CLA-2 CO:R:C:G 086929 MBR

Mr. Edward B. Ackerman
Siegel, Mandell & Davidson
One Whitehall Street
New York, N.Y. 10004

RE: Sony Corporation of America SD-175 High Resolution Cathode- Ray Tube For Data Display For ADP Systems; Revocation of NY 844868, dated September 5, 1989; Television CRT Standards

Dear Mr. Ackerman:

This is in reply to your letter of April 5, 1990, requesting reconsideration of NY 844868 (September 5, 1989) regarding classification of the Sony SD-175 High Resolution Cathode-Ray Tube, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The merchandise in question is manufactured by the Sony Corporation in Japan. Model SD-175 is a 13 inch, high resolution, color cathode-ray tube ("CRT"). The product's pitch is 0.26mm, the spot size is 0.7mm, the number of vertical color trios is 1,053 and the maximum horizontal scan frequency exceeds 48 kHz. This CRT costs aproximately two times as much as an equivalently sized consumer television CRT.

Previously, the SD-175 has been imported assembled in computer display terminals and sold exclusively to distributors of computers. Presently, Sony Corp. is planning to import the SD-175 CRT as a component and subsequently, to produce computer display devices in the United States.

ISSUE:

Is the Sony Corporation SD-175 high resolution cathode-ray tube properly classified under subheading 8540.11.00, HTSUSA, which provides for: "[t]hermonic, cold cathode or photocathode tubes...: [c]athode-ray television picture tubes, including video -2-

monitor cathode-ray tubes: [c]olor," or under subheading 8540.30.00, HTSUSA, which provides for: "[t]hermonic, cold cathode or photocathode tubes...: [o]ther cathode-ray tubes?"

LAW AND ANALYSIS:

NY 844868, dated September 5, 1989, noted that the World Type Designation Number (WTDS) of the SD-175 was M34JNQ15X, which indicated that the tube used a phosphor normally used in television sets. Therefore, without further information to the contrary, it was determined that the SD-175 would be utilized for progressive television sets, i.e., high definition television sets ("HDTV"). You assert that technology has changed such that phosphor type is no longer a reliable basis for making distinctions between ADP CRTs and television picture tubes. Furthermore, you state that the "SD-175 is designed for purposes wholly dissimilar to the contemplated requirements of proposed HDTV applications and is consistently utilized in computer terminals for alphanumeric data display. It cannot be used as a picture tube in HDTV, as that product is contemplated."

In general, a cathode-ray tube is defined as: "An electron beam tube in which the beam, or beams, can be focused to a desired cross section on a surface and varied in position and intensity to produce a visible or otherwise detectable pattern. Unless otherwise stated, the term cathode-ray tube is reserved for devices in which the screen is cathodoluminescent and in which the output information is presented in the form of a pattern of light." See The Glossary of Cathode-Ray Tube Terms and Definitions, Electronic Industries Association ("EIA") Publication No. 192. Cathode luminescence is defined as: "Luminescence produced by the bombardment of high-velocity electrons on a material in a vacuum that emits luminous energy." Id.

The House and Senate have stated:

CRTs are used in a variety of products including television receivers, monitors for television studios, monitors for security systems, certain types of data display terminals for automatic data processing uses, video games, oscilloscopes and terminals for word processing applications. Television picture tubes are a type of CRT. (Emphasis added).

H. Rep. No. 100-40, 100th Cong., 1st Sess. 218 (1987); S. Rep. No. 100-71, 100th Cong., 1st Sess. 156 (1987)

The Additional U.S. Rules of Interpretation state, in pertinent part:

1. In the absence of special language or context which -3-

otherwise requires--

(a) 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, it is necessary to determine 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 SD-175 belongs.

The disparities between consumer television CRTs and high resolution data display CRTs are a result of the different uses and functions they are designed to achieve, which is manifested in the structural design differences. For instance, data display CRTs are designed to display stationary text at a distance of 18 to 24 inches, which necessitates legibility, high contrast, and accuracy. Whereas, consumer television CRTs (picture tubes) are designed to display moving images at a distance of 6 feet, and focus on low cost, brightness, and clarity.

