CLA-2 CO:R:C:M 957163 RFA
8544.41.00;
9013.80.60
Mr. Patrick Kennedy
McKenney, Thomsen & Burke LLP
One North Charles Street
Suite 400
Baltimore, MD 21201
RE: Unassembled flat-panel display units for laptop computers;
GRI 2(a); ADP Output Display; Liquid Crystal Display (LCD);
glass sandwich; Printed Circuit Boards (PCBs); flex cable;
Integrated Circuit (IC); parts and accessories; HQs 953313,
952973, 952502, 951868, 951609
Dear Mr. Kennedy:
This is in response to your letter dated October 11, 1994,
on behalf of Solectron Corporation, concerning the tariff
classification of an unassembled automatic data processing (ADP)
machine output display unit and its individual components under
the Harmonized Tariff Schedule of the United States (HTSUS).
Additional information provided by telephone to a member of my
staff was also considered in preparing this ruling.
FACTS:
The merchandise consists of 6 printed circuit boards (PCBs),
8-14 tape automated bonding integrated circuits ("TAB ICs"), a
liquid crystal display (LCD), a back light unit, plastic frame,
and a flex cable, which, when assembled together, will form an
automatic data processing (ADP) machine output display unit for
laptop computers. Two of the PCBs will help control the
intensity and the power supply for the back lighting of the
display unit. The other 4 PCBs will control various functions of
the display unit's LCD. None of the PCBs contain a central
processing unit (CPU) chip. The TAB ICs are made of polyamide
and are designed to permit the necessary interfaces between the
display unit and the laptop computer (i.e., row and column
drivers). The LCD is an array cell which includes the required
filters and is enveloped between 2 pieces of glass ranging from 6
to 14 inches, diagonally. The back light unit, which provides
the light necessary for the LCD to emit a visual display,
consists of a hard plastic unit ranging from 6 to 14 inches,
diagonally, with 2 tubular fluorescent bulbs, approximately 6
inches in length. The plastic frame which measures 8 to 16
inches, diagonally, holds the LCD and the back light unit in
place. The flex cable, made of polyamid, acts as an electrical
conductor with a voltage not exceeding 80 volts. The flex cable
contains the connectors for the display unit to the laptop
computer.
You requested classification of the merchandise when all of
the components are entered together and when each component is
entered separately.
ISSUE:
Are the components when entered together classifiable as an
unassembled ADP output display unit under the HTSUS? How are the
components classified when entered separately?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
Customs has consistently recognized that automatic data
processing (ADP) machine LCD flat panel displays (laptop and
notebook computer displays) typically exhibit the following
characteristics: a pixel configuration of 640 x 480, a dot pitch
of from .27 to .30mm, a thin profile, light weight, a specific
liquid crystal material mix (150 to 200 milliseconds response
time signal to signal), and low power consumption (5 V). See HQ
953313, dated May 10, 1993; HQ 952502, dated March 18, 1993; HQ
952973, dated August 5, 1993; .
According to the information provided, the subject LCD
panels meet the criteria of ADP flat panel displays for notebook
and laptop computer displays because they have a pixel
configuration of 640 x 480, a power consumption of 4.75 to 5.25
V, a dot pitch of .33mm, etc.. You further indicate that the
individual components when entered together constitute a complete
ADP output display unit, requiring only a simple assembly. GRI
2(a) provides that:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as presented, the incomplete
or unfinished article has the essential character of
the complete or finished article. It shall also be
taken to include a reference to that article complete
or finished (or falling to be classified as complete or
finished by virtue of this rule), presented unassembled
or disassembled.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. See T.D. 89-80, 54 FR
35127, 35128 (August 23, 1989). ENs to GRI 2(a), page 2,
states in pertinent part:
(V) The second part of Rule 2(a) provides that
complete or finished articles presented
unassembled or disassembled are to be classified
in the same heading as the assembled article.
When goods are so presented, it is usually for
reasons such as requirements or convenience of
packing, handling or transport.
(VI) This Rule also applies to incomplete or unfinished
articles presented unassembled or disassembled
provided that they are to be treated as complete
or finished articles by virtue of the first part
of this Rule.
(VII) For the purposes of this Rule, "articles
presented unassembled or disassembled" means
articles the components of which are to be
assembled either by means of simple fixing
devices (screws, nuts, bolts, etc.) or by
riveting or welding, for example, provided
only simple assembly operations are involved.
