HQ 951715: Crystal oscillators; Heading 8542; Chapter 85, note 5(b)(ii);GRI 1; EN 85.42(I)(2); H. Conf. Rep. No. 576; Chapter 85, note5(b)(iii); EN 85.42 (II); NY 841311; Section XVI, note 2(a);Section XVI, note 2(b).

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 951715

                          July 27, 1992

CLA-2 CO:R:C:M 951715 AJS

CATEGORY: Classification

TARIFF NO.: 8473.30.40

Mr. Dennis Heck
Director, Trade Services
Tower Group International, Inc.
5420 West 104th Street
Los Angeles, CA 90045

RE: Crystal oscillators; Heading 8542; Chapter 85, note 5(b)(ii);
GRI 1; EN 85.42(I)(2); H. Conf. Rep. No. 576; Chapter 85, note
5(b)(iii); EN 85.42 (II); NY 841311; Section XVI, note 2(a);
Section XVI, note 2(b).

Dear Mr. Heck:

     This is in reply to your letter of April 24, 1992,
requesting the tariff classification of the "SG Series Crystal
Oscillators" (COs) from Japan under the Harmonized Tariff
Schedule of the United States (HTSUS).

FACTS:

     The subject COs consist of a mounted piezo-electric quartz
crystal and a CMOS (i.e., complementary metal oxide semi-
conductor) IC (i.e., integrated circuit) oscillation circuit
which are mounted on a solder-plated metal lead frame substrate
prior to plastic encapsulation.  The SG-51 and SG-531 COs are
"thru hole" mounted devices while the SG-615 and SG-636 are
"surface mounted" devices.

ISSUE:

     Whether the COs are properly classifiable within heading
8542, HTSUS, which provides for electronic integrated circuits
and microassemblies; or within heading 8473, HTSUS, which
provides for parts and accessories of the machines of heading
8471 (i.e., automatic data processing (ADP) machines and units
thereof).



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LAW AND ANALYSIS:

     Heading 8542, HTSUS, provides for electronic integrated
circuits and microassemblies.  Hybrid ICs, a type of electronic
IC, are described as "circuits in which passive elements
(resistors, capacitors, interconnections, etc.) obtained by thin
or thick-film technology and active elements (diodes, transis-
tors, monolithic integrated circuits, etc.) obtained by
semiconductor technology, are combined to all intents and
purposes indivisibly, on a single insulating substrate (glass,
ceramic, etc.).  These circuits may also include discrete
components;".  Chapter 85, note 5(b)(ii).  The subject COs do not
satisfy this description.  They do not contain passive elements,
but an IC and discrete quartz crystal.  In addition, these
elements are not combined indivisibly on a single insulating
substrate, but mounted separately on a lead frame.  In the HTSUS,
classification is determined according to the terms of the
headings and any relative section or chapter notes.  General Rule
of Interpretation (GRI) 1.  Accordingly, the subject COs do not
satisfy the terms of this heading, as it relates to electronic
ICs, pursuant to the above chapter note.  

     The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) state that hybrid ICs are micro- circuits
built up on an insulating substrate on which thin or thick film
circuit has been formed.  EN 85.42 (I)(2), p. 1400 (1992). 
Furthermore, this process allows certain passive elements
(resistors, capacitors, interconnections, etc.) to be produced at
the same time.  EN 85.42 (I)(2).  The subject COs also do not
satisfy these descriptions.  They consist of an IC and quartz
crystal which are produced individually and then mounted onto a
lead frame.  As mentioned previously, the COs also do not contain
any passive elements but only an IC and quartz crystal which are
both active elements.  While the ENs are not dispositive, they
provide a commentary on the scope of each heading and offer
guidance for interpretation of the HTSUS.  H. Conf. Rep. No. 576,
100th Cong., 2d Sess., p. 550, reprinted in 1988 U.S. CODE CONG.
& ADMIN. NEWS p. 1582.  Therefore, we find the above ENs
instructive for determining that the subject COs do not satisfy
the description of an electronic IC.

     Heading 8542, HTSUS, also provides for electronic
microassemblies.  These devices consist of a molded module,
micromodule or similar type, consisting of discrete, active or
both active and passive, components which are combined and
interconnected.  Chapter 85, note 5(b)(iii), See also EN 
85.42 (II), p. 1401.  The subject COs do not satisfy this 




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description.  They do not consist of discrete components.    
Discrete components are indivisible and are the basic electronic
construction components in a system.  EN 85.42 (II).  They may
have a single active electrical function (semiconductor devices 
defined by Note 5(A) to Chapter 85) or a single passive
electrical function (resistors, capacitors, interconnections,
etc.).  EN 85.42 (II).  However, components consisting of several
electric circuit elements and having multiple electrical
functions, such as integrated circuits, are not considered as
discrete components.  EN 85.42 (II).  As stated previously, the
subject COs consist of an IC.  Therefore, we find the above ENs
instructive for determining that the subject COs do not satisfy
the description of an electronic microassembly within the meaning
of heading 8542, HTSUS. 

     In NY 841311 (June 1, 1989), Customs addressed the
classification of a hybrid clock oscillator.  You cite this
ruling in support of your suggested classification based on the
claim that the COs are a functionally equivalent product but
manufactured differently.  However, as stated in the chapter
notes and ENs for heading 8542, HTSUS, the manufacturing process
used for this type of merchandise is important for classification
within heading 8542.  As discussed previously, the COs are not
manufactured by one of the processes required for classification
within heading 8542, HTSUS.  However, the hybrid clock oscillator
is manufactured by a process described within the legal notes to
heading 8542, HTSUS.  Therefore, we do not find NY 841311
instructive for the classification of the subject COs.

     Heading 8473, HTSUS, provides for parts and accessories of
the machines of heading 8471.  You claim that the subject COs are
principally used as microprocessor timing references in computer
applications.  Parts which are goods included in any of the
headings of chapters 84 and 85 are in all cases to be classified
in their respective headings.  Section XVI, note 2(a).  The COs
are not a good provided for within a respective heading of either
of these chapters.  Other parts, if suitable for use solely or
principally with a particular kind of machine, or with a number
of machines of the same heading are to be classified with the
machines of that kind.  Section XVI, note 2(b).  The COs satisfy
this description.  They are used principally with the machines of
heading 8471. Accordingly, they satisfy the terms of this
heading.  More specifically, they are described within subheading
8473.30.40, HTSUS, which provides for "[p]arts and accessories of
the machines of heading 8471: not incorporating a cathode ray
tube (CRT)."





                               -4-


HOLDING:

     The subject crystal oscillators are classifiable within
subheading 8473.30.40, HTSUS, which provides for parts and
accessories of the machines of heading 8471, HTSUS, not
incorporating a CRT.  Merchandise classifiable within this
subheading is currently duty-free under General Column 1.


                                 Sincerely,


                                 John Durant, Director
                                 Commercial Rulings Division