HQ 953880: IA 18/93; Automatic Data Processing Hard Disk Cartridges; Prepared Unrecorded Media; Common and Commercial Identity

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

     

                            HQ 953880

                        February 28, 1994
                                                        
CLA-2 CO:R:C:M  953880 MBR

CATEGORY:  Classification

TARIFF NO.:  8523.20.00 

District Director
U.S. Customs Service
555 Battery St., POB 2450
San Francisco, CA 94126

RE:  IA 18/93; Automatic Data Processing Hard Disk Cartridges;
     Prepared Unrecorded Media; Common and Commercial Identity 

Dear Sir:

     This is in reply to your memorandum dated February 26, 1993,
forwarding a request for internal advice submitted by counsel on
behalf of the SyQuest Technology, Inc., regarding the
classification of ADP Hard Disk Cartridges, under the Harmonized
Tariff Schedule of the United States (HTSUS).  Consideration was
also given to submissions made by counsel directly to Headquarters.

FACTS:

     SyQuest manufactures disk drives and removable,
interchangeable disk cartridges.  Unlike conventional hard disks,
which are permanently fixed in the disk drive assembly, these disk
cartridges may be removed from one SyQuest drive and inserted into
another.  The instant disk cartridges are similar to 3.5 inch disks
in that they merely consist of a magnetic disk in a hard plastic
enclosure, a disk hub, and a spring access door.

     The SQ400 hard disk cartridge has a total storage capacity of
approximately 55 megabytes.  The product is offered for sale,
however, as having a user storage capacity of only 44 megabytes
because the disk operating system utilizes approximately 10
megabytes of storage space.

     The SQ800 removable hard disk cartridge has a total storage
capacity of approximately 101 megabytes.  However, the product is
offered for sale as having a user storage capacity of 88 megabytes
because the disk operating system utilizes approximately 13
megabytes.





                               -2-

ISSUE:

     What is the classification of the subject ADP disk cartridges,
under the Harmonized Tariff Schedule of the United States (HTSUS)? 

LAW AND ANALYSIS:

     The General Rules of Interpretation (GRI's) to the HTSUS
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...

     Beginning in 1992, the instant disk cartridges were assembled
in Singapore, and entered under subheading 8473.30.40, HTSUS, which
provides for parts and accessories of ADP machines.

     On July 1, 1992, Customs issued a Notice of Proposed Action
to reclassify the cartridges under subheading 8523.20.00, HTSUS,
which provides for prepared unrecorded media.  Subsequently, on
September 8, 1992, the instant disk cartridges were classified in
subheading 8523.20.00, HTSUS, as prepared unrecorded media.

     Counsel argues that the formatting, error mapping, etc., which
prepares the disk to receive user data, merits a change in
classification from prepared unrecorded media to recorded media.

     However, all of the recorded data has one purpose, and that
is to prepare the unrecorded media to store user data. 
Furthermore, the formatting, error mapping, etc., do not change the
commercial identity of the disk cartridges as prepared unrecorded
media.
"The tariff schedules are written in the language of commerce, and
the terms used are to be given their commercial or common meaning." 
See Ameliotex, Inc. v. United States, 65 CCPA 22, 25, C.A.D. 1200,
565 F.2d 674, 677 (1977); Esco Mfg. Co. v. United States, 63 CCPA
71, 73 C.A.D. 1167, 530 F.2d 949, 951 (1976).


     The fact that the instant disk cartridges may have more
complex or substantial preparations than 3.5 inch disks or floppy
disks is due solely to the fact that these disk cartridges are
designed to store a larger amount of user data.  See Simmon Omega,
Inc. v. United States, 83 Cust. Ct. 14, C.D. 4815 (1979), and
Trans-Atlantic Co. v. United States, 471 F. 2d 1397, 60 CCPA 100,
C.A.D. 1088 (1973), in which the courts have held that
technological advancements and "improvement in the design of an
article does not militate against its continuing to be a form of
the named articles."




                               -3-

     Most "blank" disks sold today have been prepared with
formatting.  However, formatting does not change their commercial
identity or classification to recorded media.  Similarly, no other
operations which are designed to "prepare" the media to receive
user data will change the classification from "prepared unrecorded
media...."

HOLDING:

     The subject disk cartridges are classifiable in subheading
8523.20.00, HTSUS, which provides for: "[p]repared unrecorded media
for sound recording or similar recording of other phenomena, other
than products of chapter 37: [m]agnetic disks."

     The Internal Advice applicant should be advised of this
decision.

                              Sincerely,




                              John Durant, Director