CIT Rules on "Principal Use" of Radio Frequency Generators
In ENI Technology Inc., v. U. S., the Court of International Trade agreed with the importer that the "principal use" of certain Radio Frequency Generators are as plasma processing systems used for semiconductor manufacturing. However, the Court did not resolve the type of plasma processing that ENI's imports used and directed that the type of processing be determined and reported to the court by November 30, 2009.
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RF Generators are machines that generate power at a fixed radio frequency. They are powered by electricity, receiving alternating current from which they generate or produce power at radio frequencies which are used in the semiconductor manufacturing process.
ENI's main contention was that its RF Generators are parts of a plasma processing system that manufactures semiconductors and integrated circuits and should be classified as duty-free under HTS 8479.89.84 (Machines for processing of semiconductor materialnot specified or included elsewhere in this chapter).
Customs argued that the RF Generators are "static converters" that should be classified under 8504.40.95 at a 1.5 percent ad valorem duty rate, or alternatively 8543.89.96 (Electrical machines and apparatus...Other...) a basket provision.
ENI presented undisputed evidence that the end-users of the vast majority of its RF Generators operate these devices with machines that process semiconductors and integrated circuits. The CIT stated that Customs presented insufficient information to rebut this evidence, and that the RF Generators are "principally used" for semiconductor-specific plasma processing applications.
The CIT, however, did not grant ENI's motion for classification under HTS 8479.89.84 stating the heading which provides the most specific description will take preference over headings providing a more general description.
The CIT found that RF Generators could be classified under the following specific provisions: if it used plasma etching classification, then under HTS 8456.99.70; if by physical vapor deposition, then under 8543.89.10; or, if by chemical vapor deposition, then under 8479.89.84; all of the alternatives are duty free provisions (2004).
Accordingly, the CIT directed ENI and Customs to confer in order to determine the appropriate subheadings and report back to the Court.
ENI Technology Inc. v. U.S. Slip Op. 09-93 (dated 09/01/09) available at http://www.cit.uscourts.gov/Slip_op09/Slip%20Op.%2009-93.pdf
BP Note
The three possible tariff numbers for the generators are 2004 numbers, and do not exist today. The 2007 HTS (February 3, 2007) implemented extensive tariff number changes for Chapters 84 and 85. See the following ITT articles for information on the successor tariff numbers:
for 8456.99.70, see ITT's Online Archives or 08/31/06 news, 06083115
for 8479.89.84, see ITT's Online Archives or 09/14/06 news, 06091415
for 8543.89.10, see ITT's Online Archives or 10/06/06 news, 06100630.