CLA-2-84:RR:NC:1:103 G87193
Ms. Julie Vair
Expeditors Tradewin, LLC
1015 Third Avenue, 12th Floor
Seattle, WA 98104
RE: The tariff classification of a Fluidic Self Assembly line from Japan and Latvia
Dear Ms. Vair:
In your letter dated February 6, 2001 on behalf of Alien Technology you requested a tariff classification ruling.
Your client intends to import twelve machines which comprise part of the production line for electronic backplanes used in small active matrix flat panel display devices. The production line will utilize a new, proprietary technology known as Fluidic Self Assembly (FSA). Alien Technology will purchase semiconductors which have been fabricated in semiconductor manufacturing foundries utilizing standard integrated circuit fabrication techniques and will deposit these semiconductor devices onto a continuous flexible substrate. The substrate, which will be 158 millimeters in width and approximately 60 meters long, will consist of an aluminum or copper base whose surface is laminated with a polymer material. The production line will be imported in a series of separate shipments over the course of several months. Following is a brief description of each of the individual machines:
Sprocket hole puncher – unwinds the continuous web, punches sprocket holes along its edges (necessary so that the web can be advanced with precision through subsequent machines), and rewinds the material.
Fluidic Self Assembly machine – unwinds the web and transports it to a process chamber. There specially shaped microelectronic devices such as transistors and integrated circuits (ICs), referred to as Nanoblocks™, ranging in size from 10 to several hundred microns and which have been suspended in liquid, are allowed to float over the surface of the web. In a separate process the web has had appropriately shaped holes punched, etched or laser drilled into its surface. The Nanoblocks™ settle into the holes or receptors having corresponding shapes, and the web is then dried and rewound. Nanoblocks™ which do not fall into the appropriate slots are removed from the fluid, cleaned, and then re-suspended to be again flowed over another substrate.
Planarize screen printer – unwinds the web, screen prints a planarization material onto the web, dries and rewinds the web. The planarization material serves to keep the ICs in place and provides a smooth wiring surface.
Planarize exposer – unwinds the web, aligns it to a patterned mask and, using ultraviolet light, exposes the pattern onto the photosensitive planarization material. This produces a pattern of vias, which will allow electrical contacts to the ICs to be made through the planarization material. The web is then rewound.
Planarize developer – unwinds the web, sprays a caustic chemical onto the web to open up the vias (i.e., creates holes in the planarization layer), and rewinds the web.
Cure oven – an electrically heated oven which cures the planarization material to impart its final properties.
Metalizer – Unwinds the web and, under vacuum, coats the surface of the web with a very thin layer of aluminum by means of a sputtering process.
Photoresist coater – unwinds the web, coats a layer of protective photoresist material onto the web using a roller, dries the photoresist, and rewinds the web.
Wire exposer – unwinds the web and, using ultraviolet light and a patterned mask, reproduces the wiring pattern from the mask onto the photoresist. It then rewinds the web.
Photoresist developer – unwinds the web, sprays a caustic chemical onto the web to remove unwanted photoresist from specific areas of the web, and rinses, dries, and rewinds the web.
Aluminum etcher – unwinds the web, sprays an etch solution onto the web’s surface (thus removing areas of exposed aluminum not covered by the photoresist), rinses, dries, and rewinds the web.
Photoresist stripper – unwinds the web, sprays a caustic solution onto the web to remove the remaining photoresist (thus revealing the pattern of aluminum wiring), rinses, dries, and rewinds the web.
In your letter you claimed that all of these machines are essential to the assembly of a semiconductor device. You thus contended that, in accordance with note 4 to Section XVI of the Harmonized Tariff Schedule of the United States (HTS), the entire line should be classified in subheading 8479.89.85, HTS, a provision for, inter alia, machines for production and assembly of diodes, transistors and similar semiconductor devices and electronic integrated circuits.
Note 4 to Section XVI provides that a combination of machines consisting of individual components intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85 falls to be classified in the heading appropriate to that function. The Customs Service has previously held that such functional units cannot be classified in heading 8479 since that heading does not describe a machine or machines by specific function (see, for example, Ruling Letter HQ 958629 dated Feb. 21, 1996). In addition, we note that various machines which will not be imported, such as the machines used to produce the specially-shaped holes in the web substrate, are necessary for the successful completion of the FSA process. The Customs Service has also previously held that note 4 to Section XVI does not apply to “unfinished functional units” or “parts of functional units” (see Ruling Letter HQ 960816 of Aug. 27, 1998 and the additional ruling letters cited therein). Thus we are unable to agree with your request that all twelve machines be classified in subheading 8479.89.85, HTS, per note 4 to Section XVI. Based on the foregoing, the various machines must be individually classified.
In an undated supplemental letter which was received by this office at the end of April your client claimed that, taken separately, the FSA machine is used to fabricate microassemblies and/or hybrid integrated circuits and thus is itself classifiable in subheading 8479.89.85, HTS. Also attached to this letter were samples of FPDs representative of the types capable of being produced by the FSA production line. However, subheading 8479.89.85 does not encompass machines used in the production and assembly of microassemblies. We are also of the opinion that the FSA machine does not perform a hybrid integrated circuit assembly function (see Section XVI, Statistical Note 1(d), which indicates semiconductor and IC assembly machines consist of dicing, die and wire bonding, and packaging [encapsulation] equipment). Finally, we note that machines for fabricating flat panel displays are provided for in subheadings of the HTS which are separate from those for fabricating semiconductor devices and integrated circuits. This reinforces the position that machines for making flat panel displays such as the FSA are not classifiable as machines for assembling semiconductors or ICs.
The applicable subheading for the FSA machine, as well as the metalizer and roller type photoresist coater, will be 8479.89.9797, HTS, which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere (in Chapter 84): other machines and mechanical appliances: other: other: other: other. The duty rate will be 2.5 percent ad valorem.
The applicable subheading for the sprocket hole puncher, assuming it is numerically controlled, will be 8462.41.0080, HTS, which provides for machine tools (including presses) for working metal by….punching or notching: punching or notching machines: numerically controlled. The duty rate will be 4.4 percent ad valorem.
The applicable subheading for the planarize screen printer will be 8443.59.5000, HTS, which provides for other printing machinery: other: other. The duty rate will be free.
The applicable subheading for the planarize exposer and wire exposer will be 9010.50.6000, HTS, which provides for other apparatus and equipment for photographic (including cinematographic) laboratories: other. The duty rate will be free.
The applicable subheading for the planarize developer, photoresist developer, aluminum etcher, and photoresist stripper will be 8424.89.5000, HTS, which provides for spraying appliances for etching, developing, stripping or cleaning flat panel displays. The rate of duty will again be free.
Finally, the applicable subheading for the cure oven, assuming it is not a resistance heated, induction or dielectric oven, will be 8514.30.8000, HTS, which provides for industrial or laboratory electric furnaces and ovens: other furnaces and ovens: other: other. The rate of duty will be 1.3 percent ad valorem.
Unlike the rest of the machines, which will be made in Japan, we understand that the metalizer may be manufactured in Latvia. Articles classifiable under subheading 8479.89.97, HTS, which are products of Latvia are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check the Customs Web site at www.customs.gov. At the Web site, click on "CEBB" and then search for the term "GSP".
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 Alan Horowitz at 212-637-7027.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division