CLA-2 CO:R:C:M 951868 MBR
Mr. Peter J. Gartland
Donovan Leisure Newton & Irvine
30 Rockefeller Plaza
New York, N.Y. 10112
RE: Liquid Crystal Display; LCD; Glass Sandwich; Part For ADP
Output Display; 9013; 8531; 8471; E.M Chemicals v. United
States; HQ 951609; HQ 952360; HQ 951288
Dear Mr. Gartland:
This is in response to your letter of May 12, 1992, on behalf
of Sharp Electronics Technology, Inc., requesting the
classification of glass sandwiches for liquid crystal displays,
under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The instant merchandise is a Liquid Crystal Display ("LCD")
glass sandwich for a laptop computer display, designated as Sharp
model number LM64P70. The "glass sandwich" consists of two pieces
of glass, with internal electrodes, liquid crystals, and a
polarizing filter. The glass sandwich is imported without the
following components: the bezel, the cable connector, the LSI
(Large Scale Integration chips), the diffuser, the rubber spacer,
the light pipe, the reflector, the plastic chassis, the lamp, the
lamp holder, the connector, and the wire.
ISSUE:
Are glass sandwiches for liquid crystal displays classified
under heading 8531, HTSUS, which provides for electric sound or
visual signaling apparatus, or under heading 8471, HTSUS, which
provides for ADP output devices, or under heading 9013, HTSUS,
which provides for liquid crystal devices, under the Harmonized
Tariff Schedule of the United States (HTSUS)?
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Liquid crystal displays (LCDs) are prima facie classifiable
under the following subheadings:
8531 Electric sound or visual signaling apparatus (for example,
bells, sirens, indicator panels...
8531.20.00 Indicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's).
* * * * * * * * * * * * * *
9013 Liquid crystal devices not constituting articles provided for
more specifically in other headings.
9013.80.60 Other devices, appliances and instruments: Other.
* * * * * * * * * * * * * *
8471 Automatic data processing machines and units thereof.
8471.92.80 Other: Input or output units...: Other: Other: Units
suitable for physical incorporation into automatic
data processing machines or units thereof.
* * * * * * * * * * * * * *
Heading 8531, HTSUS, provides for electric sound or visual
signaling apparatus. Therefore, to be classifiable in this
heading, the apparatus must be designed for "signaling."
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) to heading 8531, HTSUS, page 1381, are
fairly descriptive and restrictive as to the types of "signalling"
indicator panels and the like must perform in order to be
classifiable there. It states: "[t]hese are used (e.g., in
offices, hotels and factories) for calling personnel, indicating
where a certain person or service is required, indicating whether
a room is free or not. They include:
(1) Room indicators. These are large panels with numbers
corresponding to a number of rooms...
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(2) Number indicators. The signals appear as illuminated
figures on the face of a small box; in some apparatus of
this kind the calling mechanism is operated by the dial
of a telephone. Also clock type indicators in which the
numbers are indicated by a hand moving round a dial.
(3) Office indicators, for example, those used to indicate
whether the occupant of a particular office is free or
not...
(4) Lift indicators. These indicate, on an illuminated
board, where the lift is and whether it is going up or
down.
Therefore, only those LCDs which are limited by design and
function to that of "signaling," are classifiable in heading 8531,
HTSUS.
You argue that the instant Sharp LM64P70 glass sandwich is
designed for ADP output displays (laptop and notebook computer
displays). We agree. The instant glass sandwich exhibits the
following ADP display characteristics: a pixel configuration of 640
X 480, a dot pitch of .27 to .30mm, a thin profile, light weight,
a liquid crystal material mix with 150 to 200 milliseconds response
time signal to signal, and low power consumption (5V). Therefore,
it is not designed for or dedicated to signaling functions, and is
not classifiable under heading 8531, HTSUS.
E.M. Chemicals v. United States, Appeal No. 90-1141, Cust.
Bul. Vol. 24, No. 51, (1990), 728 F. Supp. 723 (1989), held that
liquid crystals were classifiable under item 685.70, under the TSUS
(the predecessor provision to heading 8531, HTSUS). However, there
has been a significant change in the relevant tariff provisions
under the HTSUS. In fact, there was no heading for "liquid Crystal
Displays" (such as heading 9013, HTSUS), under the TSUS.
Furthermore, LCDs have been technologically developed for a myriad
of uses, many of which cannot be said to be for "signaling."
Heading 9013, HTSUS, provides for: "[l]iquid crystal devices
not constituting articles provided for more specifically in other
headings. The ENs to heading 9013, HTSUS, page 1478, state:
(1) Liquid crystal devices consisting of a liquid crystal
layer sandwiched between two sheets or plates of glass
or plastics, whether or not fitted with electrical
connections, presented in the piece or cut to special
shapes and not constituting articles described more
specifically in other headings of the Nomenclature.
