CLA-2-84:OT:RR:NC:N:104

Kristi Culbertson
Raith America, Inc.
300 Jordan Road
Troy, NY 12180

RE: The tariff classification of a focused ion beam nanofabrication system from Germany

Dear Ms. Culbertson:

In your letter dated April 16, 2025, you requested a tariff classification ruling.

The VELION system is a focused ion beam (FIB) lithography and patterning/milling tool designed primarily for use in semiconductor manufacturing, as well as other applications requiring unique patterning techniques. It is capable of processing full 4-inch wafers and is used in semiconductor development and production processes. The machine employs a focused ion beam to directly draw patterns on the nanometer scale onto semiconductor devices and other substrates. It is also used for direct thin-film patterning by milling functional layers, as well as ion beam fabrication of nanostructures by milling, ion-induced etching, implantation, and deposition. Within the same housing, the VELION includes a scanning electron microscope (SEM) column with a detector for cross-section analysis of semiconductors.

The key components of the VELION system include: (1) a vertical NanoFIB ion beam column with liquid metal ion source (LMIS), the FIB column being the principal component for direct patterning of semiconductor materials; (2) high-precision X-Y-Z stage with laser interferometer for X-Y positioning, enabling true manufacturing-grade pattern placement over large areas (100 mm travel range with 1 nm resolution); (3) insulated system shield; (4) enhanced high vacuum system with dry pumps and fast load lock; (5) FPGA-based 50 MHz and 20-bit pattern generator; (6) Everhart-Thornley type SE (secondary electron) detector; (7) multi-port vacuum chamber for configurable setups; and (8) control electronics and software system. The VELION will be imported with a connected, dedicated wafer/substrate handling system that includes an airlock, dedicated wafer holders, an automatic laser-based wafer height detection system, and wafer mapping capabilities for automated, CAD-based wafer processing.

As imported the VELION system is effectively two machines: a single machine combining the FIB and SEM, and a connected wafer/substrate handling system. Pursuant to Section XVI, Note 4, Harmonized Tariff Schedule of the United States (HTSUS), “[w]here a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.”

The VELION system is a functional unit; its machines and components work together to draw patterns onto semiconductor devices and other substrates, which we determine to constitute the system’s clearly defined function. Although the VELION performs SEM inspection and analysis along with FIB patterning and nanofabrication, you explain that the SEM’s inspection and analysis functionality is secondary to the patterning and milling functions for semiconductor lithography and nanofabrication. The SEM aids in the process development, i.e., it focuses an electron beam onto a sample to assist in determining the correct FIB machining parameters for device fabrication that can then be applied to full wafer manufacturing. Once the parameters are established, the VELION performs actual, automated production-scale nanofabrication across entire wafers without requiring the SEM for operations.

The applicable subheading for the VELION focused ion beam nanofabrication system, will be 8486.20.0000, HTSUS, which provides for “Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 11(C) to this chapter; parts and accessories: Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits.” The rate of duty will be free.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries (including Germany) will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.32, in addition to subheading 8486.20.0000, HTSUS, listed above.

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 at https://hts.usitc.gov/.

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Arthur Purcell at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division