You indicate that classification under heading 8542 is consistent with Customs prior treatment of similar merchandise and refer to NY 815901, dated November 21, 1995, wherein Customs classified a closed-loop linear sensor that measured the amount of AC or DC current flowing through a wire under heading 8542, HTSUS, as an other monolithic integrated circuit. Even though the sensor is precluded from classification under heading 8542, HTSUS, because of the exclusionary language in EN 85.42, described above, reliance on NY 815901 is nonetheless unfounded.

Customs has recently had an opportunity to re-examine the classification of the closed-loop linear current sensor that was the subject of that ruling. In the July 10, 2002, Customs Bulletin, Customs proposed the revocation of NY 815901. Customs decided that based on the correct application of GRI 1, the current sensor subject to that ruling was described by the terms of heading 9030, HTSUS, in its entirety, rather than by just the IC of heading 8542. The final notice of revocation will be published in an upcoming issue of the Customs Bulletin with the issuance of HQ 965698 of this date.

You further claim that Customs has ruled in several previous ruling request submissions that a Hall-Effect IC imparts the essential character of certain sensors. Further classification of the sensor was dependant upon the type of IC being used and its output, whether it be digital, analog or mixed signal. You cite in support of this HQ 085688, dated January 25, 1990 and NY H80199, dated May 21, 2001. However, both of these rulings deal with articles that contain only one microcircuit or device, the Hall-Effect sensor. These articles would therefore not be precluded by the terms of Legal Note 5(b) to chapter 85 and EN 85.42, HTSUS, and would not be precluded from classification under that heading.

Therefore, through application of GRI 1, the sensor is classified under heading 8543, HTSUS, which provides for electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.

HOLDING:

For the reasons stated above the Hall-Effect Gear Tooth Sensor is classified under subheading 8543.89.9695, HTSUS, as: “Other electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapterother machines and apparatus other other
otherother.”

Sincerely,

Myles B. Harmon, Acting Director
Commercial Rulings Division


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