You argue that the instant LCD glass sandwich is a component
part of an ADP display for notebook and laptop computers. We
agree. However, the instant glass sandwich is not a finished or
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even an unfinished ADP display. The instant LCD is imported
without the following necessary components: the bezel, the cable
connector, the LSI (Large Scale Integration chips), the diffuser,
the rubber spacer, the light pipe, the reflector, the plastic
chassis, the lamp, the lamp holder, the connector, and the
connection wire. Therefore, the instant glass sandwich is found
not to impart the essential character of a finished ADP output
display. See HQ 086929, dated January 31, 1991, which held that
a cathode ray tube for an ADP output unit was not classifiable as
an unfinished ADP output device, and was instead classifiable in
subheading 8540.30.00, HTSUS, which provides for other cathode-
ray tubes.
You argue that, pursuant to Section XVI, Legal Note 2(a)
regarding the classification of parts in chapters 84 and 85, the
instant LCD glass sandwich is classifiable under subheading
8473.30.40, HTSUS, which provides for: "[p]arts and accessories...
suitable for use solely or principally with machines of headings
8469 to 8472: [p]arts and accessories of the machines of heading
8471: [n]ot incorporating a cathode ray tube." However, Section
XVI, Legal Note 2 states, in pertinent part: "Subject to note 1 to
this section...." (Emphasis added). Section XVI, Legal Note 1
states, in pertinent part:
1. This section does not cover:
(m) Articles of chapter 90
Therefore, if the instant LCD glass sandwich is classifiable
in chapter 90, it is not classifiable anywhere in Section XVI.
Heading 9013, HTSUS, specifically provides for: "[l]iquid crystal
devices not constituting articles provided for more specifically
in other headings."
You argue that heading 8473, HTSUS, which provides for "parts
and accessories...suitable for use solely or principally with the
machines of headings 8469 to 8472," is more specific than heading
9013, HTSUS, which provides for "liquid crystal devices...." You
cite the following cases to support your position: Beacon Cycle &
Supply Co., Inc. v. United States, 458 F.Supp. 813 (1978), Rollix
Bearing, Inc. v. United States, 757 F.Supp. 1412 (1991), Kores
Manufacturing Corp. v. United States, 545 F.Supp. 1303 (1982),
United States v. Porter, 645 F.2d 52 (1981). However, these cases
represent the TSUS principle that although a parts provision does
not prevail over a specific provision for that part, it does
prevail over a basket provision for articles not specifically
provided for. It is Customs position that heading 9013, HTSUS,
which provides for liquid crystal displays, is not a basket
provision, even though it contains the language "not constituting
articles provided for more specifically in other headings."
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Therefore, it is Customs position that heading 9013, HTSUS,
which specifically provides for LCDs is more specific than heading
8473, HTSUS, which provides for the plethora of parts for the
machines of headings 8469 to 8472, HTSUS. Therefore, the instant
glass sandwiches are classifiable in chapter 90, and are
consequently not classifiable anywhere in Section XVI. Thus, we
disagree with your assertion on page 5 of your July 20, 1992, brief
which stated that there is no Section XVI Legal Note applicable to
chapter 90 [see Section XVI Legal Note 1.(m)].
You cite GRI 3(a), which states that where goods are
classifiable under two or more headings, "[t]he heading which
provides the most specific description shall be preferred to
headings providing a more general description." It is Customs
position that heading 9013, HTSUS, is a more specific provision
than heading 8473, HTSUS. However, GRI 3(a) need not be consulted
because the General Rules of Interpretation state, in pertinent
part, the following:
Classification of goods in the tariff schedule shall be
governed by the following principles:
1. ...for legal purposes, classification shall be determined
according to the terms of the headings and any relative
section or chapter notes and, provided such headings or
notes do not otherwise require, according to the
following provisions.
Therefore, since Section XVI, Legal Note 1(m) requires that
articles classifiable in chapter 90 are not classifiable in Section
XVI, further GRIs need not be consulted.
You also cite Additional U.S. Rule of Interpretation 1.(c),
which states, in part:
1. In the absence of special language or context which
otherwise requires--
(c) a provision for parts of an article covers products
solely or principally used as a part of such
articles but a provision for "parts" or "parts and
accessories" shall not prevail over a specific
provision for such part or accessory.
However, we do consider heading 9013, HTSUS, to be a specific
provision which prevails over heading 8473, HTSUS, (which provides
for "parts"). It is also important to note that the Additional
U.S. Rules of Interpretation are prefaced by the following
language: "[i]n the absence of special language or context which
otherwise requires--." Clearly, Section XVI, Legal Note 1(m) is
"special language" which requires otherwise.
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The Sharp LM64P70 glass sandwich is classifiable in subheading
9013.80.90, HTSUS. See HQ 951609, dated October 20, 1992, for our
response to the port of Portland, Oregon, regarding this same
issue. For other rulings regarding LCDs, see HQ 952360, dated July
7, 1992, and HQ 951288, dated July 7, 1992.
HOLDING:
The Sharp model LM64P70 glass sandwich is classifiable in
subheading 9013.80.60, HTSUS, which provides for: "[l]iquid crystal
devices not constituting articles provided for more specifically
in other headings: [o]ther devices, appliances and instruments:
[o]ther."
Sincerely,
John Durant, Director
Commercial Rulings Division
ATTACHMENT: HQ 951609