You state that these components are shipped unassembled to
avoid what would otherwise be a high damage rate. Therefore, we
can conclude that these displays are presented unassembled for
the convenience of "packing, handling or transport."
Furthermore, the displays are completed with the addition of some
screws or other "fixing devices", requiring only simple assembly
operations. Based upon GRI 2(a), we find that the merchandise
has the essential character of unassembled ADP output display
units because all of the necessary electronics are imported in
the same shipment. See HQs 953313, 952502, 952973. They are
classifiable under subheading 8471.92.30, HTSUS, which provides
for:
Automatic 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
. . . .
If the parts are entered separately, classification of the
merchandise shall be determined based upon their condition as
imported. If the LCD glass sandwich, which is a component part
of an ADP display for notebook and laptop computers, is entered
without any of the other components such as ICs, diffuser, back
light, plastic chassis, and connection wire and connectors, we
find that the LCD glass sandwich alone does not impart the
essential character of a complete ADP output display unit. See HQ
951868, dated October 31, 1992; HQ 951609, dated October 20,
1992; HQ 952973.
Classification of the LCD glass sandwiches under heading
8473, HTSUS, as parts of ADP machines was suggested. Section
XVI, Legal Note 1(m), HTSUS, states in pertinent part: "This
section does not cover: . . . Articles of chapter 90."
Therefore, if the subject LCD glass sandwich is classifiable in
chapter 90, HTSUS, it is not classifiable anywhere in Section
XVI, HTSUS. Heading 9013, HTSUS, specifically provides for:
"liquid crystal devices not constituting articles provided for
more specifically in other headings."
It is Customs position that heading 9013, HTSUS, which
specifically provides for LCDs is more specific than heading
8473, HTSUS, which provides for the plethora of parts for the
machines of headings 8469 to 8472, HTSUS. See HQs 951868,
951609. The subject LCDs are classifiable under subheading
9013.80.60, HTSUS, which provides for: "Liquid crystal devices
not constituting articles provided for more specifically in other
headings . . . : [o]ther devices, appliances and instruments:
[o]ther . . . ." The column one, general rate of duty is 8.1
percent ad valorem.
According to the information provided, two of the PCBs will
help control the intensity and the power supply for the back
lighting of the display unit. The other four PCBs will control
various functions of the display unit's LCD. Because none of
the PCBs contain a CPU chip, we find that they are classifiable
under subheading 8473.30.10, HTSUS, which provides for: "Parts
and accessories of the machines of heading 8471: [n]ot
incorporating a cathode ray tube: [p]rinted circuit assembles,
other than for power supplies for automatic data processing
machines. . . " The column one, general rate of duty is free.
The back light unit and the plastic frame are principally
designed to be incorporated into an ADP output display unit.
Therefore, they are classifiable under subheading 8473.30.50,
HTSUS, which provides for: "Parts and accessories of the
machines of heading 8471: [n]ot incorporating a cathode ray tube:
[o]ther: [o]ther. . . ." The column one, general rate of duty
is free.
The TAB ICs are designed to permit the necessary interfaces
between the display unit and the laptop computer (i.e., row and
column drivers). They are provided for under subheading
8542.11.80, HTSUS, which provides for: "Electronic integrated
circuits and microassemblies. . . : [m]onolithic integrated
circuits: [d]igital: [o]ther. . . "
The column one, general rate of duty is free.
The flex cable which acts as an electrical conductor with a
voltage not exceeding 80 volts, contains the connectors for the
display unit to the laptop computer. The flex cable is
classifiable under subheading 8544.41.00, HTSUS, which provides
for: "Insulated . . . wire, cable (including coaxial cable) and
other insulated electric conductors . . . : [o]ther electric
conductors, for a voltage not exceeding 80 V: [f]itted with
connectors. . . . " The column one, general rate of duty is 4.8
percent ad valorem.
HOLDING:
Under the authority of GRI 2(a), we find that the
merchandise, when entered unassembled, has the essential
character of a complete ADP output display unit. The subject
merchandise is classifiable under subheading 8471.92.30, HTSUS,
which provides for: "Automatic 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 . . . . "
The column one, general rate of duty is free.
Components of the subject ADP output display unit entered
separately are classified in their respective headings as
follows:
Description: HTSUS Subheading:
LCD glass sandwich 9013.80.60
PCBs 8473.30.10
Back light unit 8473.30.50
Plastic frame 8473.30.50
TAB ICs 8542.11.80
Flex cable 8544.41.00
Sincerely,
John Durant, Director
Commercial Rulings Division