November 1, 2006 CBP Bulletin Notice on a Certain DC to DC Converters
In the November 1, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin)(Vol. 40, No. 45), CBP published a notice revoking a ruling and treatment as follows:
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Revocation of ruling; revocation of treatment. CBP is revoking one ruling regarding the classification of certain DC to DC converters. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the revocations are effective for merchandise entered or withdrawn from warehouse for consumption on or after December 31, 2006.
Certain DC to DC converters. At issue are the PKM, PKL, PKJ, and PKB series, which are all manufactured on Fire Retardant level 4 (FR4), printed circuit board (PCB) material. The parts, capacitors, resistors, diodes, transistors, integrated circuits, etc., are soldered onto the PCB using a thick film process, in two stages. Stage one involves lamination of a copper foil onto an insulating polyamide substrate. In stage two, a conductive pattern is photo-exposed onto the copper, which is then layered with solder and a protective coating is applied to the substrate, etc. (See CBP's notice for complete details.)
CBP is issuing HQ 968273 in order to revoke NY K83213 and reclassify the subject merchandise under HTS 8504.40.95 as other static converters, rather than under 8542.60.0095 as other hybrid integrated circuits.
CBP notes that in order to be considered a "hybrid integrated circuit," Note 5(b) to Chapter 85 requires (1) the passive elements to be obtained by thin- or thick-film technology, and (2) the active elements to be obtained by semiconductor technology. CBP finds that the subject converters do not fulfill the terms of Note 5(b), because their passive elements are not manufactured using thick- or thin-film technology. Consequently, the subject converters are not classifiable in heading 8542.
Furthermore, Explanatory Note 85.04 (II)(D) indicates that direct current converters, by which direct current is converted to different voltages, are included in the group "electrical static converters." CBP states that because the subject converters convert direct current to different voltages, they are properly classified in heading 8504.
new: HTS 8504.40.95, 1.5%; previous: 8542.60.0095, duty-free.
(See ITT's Online Archives or 08/28/06 news, (Ref: 06082850), for BP summary of proposed HQ 968273)
November 1, 2006 CBP Bulletin (Vol. 40, No. 45) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/