CLA-2 OT:RR:CTF:TCM H243640 ALS
Mr. Stuart Seidel
Ms. Diane MacDonald
Baker & McKenzie, LLP
815 Connecticut Avenue, N.W.
Washington, D.C. 20006
RE: Tariff classification of a “Hall-Effect Current Sensor Integrated Circuit”
Dear Sir and Madam:
This letter is in reply to your request for a ruling on the tariff classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of a Hall-Effect Current Sensor Integrated Circuit (“Hall-effect IC sensor” or “HEIC”) on behalf of Allegro MicroSystems, Inc., and in response to a meeting we held with you and your client on January 28, 2014. Our decision is set forth below.
FACTS:
The two configurations of the HEIC at issue are composed of 1) bipolar transistors, CMOS transistors, polysilicon thin film and diffused resistors, thin film capacitors, specially designed epitaxial silicon configured Hall element within the silicon substrate, which are combined to form a semiconductor die; and 2) a separately produced ferromagnetic core that is mounted to a copper frame. The semiconductor die is joined together with the ferromagnetic core/copper frame structure. The resulting device is then encased in an epoxy resin mold to complete the HEIC. There are two versions of the HEIC at issue, with either a magnetic ferrite (the CA version) or a soft iron magnetic material (the CB version) as the ferromagnetic material. For the purposes of tariff classification, we will consider the CA and CB configurations as one.
You state that the Hall-effect IC sensor is an integrated circuit that Allegro’s customers typically combine with other components to form a finished sensor to be used in current measuring and processing applications. The HEIC is a magnetic-field sensing IC that measures the strength and direction of a magnetic field using several different sensing technologies, the Hall-effect being “the most commonly used method.” The Hall-effect “converts a magnetic field of sufficient amplitude into a voltage, which is then processed by the on-chip amplifiers, logic circuitry, and power drivers.”
ISSUE:
Is the Hall-Effect Current Sensor Integrated Circuit properly classified under HTSUS heading 8542 as an electronic integrated circuit, or HTSUS heading 8543 as an electrical machine having individual functions not specified or included elsewhere in [Chapter 85]?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation. GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order. GRI 3(a) provides that “the heading which provides the most specific description shall be preferred to headings providing a more general description.”
Note 8 of HTSUS Chapter 85 is as follows:
For the purposes of headings 8541 and 8542:
(a) "Diodes, transistors and similar semiconductor devices" are semiconductor devices the operation of which depends on variations in resistivity on the application of an electric field;
(b) "Electronic integrated circuits" are:
Monolithic integrated circuits in which the circuit elements (diodes, transistors, resistors, capacitors, inductances, etc.) are created in the mass (essentially) and on the surface of a semiconductor or compound semiconductor material (for example, doped silicon, gallium arsenide, silicon germanium, iridium phosphide) and are inseparably associated;
Hybrid integrated circuits in which passive elements (resistors, capacitors, inductances, etc.), obtained by thin- or thick-film technology, and active elements (diodes, transistors, monolithic integrated circuits, etc.), obtained by semiconductor technology, are combined to all intents and purposes indivisibly, by interconnections of interconnecting cables, on a single insulating substrate (glass, ceramic, etc.). These circuits may also include discrete components;
Multichip integrated circuits consisting of two or more interconnected monolithic integrated circuits combined to all intents and purposes indivisibly, whether or not on one or more insulating substrates, with or without leadframes, but with no other active or passive circuit elements.
For the classification of the articles defined in this note, headings 8541 and 8542 shall take precedence over any other heading in the Nomenclature, except in the case of heading 8523, which might cover them by reference to, in particular, their function.
(Underline emphasis in original.)
Heading 8542, HTSUS, provides for “Electronic integrated circuits; parts thereof.” Heading 8543 provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.”
You contend that the HEIC is properly classifiable under heading 8542 because it “meets the requirements of the tariff definition of a hybrid integrated circuit.” You state that because the subject HEIC contains a semiconductor die that is built upon insulating, silicon substrate, onto which both passive and active elements are built, which is attached to a discrete, passive inductor, it meets the definition of a hybrid integrated circuit as provided in Chapter 85 Note 8(b)(ii).
The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff 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, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
You cite in part EN 85.42(II) as follows:
… to become a hybrid integrated circuit of this heading, semiconductors must be incorporated and mounted on the surface, either in the form of chips, whether or not encased, or as encased semiconductors (e.g., in specially designed miniature casings). Hybrid integrated circuits may also contain separately produced passive elements which are incorporated into the basic film circuit in the same way as the semiconductors. Usually these passive elements are components such as capacitors, resistors or inductors in the form of chips.
You cite EN 85.42(II) to further contend that the subject HEIC meets the Note 8(b)(ii) definition of a hybrid integrated circuit. You specifically contend that the HEIC’s Hall-effect semiconductor die is encased “indivisibly” with the high voltage inductor in a mold compound material that provides a voltage isolation barrier between the high voltage inductor and the low voltage Hall-effect IC.
You also cite to EN 85.42(I) to contend that combination of active transistors and passive resistors and capacitors also indicate that the HEIC meets the definition of a hybrid integrated circuit. You also attempt to distinguish the HEIC from products that are not formed by semiconductor technology, which are specifically excluded from 8542 according to last full paragraph of EN 85.42, by noting that the HEIC “is a high-density integrated circuit, formed by semiconductor technology,” and it is not mounted on nor does it include a printed circuit board.
