HQ 089869

October 16, 1991

CLA-2 CO:R:C:M 089869 MBR

CATEGORY: Classification

TARIFF NO.: 8543.80.90

Mr. Michael A. Hertzberg

Howrey & Simon

1730 Pennsylvania Ave., N.W.

Washington, D.C. 20006-4793

RE: Hitachi Metals; Ferrite Cores; Magnetic Recording Heads;

Parts of Automatic Data Processing Tape and Disk Drives;

Ceramic Articles; Electrical Machines and Apparatus n.s.p.f.

Dear Mr. Hertzberg:

This is in reply to your letter of March 6, 1991, and

supplemental submission of April 24, 1991, requesting

classification of ferrite cores for magnetic recording heads, on

behalf of Hitachi Metals, Ltd., and Hitachi Metals America, under

the Harmonized Tariff Schedule of the United States Annotated

(HTSUSA).

FACTS:

The subject merchandise is a small, rectangular or square

article of ferrite, engineered to exacting tolerances for use in

the assembly of magnetic heads for products such as computer

disks and tape drives, videocassette recorders, and tape

recorders. A large majority of these ferrite cores, sold by

Hitachi Metals America (HML), are used to assemble magnetic heads

for computer disk and tape drives.

Ferrites are ceramic materials which exhibit a high degree

of magnetic sensitivity. Ferrite material is manufactured by

combining certain metallic oxides with a binding agent under high

temperature and pressure. The ferrite material used by HML to

produce the subject cores consists primarily of three oxides:

manganese oxide (MnO), zinc oxide (ZnO), and iron oxide (Fe-2 O-

3).

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Because of their high electrical resistivity and magnetic

permeability, magnetically soft ferrites are particularly well

suited for the storage, transmission, or reception of magnetic

energy. The resistivity of ferrite material also allows those

materials to be used in the conversion of electric energy into

magnetic energy and vice versa via induction. Because of these

capabilities, ferrite material is commonly used in computer

memories and electrical components.

The instant ferrite core production begins with the

manufacture of the base ferrite material. This base material may

be in the form of a disc, block, or plate. The base material is

machined into \"C\" and \"I\" shaped bars and then coated

(\"sputtered\") with a fine layer of metallic material and glass.

The two sputtered bars are joined and bonded in glass so that

non-magnetically permeable gaps are created at the contact points

between the two bars. The bonded ferrite bar is machined and

sliced to form the ferrite cores exported by HML.

ISSUE:

What is the classification of ferrite cores for magnetic

recording heads, under the Harmonized Tariff Schedule of the

United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI\'s) to the HTSUSA

govern the classification of goods in the tariff schedule. GRI 1

states, in pertinent part:

\...classification shall be determined according to the terms

of the headings and any relative section or chapter notes\...

You argue that: \"\[b\]ecause composite cores rely on the

principles of induction to convert energy from one form to

another, and employ static elements to accomplish that objective,

they are static converters.\" Therefore, you argue that the

ferrite cores are classifiable in heading 8504, HTSUSA, which

provides for: \"\[e\]lectrical transformers, static converters (for

example, rectifiers) and inductors; parts thereof.\"

The Harmonized Commodity Description and Coding System

Explanatory Notes (ENs) to heading 8504, HTSUSA, state:

\(II\) ELECTRICAL STATIC CONVERTERS

The apparatus of this group are used to convert

electrical energy in order to adapt it for further use.

They incorporate converting elements (e.g., valves) of

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different types. They may also incorporate various

auxiliary devices (e.g., transformers, induction coils,

resistors, command regulators, etc.). Their operation is

based on the principle that the converting elements act

alternatively as conductors and non-conductors.

The fact that these apparatus often incorporate

auxiliary circuits to regulate the voltage of the emerging

current does not affect their classification in this group,

nor does the fact that they are sometimes referred to as

voltage or current regulators.

This group includes:

\(A\) Rectifiers by which alternating current (single or

polyphase) is converted to direct current, generally

accompanied by a voltage change.

\(B\) Inverters by which direct current is converted to

alternating current.

\(C\) Alternating current converters and cycle converters by

which alternating current (single or polyphase) is

converted to a different frequency or voltage.

\(D\) Direct current converters by which direct current is

converted to a different voltage.

However, the instant ferrite cores do not operate on any of

these principles. Therefore, we are not persuaded that the

instant merchandise is properly classifiable in heading 8504,

HTSUSA.

