CLA-2 CO:R:C:M 954364 LTO
Mr. Martin E. Barrera
Harper Robinson & Co.
300 North Oak Street
Inglewood, California 90301
RE: LCD Modules; HQ 951288; HQ 951868; HQ 952360; HQ 952502; HQ
952973; HQ 953115; HQ 954788; EN 85.31; Chapter 90, note
2(a); heading 9014; Add. U.S. Rule of Interpretation 1(a)
Dear Mr. Barrera:
This is in response to your letter of May 4, 1993, to Customs
in Los Angeles, California, requesting on behalf of Honeywell,
Inc., the classification of LCD Modules under the Harmonized Tariff
Schedule of the United States (HTSUS). Your letter was referred to
this office for a response. We have also considered information
provided by letter dated January 6, 1994, from the Commercial
Flight Systems Group of Honeywell, Inc.
FACTS:
The articles in question are LCD Modules which are specially
designed for use with the Traffic Alert and Collision Avoidance
System (TCAS II) for aircraft. They are color modules, 640 x 560
dots (consisting of three color sub-pixels per dot), with a
dimension of 400 x 400 x 35mm. The modules will be manufactured in
Japan.
The LCDs will be used to display current vertical speed,
traffic and resolution advisories (alert crew to a vertical
maneuver that must be performed or avoided to prevent a collision
or near-collision). They will also display the aircraft's own
position by an aircraft symbol surrounded by a ring of dots. Other
symbols are used, in increasing order of threat, to indicate the
status of traffic. They display an intruder's relative altitude,
as well as whether the intruder is climbing or descending (by use
of an arrow). The modules merely display information. They do not
include the backlighting module, processor or power supply.
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ISSUE:
Whether the LCD Modules are classifiable as other navigational
instruments and appliances under heading 9014, HTSUS, or as
electric sound or visual signaling apparatus under heading 8531,
HTSUS.
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 that "for legal purposes, classification
shall be determined according to the terms of the headings and any
relative section or chapter notes . . . ."
The headings at issue are as follows:
8531 Electric 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
* * * * * * * * * * * * *
9014 Direction finding compasses; other
navigational instruments and appliances;
parts and accessories thereof
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Co-operation
Council's official interpretation of the Harmonized System. While
not legally binding, the ENs provide a commentary on the scope of
each heading of the Harmonized System, and are generally indicative
of the proper interpretation of these headings.
EN 85.31, pg. 1381, states that heading 8531, HTSUS, "covers
all electrical apparatus used for signalling purposes, whether
using sound for the transmission of the signal (bells, buzzers,
hooters, etc.) or using visual indication (lamps, flaps,
illuminated numbers, etc.) . . . . The heading covers 'signaling'
indicator panels which "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 - 3 -
which the numbers are indicated by a hand moving
around 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 . . .
EN 85.31, pg. 1381-2.
Heading 8531, HTSUS, is a use provision subject to Additional
U.S. Rule of Interpretation 1(a), which states that: "a tariff
classification controlled by use . . . is to be determined in
accordance with the use in the United States at, or immediately
prior to, the date of importation, of goods of that class or kind
to which the imported goods belong, and the controlling use is the
principal use." See HQ 951288, dated July 7, 1992. Customs has
uniformly stated that "LCDs which are limited by design and/or
principal use to that of 'signaling,' are classifiable in heading
8531, HTSUS." HQ 953115, dated May 10, 1993 (See also HQ 952502,
dated March 18, 1993, HQ 952973, dated August 5, 1993, HQ
951868, dated October 31, 1992, and HQ 952360, dated October 15,
1992).
The LCDs in question are specially designed for use with the
TCAS II. They are not "generic" LCDs, and would have to be
reconfigured to be used with any other system. They are part of
the TCAS II system, which provides a supplement to ground based air
traffic control (ATC). The system preserves ATC separation by
tracking aircraft, evaluating collision potential and
displaying/announcing advisories, including recommended evasive
action in the vertical plane. The system also computes range,
relative altitude and bearing of nearby aircraft from its ATC
transponder replies.
Due to the specific design, function and principal use of the
instant LCDs for visual signaling, they are prima facie
classifiable under heading 8531, HTSUS. See HQ 954788, dated
December 1, 1993 (wherein custom designed avionics LCDs were
classified under subheading 8531.20.00, HTSUS).
The LCD modules are also prima facie classifiable under
heading 9014, HTSUS, as parts of navigational instruments.
However, note 2(a) to chapter 90 provides as follows:
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:
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(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 . . .
Thus, because the modules are "goods included" in heading
8531, HTSUS, they cannot be classified as parts of navigational
instruments under heading 9014, HTSUS.
HOLDING:
The LCD modules are classifiable under subheading 8531.20.00,
HTSUS, which provides for "[e]lectric sound or visual signaling
apparatus . . . [i]ndicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's)." The
corresponding rate of duty for articles of this subheading is 2.7%
ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division