CLA-2 RR:TC:MM 957795 RFA
Mr. Paul C. Rosenthal
Collier, Shannon, Rill & Scott, PLLC
3050 K Street, NW
Suite 400
Washington, DC 20007
RE: Electroluminescent Flat-Panel Displays; Automatic Data
Processing Machines; Principal Use; Signaling Apparatus;
Electrical Machines and Apparatus, Having Individual
Functions, Not Specified or Included Elsewhere; Headings
8471, 8531, and 8543; Legal Note 5(B) to Chapter 84;
Additional U.S. Rule 1(a); HQ 952502
Dear Mr. Rosenthal:
This is in reference to your letter dated December 7, 1995,
on behalf of Planar Systems, concerning the tariff classification
of electroluminescent (EL) flat panel displays under the
Harmonized Tariff Schedule of the United States (HTSUS). In
preparing this ruling, we also considered arguments provided in
our meetings on December 15, 1995, and March 28, 1996, as well as
the information provided with your submissions of March 15, March
28, April 3, and May 15, 1996.
FACTS:
The merchandise under consideration consists of ten groups
of thin profile electroluminescent (EL) flat-panel displays. In
each group, the EL flat panel displays have printed circuit
boards (PCBs) populated with row and column drivers (integrated
circuits), and a metal bezel (frame). You state that all of the
EL flat panel displays have a response time of a few milliseconds
between signals.
Group 1 consists of the following displays with a 640 x 480
pixel configuration [also known as a Video Graphics Array (VGA)
standard]:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 7768MS
.32 x .32mm
25 oz.
+5, +12 V
EL 640.480-A/AD
EL 640.480-AF/AG
no data
available
no data
available
no data
available
EL 640.480-AM
.33 x .33mm
21 oz.
+5, +12 V
EL 640.480-AA
.33 x .33mm
no data
available
+5, +12 V
EL 640.480-A SB
series
.33 x .33mm
28 oz.
+12 V
EL 640.480-AAI
.33 x .33mm
28 oz.
+12 V
The product literature submitted states that the 640 x 480 EL
displays replace cathode ray tubes (CRTs) for virtually all
microcomputer-based product designs and can display all images
generated for the VGA graphic standard.
Group 2 consists of the following displays with a 640 x 400
pixel configuration [also known as a Enhanced Graphics Adapter
("EGA") standard]:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 8358HR
.305 x .305mm
24 oz.
+12 V
EL 640.400-C
.30 x .30mm
14 oz.
+5, +11. . .
+30 V
EL 640.400-CB
EL 640.400-CD
.305 x .305mm
14 oz.
+5, +12, +24 V
EL 640.400-CE
.305 x .305mm
no data
available
+5, +12 V
EL 640.400-C3/CD3
.305 x.305mm
14 oz.
+5, +11. . .
+30 V
The product literature submitted states that the 640 x 400 EL
displays replace CRTs in control and instrument product designs
and can display all images generated for the VGA graphic
standard.
Group 3 consists of the following displays with a 640 x 350
pixel configuration [also known as a EGA standard]:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 640.350-D
no data
available
no data
available
no data
available
EL 640.350-DA
series
.35 x .28mm
22.6 oz.
+5, +12 V
The product literature submitted states that the 640 x 350 EL
displays replace CRTs in control and instrument product designs
and can display all images generated for the EGA graphic
standard.
Group 4 consists of the following displays with a 640 x 200
pixel configuration [also known as a Color Graphics Adapter
("CGA") standard]:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 8358 MS
.61 x. 305mm
24 oz.
+12 V
EL 640.200-U
EL640.200-UD
no data
available
no data
available
no data
available
The product literature submitted states that the 640 x 200 EL
displays replace CRTs for virtually all micro-computer based
product designs and can display all images generated for the CGA
graphic standard.
Group 5 consists of the following display with a 560 x 400
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 560.400N
.254 x .254mm
14 oz.
