CLA-2 RR:CR:GC 959229 RFA
Port Director
U.S. Customs Service
300 S. Ferry Street
Terminal Island
Los Angeles, CA 90731
RE: Protest 2720-96-100047; Liquid Crystal Displays (LCDs); Flat Panel Displays; Signaling Apparatus; Principal Use; Sharp Microelectronics Technology, Inc. v. United States; Headings 8531 and 9013; HQs 959945, 952722
Dear Port Director:
The following is our decision regarding Protest 2720-96-100047, which concerns the classification of liquid crystal devices (LCDs) for signaling apparatus under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing our response, we considered the information provided by counsel on January 26, March 10, and April 30, 1998, and February 17, 1999.
FACTS:
The merchandise consists of two Epson America liquid crystal display (LCD) modules, model EG8501B-LZ and ECM-A0428-F. Each of the LCDs consist of the display glass with row and column drivers, printed circuit boards (PCBs) and tab interconnections housed inside a bezel. According to information provided by counsel, model EG 8501B-LZ is a graphic type LCD with a pixel configuration of 320 x 240 (commonly referred to as a “Quarter-VGA” LCD). Model ECM-A0428-F is a customized graphic LCD, with a pixel configuration of 280 x 128, for use as a display with a telephone. After importation, model ECM-A0428-F will be assembled into the Meridian M3000 Touchphone so that it can visually present limited information regarding the operational status of the touchphone.
The LCD modules were entered on June 30 and July 31, 1995, under subheading 8531.80.80, HTSUS, as other signaling apparatus. The entries were liquidated on October 13 and November 13, 1995, respectively, under subheading 9013.80.60, HTSUS, as liquid crystal devices not specified or included elsewhere. The protest was timely filed on January 11, 1996.
The subheadings under consideration 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. . . :
8531.20.00: Indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's).....
8531.80.80: Other apparatus: [o]ther. . . .
Goods classifiable under these provisions have a general, column one rate of duty of 2.4 percent ad valorem.
9013.80.60 Liquid crystal devices not constituting articles provided for more specifically in other headings. . . : [o]ther devices, appliances and instruments: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of 8.1 percent ad valorem.
ISSUE:
Are the subject LCDs classifiable as signaling apparatus, or as liquid crystal devices not constituting articles provided for elsewhere 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.
LCDs are prima facie classifiable in the following HTSUS headings: 8471, which provides for ADP machines and units thereof; 8531, which provides for electric sound or visual signaling apparatus; and, 9013, which provides for liquid crystal devices not constituting articles provided for in other headings. Legal Note 1(m) to Section XVI, HTSUS (which includes chapter 84), states that: “[t]his section does not cover: [a]rticles of chapter 90.” Because of the wording of heading 9013, if the subject merchandise is provided for more specifically in another heading, it would not be classifiable in heading 9013. See Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499 (CIT 1996), aff’d., 122 F.3d 1446 (CAFC 1997). See also HQ 959175, dated November 25, 1996. Therefore, if an LCD does not meet the terms of either headings 8471 or 8531, then it is classifiable under heading 9013.
In HQ 959945, dated November 19, 1997, Customs determined that the class of Quarter-VGA displays are not of the kind solely or principally used in an ADP system because of there wide usage in a variety of as displays for such things as portable data terminals, digital scale (weight/price indication), and global positioning (indicates location information). Classification is determined based upon the use of the class of goods and not the actual use of the specific imports. Group Italglass U.S.A., Inc. v. United States, 839 F.Supp. 866, 867, 17 CIT 1177, 1177 (1993). Customs determined that because the class of Quarter-VGA displays are providing certain limited indication information to the user, they are classifiable under heading 8531, as visual signaling apparatus. Based upon the application of HQ 959945, we find that the subject Quarter-VGA LCD, model EG 8501B-LZ, belongs to the class or kind of LCDs that are classifiable under heading 8531, as signaling apparatus.
According to the information provided, model ECM-A0428-F is a customized graphic LCD which will visually present limited information regarding the operational status of the Meridian M3000 Touchphone. In HQ 952722, dated September 27, 1994, Customs determined that an LCD module used for a telecom console was principally used and/or limited by design to “signaling” because it provided limited indication information to a user. Based upon the rationale in HQ 952722, we find that the subject LCD, model ECM-A0428-F, which is used as a telephone console display is classifiable under heading 8531.20.00, HTSUS, as signaling apparatus.
HOLDING:
The subject Quarter-VGA LCD, model EG 8501B-LZ, and the LCD model ECM-A0428-F, are classifiable under subheading 8531.20.00, HTSUS, which provides for: “[e]lectric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530. . . : [i]ndicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's).....” Goods classifiable under this provision have a general, column one rate of duty of 2.4 percent ad valorem.
The protest should be ALLOWED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division