CLA-2 CO:R:CV:G: 084217 JLV
Steven W. Baker, Esq.
Bellsey and Baker
100 California Street, Suite 670
San Francisco, California 94111
RE: Aluminum blanks and substrates for computer memory discs
Dear Mr. Baker:
In a letter of February 28, 1989, as supplemented by a
letter, with samples, of March 28, 1989, in response to a
request for additional information, you request a ruling on
behalf of your clients, Marubeni America Corp. (Los Angeles)
and James J. Boyle & Co., on the tariff classification for
certain aluminum blanks and substrates for computer memory
discs. Your request was forwarded to this office for response
on the classification issue under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).
FACTS:
The discs consist of circular flat discs, each of which
has a hole in the center, and are made of various aluminum
alloys (AA 5086.0, KS 5186-0, KS 5286-0, KS 5386-0, or KS
5586-0). The submitted samples measure 5.25 inches in
diameter and 95 centimeters in diameter, although you state
that the discs will range in size from 2.5 to 14 inches in
diameter. The majority are said to be used in permanent hard
disc drives; a smaller number are to be used in data packs
which can be inserted into and removed from the drive
mechanism.
The primary difference between the blanks and the
substrates is the degree or stage to which the discs have been
processed prior to importation. The discs are initially
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stamped out in a blanking press from cold rolled aluminum
coils to the inside and outside diameters; they are then
cleaned, stacked, and press annealed in a furnace on a base
platen under a load. The resulting disc is a blank that has
the tensile strength, yield strength, flatness, and other
mechanical features necessary for the production of a finished
disc.
Substrates are produced by further processing these
blanks. The processing includes annealing, chamfering of the
inside and outside edges, and then either rough facing of the
surface (facing to proper thickness, washing, and diamond
turning, or rough grinding of the surface (grinding to proper
thickness), washing, and polishing to a mirror bright surface
finish.
The remaining processing consists of plating, polishing,
cleaning, further polishing, cleaning, sputter (depositing a
thin metallic film), and 100 percent testing. The resulting
article is a finished disc for use as indicated.
You state that the blanks and substrates are classifiable
as unfinished parts of data processing machines in subheading
8473.30.40, HTSUSA, rather than as other articles of aluminum
in subheading 7616.90.00, HTSUSA, as you were advised by the
Customs officer at the port through which the goods will be
entered.
In a ruling of March 14, 1989 (file 838004), Customs
ruled that a polished nickel-plated aluminum ring, a substrate
similar to some of the discs in issue, was classified as an
article of aluminum in subheading 7616.90.0080, HTSUSA.
ISSUE:
Are the blanks or substrates incomplete or unfinished
articles having the essential character of the complete or
finished article within the meaning of General Rule of
Interpretation (GRI) 2(a), and, therefore, classified in
heading 8473 or heading 8523, rather than in heading 7616 or
heading 7606?
LAW AND ANALYSIS:
Classification under the HTSUSA is according to the
principles set out in the General Rules of Interpretation
(GRI). GRI 1 states in pertinent part that classification
shall be determined according to the terms of the headings and
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any relative section or chapter notes and, provided such
headings or notes do not otherwise require, according to the
provisions that follow GRI 1. The blanks and substrates, in
this case, are unfinished discs because they lack the magnetic
surface finish necessary for their use as memory discs for
storage units of heading 8471. GRI 2(a) states, in pertinent
part, that any reference in a heading to an article shall be
taken to include a reference to that article incomplete or
unfinished, provided that, as presented, the incomplete or
unfinished article has the essential character of the complete
or finished article.
The Explanatory Notes (EN), the official interpretation
for the HTSUSA at the international level, state that rule
2(a) applies to blanks which, although not ready for direct
use, have the approximate shape or outline of the finished
article or part, and which can only be used, other than in
exceptional cases, for completion into the finished article or
part. In this case, the disc blanks and the substrates have
the essential shape of the finished articles, and they do not
appear to have any practical use other than completion into
the intended memory discs. By virtue of their specific size
and shape, these articles have assumed the character of the
articles into which they will be completed. Therefore, these
articles cannot be classified as plates of heading 7606,
HTSUSA. Chapter 76, note 1(d).
Assuming that the blanks and substrates are unfinished
parts of storage units of heading 8471, they are precluded
from classification as parts of these units by section XVI
note 2(a) because heading 8523 specifically provides for
prepared unrecorded media for sound recording or similar
recording of other phenomena. EN(4) to heading 8523 indicates
that the heading includes discs of metal that are capable of
being magnetized (magnetic coating on the surface) for
recording data for machines of heading 8471.
However, to the extent that these blanks and substrates
are not yet prepared for use as media for recording other
phenomena, they are precluded from classification in heading
8523. EN(a) to heading 8523. This EN directs the
classification according to the material of which the blank is
composed. In this case, the blanks and substrates are of
alloys of aluminum and other metals. The aluminum
predominates by weight over each of the other metals.
According to section XV note 3(a), the blanks and substrates
are classified as an alloy of aluminum.
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Section XV note 4 states that, unless the context
requires otherwise, a reference to a base metal includes a
reference to alloys which by virtue of note 3 of section XV
are to be classified as alloys of that metal. Because these
articles are excluded from heading 7606, we conclude that the
appropriate provision is heading 7616, subheading 7616.90.00,
HTSUSA, for other articles of aluminum. Ruling letter of
March 14, 1989 (file 838004), noted and affirmed.
HOLDING:
Disc blanks and substrates of aluminum, not yet prepared
for use as media for recording sound or other phenomena, are
classified as other articles of aluminum in subheading
7616.90.00, HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division
Library: valentin
File Name: 084217
6cc: AD NY Seaport
2cc: Chief, CIE
1cc: AC, CO
1cc: Reading File
1cc: Dir, Comm. Rulings