CLA-2 RR:CR:GC 962060 HMC
Port Director of Customs
610 S. Canal St.
Chicago, IL 60607-4523
RE: Protest 3901-98-100059; MCR Die Sets; Parts of Machines and Mechanical Appliances Having Individual Functions, Not Specified or Included Elsewhere in This Chapter.
Dear Port Director:
This is our decision on Protest 3901-98-100059, filed against your classification of MCR die sets. The protest covers three entries. One entry was made on June 27, 1997 (June entry) and two other entries were made on July 10, 1997 (July entries). The three entries under protest were liquidated on November 21, 1997, and this protest timely filed on February 19, 1998.
FACTS:
The merchandise under protest is described as MCR die sets for a chip mounting machine. The information provided only describes the merchandise as “MCR Die Set (SS-1)-52 Pin” or “MCR 52 Pin Die Set.” The chip mounting machine is described as Model SS-1. The SS-1 machine is used to place a variety of electronic components on printed circuit boards.
The merchandise in the June entry was entered under a provision for machines for processing of semiconductor materials; machines for production and assembly of diodes, transistors and similar semiconductor devices and electronic integrated circuits; machines for the manufacturing of video laser discs in subheading 8479.89.85 of the Harmonized Tariff Schedule of the United States (HTSUS). However, this entry was liquidated under subheading 8479.89.95 (currently 8479.89.97), HTSUS, as other machines and mechanical appliances having individual functions, not specified or included elsewhere. The merchandise in the July entries were also entered under subheading 8479.89.85, but liquidated under subheading 8479.90.95, HTSUS, as parts for machines and mechanical appliances having individual functions, not specified or included elsewhere.
The June entry was apparently liquidated on the assumption that the merchandise was an SS-1 machine. Yet, the available evidence indicates that all entries included MCR die sets. Protestant claims that the merchandise is classifiable under subheading 8479.90.93, HTSUS.
The 1997 HTSUS (Supplement 1) provisions under consideration are as follows:
8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Other machines and mechanical appliances:
8479.89 Other:
Other:
8479.89.85 Machines for processing of semiconductor materials; machines for production and assembly of diodes, transistors and similar semiconductor devices and electronic integrated circuits; machines for the manufacturing of video laser discs.
8479.89.97 Other.
* * * *
8479.90 Parts:
8479.90.93 Of chemical vapor deposition machines for semiconductor production; of machines for cleaning semiconductor wafers; of physical deposition machines for semiconductor production; of die attach machines for assembly of semiconductors; of spinners for coating photographic emulsions on semiconductor wafers; of machines for growing or pulling monocrystal semiconductor boules; of machines for wet-cleaning flat panel displays; of epitaxial deposition machines for semiconductor wafers.
8479.90.97 Other.
ISSUE:
Whether the MCR die sets are classifiable as parts of machines of subheading 8479.90.93, HTSUS, or as parts of machines of subheading 8479.90.95, HTSUS.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 6 states that the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
There is no dispute that the subject MCR die sets are described by heading 8479, HTSUS. Protestant claims that the merchandise is classifiable under subheading 8479.90.93, HTSUS (deleted from the current HTSUS). To be classified under subheading 8479.90.93, the MCR die sets must be shown to be solely or principally used as parts for the machines for the production of semiconductors or flat panel displays specifically enumerated in subheading 8479.90.93. These specific machines are themselves classifiable under subheading 8479.89.85 or subheading 8479.89.87, HTSUS. Note 2, to Section XVI, states that
Subject 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 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 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 or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. 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 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548.
Insofar as the June entry is concerned, the protestant’s claimed classification (subheading 8479.90.93, HTSUS) cannot apply to the merchandise included in that entry because subheading 8479.90.93 did not come into effect until July 1, 1997. That is, effective July 1, 1997, subheadings 8479.90.93 and 8479.90.97 were added to the HTSUS, to supersede and replace subheading 8479.90.95, HTSUS. The two new subheadings distinguished between parts of chemical vapor deposition machines for semiconductor production and the other listed machines (subheading 8479.90.93), and parts of other machines (subheading 8479.90.97). This change was effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 1, 1997 (Presidential Proclamation 7011 of June 30, 1997, Annex I; Federal Register of July 2, 1997, 62 F.R.35909 (see also, 19 U.S.C. 1315)). Since the June entry was made before the effective date, the merchandise in that entry, consisting of two (2) MCR die sets according to all available evidence, could only be classified under subheading 8479.90.95, HTSUS.
As for the July entries, it is Customs view that the MCR die sets are not classifiable under subheading 8479.90.93, HTSUS, because the SS-1 chip mounting machine for which they are parts is not a machine described by subheading 8479.89.85, HTSUS. We find that the chip mounting machine is classifiable instead under subheading 8479.89.95 (currently 8479.89.97), HTSUS. The information provided shows that the SS-1 machine is used to place a variety of electronic components on printed circuit boards. Such a machine is not utilized in the production of semiconductors. See NY A88431, dated October 31, 1996, which previously ruled that chip mounting machines are classifiable under subheading 8479.89.95 (currently 8479.89.97), HTSUS.
We note that subheading 8479.90.93 includes parts of die attach machines for assembly of semiconductors. These machines assemble the casing or die to a finished semiconductor. The SS-1 machine is not used to attach a semiconductor to a die package that has the chip’s connectors or contact leads. Rather, it assembles finished semiconductors with all their components onto printed circuit boards. This is different from the function performed by die attach machines. Since the MCR die sets are principally used with machines of subheading 8479.89.95, they are classifiable under subheading 8479.90.97, HTSUS. See NY C89226, dated July 21, 1998, for a similar conclusion.
HOLDING:
The MCR die sets are classifiable under subheading 8479.90.97, HTSUS, as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Parts: Other” (the classification of the MCR die sets entered before July 1, 1997, is under subheading 8479.90.95, HTSUS, as then effective).
This protest should be DENIED, except to the extent reclassification of the merchandise as indicated above results in a partial allowance. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division