CLA-2 CO:R:C:M 956283 DWS
Ms. Susan Kohn Ross
Ross & Associates
5777 West Century Boulevard
Suite 250
Los Angeles, CA 90045-5659
RE: LCD Desktop Projectors; Section XVI, Note 3; Chapter 84,
Note 5(B); Additional U.S. Rule of Interpretation 1(a);
HQ 085392; NYs 873516, 843928, and 896031; 8528.10.38
Dear Ms. Ross:
This is in response to your letters of December 14, 1993, and
February 3, 1994, to the Area Director of Customs, New York
Seaport, on behalf of Proxima Corporation, concerning the
classification of liquid crystal display (LCD) desktop projectors
under the Harmonized Tariff Schedule of the United States (HTSUS).
With regard to model nos. 2800 and 8300, your letters have been
referred to this office for a response. Models 2300 and 2700 were
separately dealt with in NY 896031, issued to you on April 13,
1994.
FACTS:
The merchandise consists of LCD desktop projectors (model nos.
2800 and 8300). Both multimedia projectors act as computer
peripherals which display the data which would normally be seen on
a computer video monitor. Through the use of the projectors, the
information is displayed on large screens, thereby facilitating
meetings, presentations, and training sessions. Model no. 2800 has
a digital LCD panel which provides high-fidelity color images in
up to 2 million colors. Model no. 8300 has 3 analog LCD panels and
dichroic color filters which provide high-fidelity color images in
up to 16.7 million colors. Both models provide computer image
quality, and are compatible with most micro- computers. The panels
in both models have a resolution of 640 pixels x 480 pixels,
allowing the models to project VGA standard text and graphics.
Both models incorporate controller technology which analyzes
computer video signals and automatically adjusts the projector's
scanning frequencies to accommodate the data rate from various
computers. Included with both models is cabling to connect VGA
systems and computers. You state that over 80 percent of the
electronic components in both models are devoted to the processing
and display of computer signals.
Model nos. 2800 and 8300 are also capable of being used with
video cassette recorders (VCRs), laser disc players, or camcorders.
However, users wishing to access video functions must purchase
video cabling separately.
The subheadings under consideration are as follows:
8528.10.38: [t]elevision receivers (including video
monitors and video projectors), whether or not
incorporating radiobroadcast receivers or
sound or video recording or reproducing
apparatus: [c]olor: [w]ith a flat panel screen:
[o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5 percent ad valorem.
8471.92.30: [a]utomatic data processing machines and units
thereof . . . : [o]ther: [i]nput or output
units, whether or not entered with the rest of a
system and whether or not containing storage
units in the same housing: [o]ther: [d]isplay
units: [w]ithout cathode-ray tube (CRT), having
a visual display diagonal not exceeding 30.5 cm.
Goods classifiable under this provision receive duty-free
treatment.
ISSUE:
Whether the LCD desktop projector model nos. 2800 and 8300
are classifiable under subheading 8528.10.38, HTSUS, as other color
television receivers with flat panel screens, or under subheading
8471.92.30, HTSUS, as display units without CRTs.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
Section XVI, note 3, HTSUS, states that:
[u]nless the context otherwise requires, composite machines
consisting of two or more machines fitted together to form a
whole and other machines adapted for the purpose of
performing two or more complementary or alternative
functions are to be classified as if consisting only of that
component or as being that machine which performs the
principal function.
Chapter 84, note 5(B), HTSUS, states that:
[a]utomatic data processing machines may be in the form
of systems consisting of a variable number of separately
housed units. A unit is to be regarded as being a part of
the complete system if it meets all of the following
conditions:
(a) It is connectable to the central processing unit either
directly or through one or more other units; and
(b) It is specifically designed to be part of such a system
(it must, in particular, unless it is a power supply
unit, be able to accept or deliver data in a form (code
or signals) which can be used by the system).
Such units entered separately are also to be classifiable in
heading 8471.
Both models of the LCD desktop projector meet the above
definition of a unit. They are connectable to a central processing
unit (CPU) and are specifically designed to be part of an automatic
data processing (ADP) system in that they are able to accept data
in a form which can be used by such a system. The projectors
function as display units classifiable under subheading 8471.92.30,
HTSUS, because they display computer data and graphics.
Both models of the projector also function as video projectors
classifiable under subheading 8528.10.38, HTSUS.
Therefore, it is our position that, under section XVI,
note 3, HTSUS, both models are machines adapted for the purpose of
performing two or more complementary functions. We must now
determine which of the two functions constitutes the principal
function of the machines.
Additional U.S. Rule of Interpretation 1(c), HTSUS, states
that:
[i]n the absence of special language or context which
otherwise requires --
(a) a tariff classification controlled by use (other than
actual 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.
It is our position that the principal use, or function, of
both models of the LCD desktop projector, as computer peripherals,
is to display computer data and graphics. It is claimed that 80
percent of the electronic components in both models are devoted to
the processing and display of computer signals. Also, the
projector models are packaged with computer cables only, not video
cables. Consequently, we find that both models are classifiable
under subheading 8471.92.30, HTSUS. See HQ 085392, dated November
22, 1989, NY 873516, dated April 23, 1992, and NY 843928, dated
August 7, 1989, for rulings classifying similar merchandise under
subheading 8471.92.30, HTSUS.
HOLDING:
The LCD desktop projector model nos. 2800 and 8300 are
classifiable under subheading 8471.92.30, HTSUS, as display units
without CRTs.
Sincerely,
John Durant, Director