+5, +12 V
The product literature submitted states that this EL display
replaces CRTs in instruments such as oscilloscopes, spectrum
analyzers and logic analyzers.
Group 6 consists of the following displays with a 512 x 256
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 512.256H
no data
available
no data
available
no data
available
EL 6648MS
.381 x .381mm
25 oz.
+12 V
The product literature submitted states that these EL displays
replace CRTs for microcomputer-based product designs.
Group 7 consists of the following displays with a 320 x 256
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 320.256-FD
.30 x .30mm
10.9 oz
+5, +11. . .
+30 V
EL 320.256 F
.30 x .30mm
9.2 oz
+5, +11. . .
+30 V
EL 320.256-F6/FD6
.30 x .30mm
9.2 oz.
+5, +11. . .
+30 V
The product literature submitted states that these EL displays
replace CRTs for control and instrument product designs.
Group 8 consists of the following displays with a 320 x 128
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 4737 LP
.528 x .528mm
13 oz
+5, +12 V
The product literature submitted states that this EL display
replaces CRTs for microcomputer-based product designs.
Group 9 consists of the following displays with a 276 x 128
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 4836 LP
.53 x .53mm
12.5 oz
+5, +12 V
The product literature submitted states that this EL display
replaces CRTs for microcomputer-based product designs.
Group 10 consists of the following displays with a 240 x 64
pixel configuration:
Model Number
Pixel Pitch
Weight
Input Voltage
EL 240.64
.528 x .528mm
6 oz
+5, +12 V
EL 240.64-S
no data
available
no data
available
no data
available
The product literature submitted states that these EL displays
replace CRTs for instrument product designs.
EL displays can be incorporated into automatic data
processing (ADP) machines such as personal computers, laptop
computers, and workstations, as well as portable patient medical
monitors, telecommunications test equipment, point of sale
terminals, avionics, transportation screens, etc. This ruling
will cover only Groups 1 through 4. Customs will issue a
separate ruling covering Groups 5 through 10 at a later date.
ISSUE:
Whether EL displays, Groups 1 through 4, are classifiable as
output units for ADP machines under heading 8471, or as electric
sound or visual signaling apparatus under heading 8531, or as
machines having electrical functions not specified or included in
heading 8543, under the HTSUS?
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.
EL displays are prima facie classifiable in the following
headings: heading 8471, HTSUS, which provides for ADP machines
and units thereof; heading 8531, HTSUS, which provides for
electric sound or visual signaling apparatus; and, heading 8543,
HTSUS, which provides for electrical apparatus having functions
not elsewhere specified or included.
To be classified as an ADP unit, the subject display must
meet the terms of Legal Note 5(B) to chapter 84, HTSUS, which
provides that:
Automatic data processing machines may be in the
form of systems consisting of a variable number of
separate units. Subject to paragraph (E) below, a unit
is to be regarded as being a part of a complete system
if it meets all the following conditions:
(a) It is of a kind solely or principally used in
an automatic data processing system;
(b) It is connectable to the central processing
unit [CPU] either directly or through one or more other
units; and
(c) It is able to accept or deliver data in a
form (codes or signals) which can be used by the
system.
Heading 8531, HTSUS provides for electric sound or visual
signaling apparatus. Therefore, to be classifiable in this
heading the apparatus must be limited by design and function to
signaling.
Customs has held that heading 8471, HTSUS, and heading 8531,
HTSUS, are use provisions subject to Additional U.S. Rule 1(a),
HTSUS. See HQ 956870 (July 27, 1995) and HQ 951288 (July 7,
1992). Additional U.S. Rule 1(a), HTSUS, states that: "[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."
