HQ 954365: Protest No. 1101-93-100122; Catalytic Converter Ceramic Substrates; Explanatory Note 84.21(II)(B)(4); Chapter 84, Note 1(b); Explanatory Note (A) to Chapter 84; HQ 950892; Parentheticals; Explanatory Note 69.14; Explanatory Note (III) to Section XVII; HQ 950417; Additional U.S. Rule of Interpretation 1(c); 8421.39.00; 8421.99.00; 6914.90.00

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 954365
                       September 14, 1993


CLA-2 CO:R:C:M 954365 DWS

CATEGORY: Classification

TARIFF NO.: 8708.99.50

District Director
U.S. Customs Service
Second and Chestnut Streets
Philadelphia, PA 19106

RE: Protest No. 1101-93-100122; Catalytic Converter Ceramic      
     Substrates; Explanatory Note 84.21(II)(B)(4); Chapter 84,
    Note 1(b); Explanatory Note (A) to Chapter 84; HQ 950892;
    Parentheticals; Explanatory Note 69.14; Explanatory Note (III) 
    to Section XVII; HQ 950417; Additional U.S. Rule of          
     Interpretation 1(c); 8421.39.00; 8421.99.00; 6914.90.00

Dear District Director:

     The following is our decision regarding the request for
further review of Protest No. 1101-93-100122 concerning your action
in classifying and assessing duty on catalytic converter ceramic
substrates under the Harmonized Tariff Schedule of the United
States (HTSUS).

FACTS:

     The merchandise consists of catalytic converter ceramic
substrates.  The substrate is a specially designed honeycombed body
made of ceramic cordierite.  The production of the honeycomb begins
with a combination of alumina, kalil, and talc contained within a
slurry box.  Water is then added to bind the components.  The
honeycomb is extruded and fired to produce the catalytic converter
substrate.  After importation into the U.S., it is then coated with
a catalytic agent, bracketed in place in a metal converter housing,
and inserted in a motor vehicle exhaust system.  The substrate,
contained within a catalytic converter, is suitable for use solely
with a motor vehicle for exhaust gas purification in order to
convert carbon monoxide, hydrocarbons, and nitrogen oxide into non-
toxic substances.

     The substrates were entered under subheading 8708.99.50,
HTSUS, as other parts of motor vehicles.  The entries were
liquidated on December 4, 1992, and January 22, 1993, under
subheading 6914.90.00, HTSUS, as other ceramic articles.  The
protest was timely filed on March 4, 1993.

     The subheadings under consideration are as follows:

     6914.90.00: [o]ther ceramic articles: [o]ther.

     The general, column one rate of duty is 8 percent ad valorem.

     8421.99.00: . . . filtering or purifying machinery and 
                 apparatus, for liquids or gases; parts thereof: 
                  [p]arts: [o]ther.

     The general, column one rate of duty is 3.9 percent ad
     valorem.

     8708.99.50: [p]arts and accessories of the motor vehicles 
                 of headings 8701 to 8705: [o]ther parts and     
                  accessories: [o]ther: [o]ther: [o]ther.

     The general, column one rate of duty is 3.1 percent ad
     valorem.

ISSUE:

     Whether the catalytic converter ceramic substrates are
classifiable under subheading 6914.90.00, HTSUS, as other ceramic
articles, under subheading 8421.99.00, HTSUS, as other parts of
filtering apparatus for gases, or under subheading 8708.99.50,
HTSUS, as other parts of motor vehicles.

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes. 


     Before we determine the classification of the substrates, we
note that complete catalytic converters, of which the substrates
are a part, are classifiable under subheading 8421.39.00, HTSUS,
which provides for: "[f]iltering or purifying machinery and
apparatus for gases: [o]ther."

     In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized.  The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS.  54
Fed. Reg. 35127, 35128 (August 23, 1989).  Explanatory Note
84.21(II)(B)(4) (pp. 1182 - 1183) states:

      (B) Filtering or purifying machinery, etc., for gases.

     These gas filters and purifiers are used to separate solid or
     liquid particles from gases, either to recover products of
     value (e.g., coal dust, metallic particles, etc., recovered
     from furnace flue gases), or to eliminate harmful materials
     (e.g., dust extraction, removal of tar, etc., from gases
     or smoke fumes, removal of oil from steam engine vapours).

     They include: 

     (1) - (3) xxx

     (4) Other chemical filters and purifiers for air or other 
         gases (including catalytic converters which change carbon 
         monoxide in the exhaust gases of motor vehicles to carbon 
         dioxide).

     Chapter 84, note 1(b), HTSUS, states:

     1. This Chapter does not cover:

     (b) Appliances or machinery (for example, pumps) or parts   
          thereof, of ceramic material.

     In part, Explanatory Note (A) (p. 1137) to chapter 84, HTSUS,
states that:

     [s]ince machinery or appliances (for example, pumps) of     
      ceramic material and ceramic parts of machinery or appliances
     of any material (Chapter 69) . . . are excluded from this 
     Chapter, it follows that even if a machine or mechanical 
     appliance is covered, because of its description or nature,
     by a heading of this Chapter it is not to be classified 
     therein if it has the character of an article of ceramic
     materials . . . 

     This applies, for example, to articles of ceramic material
     . . . incorporating components of minor importance of other
     materials, such as stoppers, joints, taps, etc., clamping
     or tightening bands or collars or other fixing or supporting
     devices (stands, tripods, etc.).

