In-Line Sputtering Machines; HQs 954221 and 961831

HQ 962016 July 17, 1998 CLA-2 RR:CR:GC 962016 DWS CATEGORY: Classification TARIFF NO.: 8479.89.97 Ms. Peg Verranault Balzers Process Systems, Inc. 1715 Wyatt Drive Santa Clara, CA 95054 RE: In-Line Sputtering Machines; HQs 954221 and 961831 Dear Ms. Verranault: This is in response to your letter of June 4, 1998, to the Customs Information Exchange, New York, concerning the classification of in-line sputtering machines under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response. FACTS: The merchandise consists of in-line sputtering machines (Aristo models 500, 500s, and 800) for use in the manufacture of flat panel displays (FPDs). The machines utilize a physical vapor deposition process (sputtering) to deposit extremely thin layers of material onto the surface of glass substrates which will form one side of the FPD. The material to be deposited, in the form of a solid cathode residing in a vacuum chamber, is bombarded by positively charged ions thereby causing the cathode material to evaporate. The vaporized cathodic ions are accelerated toward the glass substrate where they form a uniform coating. The coatings which may be applied by these machines include transparent indium tin oxide and silicon films, anti-reflective black matrix coatings, color filters, and metals, all the foregoing necessary for the production of thin film transistor liquid crystal FPDs. ISSUE: Whether the in-line sputtering machines are classifiable under subheading 8479.89.97, HTSUS, as other machines having individual functions, not specified or included elsewhere in chapter 84, 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 is determined according to the terms of the headings and any relative section or chapter notes. The HTSUS provision under consideration is as follows: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: 8479.89 Other: Other: 8479.89.97 Other. * * * * * * * * * In HQ 954221, dated August 10, 1993, we held similar sputtering equipment to be classifiable under subheading 8479.89.90, HTSUS (the 1993 predecessor to subheading 8479.89.97, HTSUS). In accordance with the holding in HQ 954221 and because the in-line sputtering machines are not classifiable elsewhere in chapter 84, HTSUS, it is our position that they are also classifiable in heading 8479, HTSUS, specifically under subheading 8479.89.97, HTSUS. See also HQ 961831, dated July 17, 1998, concerning the classification of a similar machine in the same provision. HOLDING: The in-line sputtering machines are classifiable under subheading 8479.89.97, HTSUS, as other machines having individual functions, not specified or included elsewhere in chapter 84, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division