Integrated circuits for franking machines classified under Heading 8542.50, not as parts under Heading 8470.90.

Programmed integrated circuits imported for postage franking machines remained classifiable as integrated circuits even though software was embedded in them. Note 2(a) to Section XVI and Note 5 to Chapter 85 were applied to hold that the goods did not lose their identity as integrated circuits merely because they were used in franking machines. Because integrated circuits are specifically covered by Heading 8542, that heading prevailed over the competing classification as parts of franking machines under Heading 8470.90. The goods were therefore classified under Heading 8542.50, and the importer's claim succeeded.

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Issues: Whether programmed integrated circuits imported for postage franking machines were classifiable as parts of franking machines under Heading 8470.90 or under Heading 8542.50.

Analysis: The classification turned on the effect of Note 2(a) to Section XVI and Note 5 to Chapter 85 of the Customs Tariff. Programmed integrated circuits do not lose their identity as integrated circuits merely because software is embedded in them. Since integrated circuits are specifically covered by Heading 8542, that heading takes precedence over a competing heading covering the goods as parts of franking machines.

Conclusion: The goods were classifiable under Heading 8542.50 and not under Heading 8470.90, and the importer's claim was accepted.

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