CLA-2 CO:R:C:M 951609 MBR
Area Director, Rm 432
U.S. Customs Service
6 World Trade Center
New York, NY 10048-0945
RE: Liquid Crystal Display; LCD; Glass Sandwich; Part For ADP
Output Display
Dear Ms. Maguire:
This is in response to a memorandum from the National Import
Specialist Division, Chief of Branch 1, dated April 15, 1991,
regarding a double difference with the port of Portland, Oregon,
with reference to the classification of glass sandwiches for liquid
crystal displays, under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The instant merchandise is a Liquid Crystal Display ("LCD")
glass sandwich for a laptop computer display, designated as Sharp
model number LM64P70. The "glass sandwich" consists of two pieces
of glass, with internal electrodes, liquid crystals, and a
polarizing filter. The glass sandwich is imported without the
following components: the bezel, the cable connector, the LSI
(Large Scale Integration chips), the diffuser, the rubber spacer,
the light pipe, the reflector, the plastic chassis, the lamp, the
lamp holder, the connector, and the wire.
ISSUE:
Are glass sandwiches for liquid crystal displays classified
under heading 8531, HTSUS, which provides for electric sound or
visual signaling apparatus, or under heading 8471, HTSUS, which
provides for ADP output devices, or under heading 9013, HTSUS,
which provides for liquid crystal devices n.s.p.f., under the
Harmonized Tariff Schedule of the United States (HTSUS)?
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Liquid crystal displays (LCDs) are prima facie classifiable
under the following subheadings:
8531 Electric sound or visual signaling apparatus (for example,
bells, sirens, indicator panels...
8531.20.00 Indicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's).
* * * * * * * * * * * * * *
9013 Liquid crystal devices not constituting articles provided for
more specifically in other headings.
9013.80.60 Other devices, appliances and instruments: Other.
* * * * * * * * * * * * * *
8471 Automatic data processing machines and units thereof.
8471.92.80 Other: Input or output units...: Other: Other: Units
suitable for physical incorporation into automatic
data processing machines or units thereof.
* * * * * * * * * * * * * *
Heading 8531, HTSUS, provides for electric sound or visual
signaling apparatus. Therefore, to be classifiable in this
heading, the apparatus must be designed for "signaling."
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) to heading 8531, HTSUS, page 1381, are
fairly descriptive and restrictive as to the types of "signalling"
indicator panels and the like must perform in order to be
classifiable there. It states: "[t]hese are used (e.g., in
offices, hotels and factories) for calling personnel, indicating
where a certain person or service is required, indicating whether
a room is free or not. They include:
(1) Room indicators. These are large panels with numbers
corresponding to a number of rooms...
-3-
(2) Number indicators. The signals appear as illuminated
figures on the face of a small box; in some apparatus of
this kind the calling mechanism is operated by the dial
of a telephone. Also clock type indicators in which the
numbers are indicated by a hand moving round a dial.
(3) Office indicators, for example, those used to indicate
whether the occupant of a particular office is free or
not...
(4) Lift indicators. These indicate, on an illuminated
board, where the lift is and whether it is going up or
down.
Therefore, only those LCDs which are limited by design and
function to that of "signaling," are classifiable in heading 8531,
HTSUS. Customs agrees that the instant Sharp LM64P70 glass
sandwich is designed for ADP output displays (laptop and notebook
computer displays) due to the following characteristics: VGA pixel
configuration (640 X 480), dot pitch (.27 to .30mm), thin profile,
light weight, liquid crystal material mix (150 to 200 milliseconds
response time signal to signal), and low power consumption (5V).
Therefore, it is not designed for or dedicated to signaling
functions, and is not classifiable under heading 8531, HTSUS.
E.M. Chemicals v. United States, Appeal No. 90-1141, Cust.
Bul. Vol. 24, No. 51, (1990), 728 F. Supp. 723 (1989), held that
liquid crystals were classifiable under item 685.70, under the TSUS
(the predecessor provision to heading 8531, HTSUS). However, there
has been a significant change in the relevant tariff provisions
under the HTSUS, and LCDs have been technologically developed for
a myriad of uses, many of which cannot be said to be for
"signaling."
Heading 9013, HTSUS, provides for: "[l]iquid crystal devices
not constituting articles provided for more specifically in other
headings. The ENs to heading 9013, HTSUS, page 1478, state:
(1) Liquid crystal devices consisting of a liquid crystal
layer sandwiched between two sheets or plates of glass
or plastics, whether or not fitted with electrical
connections, presented in the piece or cut to special
shapes and not constituting articles described more
specifically in other headings of the Nomenclature.
Customs has determined that the instant LCD glass sandwich is
a component part of an ADP display for notebook and laptop
computers. The instant glass sandwich is imported without the
following necessary components: the bezel, the cable connector, the
LSI (Large Scale Integration chips), the diffuser, the rubber
spacer, the light pipe, the reflector, the plastic chassis, the
lamp, the lamp holder, the connector, and the connection wire.
-4-
Therefore, the instant glass sandwich is determined not to impart
the essential character of a finished ADP output display. See HQ
086929, dated January 31, 1991, which held that a cathode ray tube
for an ADP output unit was not classifiable as an unfinished ADP
output device, and was instead classifiable in subheading
8540.30.00, HTSUS, which provides for other cathode-ray tubes.
Subheading 8473.30.40, HTSUS, provides for: "[p]arts and
accessories...suitable for use solely or principally with machines
of headings 8469 to 8472: [p]arts and accessories of the machines
of heading 8471: [n]ot incorporating a cathode ray tube." However,
heading 9013 specifically provides for: "[l]iquid crystal devices
not constituting articles provided for more specifically in other
headings." It is Customs position that heading 9013, HTSUS, is
more specific than heading 8473, HTSUS.
Therefore, the Sharp LM64P70 glass sandwich is classifiable
in subheading 9013.80.90, HTSUS. For other rulings regarding LCDs,
see HQ 952360, and HQ 951288, dated July 7, 1992.
HOLDING:
The Sharp model LM64P70 glass sandwich is classifiable in
subheading 9013.80.60, HTSUS, which provides for: "[l]iquid crystal
devices not constituting articles provided for more specifically
in other headings: [o]ther devices, appliances and instruments:
[o]ther."
Sincerely,
John Durant, Director
Commercial Rulings Division
CC: District Director
U.S. Customs, Suite 198
511 N.W. Broadway Fed. Bldg.