October 9, 2008 CBP Bulletin Notice on Classification of Printed Circuit Boards for Electronic Keyboards

Proposed modification of ruling; proposed revocation of treatment. CBP is proposing to modify one ruling on the classification of certain printed circuit boards. Additionally, CBP proposes that this notice cover any rulings on this merchandise which may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed modification and revocation, or any party involved with a substantially identical transaction, should advise CBP by November 7, 2008, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Printed circuit boards (PCBs) for electronic keyboards. The merchandise which is the subject of NY C88491 included an electronic keyboard identified as the PSR-8000 Portatone, populated with numerous integrated circuits and other apparatus. This ruling concerns only six of the 15 PCBs covered by NY C88491, which were found to be classifiable in subheading 8543.89.9695 (currently 8543.70.9650).

The six PCBs are the Digital Main Circuit Board, the AM Circuit Board (amplifier), the Alternating Current Circuit Board, the Main Keyboard (MK) Circuit Board, and the PN1 and PN2 Circuit Boards which control the various functions of the electronic keyboard.

CBP is proposing to issue HQ H015090 in order to modify NY C88491 and reclassify the six PCBs under HTS 9209.94.8000 as parts of musical instruments: other", rather than 8543.89.9695 (currently 8543.70.9650), as "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. . .Other". The other items in NY C88491 remain unchanged.

CBP proposes this change as a correction based on the Explanatory Notes (ENs) and the Additional U.S. Rules of Interpretation for the HTS. EN 85.43 states that the appliances and apparatus of heading 8543 must have individual functions. The introductory provisions found in EN 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of heading 8543. EN 84.79 states the following, in pertinent part:

"For this purpose the following are to be regarded as having "individual functions":

(B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function:

(i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and

(ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity."

The six PCBs work with each other and the other components of the electronic keyboards to perform the function of playing music. As such, while they perform distinct functions, they are "integral and inseparable" with respect to the operation of an electronic keyboard.

Before determining that the subject PCBs are classifiable in heading 9209, as "parts of musical instruments of heading 9207", it must be determined whether they are solely or principally used as such in accordance with Additional U.S. Rule of Interpretation 1(c).

CBP proposes that the PCBs should be considered "parts" for the purposes of Additional U.S. Rule 1(c) because their fabrication has limited their use in electronic keyboards. Furthermore, they are not excluded from Chapter 92 by Note 1(b) to Chapter 92, because they are not apparatus of Chapter 85 and because they are "incorporated in" the same cabinet as the electronic keyboard.

Therefore, by application of GRI 1 and Additional U.S. Rule of Interpretation 1(c), CBP proposes that the six PCBs for the electronic keyboard should be classified under 9209.94.8000 as "parts . . . of musical instruments . . . :other: parts and accessories of musical instruments of heading 9207: other."

Proposed: 9209.94.8000*; Current: 8543.70.9650, 2.6%

* the 2008 HTS shows this duty rate as 2.7%, but the Bulletin notice lists it as 4.9%

October 9, 2008 CBP Bulletin (Vol. 42, No. 42) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/