HQ 089261: Optical transmitter; optical receiver; Heading 8517;Chapter 85, note 5(b)(ii); Chapter 85, note 5(b); GRI 1.

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 089261

                      November 19, 1991

CLA-2 CO:R:C:M 089261 AJS

CATEGORY: Classification

TARIFF NO.: 8542.20.00

Mr. W.J. Dolbeer
Manager-Contracts
Avex Electronics Inc.
4807 Bradford Drive
Huntsville, Alabama 35805

RE: Optical transmitter; optical receiver; Heading 8517;
Chapter 85, note 5(b)(ii); Chapter 85, note 5(b); GRI 1.

Dear Mr. Dolbeer;

     You letter of May 1, 1991, requesting a classification
ruling on optical transmitters and receivers has been
forwarded to this office for reply.

FACTS:

     The articles at issue are an optical transmitter and
optical receiver.  They are used to provide computer
networking over a fiber optics transmission link.  The
transmitter receives electrical signals from a computer and
converts these signals into optical signals for transmission
over a fiber optic cable.  The receiver accepts optical
signals from a fiber optic cable link and converts these
signals into electrical signals which can be used by the
computer.  The incorporation of a receiver and transmitter
into a personal computer (PC) allows it to be connected with
other similarly configured PCs in an optical local area
network.

ISSUE:

     Whether the subject articles are properly classifiable
within heading 8517, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), which provides for electrical





apparatus for line telephony or telegraphy; or classifiable
within heading 8542, HTSUSA, which provides for electronic
integrated circuits.

LAW AND ANALYSIS:

     Heading 8542, HTSUSA, provides for electronic integrated
circuits.  These include "[h]ybrid integrated circuits in
which passive elements (resistors, capacitors, interconnect-
ions, etc.) obtained by thin- or thick-film technology and
active elements (diodes, transistors, monolithic integrated
circuits, etc.) obtained by semiconductor technology, are
combined to all intents and purposes indivisibly, on a single
insulating substrate (glass, ceramic, etc.) . . ."  Chapter
85, note 5(b)(ii).  After an examination of the samples
provided, we have determined that they satisfy the above
description.  Accordingly, the subject transmitter and
receiver satisfy the terms of heading 8542, HTSUSA.  More
specifically, they are described within subheading
8542.20.00, HTSUSA, which provides for hybrid integrated
circuits.

     For the classification of the articles defined in the
above note, heading 8542 takes precedence over any other
heading in the tariff schedule which might cover these
articles by reference to, in particular, their function.
Chapter 85, note 5(b).  It is stated that the subject
articles have been classified within heading 8517, HTSUSA, as
telegraphic transmission apparatus for carrier-current line
systems.  While the subject merchandise performs this
function, application of the above legal note precludes their
classification within heading 8517, HTSUSA.  General Rule of
Interpretation 1 states that classification under the HTSUSA
is to be determined according to any relative chapter notes.
Therefore, the subject merchandise is not properly class-
ifiable within heading 8517, HTSUSA.

HOLDING:

     The optical transmitter and receiver are classifiable
within subheading 8542.20.00, HTSUSA, which provides for
hybrid integrated circuits, duty-free under General Column 1.


                                  Sincerely,


                                  John Durant, Director
                                  Commercial Rulings Division