     On the other hand, the following are, as a rule, to be taken
     to have lost the character of ceramic articles, . . . or 
     machinery or appliances and parts thereof, of ceramic material
     . . .:

      (i) Combinations of ceramic . . . components with a high 
         proportion of components of other materials (e.g., of
         metal); also articles consisting of a high proportion of
         ceramic . . . components incorporated or permanently    
          mounted in frames, cases or the like, of other materials.

     Therefore, according to Explanatory Note (A) to chapter 84,
HTSUS, it is our position that the complete catalytic converters
containing the ceramic substrates are not precluded from
classification under heading 8421, HTSUS.  After importation into
the U.S., the substrates must be coated with a catalytic agent and
then placed in metal housings.  Consequently, the complete
catalytic converter contains other materials so that it has lost
the character of a ceramic article.

     The ceramic substrates themselves, however, are precluded from
classification under heading 8421, HTSUS.  The substrates, which
are of ceramic material, are a part of catalytic converters.  Under
chapter 84, note 1(b), therefore, they are excluded from chapter
84, HTSUS, because they have the character of ceramic articles. 
Consequently, it is our position that the substrates are not
classifiable under subheading 8421.99.00, HTSUS. 

     Chapter 84, note 1(b), HTSUS, directs, through the use of a
parenthetical, that parts of ceramic material are to be
classifiable chapter 69, HTSUS.  Specifically, the substrates are
described under 6914, HTSUS, and would be classifiable under
subheading 6914.90.00, HTSUS.

     It is our position that parenthetical language should be
strictly interpreted, unless the Explanatory Notes expand the scope
of the parenthetical language, thereby mandating a liberal
interpretation.  See HQ 950892, dated May 13, 1992.  In this
instance, because there are no Explanatory Notes in chapter 84,
HTSUS, which expand the parenthetical of chapter 84, note 1(b),
HTSUS, the substrates are to be classifiable according to the terms
of chapter 69, HTSUS.

     In part, Explanatory Note 69.14 (p. 924) states that:

     [t]his heading covers all ceramic articles not covered by any
     other headings of this Chapter or in other Chapters of the
     Nomenclature.

     The question, then, is whether the substrates are more
specifically classifiable elsewhere in the HTSUS.  As was
previously stated, the substrates are parts of catalytic converters
solely used with motor vehicles.  Therefore, it is our position
that, if the terms of section XVII, HTSUS, are met, then the
substrates are described under heading 8708, HTSUS.  Specifically,
they would be classifiable under subheading 8708.99.50, HTSUS. 

     In part, Explanatory Note (III) (pp. 1410 - 1411) to section
XVII, HTSUS, states that:

     [i]t should, however, be noted that these headings apply only
     to those parts or accessories which comply with all three of
     the following conditions:

     (a) They must not be excluded by the terms note 2 to this
         Section (see paragraph (A) below).

and  (b) They must be suitable for use solely or principally with
         the articles of Chapters 86 to 88 (see paragraph (B)    
          below).        

and  (c) They must not be more specifically included elsewhere in
         the Nomenclature . . .

     (A) Parts and accessories excluded by Note 2 to Section XVII.

     This Note excludes the following parts and accessories, 
     whether or not they are identifiable as for the articles of 
     this Section:

     (1) - (4) xxx

     (5) Machines and mechanical appliances, and parts thereof, of
         headings 84.01 to 84.79 . . .

     (B) Criterion of sole or principal use.

     (1) Parts and accessories classifiable both in Section XVII
         and in another Section.

     Under Section Note 3, parts and accessories which are not   
      suitable for use solely or principally with the articles of
     Chapters 86 to 88 are excluded from those Chapters. . . 

     First, the ceramic substrates are not parts excluded by
section XVII, note 2, HTSUS, because they are not parts of headings
8401 to 8479, HTSUS.  Even though they are parts of catalytic
converters classifiable under heading 8421, HTSUS, the substrates
themselves, based upon chapter 84, note 1(b), HTSUS, are precluded
from classification under chapter 84, HTSUS.

     Second, although the substrates are parts of catalytic
converters, both they and the converters are parts suitable for use
solely with the motor vehicles of chapter 87, HTSUS.  The
substrates are both parts of parts (catalytic converters) and parts
of the whole (motor vehicles).

      Third, we find that the substrates are not more specifically
included elsewhere in the HTSUS, even though they are described
under heading 6914, HTSUS.  In HQ 950417, dated January 7, 1992,
which dealt with the classification of ferrite substrates for thin-
film magnetic recording heads, it was stated that:

     [i]t is Customs position that subheading 6914.90.00, HTSUS, 
     . . . is an unlimited general description of the merchandise 
     that does not name and describe the goods specifically.

     Additional U.S. Rule of Interpretation 1(c), HTSUS, states
that:

     [i]n the absence of special language or context which 
     otherwise requires -

     (a) - (b) xxx

     (c) a provision for parts of an article covers products solely 
         or principally used as a part of such articles but a
         provision for "parts" or "parts and accessories" shall not
         prevail over a specific provision for such part or      
          accessory.

     In this instance, heading 6914, HTSUS, does not prevail over
heading 8708, HTSUS, a "parts" provision, because, as stated,
heading 6914, HTSUS, does not name and describe the merchandise
specifically.

     Therefore, under Explanatory Notes 69.14 and (III) to section
XVII, HTSUS, we find that the catalytic converter ceramic
substrates are classifiable under subheading 8708.99.50, HTSUS.  

HOLDING:

     The catalytic converter ceramic substrates are classifiable
under subheading 8708.99.50, HTSUS, as other parts of motor
vehicles.

     The protest should be granted in full.  A copy of this
decision should be attached to the Customs Form 19 and provided to
the protestant as part of the notice of action on the protest.

                           Sincerely,



                           John Durant, Director