CLA-2 CO:R:CV:G: 084219 JLV
Mr. Clayton I. Miura
Universal Transcontinental Corp.
501 Forbes Blvd., Suite 200
South San Francisco, California 94080
RE: Aluminum blanks for computer memory discs
Dear Mr. Miura:
In a letter of March 10, 1989, you request a ruling on
behalf of your client, Mitsui & Co. (U.S.A.), Inc., on the
tariff classification for certain aluminum blanks or "bare
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 (alloy designation EG1 and EG2 by SKY Aluminum Co.,
Ltd., Tokyo, Japan; literature submitted with your letter).
According to the submitted literature, the standard disc sizes
are 3.5 inches, 5 inches, 8 inches, and 14 inches, each of
which is produced to specific tolerances in thickness,
diameter, concentricity, and flatness, and to specific
mechanical properties and chemical compositions. The aluminum
content predominates by weight over each of the other metals
in the alloy.
In a ruling of March 14, 1989 (file 838004), Customs
ruled that a polished nickel-plated aluminum ring, a substrate
similar in design, but further processed by plating and
polishing, to the discs in issue, was classified as an article
of aluminum in subheading 7616.90.0080, HTSUSA. In a
subsequent ruling of June 28, 1989 (file 084217), aluminum
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blanks and substrates were classified as articles of aluminum
in subheading 7616.90.00, HTSUSA, rather than as parts of data
processing machines or as prepared unrecorded media.
ISSUE:
Are the blanks unfinished articles having the essential
character of the 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:
The facts in this case are substantially the same as
those which we considered in our ruling of June 28, 1989 (file
084217), concerning the blanks. That ruling controls the
disposition of this case.
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
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, in this case, are
unfinished because they lack the magnetic surface coating
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 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).
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Assuming that the blanks 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 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. Therefore, although GRI 2(a) would otherwise
direct the classification of these unfinished recording discs
in heading 8523, the EN to this heading indicates that the
term "prepared" as used in the heading requires that the discs
classified in heading 8523 be physically finished with a
magnetic surface. This EN directs the classification
according to the material of which the blank is composed. In
this case, the blanks 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
are classified as an alloy of aluminum.
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 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: 084219
6cc: AD NY Seaport
2cc: Chief, CIE
1cc: AC, CO
1cc: Reading File
1cc: Dir, Comm. Rulings