HQ 084219: Aluminum blanks for computer memory discs

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 084219

                                      July 7, 1989

             CLA-2 CO:R:CV:G: 084219 JLV

             CATEGORY:  Classification

             TARIFF NO.:  7616.90.00

             Mr. Clayton I. Miura
             Universal Transcontinental Corp.
             501 Forbes Blvd., Suite 200
             South San Francisco, California 94080

             RE:  Aluminum blanks for computer memory discs

             Dear Mr. Miura:

                  In a letter of March 10, 1989,  you request a ruling on
             behalf of your client, Mitsui & Co. (U.S.A.), Inc., on the
             tariff classification for certain aluminum blanks or "bare
             substrates" for computer memory discs.  Your request was
             forwarded to this office for response on the classification
             issue under the Harmonized Tariff Schedule of the United
             States Annotated (HTSUSA).

             FACTS:

                  The discs consist of circular flat discs, each of which
             has a hole in the center, and are made of various aluminum
             alloys (alloy designation EG1 and EG2 by SKY Aluminum Co.,
             Ltd., Tokyo, Japan; literature submitted with your letter).
             According to the submitted literature, the standard disc sizes
             are 3.5 inches, 5 inches, 8 inches, and 14 inches, each of
             which is produced to specific tolerances in thickness,
             diameter, concentricity, and flatness, and to specific
             mechanical properties and chemical compositions.  The aluminum
             content predominates by weight over each of the other metals
             in the alloy.

                  In a ruling of March 14, 1989 (file 838004), Customs
             ruled that a polished nickel-plated aluminum ring, a substrate
             similar in design, but further processed by plating and
             polishing, to the discs in issue, was classified as an article
             of aluminum in subheading 7616.90.0080, HTSUSA.  In a
             subsequent ruling of June 28, 1989 (file 084217), aluminum













                                          - 2 -

             blanks and substrates were classified as articles of aluminum
             in subheading 7616.90.00, HTSUSA, rather than as parts of data
             processing machines or as prepared unrecorded media.

             ISSUE:

                  Are the blanks unfinished articles having the essential
             character of the finished article within the meaning of
             General Rule of Interpretation (GRI) 2(a), and, therefore,
             classified in heading 8473 or heading 8523, rather than in
             heading 7616 or heading 7606?

             LAW AND ANALYSIS:

                  The facts in this case are substantially the same as
             those which we considered in our ruling of June 28, 1989 (file
             084217), concerning the blanks.  That ruling controls the
             disposition of this case.

                  Classification under the HTSUSA is according to the
             principles set out in the General Rules of Interpretation
             (GRI).  GRI 1 states in pertinent part that classification
             shall be determined according to the terms of the headings and
             any relative section or chapter notes and, provided such
             headings or notes do not otherwise require, according to the
             provisions that follow GRI 1.  The blanks, in this case, are
             unfinished because they lack the magnetic surface coating
             necessary for their use as memory discs for storage units of
             heading 8471.  GRI 2(a) states, in pertinent part, that any
             reference in a heading to an article shall be taken to include
             a reference to that article incomplete or unfinished, provided
             that, as presented, the incomplete or unfinished article has
             the essential character of the complete or finished article.

                  The Explanatory Notes (EN), the official interpretation
             for the HTSUSA at the international level, state that rule
             2(a) applies to blanks which, although not ready for direct
             use, have the approximate shape or outline of the finished
             article or part, and which can only be used, other than in
             exceptional cases, for completion into the finished article or
             part.  In this case, the disc blanks have the essential shape
             of the finished articles, and they do not appear to have any
             practical use other than completion into the intended memory
             discs.  By virtue of their specific size and shape, these
             articles have assumed the character of the articles into which
             they will be completed.  Therefore, these articles cannot be
             classified as plates of heading 7606, HTSUSA.  Chapter 76,
             note 1(d).














                                          - 3 -

                  Assuming that the blanks are unfinished parts of storage
             units of heading 8471, they are precluded from classification
             as parts of these units by section XVI note 2(a) because
             heading 8523 specifically provides for prepared unrecorded
             media for sound recording or similar recording of other
             phenomena.  EN(4) to heading 8523 indicates that the heading
             includes discs of metal that are capable of being magnetized
             (magnetic coating on the surface) for recording data for
             machines of heading 8471.

                  However, to the extent that these blanks are not yet
             prepared for use as media for recording other phenomena, they
             are precluded from classification in heading 8523.  EN(a) to
             heading 8523.  Therefore, although GRI 2(a) would otherwise
             direct the classification of these unfinished recording discs
             in heading 8523, the EN to this heading indicates that the
             term "prepared" as used in the heading requires that the discs
             classified in heading 8523 be physically finished with a
             magnetic surface.  This EN directs the classification
             according to the material of which the blank is composed.  In
             this case, the blanks are of alloys of aluminum and other
             metals.  The aluminum predominates by weight over each of the
             other metals.  According to section XV note 3(a), the blanks
             are classified as an alloy of aluminum.

                        Section XV note 4 states that, unless the context
             requires otherwise, a reference to a base metal includes a
             reference to alloys which by virtue of note 3 of section XV
             are to be classified as alloys of that metal.  Because these
             articles are excluded from heading 7606, we conclude that the
             appropriate provision is heading 7616, subheading 7616.90.00,
             HTSUSA, for other articles of aluminum.  Ruling letter of
             March 14, 1989 (file 838004), noted and affirmed.

             HOLDING:

                  Disc blanks of aluminum, not yet prepared for use as
             media for recording sound or other phenomena, are classified
             as other articles of aluminum in subheading 7616.90.00,
             HTSUSA.

                                          Sincerely,




                                          John Durant, Director
                                          Commercial Rulings Division














             Library:  valentin
             File Name:  084219

             6cc:  AD NY Seaport
             2cc:  Chief, CIE
             1cc:  AC, CO
             1cc:  Reading File
             1cc:  Dir, Comm. Rulings