HQ 067255, dated March 21, 1983, established some parameters for delineating between television picture tubes and ADP CRTs, under the TSUS. However, we agree that these parameters must now be revised to reflect changes in technology.

In HQ 067255, we recognized the difficulty in establishing standards to delineate between these two classes of CRTs with the rapid advancement of technology. However, cathode-ray tubes possessing any of the following attributes should be considered for classification under the provision encompassing high resolution data display CRTs:

1. A monochrome tube having a phosphor other than white. However, white phosphor CRTs may be either type of CRT and a more in-depth analysis must be made.

2. Color tubes with extremely long persistence (LP) phosphors (produces smear, ghost, tail, etc., in television images, and thus would not be used in consumer television CRTs).

3. Monochrome and color CRTs having electron guns optimized for small spot size as compared to standard consumer television CRTs of the same size.

4. Monochrome tubes with electron guns having an inherent beam current limitation such as 50 microamperes -4-

maximum, and color tubes with electron guns having an inherent beam current limitation such as 200 microamperes maximum. (Although, smaller televisions may operate at this rate).

5. Monochrome tube gun elements which include electrostatic deflection plates not present in electro- magnetically deflected systems.

6. A CRT that can not be used for viewing images, or having special components mounted or laminated to the faceplate so that standard television images are not viewable.

7. CRTs with a shadow mask aperture of .31mm or smaller.

8. High price compared to similar sized screens used for consumer television CRTs.

Thus, these factors, either taken together or separately can be utilized in determining whether the CRT is intended to be a consumer television picture tube or a high resolution data display CRT. We would like to emphasize that these guidelines are based upon the best information available at this time, and will, in all probability, need to be revised again in the course of technological advancement.

The Sony Corporation model SD-175 high resolution cathode- ray tube meets the criteria for a high resolution data display CRT, therefore, it is properly classifiable under subheading 8540.30.00, HTSUSA, which provides for: "[t]hermonic, cold cathode or photocathode tubes...: [o]ther cathode-ray tubes."

Concern has arisen that, with the advent of "High Definition Television," distinctions between these two classes of CRTs will become even more difficult to delineate. However, we anticipate that distinctions will still remain. For example, consumer television aperture grill pitch is presently in the range of 0.6mm, the pitch of HDTV is anticipated to range between 0.43mm and 0.47mm, and high resolution data display terminals are in the range of 0.31mm and below. Similarly, whereas the number of trios (i.e., the number of combinations of red/green/blue phosphor repeated across the horizontal axis of the screen) per linear inch for the SD-175 is 100, the number of trios per linear inch contemplated for HDTV is 53. However, it should be noted that "trios per linear inch" provides a meaningful criteria only for resolution determinations in screens of the same size. Furthermore, the aspect ratio (horizontal dimension divided by vertical dimension) of HDTV is expected to differ markedly from that of either conventional consumer television or high resolution data display CRTs because HDTV will be designed to more closely resemble a movie theater screen. The current -5-

aspect ratio contemplated for HDTV is 16:9, whereas, the aspect ratio of the SD-175 (for example) is 4:3 (i.e., 12:9). Thus, in spite of the increased resolution capabilities of HDTV, such capabilities will still fall below the demands of the computer industry, and are designed to fulfill different needs.

HOLDING:

The Sony Corporation model SD-175 high resolution cathode- ray tube meets the criteria set out above for high definition data display CRTs, and is therefore properly classifiable under subheading 8540.30.00, HTSUSA, which provides for: "[t]hermonic, cold cathode or photocathode tubes...: [o]ther cathode-ray tubes." The rate of duty is 6% ad valorem.

EFFECT ON OTHER RULINGS:

NY 844868, dated September 5, 1989, is hereby revoked under authority of 177.9(d), Customs Regulations.

Sincerely,

John Durant, Director
Commercial Rulings Division