Revocation of New York Ruling Letter 843420, shutter for a floppy diskette clamshell

HQ 087781 September 10, 1990 CLA-2 CO:R:C:G 087781 JMH CATEGORY: Classification TARIFF NO.: 7326.90.90 Mr. Gerry A. Palomo Japan Freight Consolidators, (Calif.) Inc. P.O. Box 280517 San Francisco International Airport San Franciso, California 94128-0517 RE: Revocation of New York Ruling Letter 843420, shutter for a floppy diskette clamshell Dear Mr. Palomo: This is to inform you that New York Ruling Letter 843420 ("NY 843420"), dated July 25, 1989, has been revoked in accordance with Customs Regulation 177.9(d), 19 C.F.R. 177.9(d) (1989). The following is the proper clacsification of the subject stainless steel shutter for a floppy diskette. FACTS: The articles in question are stainless steel shutters for use in floppy diskettes. The diskettes are a 3.5 inche plastic housing for the magnetic media used in the disk drives of automatic data processing machines. Each diskette has one shutter with a loaded spring return fitted onto one interior side of the diskette. When the diskette is placed in the disk drive, the spring opens the shutter, exposing the magnetic media to the disk drive heads. ISSUE: What is the proper classification under the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA") for the steel shutters with the loaded spring return of the floppy diskette? LAW AND ANALYSIS: The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification -2- shall be determined according to the terms of the headings and any relative section or chapter notes...and according to the following provisions..." NY 843420 classified the stainless steel shutters within subheading 8473.30.40, HTSUSA, as "Parts and accessories... suitable for use solely or principally with machines of headings 8469 to 8472...Parts and accessories of the machines of heading 8471...Not incorporating a cathode ray tube..." Heading 8471, HTSUSA describes automatic data processing machines ("ADPs"). The classification within heading 8473, HTSUSA, was based upon Headquarters Ruling Letter 083115 ("HQ 083115"), dated May 18, 1989. HQ 083115 determined that the plastic housing of a kiskette, the clamshell, was classified within heading 8473 because of Section XVI, Note 2(b), HTSUSA. Section XVI, Note 2(b) requires that a part used solely or principally with a machine of chapter 84 or 85 is to be classified with that machine. HQ 083115 had since been revoked by Headquarters Ruling Letter 087299 ("HQ 087299"), dated August 3, 1990. The revocation of HQ 083115 was due to its failure to address Chapter 85, Note 6, HTSUSA. Chapter 85, Note 6 requires that unrecorded media remain classified within heading 8523, HTSUSA, "whether or not they are entered with the apparatus for which they are intended." Heading 8523 describes "Prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of chapter 37..." The recording media within micro floppy diskettes is unrecorded media within the meaning of Chapter 85, Note 6 and is classified within heading 8523 when entered without the plastic clamshell. Complete or finished unrecorded micro floppy diskettes, consisting of both the plastic housing, steel shutter and the recording media, are also classified within heading 8523. See Headquarters Ruling Letter 086851 ("HQ 086851"), dated April 9, 1990. As stated previously, Section XVI, Note 2(b) requires that parts used solely or principally with a particular kind of machine are to be classified with that machine. Section XVI, Note 5, HTSUSA, defines "machine" as "any machine, machinery, plant, equipment, apparatus, or appliance cited in the headings of chapter 84 or 85." In order for the shutter to be classified within heading 8473, the article it is a part of must be classified within heading 8473. A floppy diskette is not a part or an accessory of ADPs to be classified within heading 8473 because of Chapter 85, Note 6. -3- The steel shutter is a part of a micro floppy diskette. Magnetic media or a micro floppy diskette is "equipment" or "apparatus" within Section XVI, Note 5. The provisions of heading 8523 do not include a subheading for parts. Therefore, the shutter, although used solely or principally with floppy diskettes or magnetic media cannot be classified under heading 8523. Since the stainless steel shutters cannot be classified as a part of micro floppy diskettes, the shutters must be classified according to their constituent material. The shutters are made of steel. Therefore, in accordance with GRI 1, the shutters are described by heading 7326, HTSUSA, as "Other articles of iron or steel..." The proper classification for the shutters is in subheading 7326.90.90, HTSUSA, as "Other articles of iron or steel...Other...Other..." HOLDING: The stainless steel shutter of a floppy diskette is not part of an automatic data processing machine under heading 8473, since the floppy diskette is not part of an automatic data processing machine. The shutter must be classified according to its constituent material. In accordance with GRI 1, the correct heading for the shutter is heading 7326. The proper classification for the stainless shutter is subheading 7326.90.90, HTSUSA, as "Other articles of iron or steel...Other...Other..." NY 843420 is revoked in accordance with Customs Regulation 177.9(d), 19 C.F.R. 177.9(d) (1989). This office recognizes that pending transactions may be adversely affected by this revocation. Should this situation arise, you may notify this office and apply for temporary relief from the binding effects of this ruling. Such a request would be pursuant to Customs Regulation 177.9(d)(3), 19 C.F.R. 177.9(d)(3). Sincerely, John Durant, Director Commercial Rulings Division