HQ 958883: Protest 3196-95-100326; Unmounted Piezo-Electric Crystals; Parts; Legal Notes 1(f) and 2 to Section XVI; Legal Note 3(ij) to chapter 71; Heading 8541; EN 85.41; EN Subheading 7104.10; NYs 876481, 876611, 894364

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 958883

June 5, 1996

CLA-2 RR:TC:MM 958883 RFA

CATEGORY: Classification

TARIFF NO.: 7104.10.00

Port Director
U.S. Customs Service
605 W. Fourth Avenue
Anchorage, Alaska 99501

RE: Protest 3196-95-100326; Unmounted Piezo-Electric Crystals;
Parts; Legal Notes 1(f) and 2 to Section XVI; Legal Note
3(ij) to chapter 71; Heading 8541; EN 85.41; EN Subheading
7104.10; NYs 876481, 876611, 894364

Dear Port Director:

The following is our decision regarding Protest 3196-95-100326, which concerns the classification of unmounted piezo-electric crystals under the Harmonized Tariff Schedule of the
United States (HTSUS).

FACTS:

The subject merchandise consists of unmounted piezo-electric
crystals which are round, thin wafers, about the size of a
thumbtack head, with a thickness of .002 inches. According to
the information provided, cultured piezo-electric quartz crystal
material is grown in bars (ingots), usually about 6 to 8 inches
long. Each bar is a single crystal of quartz and might weigh
about 1 kg. The bulk crystal material bars are "lumbered", that
is, sawed precisely along the quartz electrical axis to remove
undesired seed and other growth material. Thin wafers are cut
from the bulk crystal material at some characteristic orientation
with respect to an atomic plane of the quartz bar. The wafers
are then "optically" processed to form a blank with the precise
specifications required for a particular "mounted piezo-electric
crystal" design. Processed blank specifications typically
include grade of bulk material used, orientation angles, major
dimensions, method of reference surface identification, type of
surface finish and frequency (thickness). After importation,
electrodes are added to the crystal and then the crystal is
mounted in an enclosure.

The merchandise was entered under subheading 8541.90.00,
HTSUS, as parts of piezo-electric crystals. The entry was
liquidated on December 15, 1995, under subheading 7104.10.00,
HTSUS, as piezo-electric (blanks) quartz. The protest was timely
filed on December 28, 1995.

The subheadings under consideration are as follows:

7104.10.00: Synthetic or reconstructed precious or
semi-precious stones, whether or not worked
or graded but not strung, mounted or set;
ungraded synthetic or reconstructed precious
or semi-precious stones, temporarily strung
for convenience of transport: [p]iezo-
electric quartz. . . .

Goods classifiable under this provision have a general,
column one rate of duty of 5.4 percent ad valorem.

8541.90.00 Diodes, transistors and similar semiconductor
devices; photo-sensitive semiconductor
devices, including photovoltaic cells whether
or not assembled in modules or made up into
panels; light-emitting diodes; mounted
piezoelectric crystals; parts thereof:
[p]arts. . . .

Goods classifiable under this provision have a general,
column one rate of duty of free.

ISSUE:

Whether the unmounted piezo-electric crystals are
classifiable as parts of mounted piezo-electric crystals, or as
piezo electric quartz, under the HTSUS?

LAW AND ANALYSIS:

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

The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the official interpretation of
the HTSUS. While not legally binding or dispositive, the ENs
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of
these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23,
1989). EN 85.41, states in pertinent part:

(D) MOUNTED PIEZO-ELECTRIC CRYSTALS

These are mainly barium titanate (including
polycrystalline polarized elements of barium titanate),
lead titanate zirconate or other crystals of heading
38.24 (see the corresponding Explanatory Note), or
quartz or tourmaline crystals. They are used in
microphones, loudspeakers, ultrasonic apparatus,
stabilized frequency oscillating circuits, etc. They
are classified here only if mounted. They are generally
in the form of plates, bars, discs, rings, etc., and
must, at least, be equipped with electrodes or electric
connections. They may be coated with graphite, varnish,
etc., or arranged on supports and they are often inside
an envelope (e.g., metal box, glass bulb). If, however,
because of the addition of other components, the
complete article (mounting plus crystal) can no longer
be regarded as merely a mounted crystal but has become
identifiable as a specific part of a machine or
appliance, the assembly is classified as a part of the
machine or appliance in question: e.g., piezo-electric
cells for microphones or loudspeakers (heading),
sound-heads (heading 85.22), pick-up elements (feelers)
for supersonic thickness measuring or detecting
instruments (heading 90.33), quartz oscillators for
electronic watches (heading 91.14).

This heading also excludes unmounted piezo-electric
crystals (generally heading 38.24, 71.03 or 71.04).

