CLA-2-84:OT:RR:NC:N4:120
TARIFF NOS.: 8473.30.5100; 3919.90.5060; 8534.00.0080
Mr. Neil S. Helfand
Sandler, Travis & Rosenberg, P.A.
505 Sansome Street, Ste. 1475
San Francisco, CA 94111
RE: The tariff classification of a cover glass, an optically clear adhesive (OCA) film, and a
sensor film from China, Korea, and Japan, respectively.
Dear Mr. Helfand:
In your letter dated October 22, 2015, on behalf of your client, the Microsoft Corporation, you requested a tariff classification ruling. Samples are being returned.
The subject merchandise consists of the following: the cover glass, the OCA film, and the sensor film, all components of the Microsoft Surface Hub, which will be imported separately from each other. It is noted that the Surface Hub, not being imported, is considered an automatic data processing (ADP) machine for tariff classification purposes.
The cover glass, which measures approximately 1 mm in thickness, serves as an outer, visual component of the entire Surface Hub for protecting/covering the sensor film, the LCD panel, and the backlight. At the time of importation, this cover glass is specifically cut to size and shape for exclusive use with the Surface Hub. In addition to being cut to shape, the glass is chemically strengthened and treated with a coating to create an anti-glare surface. And finally, the glass is printed with custom artwork such as a black border and the Microsoft logo. After importation, the glass is laminated with sensors for tactile enhancement (detecting touches and pen input). Based on how this cover glass is constructed and designed, with regard to its intended function when incorporated into the Microsoft Surface Hub, this office is of the opinion that the subject cover glass is considered a part for tariff classification purposes.
The applicable subheading for this cover glass will be 8473.30.5100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469-8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other. The rate of duty will be Free.
The Optically Clear Adhesive (OCA) film at issue is described as a double-sided adhesive film composed of plastic. You indicate that the adhesive film is imported in rolls, and subsequent to importation is used in the manufacturing process for the Surface Hub. Specifically, the film is placed between the cover glass and sensor film to laminate the two components to one another. When imported, the OCA film is sandwiched between two non-adhesive sheets of plastic backing that are removed when the film is applied to the surfaces that will be laminated together. Per the information you provided, the imported rolls of OCA film are approximately 250 meters in length and 1 meter wide.
The applicable subheading for the Optically Clear Adhesive film will be 3919.90.5060, HTSUS, which provides for Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls: Other: Other: Other. The general rate of duty will be 5.8% ad valorem.
In your submission you request a determination on the eligibility of the Optically Clear Adhesive film for preferential treatment under the United States-Korea Free Trade Agreement (UKFTA).
The requirements of the UKFTA are described in General Note 33 of the HTSUS. General Note 33(b) indicates that, for the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country if-
(i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both.
(ii) the good is produced entirely in the territory of Korea or of the United States, and –
each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o) and satisfies all other applicable requirements of this note and of applicable regulations; or
(iii) the good is produced entirely of the territory of Korea or the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
Based on the information you provided, all of the components used in the production of the OCA film are products of Korea, save for one (a monomer used in the manufacture of the plastic film). For goods classified in Heading 3919, General Note 33(o) indicates a change to headings 3916 through 3926 from any other heading is required. The non-originating component meets this tariff shift requirement.
Taking the above facts into account, it is the opinion of this office that the OCA film at issue meets the requirements of General Note 33(b)(ii)(A), and thus qualifies for preferential treatment under the UKFTA. The good will qualify for a duty rate of 3.4% ad valorem under the UKFTA upon compliance with all applicable laws, regulations, and agreements.
The sensor film is a printed circuit on a plastic flexible insulating base that has on its surface a pattern of etched electrical conductors. These conductors generate the electrical fields that the device uses to sense the presence of a finger and/or pen on the screen to operate the device. In this way, the sensor film serves as a capacitive touch sensor between the user of the Surface Hub and the LCD display, which is stated to be identical in operation to the touch sensor on a smartphone. Imported in rolls sized specifically for the device’s display, each sensor film must be cut away from the roll subsequent to importation for installation into the device.
The applicable subheading for the sensor film will be 8534.00.0080, HTSUS, which provides for "Printed circuits: Other: Flexible type." The rate of duty will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division