May 10, 2006 CBP Bulletin Notices on Alligator Clips and Machines Used in CD/DVD Production
In the May 10, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 20), CBP issued notices: (a) modifying or revoking two classification rulings on alligator clips used for electrical connections, and (b) revoking three classification rulings on machines for producing metal-coated glass discs containing digitally-encoded data. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions that are contrary to its position in these notices.
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According to CBP, these revocations and modification are effective for merchandise entered or withdrawn from warehouse for consumption on or after July 9, 2006. CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Revocation or Modification of Five Classification Rulings
Alligator clips used for electrical connection. At issue are various types of alligator clips. CBP notes that some alligator clips are merely mechanical clips for attaching one thing to another as, for example, for affixing one's bib in the dentist's office. However, the alligator clips at issue are devices with spring-loaded serrated jaws on one end and a female portal on the other end and are used to make an electrical connection between two circuits or systems. Among other things, these alligator clips are commonly used with electrostatic discharge systems (EDS), electrocardiogram (ECG) equipment, and test and measurement systems.
CBP is issuing HQ 968094 and HQ 968095 in order to revoke NY F87872, and modify NY C81069, respectively, in order to properly classify subject merchandise under HTS 8536.90.4000, as terminals, electrical splices and electrical couplings; rather than under 8536.90.8085, as other electrical apparatus for making connections to or in electrical circuits, for a voltage not exceeding 1,000 Volts.
In reviewing the classification of the alligator clips, CBP finds that they qualify under HTS heading 8536 as electrical apparatus for making connections to or in electrical circuits. However, CBP now finds that the issue of whether the alligator clips might be terminals-points of connection for two or more semiconductors in an electrical circuit-was not given sufficient consideration.
CBP states that in each of the product's uses (with an EDS, ECG, and test and measurement equipment), the alligator clip functions to connect two systems together or make connections in a circuit so that energy or current can flow from one to the other. Therefore, CBP finds that alligator clips are within the common and commercial meaning of the term "terminal." As such, CBP is classifying the alligator clips as terminals provided for in HTS 8536.90.4000.
new: HTS 8536.90.4000, duty-free; previous: 8536.90.8085, 2.7%.
(See ITT's Online Archives or 03/30/06 news, 06033050, for BP summary of the proposed rulings on the subject alligator clips.)
Machines used in CD/DVD production. At issue are three machines: the AM 100 Automatic Mastering System (AM 100), the Sony Lean Integrated Mastering System-High Density (SLIM-HD), and a laser beam recorder. These machines utilize a laser transfer process to produce metal-coated discs encoded with data. The discs are then further processed into master discs that will then be used to mass produce digital video discs (DVDs) or compact discs (CDs). (See CBP's notice for further description of the individual items at issue.)
CBP is issuing HQ 967965, HQ 967966, and HQ 967967 in order to revoke HQ 963997, HQ 962354, and HQ 962939, respectively, and reclassify the subject merchandise under HTS 9010.50.6000 as other apparatus and equipment for photographic laboratories; rather than under 9013.80.9000 as other optical appliances and instruments, not specified or included elsewhere [in Chapter 90].
It is now CBP's position that laser transfer machines, laser beam recorders or code cutters are classified in HTS 9010.50.6000, as other apparatus and equipment for photographic laboratories. CBP states that this classification will apply only to mastering equipment incorporating laser beam recorders which encode digitally-formatted data onto the photoresist coating of the glass substrates.
CBP explains that by its terms, HTS heading 9013 does not include optical appliances and instruments that are specified or included elsewhere in HTS chapter 90.
In addition, the Explanatory Notes (ENs) for HTS heading 9010, under (N), describe apparatus used to manufacture electronic integrated circuits, those used to expose circuit patterns onto a sensitized layer which has been applied to the surface of the semiconductor wafer, etc. The EN ends with "all these apparatus produce the same end result. That is, an exposure pattern which matches the desired circuit pattern and which is produced on a sensitized material which can be developed much as a photographic film is developed."
For all three machines, CBP finds that the evidence indicates that focusing the laser's beam on the photoresist layer develops the digitally encoded data in the photoresist in a process that exposes the pattern as a latent image. As such, the subject machines are considered to be performing a "photographic" process for HTS heading 9010 purposes; such a conclusion eliminates HTS heading 9013 from consideration.
new: HTS 9010.50.6000, duty-free; previous: 9013.80.9000, 4.5%.
(See ITT's Online Archives or 03/14/06 news, 06031430, for BP summary of the proposed rulings on the subject machines.)
May 10, 2006 CBP Bulletin (Vol. 40, No. 20) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_05102006_no20/