CLA-2 CO:R:C:M 088882 DWS
District Director of Customs
International & Terrace Streets
Nogales, AZ 85621
RE: Multilayer Bus Circuits; HQ 079114;
Protest No. 2601-90-000001
Dear Sir:
This is our decision on Application for Further Review of
Protest No. 2601-90-000001, dated September 11, 1990, concerning
your action in classifying and assessing duty on multilayer bus
circuits under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).
FACTS:
The merchandise consists of multilayer bus circuits (MBC's),
also known as multilayer bus bars. Other components, such as
capacitors, diodes, ferrite chokes, connectors, and resistors,
may be imported as part of the MBC, depending upon the user's
needs.
An MBC is comprised of a series of insulated layers of
copper plates which are plated, formed, and pierced to accept
connectors. The MBC is then held together by adhesive through
lamination or by assembly through mechanical means. The purpose
of the MBC is to transmit, control, and modify electrical pulses
to and from the power supply and motherboard to other printed
circuit boards in Automatic Data Processing (ADP) equipment. It
is used exclusively for ADP's. These electrical pulses, which
are 2 and 6 volts, are measured in microseconds. The MBC is
designed to specific insulation, impedance, capacitance, and
resistance standards.
According to counsel for the importer, the MBC has several
objectives. First, the MBC is to achieve low inductance
characteristics to minimize any changes to supplied current.
Second, the MBC design aim is to maximize the capacitance element
to provide a stable voltage supply and reduce the signal noise
inherent in changing power demands. Third, the MBC is designed
to minimize the resistance element to insure a smooth
transmission of power without loss due to heat conversion.
Subsidiary objectives include providing rigidity to the wall of
an ADP, and serving as part of an ADP's frame mounting.
ISSUE:
What is the classification of the subject merchandise under
the HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
The merchandise was entered under subheading 8473.30.40,
HTSUSA, which provides for: "[p]arts and accessories of the
machines of heading 8471: [n]ot incorporating a cathode ray
tube." However, the merchandise was liquidated under subheading
8536.90.00, HTSUSA, which provides for: "[e]lectrical apparatus
for making connections to or in electrical circuits, for a
voltage not exceeding 1,000 V: [o]ther apparatus."
Counsel for the importer argues that an ADP "is dependent on
the inclusion of a reliable [MBC] to deliver signals to and from
the motherboard", and therefore, the subject merchandise, under
HQ 079114, dated October 19, 1987, "constitutes a circuit and is
also 'more than' a type of insulated electrical conductor with
fittings." The claim is that the MBC is a multi-functional
circuit. It does more than merely conduct electrical current, as
counsel has noted by listing the various objectives of the MBC.
These objectives, including the subsidiary objectives, were
explained to us at a meeting with counsel and representatives of
the importer at Customs Headquarters on October 28, 1991.
In HQ 079114, a flex circuit was ruled as "more than a type
of insulated electrical conductor with fittings." The flex
circuit consisted of a flat plastic strip with two jogs,
containing several conductors and material in between to increase
capacitance. The circuit had electrical connectors at each end,
and it was used as a conductor between moving and stationary
parts of a disc drive.
HQ 079114 was written under the Tariff Schedules of the
United States (TSUS), the predecessor to the HTSUSA. The "more
than" language, used under the TSUS, did not transfer to the
HTSUSA when it was enacted January 1, 1989. The HTSUSA is a new
tariff system and the rules of how it is interpreted and applied
are somewhat different from the TSUS. As noted in H. Conf. Rep.
No. 576, p.550, on a case-by-case basis TSUS decisions should be
considered instructive in interpreting the HTSUSA, particularly
where the nomenclature previously interpreted in those decisions
remains unchanged and no dissimilar interpretation is required by
the text of the HTSUSA. In this case, a dissimilar
interpretation is indicated because the "more than" language is
not used under the HTSUSA. Therefore, we do not find HQ 079114
instructive in this case.
Because the MBC is multi-functional, for classification
purposes we need to look to its primary function. It is true, as
noted, that it has several objectives with regard to the
operation of an ADP. However, in our opinion, the essential,
basic function of the MBC is to conduct electrical current.
Granted the MBC is made exclusively for ADP's and it is indeed
complex, it is still essentially a conductor of electricity in an
electrical circuit. The other objectives, in light of the MBC's
primary function, are secondary.
In understanding the language of the HTSUSA, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are
to be used to determine the proper interpretation of the HTSUSA.
54 Fed. Reg. 35127, 35128 (August 23, 1989). The first paragraph
to Explanatory Note 85.36 (III)(B) (p. 1390, HTSUSA) provides:
[o]ther connectors, terminals, terminal strips, etc. These
include small squares of insulating material fitted with
electrical connectors (dominoes), terminals which are metal
parts intended for the reception of conductors, and small
metal parts designed to be fitted on the end of electrical
wiring to facilitate electrical connection (spade terminals,
crocodile clips, etc.)
Counsel, as noted, has described an MBC as consisting of a
series of insulated layers of copper plates which are plated,
formed, and pierced to accept connectors (emphasis supplied). We
are of the opinion that your classification of the MBC under
subheading 8536.90.00, HTSUSA, was proper.
HOLDING:
The subject merchandise is classifiable under subheading
8536.90.00, HTSUSA, which provides for: "[e]lectrical apparatus
for making connections to or in electrical circuits, for a
voltage not exceeding 1,000 V: [o]ther apparatus." The protest
should be denied in full. A copy of this decision should be
attached to the Customs Form 19 and mailed to the protestant as
part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division