In your submissions, you stated that EL displays are of the
same class or kind as liquid crystal displays (LCDs) and should
receive the same tariff treatment. Both LCDs and EL displays are
part of the broader class generally known in the trade industry
as flat panel displays. Flat panel displays utilize one of
several technologies such as LCDs (passive matrix and active
matrix), ELs, gas plasma, and field emission displays. We
recognize that as new methods are discovered, new types of flat
panel display technologies may be added to this group. Flat
panel displays can be found in a wide variety of products, such
as computers, televisions, video games, indicator panels,
watches, portable patient medical monitors, avionics,
telecommunications test equipment, point of sale terminals,
transportation screens, etc. Because of the wide variety of
uses, there are numerous types and sizes of flat panel displays.
Currently, we understand that the most commonly used display is
LCD. Since the EL displays appear to belong to the class of
goods known as flat panel displays, the issue for classification
purposes is to define the applicable criteria for determining the
principal use of these displays.
Therefore, unless a principal use for ADP output (heading
8471) or signaling (heading 8531) can be established
satisfactorily either by design limitation or other reliable
means, LCDs are classified as liquid crystal devices not
elsewhere provided for (heading 9013). Applying the same
reasoning to ELs this means that to be classifiable in heading
8471 as claimed, the ELs must be of a class or kind of goods
principally used for ADP. If a principal use of this class can
be established for signaling, then classification is in heading
8531. In the absence of information as to use, classification of
the EL displays would devolve to heading 8543.
In HQ 952502, dated March 18, 1993, Customs determined the
classification of certain LCD modules with a column configuration
(Y axis) of 640 pixels and a row configuration (X axis) of 200 to
480 pixels which were connected to PCBs populated with row and
column driver integrated circuits, output connectors,
backlighting, and bezel. After holding that the dispositive
issue was one of principal use, Customs found that these modules
met specific computer industry standards [e.g., Video Graphics
Array ("VGA"), Enhanced Graphics Adapter ("EGA"), or Color
Graphics Adapter ("CGA")] and, therefore, were principally used
as ADP output units, classifiable under heading 8471, HTSUS.
These industry standards are consistent with our information from
VESA (Video Electronics Standards Association), an organiztion of
major personal computer (PC) graphics vendors devoted to
improving graphics standards by setting and supporting industry-wide standards for the PC, workstation, and computing
environments.
We find the criteria enunciated in HQ 952502 to be
applicable to the determination of principal use in the instant
case. Accordingly, for an EL flat-panel display to be an ADP
output unit of heading 8471, it must generally meet the same
criteria as that of an LCD flat panel display for an ADP machine.
Applying the principles stated in HQ 952502, an EL display panel
must be: connectable to the CPU; capable of receiving data from
an ADP system; and, be of a type of display that is principally
or solely used in an ADP system. We find that complete or
finished EL flat panel displays, groups 1 through 4, which are
connectable to a CPU, capable of receiving data from an ADP
system, and meet the specific computer industry standards of CGA,
EGA, and VGA are classifiable under heading 8471, HTSUS.
Depending upon the size of the screen (visual display diagonal),
EL flat-panel displays, groups 1 through 4, are classifiable
under subheading 8471.60.30 or 8471.60.45, HTSUS, which provides
for ADP output units. In NY 880138 (November 19, 1992) and NY
887698 (July 2, 1993), Customs held that EL displays meeting the
VGA standard (a 640 x 480 pixel configuration) and were either
contained in an ADP unit or were finished input/output units, are
classifiable under heading 8471, HTSUS. Therefore, we find that
NY 880138 and NY 887698 support the legal analysis stated above.
As Customs becomes aware of new definable industry
standards, we will examine this issue further and, if necessary,
update the criteria used in classifying ADP output units. This
ruling neither modifies nor revokes prior rulings involving the
classification of LCDs. Those rulings are still valid. This
ruling merely expands the class of computer displays which
Customs will accept as ADP output units classifiable under
heading 8471, HTSUS.
HOLDING:
Finished EL flat-panel displays, groups 1 through 4, are
classifiable under subheading 8471.60.30 or 8471.60.45, HTSUS
[depending upon the screen diagonal], as ADP output units.
Classification of finished EL flat-panel displays, groups 5
through 10 will be the subject of a separate Headquarters ruling.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division