CLA-2 CO:R:C:M 953115 MBR
Mr. Donald Alford Weadon, Jr.
Dickstein, Shapiro & Morin
2101 L Street, N.W.
Washington, D.C. 20037-1526
RE: Toshiba America Electronic Components, Inc.; Visual Signaling
Apparatus; Liquid Crystal Display; LCD; Avionics LCD Module;
Models TFD-32W20 and TFD-32W02; 8531; 9013; HQ 952502; HQ
952246; HQ 951609; HQ 951288; HQ 952360
Dear Mr. Weadon:
This is our reply to your letter of December 17, 1992, on
behalf of Toshiba America Electronic Components, Inc. (TAEC),
requesting classification of the Avionics Liquid Crystal Display
("LCD") Modules, under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
You state that the "Toshiba Avionics LCD Modules," which are
designed to serve as the indicator panel portion of an air
transport indicator ("ATI"), consist of a dot matrix LCD sandwich
installed upon and connected to a specially designed printed
circuit board ("PCB") populated with specially designed row and
column LCD driver integrated circuits. The viewing area of the
graphics modules consists of sub-pixels arranged in columns and
rows across the active viewing area. The driver circuits receive
a display output signal from a device such as a collision avoidance
system ("TCAS"), and electronically address specific areas on the
dot matrix of the LCD sandwich through a multiplex drive time-
sharing sequence. When thus electronically addressed and
stimulated, the molecules in the normally transparent liquid
crystal medium, within the LCD sandwich, uniformly align and become
opaque, creating a visible dot or series of dots, which then
display a visual signal.
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The instant importation also incorporates a bezel which is
specially designed to aid in its physical incorporation into
existing slots of an ATI. These importations are finished, ready
to install ("plug and play") Avionics LCD Modules.
Toshiba specially designs the Avionics LCD Modules to meet
stringent aircraft part specifications. The Avionics LCD Modules
must withstand a much broader operating temperature range than
standard indicator panel LCD modules. The Avionics LCD Modules
must also withstand the incessant vibration which occurs during
flight. In addition, the light transmittance, viewing angle and
response time characteristics of the avionics LCD modules are
specifically engineered to meet exacting air worthiness
certification standards. As a result of their special design,
color, and qualities, the cost of the Avionics LCD Modules is many
times greater than that of standard indicator panel LCD modules of
the same resolution. The sub pixel array of the Toshiba Avionics
LCD Module is 240(2) X 240(2).
ISSUE:
Are the instant Toshiba Avionics LCD Modules classified under
heading 8531, HTSUS, which provides for electric sound or visual
signaling apparatus, or under heading 9013, HTSUS, which provides
for LCDs not provided for more specifically in other headings, or
under heading 9014, HTSUS, which provides for parts and accessories
of other navigational instruments?
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...
The instant Avionics LCD Modules 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:
-3-
9013.80.60 Other devices, appliances and instruments: Other
* * * * * * * * * * * * * *
9014 Direction finding compasses; other navigational instruments
and appliances; parts and accessories thereof:
9014.90.20 Parts and accessories: Of articles covered by
subheading 9014.20.40
* * * * * * * * * * * * * *
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 "signaling"
indicator panels and the like must perform in order to be
classifiable in that provision. 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...
(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. etc.
We have uniformly stated in HQ 952502, dated March 18, 1993,
HQ 952246, dated November 10, 1992, HQ 951868, dated October 31,
1992, HQ 952360, dated October 15, 1992, and HQ 951288, dated July
7, 1992, that only those LCDs which are limited by design and/or
principal use to that of "signaling," are classifiable in heading
8531, HTSUS.
Due to the specific design, function, and principal use of the
instant Toshiba Avionics LCD Modules for avionic visual signaling,
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they are clearly classifiable under heading 8531, which provides
for "signaling apparatus." See HQ 951288, dated July 7, 1992, for
a protest decision regarding Epson LCDs, distinguishing between
"visual signaling" LCDs, and other types.
Section XVI, Legal Note 1(m) states that: "[t]his section does
not cover: [a]rticles of chapter 90." Heading 9013, HTSUS,
provides for: "[l]iquid crystal devices not constituting articles
provided for more specifically in other headings." Therefore,
since the Toshiba Avionics LCD Modules are provided for more
specifically in another heading (8531, HTSUS), they are not
classifiable in heading 9013, HTSUS.
The Toshiba Avionics LCD Modules are also prima facie
classifiable under subheading 9014.90.20, HTSUS, which provides for
parts of navigational instruments. However, the Legal Notes to
chapter 90, in pertinent part, direct as follows:
2. Subject to note 1 above, parts and accessories for machines,
apparatus, instruments or articles of this chapter are to be
classified according to the following rules:
(a) Parts and accessories which are goods included in any of
the headings of this chapter or of chapter 84, 85 or 91
(other than heading 8485, 8548 or 9033) are in all cases
to be classified in their respective headings;
Therefore, since the Toshiba Avionics LCD Modules are included
in heading 8531, HTSUS, (visual signaling apparatus), they are not
classifiable under the provision for parts of navigational
instruments (heading 9014, HTSUS).
HOLDING:
The Toshiba America Electronic Components, Inc., Avionics
Liquid Crystal Display Modules Models TFD-32W20, and TFD-32W02, for
avionics visual signaling, are classifiable in subheading
8531.20.00, HTSUS, which provides for: "[e]lectric sound or visual
signaling apparatus (for example, bells, sirens, indicator
panels...: [i]ndicator panels incorporating liquid crystal devices
(LCD's) or light emitting diodes (LED's)." The rate of duty is
2.7% ad valorem.
Sincerely,
John Durant, Director