You cite to four CBP rulings to support your argument. You note that CBP Ruling HQ 963150 (March 29, 2002) classified an acceleration sensor, consisting of an acceleration sensor chip, a signal processing integrated circuit, and a capacitor, under HTSUS subheading 8542.40, distinguishing it from heading 8543. You do not, however, explain how the subject HEIC is similar to the acceleration sensor chip in HQ 963150. You also cite the following text from CBP Ruling HQ 961050 (May 1, 2000):
We (CBP) interpret the Harmonized System’s definition of an HIC [“hybrid integrated circuit”] as formed by layering a thin or thick film circuit, in the mass (nondiscrete) directly on top of the substrate. Stated another way, an HIC begins with a printed circuit produced through film technology, see chapter 85 legal note 4 and the EN to heading 8534, to which are added components produced through semiconductor technology. As the second stage, both the legal note and the EN state that separately produced semiconductors must be incorporated as well. It is by this sequence of technologies that the legal note and EN together define an integrated circuit as hybrid.
You contend that the subject HEIC satisfies the definition of a hybrid integrated circuit as set forth in the cited text because it contains a p-type silicon substrate and a printed circuit containing both passive and active elements. Similarly, you cite CBP Ruling NY I82633 (June 26, 2002) and CBP Ruling NY L86818 (September 16, 2005) to contend that CBP’s rulings in these cases, which held that circuits consisting of an application specific integrated circuit (“ASIC”) combined with a sensor are classified under heading 8542, apply to the subject HEIC, though you do not explain how.
You also contend that four other CBP rulings to which you cite are distinguishable from your argument. CBP Ruling HQ 965698 (August 13, 2002) classified a closed-loop current sensor under subheading 9030.39.00 as another instrument for measuring electrical quantities, without a recording device, other. CBP Ruling HQ 965128 (August 13, 2002) classified a closed-loop linear current sensor under subheading 9030.39.00, citing HQ 965698. CBP Ruling HQ 965542 (August 13, 2002) classified two types of open-loop current sensors under subheading 9030.39.00, also citing HQ 965698. CBP Ruling NY N009376 (May 7, 2007) classified two distinct models of VOx (Vanadium Oxide) microbolometer (uncooled) infrared detectors under subheading 8541.40.9500 as "Photosensitive semiconductor devices…: Other: Other.” We agree that the four cases noted in this paragraph are distinguishable from the present case and as such have no bearing in this decision.
Within the context of our review of the subject HEIC, we note again that the circuit elements of the HEIC are bipolar transistors, CMOS transistors, polysilicon thin film and diffused resistors, thin film capacitors, and a specially designed epitaxial silicon configured Hall element within the silicon substrate, which are combined to form the semiconductor die. The separately produced ferromagnetic core is mounted to a copper frame and the semiconductor die is then joined together with the ferromagnetic core/copper frame structure. The resulting device is then encased in an epoxy resin mold to complete the HEIC, with either the magnetic ferrite material (the CA version) or the soft iron magnetic material (the CB version) as the ferromagnetic material. The magnetic material (either version) is not combined either by interconnections of interconnecting cables or on a single insulating substrate as required by Note 8(b)(ii) to Chapter 85, HTSUS. Given that the magnetic material is mounted on the copper lead frame, which in turn surrounds the insulating substrate, it is clearly distinct from the insulating substrate and the elements encapsulated therein.
Consequently, the HEIC does not meet the definition provided in Chapter 85, Note 8(b)(ii) for hybrid integrated circuits (“passive elements… and active elements…are combined to all intents and purposes indivisibly…”). Thus, the subject Hall-Effect Current Sensor Integrated Circuit is not properly classifiable as a hybrid integrated circuit under heading 8542.
We have previously held that Hall-effect sensors are transducers classified under heading 8543. See CBP Ruling HQ 967134 (July 20, 2004) and CBP Ruling HQ 967103 (July 20, 2004). In both of those cases, the item at issue consisted of a flex circuit board, a magnetic material, plastic molding surrounding the magnetic material, and three conductor wires, all combined in a plastic housing. In both cases, we noted that the term transducer is not defined in the text of either the HTSUS or the ENs. As each case noted, the common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities, and other reliable sources. Nippon Kogasku (USA Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (Fed. Cir. 1982). “Transducer” is defined as “a device that changes power from one system into another form for another system.” Merriam-Webster Online Dictionary, http://www.merriam-webster.com/dictionary/transducer (2014). As noted above, the HEIC converts a magnetic field into voltage. Thus, it meets the definition of a transducer.
It is well-settled that transducers are properly classified under heading 8543. See, e.g., CBP Ruling HQ W967689 (March 17, 2008); HQ 967134 and HQ 967103, supra. Therefore, the subject Hall-Effect Current Sensor Integrated Circuit is properly classified under HTSUS subheading 8543.70.40 as an “electrical machine… having individual functions, not specified or included elsewhere in [chapter 85]…: Other machines and apparatus: … transducers…”
HOLDING:
The subject Hall-Effect Current Sensor Integrated Circuit is properly classified under HTSUS subheading 8543.70.40 as an “electrical machine… having individual functions, not specified or included elsewhere in [chapter 85]…: Other machines and apparatus: … transducers…” The general column one rate of duty, for merchandise classified in this subheading is 2.6 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. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch