Classification of chip ferrite beads as inductors upheld; telecommunication parts heading rejected on functional and structural grounds.

Chip ferrite beads imported for use in telecommunication PCBAs were treated as inductors under heading 8504 because their internal coil structure and self-induction function showed they operate by high-frequency impedance for noise suppression. Classification as parts of telecommunication apparatus under heading 8517 was rejected because the goods were not shown to be solely or principally for such apparatus, and their functional characteristics aligned more closely with inductors. The goods were classified under CTI 8504 50 90.

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Issues: Whether chip ferrite beads imported for use in telecommunication PCBAs are classifiable under heading 8504 as inductors or under heading 8517 as parts of telecommunication apparatus.

Analysis: The goods were found to be chip ferrite beads with an internal coil structure and functional characteristics akin to coil-based inductors. They operate by self-induction and are used for noise suppression by limiting alternating current through high-frequency impedance. On that basis, the goods were held to satisfy the description of inductors under heading 8504. The claim for classification under heading 8517 as parts was rejected because the goods were not shown to be solely or principally for telecommunication apparatus, and the functional and structural evidence supported classification as inductors rather than parts of the finished equipment.

Conclusion: The goods are classifiable under CTI 8504 50 90 and not under heading 8517.

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