CLA-2 OT:RR:CTF:TCM H192478 GA
Mr. Gregory Lee Peebles, Sr.
Compliance Manager
Maxim Integrated Products
4401 S. Beltwood Parkway
Dallas, TX 75244
RE: Revocation of NY N093423; Classification of a PowerCap and a PowerCap with Crystal from the Philippines
Dear Mr. Peebles:
This letter concerns New York Ruling Letter (NY) N093423, dated February 18, 2010, issued to Maxim Integrated Products concerning the classification of the PowerCap and the PowerCap with Crystal products under the Harmonized Tariff Schedule of the United States (HTSUS). In that ruling, U.S. Customs and Border Protection (CBP) classified the subject merchandise in subheading 8504.40.9540, HTSUSA, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other: Rectifiers and rectifying apparatus: Power supplies: Other.” For the reasons set forth below, we hereby revoke N093423.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin Vol. 49, No. 33, on August 19, 2015. No comments were received in response to this notice.
FACTS:
In NY N093423, CBP described the merchandise as follows:
The merchandise under consideration is a PowerCap and a PowerCap with Crystal. The product literature also refers to the PowerCap as DS9034PC/PCI and the PowerCap with Crystal as DS9034PCX.
The DS9034PC/PCI PowerCap is a lithium power source designed to provide 10 years of battery backup power for NV (non-volatile) SRAMS in Dallas Semiconductor’s PowerCap Module (PCM) package. It snaps directly onto a surface-mounted PowerCap Module base to form a complete NV SRAM Module.
The DS9034PCX PowerCap with Crystal is a lithium power source designed to provide 10 years of battery backup power for NV (non-volatile) timekeeping RAMs in Dallas Semiconductor’s surface-mountable PowerCap Module (PCM) package. After the PowerCap module board has been soldered in place and cleaned, the DS9034PCX PowerCap with Crystal is placed on top of the PCM board to form a complete PowerCap Module package. The PowerCap is keyed to prevent incorrect attachment.
Both the DS9034PC/PCI PowerCap and the DS9034PCX PowerCap with Crystal contained printed circuit board substrate upon which a lithium battery, connectors, and plastic cap are attached. The DS9034PCX also contains a crystal. Based on the description and function of each of these devices, each is a printed circuit assembly that carries out the function of a power supply.
ISSUE:
Whether the PowerCap and PowerCap with Crystal products are classified in heading 8504, HTSUS, as static converters, or in heading 8506, HTSUS, as primary batteries.
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 2 through 6 may then be applied in order.
The HTSUS provisions under considerations are as follows:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8504.40 Static converters:
8504.40.95 Other:
Rectifiers and rectifying apparatus:
Power supplies:
Other
* * * * * * * * * *
8506 Primary cells and primary batteries; parts thereof:
8506.50.00 00 Lithium
Section XVI, Note 3, which includes headings 8504 and 8506, HTSUS, provides:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading of the HS and are thus useful in ascertaining the proper classification of merchandise. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN 85.04 states, in relevant part:
(II) ELECTRICAL STATIC CONVERTERS
The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors.
EN 85.06 states, in relevant part:
These generate electrical energy by means of chemical reactions.
A primary cell consists basically of a container holding an alkaline or a non alkaline electrolyte (e.g., potassium or sodium hydroxide, ammonium chloride or a mixture of lithium chloride, ammonium chloride, zinc chloride and water) in which two electrodes are immersed. The anode is generally of zinc, magnesium or of lithium and the cathode (depolarising electrode) is, for example, of manganese dioxide (mixed with carbon powder), of mercuric oxide or of silver oxide. In lithium primary cells, the anode is of lithium and the cathode is, for example, of thionyl chloride, of sulphur dioxide, manganese dioxide or of iron sulphide. A nonaqueous electrolyte is used because of the solubility and reactivity of lithium in aqueous solutions. In air-zinc primary cells, an alkaline or neutral electrolyte is generally used. The zinc is used as the anode, oxygen diffuses into the cell and is used as the cathode. Each electrode is provided with a terminal or other arrangement for connection to an external circuit. The principal characteristic of a primary cell is that it is not readily or efficiently recharged.
Primary cells are used for supplying current for a number of purposes (for bells, telephones, hearing aids, cameras, watches, calculators, heart pacemakers, radios, toys, portable lamps, electric prods for cattle, etc.). Cells may be grouped together in batteries, either in series or in parallel or a combination of both. Cells and batteries remain classified here irrespective of the use for which they are intended (e.g., standard cells for laboratory work producing a constant known voltage fall in the heading).
Heading 8504, HTSUS, provides, in relevant part, for static converters. The ENs to heading 8504, HTSUS, provide: “The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors.”
A review of the product literature and specifications indicates that the instant merchandise does not incorporate any converting elements, and is not used to convert electrical energy in order to adapt it for further use. Instead, the subject DS9034PC/PCI PowerCap and the DS90349PCX PowerCap with Crystal generate electrical energy by means of a chemical reaction involving lithium cells. Therefore, neither product falls within the EN's delineation of static converters.
The subject DS9034PC/PCI PowerCap consists of a lithium battery, connectors, and a plastic cap attached to a printed circuit board. The subject DS90349PCX PowerCap with Crystal consists of a lithium battery, connectors, a plastic cap, and a crystal attached to a printed circuit board. Section XVI, Note 3, HTSUS, which governs the classification of goods in heading 8504, among others, states that unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. Both products qualify under Section XVI, Note 3, HTSUS, as composite machines that are to be classified as if consisting of that component or as being that machine which performs the principal function. The principal function of the merchandise is to provide a source of current. Based on its description and function, the lithium battery is the source of the current.
The lithium battery is designed to provide 10 years of battery backup power. It is a primary (non-chargeable) battery. Therefore, the subject merchandise is classifiable in heading 8506, HTSUS.
HOLDING:
By application of GRIs 1 and 6, we find the PowerCap and PowerCap with Crystal are classified in heading 8506, HTSUS, and subheading 8506.50.00, HTSUS, which provides for “Primary cells and primary batteries; parts thereof: Lithium.” The column one, general rate of duty is 2.7 percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N093423, dated February 18, 2010 is hereby REVOKED.
In accordance with the 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division