The tariff classification of a quartz oscillator from South Korea

N348323 May 9, 2025 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Classification TARIFF NO.: 8543.70.9860; 9903.01.25 Jimmy Kim Transko Electronics, Inc 3981 E Miraloma Ave Anaheim, CA 92806 RE: The tariff classification of a quartz oscillator from South Korea Dear Mr. Kim: In your letter dated April 28, 2025, you requested a tariff classification ruling. The merchandise under consideration is identified as the TP53A Miniature Ceramic SMD Oscillator. The subject devices are electrical components that are comprised of an Application Specific Integrated Circuit (ASIC) combined with a quartz crystal within a ceramic and metal enclosure. The oscillator assemblies are intended to be soldered onto a printed circuit board to provide timing functions for the device in which they are installed. In use, the crystal resonates an electrical signal at a specific frequency and at a specific time once it is combined with the ASIC and electricity is applied. This signal is used as a timing signal in various systems including those using communications equipment, digital equipment, among other similar items. In your submission, you suggest that the oscillators are correctly classified under headings 8541 or 8542, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. The subject item is an oscillator comprised of an ASIC chip and a quartz crystal resonator which is a slice of piezoelectric quartz that will vibrate/oscillate at a known frequency. While not legally binding or dispositive, the Explanatory Notes to heading 8541, HTSUS, explicitly exclude devices that contain an integrated circuit and direct you to heading 8542, HTSUS. The only possible consideration under heading 8542 would be an MCO, a multi-component integrated circuit. After analyzing the definitions of what makes up a MCO IC, it is clear that a slice of quartz is not included within the definition. The quartz is not a silicon-based device nor is it a type of semiconductor. As such, classification under heading 8542, HTSUS, would not be applicable. The applicable subheading for the TP53A Miniature Ceramic SMD Oscillator will be 8543.70.9860, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other. The general rate of duty will be 2.6% ad valorem. Effective April 5, 2025, Executive Orders implemented ?Reciprocal Tariffs. ? All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 8543.70.98.60, HTSUS, listed above. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division