The protestant agrees that the subject merchandise does not
meet the term "mounted piezo-electric crystal" as described in
subheading 8541.60, HTSUS, and in the EN. However, the
protestant believes that the processed crystal blanks should be
classified as "parts" of mounted piezo electric crystals under
subheading 8541.90.00, HTSUS. The classification of parts for
goods covered in chapters 84 and 85 in section XVI, HTSUS, are
guided by Legal Note 2 to Section XVI, HTSUS, which provides as
follows:

Subject to Note 1 to this Section, Note 1 to Chapter 84
and Note 1 to Chapter 85, parts of machines (not being
parts of the articles of heading 8484, 8544, 8545, 8546
or 8547) are to be classified according to the
following rules:

(a) Parts which are goods included in any of the
headings of Chapter 84 and 85 (other than headings
8485 and 8548) are in all cases to be classified
in their respective headings;

(b) 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
(including a machine of heading 8479 or 8543) are
to be classified with the machines of that kind.
However, parts which are equally suitable for use
principally with the goods of headings 8517 and
8525 to 8528 are to be classified in heading 8517;

Legal Note 1(f) to Section XVI, HTSUS, states that: "[t]his
section does not cover: . . . [p]recious or semiprecious stones
(natural, synthetic or reconstructed) of headings 7102 to 7104,
or articles wholly of such stones of heading 7116, except
unmounted worked sapphires and diamonds for styli (heading
8522)". Therefore, if the processed crystal is provided for in
headings 7102 to 7104, it cannot be classified as a "part" of
mounted piezo electric crystals in heading 8541, which is within
section XVI, HTSUS.

It has been suggested that classification of the subject
merchandise under heading 7104, HTSUS, is incorrect because this
provision is meant to provide for the classification of jewelry
and not electrical equipment. However, Legal Note 3(ij) to
chapter 71, HTSUS, states in pertinent part: "[t]his chapter does
not cover: . . . machinery, mechanical appliances or electrical
goods, or parts thereof, of section XVI. However, articles and
parts thereof, wholly of precious or semiprecious stones
(natural, synthetic or reconstructed) remain classified in this
chapter, except unmounted worked sapphires and diamonds for styli
(heading 8522)". EN Subheading 7104.10, states that:

Piezo-electric quartz has the property, when
subjected to mechanical pressure, of producing an
electric charge, the strength of which varies in
relation to the pressure and, conversely, of converting
into mechanical pressure the differences in electric
potential to which it is subjected.

By reason of this property, piezo-electric quartz
is used in the electrical equipment industry for
various purposes: the manufacture of microphones,
loudspeakers, instruments for transmitting or receiving
ultrasonic waves, instruments for fixed frequency
oscillations, etc.

The piezo-electric quartz falling in this
subheading is generally in the form of thin sheets,
plates, rods, etc., obtained by sawing synthetic quartz
with a precision-cut along the line of electrical axis.

The port classified the subject merchandise based upon NY
876481, dated July 31, 1992, which dealt with the classification
of four samples of unmounted crystal quartz blanks. Based upon
EN 85.41, Customs held that they were not parts of crystal units
or parts of crystal oscillators under heading 8541.90.00, HTSUS.
Customs concluded that the unmounted crystal quartz blanks was
classifiable under subheading 7104.10.00, HTSUS, as piezo-electric quartz. See NY 876481. See also NY 876611 (November 25,
1992) and NY 894364 (February 23, 1994) for similar holdings.

Based upon the guidance of the relevant legal notes, the
clear guidance of the Ens, and prior rulings, we find that the
subject merchandise is properly classifiable under heading 7104,
HTSUS, as piezo electric quartz. Because we find that the
subject merchandise is provided for under heading 7104, HTSUS, it
cannot be classified as a part under heading 8541, HTSUS, in
accordance with Legal Notes 1(f) and 2 to Section XVI, HTSUS.

We note that the protestant also cites to GRI 2(a), 3(c),
and 4, in support of their position that the processed crystal
blank should be classified as a "part". Because we find that
classification can be determined solely based upon the
application of GRI 1 and the relevant section and chapter notes,
there is no basis to apply the other GRIs. Therefore, we find
that the port was correct in its classification of the
merchandise under heading 7104, HTSUS.

HOLDING:

The piezo-electric crystal blanks are classifiable under
subheading 7104.10.00, HTSUS, as piezo-electric quartz.

The protest should be DENIED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, this decision, together
with the Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Freedom of Information Act
and other public access channels.

Sincerely,

John Durant, Director
Tariff Classification Appeals
Division

HQ 958883: Protest 3196-95-100326; Unmounted Piezo-Electric Crystals; Parts; Legal Notes 1(f) and 2 to Section XVI; Legal Note 3(ij) to chapter 71; Heading 8541; EN 85.41; EN Subheading 7104.10; NYs 876481, 876611, 894364

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