CLA-2 CO:R:C:G 088225 JMH
Mr. William C. Dart
President
PriceLink, Inc.
2344A Walsh Avenue
Santa Clara, CA 95051
RE: PriceLink display module to be used for LCD visual display
of price information in grocery stores; Electronic Shelf
Tag; visual signaling apparatus; indicator panel; parts and
accessories of automatic data processing machines; Section
XVI, Note 2(a); Additional U.S. Rule of Interpretation 1(c)
Dear Mr. Dart:
Your October 12, 1990 request for a classification ruling
for the display module imported from Hong Kong has been referred
to this office for a reply.
FACTS:
The articles in question are the PriceLink system 2000
visual display modules, also known as Electronic Shelf Tags. The
modules are to be imported from Hong Kong for use in grocery
stores. The Shelf Tags display item, unit and other price
information about the various products on each shelf in the
grocery store.
The Electronic Shelf Tags are at most two inches wide and
four inches long. The Shelf Tag is mounted on an aluminum shelf
rail that attaches permanently to the edge of a store shelf. A
radio transceiver located generally in the center of the store
receives pricing data from the main computer system and then
transmits the data to nodes throughout the store. Nodes are the
devices which receive and convert the radio signal. One possible
configuration has a node attached to the underside of every shelf
which connects to approximately six Tags, while another
configuration has a node hard-wired to up to a thousand Tags
located throughout the store.
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Once the node receives the pricing data it then converts and
distributes the data to the Tags mounted on each shelf. Each Tag
has an electronic address which corresponds to one product's UPC
code. The transmission of information is coded according to the
UPC code. The nodes will receive the pricing information from
the radio transceiver according to UPC codes for the particular
products to which they are connected. The nodes then distribute
the information to the Tag with the appropriate address.
The Tags are programmed with their electronic addresses, one
product's UPC code, by the use of the optical port. The optical
port, a small cell found on the front of each Tag, is sensitive
to ambient light levels. Slow changes in lighting levels are
normalized. However, if the light level changes rapidly (either
light or dark) an action is taken. A normal light condition that
is altered to dark indicates that a customer has placed his or
her finger over the optical port and the information displayed on
the Tag changes. A normal light condition that is altered to
bright indicates that a special light pen is communicating with
the Tag to program it.
The information received by the Tags is the same information
received by the store's point of sale terminals at the check-out
counters. Price changes which are programmed into the point of
sale terminals by the store's computer system are also relayed to
the Tags on each shelf by the radio transceiver. Thus, the
customers will see the current pricing information for each
product when roaming through the store's aisles.
The Electronic Shelf Tags consist of a liquid crystal
display, two integrated circuits (a standard 4-bit 2 CMOS
microprocessor and a CLASIC semicustom analog ASIC circuit) which
are wirebonded to a printed circuit board, various opto and
discrete passive components, a zebra interconnect, and various
metal and plastic housing components. The shelf rails consists
of an aluminum extrusion, a PVC insulation strip and four wire
conductors. Once a Tag is in a rail the Tag makes electrical
contact with a four-wire bus through four spring contacts on the
Tag's back. The four wires in the bus are power, ground, data
and clock. The radio transceiver is a custom designed 902 to 928
MHz spread spectrum digital packet radio.
ISSUE:
What is the appropriate classification for the Electronic
Shelf Tags, the Pricelink System 2000 Display Module?
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LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation ("GRIs"). GRI 1,
Harmonized Tariff Schedule of the United States Annotated
("HTSUSA"), states in part that "for legal purposes,
classification shall be determined according to the terms of the
headings and any relative section or chapter notes..."
The Electronic Shelf Tags act as illuminated numerical
displays for grocery store products' price information. The Tags
visually signal to customers certain data in numerical form. The
terms of heading 8531, HTSUSA, describe "Electrical sound or
visual signaling apparatus (for example, bells, sirens, indicator
panels, burglar or fire alarms), other than those of heading 8512
or 8530; parts thereof..." (emphasis added). The Tags are
number indicators. According to the Explanatory Notes to the
HTSUSA, number indicators are considered visual signaling
apparatus to be included in heading 8531. Harmonized Commodity
Description and Coding System ("HCDCS"), Explanatory Note
85.31(D)(2), Vol. 4, p. 1382. The Explanatory Notes, although
not dispositive, are to be looked to for the proper
interpretation of the HTSUSA. 54 Fed. Reg. 35127, 35128 (August
23, 1989).
You believe that the Shelf Tags are properly classified
under heading 8473, HTSUSA, as "Parts and accessories (other than
covers, carrying cases and the like) suitable for use solely or
principally with machines of headings 8469 to 8472..." However,
Section XVI, Note 2(a), HTSUSA, states that "parts which are
goods included in any of the headings of chapters 84 or 85...are
in all cases to be classified in their respective headings..."
Furthermore, Additional U.S. Rule of Interpretation 1(c), HTSUSA,
requires that a specific provision prevails over a "parts and
accessories" provision. Therefore, if a more specific provision
describes the Tags, they are precluded from classification in
heading 8473.
It is the opinion of this office that the Electronic Shelf
Tags meet the terms of heading 8531, in that the Tags are a form
of indicator panels or visual signaling apparatus. Since a
specific provision describes the Tags the proper classification
for the Electronic Shelf Tags is subheading 8531.20.00, HTSUSA,
as "Electric sound or visual signaling apparatus...Indicator
panels incorporating liquid crystal devices (LCD's) or light
emitting diodes (LED'S)..."
HOLDING:
The PriceLink Electronic Shelf Tags imported from Hong Kong
are used to visually signal numerical pricing information to
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customers about products in grocery stores. Visual signaling
apparatus are classified, in accordance with GRI 1, in heading
8531. The proper classification for the Electronic Shelf Tags is
subheading 8531.20.00, HTSUSA, as "Electric sound or visual
signaling apparatus...Indicator panels incorporating liquid
crystal devices (LCD's) or light emitting diodes (LED'S)..."
Sincerely,
John Durant, Director
Commercial Rulings Division