Furthermore, you argue that: \"HTS 8504.90.00 is a use

provision for ferrites used principally as parts for electrical

transformers, static converters, and inductors\" and that \"\[t\]he

ferrite cores exported by HML are used principally (in fact

exclusively) as parts of wound ferrite composite sliders, a form

of static converter.\"

However, use is not a criterion in determining whether

merchandise is classifiable under an eo nomine designation, where

the provision is clear and unambiguous, without any suggestion

that the element of use should influence the classification of

merchandise thereunder. F.W. Myers & Co., Inc. v. United States,

24 Cust. Ct. 178, C.D. 1228 (1950); Gold-Silver & Co. v. United

States, 36 Cust. Ct. 51, C.D. 1753 (1956). See A Manual of

Customs Law, Ruth F. Sturm (1974).

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You also argue that, prior to the implementation of the

HTSUSA, Customs classified the subject ferrite cores under

535.12, TSUS, and that heading 8504.90.00, HTSUSA, is the

successor provision to 535.12, TSUS. However, item 535.12, TSUS,

provides for: \"\[c\]eramic magnets, ceramic electrical insulators

whether or not in part of metal, and other ceramic electrical

ware, including ferroelectric and piezoelectric ceramic elements:

\[f\]errites: \[c\]eramic permanent magnets.\"

The House Conf. Rep. No. 100-576 \[page 549\] states: \"\[i\]n

light of the significant number and nature of changes in

nomenclature from the TSUS to the HTS, decisions by the Customs

Service and the courts interpreting nomenclature under the TSUS

are not to be deemed dispositive in interpreting the HTS.

Nevertheless, on a case-by-case basis prior decisions should be

considered instructive in interpreting the HTS, particularly

where the nomenclature previously interpreted in those decisions

remains unchanged and no dissimilar interpretation is required by

the text of the HTS.\"

We do not find that the language in subheading 8504.90.00,

HTSUSA, is in any way similar to that of item 535.12, TSUS.

Therefore, decisions rendered under the TSUS cannot even be

considered instructive, in the instant case.

Similar merchandise has been addressed by Customs under the

HTSUSA in HQ 082097, dated March 14, 1989. In that case, the

magnetic recording heads (which were also used to read and write

data on computer disks), were found to be properly classifiable

under subheading 8473.30.40, HTSUSA, which provides for: \"\[p\]arts

and accessories (other than covers, carrying cases and the like)

suitable for use solely or principally with the machines of

headings 8469 to 8472: \[p\]arts and accessories of the machines of

heading 8471: \[n\]ot incorporating a cathode ray tube.\"

The Legal Notes to chapter 84, HTSUSA, state:

1\. This chapter does not cover:

\(b\) Appliances or machinery (for example, pumps)

or parts thereof, of ceramic material

(chapter 69)

In HQ 082097 it was determined that the ferrite magnetic

head had lost the character of ceramic articles. However, the

magnetic recording head in HQ 082097 also contained the \"slider

unit\" which was comprised of titanium carbide. The instant

merchandise is assembled with the composite slider housing after

importation. Therefore, it is Customs position that the instant

merchandise has not lost the character of a ceramic article, and

is thereby excluded from classification in subheading 8473.30.40,

HTSUSA, by chapter 84 Legal Note 1(b).

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The ferrite cores are also prima facie classifiable under

the following subheadings:

8543.80.90 Electrical machines and apparatus, having

individual functions, not specified or included

elsewhere in this chapter: Other machines and

apparatus: Other.\"

\* \* \* \* \* \* \* \* \* \* \* \* \*

6914.90.00 Other ceramic articles: Other

A Manual of Customs Law, Ruth F. Sturm (1974), p. 249,

states:

A \"not specifically provided for\" clause in a use provision

excludes therefrom articles enumerated elsewhere by

descriptive or eo nomine designation, provided the competing

provision is more than an unlimited general description of

the merchandise. It must specifically name and describe the

goods. United States v. Lansen-Naeve Corp., 44 CCPA 31,

C.A.D. 632 (1957) and cases cited.

It is Customs position that subheading 6914.90.00, HTSUSA,

which provides for \"Other ceramic articles: Other,\" is an

unlimited general description of the merchandise that does not

name and describe the goods specifically. Therefore, we find

that subheading 8543.80.90, HTSUSA, is more specific.

HOLDING:

The Hitachi Metals Ltd. and Hitachi Metals America ferrite

cores for magnetic recording heads are classifiable under

subheading 8543.80.90, HTSUSA, which provides for: \"\[e\]lectrical

machines and apparatus, having individual functions, not

specified or included elsewhere in this chapter: \[o\]ther machines

and apparatus: \[o\]ther.\" The rate of duty is 3.9% ad valorem.

Sincerely,

John Durant, Director

Commercial Rulings Division