CLA-2 RR:TC:MM 960634 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); HQs 952502, 957795; HQ 957793,
clarified
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, May 15, 1996, and June 13, 1997.
FACTS:
In HQ 957795, dated March 3, 1997, Customs classified four
out of ten groups of Planar's 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). The four groups had pixel configurations of: 640 x 480
[also known as a Video Graphics Array (VGA) standard]; 640 x 400
[also known as a Enhanced Graphics Adapter ("EGA") standard]; 640
x 350 [also known as a EGA standard]; and 640 x 200 [also known
as a Color Graphics Adapter ("CGA") standard]. In that ruling,
Customs held that the first four groups of EL displays met the
terms of heading 8471, HTSUS, as automatic data processing (ADP)
output units because they met specific industry standards and the
terms of Legal Note 5(B) to chapter 84 [see attached copy of HQ
957795].
The merchandise now under consideration consists of the
remaining six groups of thin profile EL flat-panel displays which
were not classified in HQ 957795. 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 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.
ISSUE:
Whether Planar EL displays, groups 5 through 10, 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.
In HQ 957795, we stated that 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." 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, EL displays are classified as
electrical machines and apparatus not elsewhere specified for in
chapter 85 (heading 8543). See HQ 957795.
In HQ 957795 we stated that:
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 organization 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.
After issuing HQ 957795, we sought further information to
support a claim for principal use of groups 5 through 10.
However, you have not provided any additional information other
than your assertion that groups 5 through 10 are also ADP output
units. In the Planar sales literature for EL displays falling
within groups 1 through 4, there was evidence that supported the
claim that these groups of EL displays are VGA, EGA and CGA
compatible. However, in examining the documents and sales
literature that you submitted for groups 5 through 10, we find
that there is no similar evidence to support the claim that the
these groups meet a recognizable computer industry standard such
as CGA, EGA, and VGA. Furthermore, in your letter of June 13,
1997, you clearly indicate that Planar's displays do not meet the
terms of signaling as described in heading 8531, HTSUS, and again
merely asserted without any additional documentation, that the
remaining groups should also be classified under heading 8471,
HTSUS.
As stated in HQ 957795, without evidence to support the
claim of principal use either as ADP output units of heading
8471, or as signaling of heading 8531, then classification of EL
displays would devolve to heading 8543. Therefore, we find that
Planar displays, groups 5 through 10, are classifiable under
subheading 8543.89.90, HTSUS, which provides for: "[e]lectrical
machines and apparatus, having individual functions, not
specified or included elsewhere in this chapter. . . : [o]ther
machines and apparatus: [o]ther: [o]ther: [o]ther: [o]ther. . .
."
In resolving the classification issue of EL displays, we
have determined that HQ 957793, dated April 19, 1995, in which
Customs determined that a Planar EL display with a pixel
configuration of 320 x 256 [Group 7] was classifiable under
heading 8543, HTSUS, as other electrical machines and apparatus,
needs to be clarified. In that ruling, Customs based its
decision, in part, on Opinion 8543.80/1 of the Compendium of
Classification Opinions (Compendium) to the Harmonized Commodity
Description and Coding System (HS). 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, signaling, etc
(emphasis in original).
Since the issuance of HQ 957793, it has been brought to our
attention that the subject flat panel displays differ in many
respects from the EL devices described in the Compendium Opinion.
The devices described in the Compendium Opinion can only light up
their entire surface, uses alternating current, and are generally
used as backlighting devices. On the other hand, EL flat panel
displays can illuminate individual pixels identified through the
row and column drivers, uses direct current, and can be used in a
variety of devices. Because of these differences, we now find
that the Compendium Opinion is referring to an older technology
that does not describe the EL flat panel displays which are the
subject of these rulings. However, inasmuch as HQ 957793 is
classifying Planar EL displays and based upon your statements
that Planar's displays do not meet the terms of heading 8531, as
signaling, we find that the holding of HQ 957793 is correct and
should not be modified.
HOLDING:
Finished EL flat-panel displays, groups 5 through 10, are
classifiable under subheading 8543.89.90, HTSUS, which provides
for: "[e]lectrical machines and apparatus, having individual
functions, not specified or included elsewhere in this chapter. .
. : [o]ther machines and apparatus: [o]ther: [o]ther: [o]ther:
[o]ther. . . ." The column one, general rate of duty is 3.1
percent ad valorem.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division
Attachment: HQ 957795