CLA-2 R:C:M 957793 KCC
Ms. Betty Bell
Critikon, Inc.
4110 George Road
P.O. Box 31800
Tampa, Florida 33631-3800
RE: Display panels for blood pressure monitors; electroluminescent devices; HRL 956830
modified
Dear Ms. Bell:
This is in regards to Headquarters Ruling Letter (HRL) 956830 issued to you on March
27, 1995, concerning the tariff classification of display panels under the Harmonized Tariff
Schedule of the United States (HTSUS), and whether the display panels are substantially
transformed into a product of the U.S. when incorporated into blood pressure monitors. We have
reviewed HRL 956830 and determined that the tariff classification of the display panels is
incorrect. Accordingly, for the reasons contained herein, HRL 956830 is modified.
FACTS:
The facts contained in HRL 956830 are, by reference, incorporated into this ruling. HRL
956830 classified the display panels under subheading 8531.20.00, HTSUS, which provides for:
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...Indicator
panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's)....
Additionally, HRL 956830 determined that the display panel is not substantially transformed into
a product of the U.S. when it is plugged into a blood pressure monitor. Therefore, it is not
eligible for duty-free treatment under subheading 9801.00.10, HTSUS, when it is subsequently
returned to the U.S. for repair. This modification of HRL 956830 only concerns the tariff
classification of the display panels.
ISSUE:
Are the display panels classified under subheading 8531.20.00, HTSUS, as electric sound
or visual signaling apparatus, indicator panels incorporating liquid crystal devices (LCD's)?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed by the General Rules of
Interpretation (GRI's). GRI 1, HTSUS, states, in part, that "for legal purposes, classification shall
be determined according to the terms of the headings and any relative section or chapter notes...."
The display panels at issue are electroluminescent. Although electroluminescent display
panels are similar to liquid crystal display panels in that they each are designed to display data or
information, they use different technology to achieve their function. Electroluminescent display
panels do not incorporate liquid crystal devices. As such, they are not described by the terms of
subheading 8531.20.00, HTSUS, and, therefore, are not classifiable as electric sound or visual
signaling apparatus, indicator panels incorporating liquid crystal devices (LCD's).
It has come to our attention that the Compendium of Classification Opinions
(Compendium) to the Harmonized Commodity Description and Coding System (HS) includes
Opinion 8543.80/1 which concerns the classification of electroluminescent devices. The
Compendium consists of the classification opinions adopted by the Customs Co-operation Council
(now the World Customs Organization). Opinion 8543.80/1 is a decision that, although originally
issued under an earlier nomenclature on which the HS is modeled, was adopted and carried
forward as a decision applicable under the HS (See Doc. 33.993/D, adopting decision in Doc.
13.450/F/10). Opinion 8543.80/1 states that subheading 8543.80, Harmonized Tariff Schedule,
includes:
Electroluminescent devices, generally in the form of tapes, plates or panels, consisting
essentially of:
(i) an electroluminescent crystalline substance (usually zinc sulphide) sandwiched
between two layers of electrically conductive materials, one of which is transparent
(plastics or special glass);
(ii) electrical leads;
(iii) two thin sheets, usually of plastics, sealing and protecting the whole;
when excited by an alternating current, these devices become luminescent over their whole
surface and have many applications such as: background lighting, decoration, signalling,
etc (emphasis in original).
Similar to the HS Explanatory Notes, the issuance of a classification opinion in the
Compendium constitutes the Customs Co-operation Council's official interpretation of the
Harmonized System. Although generally indicative of the proper interpretation of the various
provision, they are not legally binding on the United States as one of the contracting parties.
Thus, while they should be consulted for guidance, these documents should not be treated as
dispositive. T.D. 89-90, 23 Cust. Bull. 36 91988), and 54 Fed. Reg. 35127, 35128 (August 23,
1989).
However, we have carefully reviewed this matter and, in this instance, we are of the
opinion that the Compendium Opinion 8543.80/1 concerning the tariff classification of
electroluminescent devices is applicable. Therefore, electroluminescent display panels, at issue,
are properly classified under subheading 8543.80.98, HTSUS, which provides for:
Electrical machines and apparatus, having individual functions, not specified or included
elsewhere in this chapter; parts thereof...Other machines and
apparatus...Other...Other...Other....
HOLDING:
The electroluminescent display panels are classified under subheading 8543.80.98,
HTSUS, as other electrical machines and apparatus, having individual functions, not specified or
included elsewhere in this chapter. Articles classified under this tariff provision are dutiable at the
Column 1 rate of 3.6 percent ad valorem. HRL 956830 is modified as set forth in this ruling.
Sincerely,
John Durant, Director
Commercial Rulings Division