CLA-2 CO:R:C:M 952246 MBR
Mr. Dennis Heck
Tower Group International, Inc.
5420 West 104th Street
Los Angeles, CA 90045
RE: Epson America, Inc.; Liquid Crystal Display; LCD; Signaling;
ADP Display; 8531; 8471; 9013; HQ 951609; HQ 951288; HQ
952360; E.M. Chemicals v. United States
Dear Mr. Heck:
This is our reply to your letter of July 16, 1992, requesting
classification of Liquid Crystal Displays (LCDs), under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
EPSON's dot matrix LCD modules consist of a newly developed
TN and STN positive/reflective type liquid crystal display with
high-contrast, wide-viewing angle and wide operating temperature
range, C-MOS LSI driver and controller. EPSON's easily installed
LCD modules have a multiple instruction set, and a wide variety of
applications. The provided literature delineates the following
applications: portable computers, hand-held terminals, computer
terminals, word processor/typewriters, instrument devices, POS
terminals, telecommunications terminals, and synthesizers. The EA
and EG-X Series have built-in DATA RAM for display data
storage/refresh on board which provide for easy microprocessor
interface with most CPUs.
The features of the EA Series are as follows: alphanumeric and
special symbols, 5 x 7 dot matrix with cursor, 5 x 11 dot matrix
without cursor, 5 x 12 dot matrix without cursor, and 16 to 80
character display.
The EG Series features are as follows: 1/64 to 1/242
multiplexing, graphics and characters, special controller. The EG-
X Series provides easy connection to the bus line of most 4-bit/8-
bit microcomputers, and has both graphics and characters.
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The Test and Control Module (TCM) and the Epson Custom Module
(ECM) contain row and column drivers and are utilized as ADP
displays, fish finders, point of sale terminals, medical equipment,
etc.
ISSUE:
Are 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)?
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."
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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 "signaling"
indicator panels and the like must perform in order to be
classifiable in that provision. 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...
(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. etc.
Therefore, only those LCDs which are limited by design and
function to that of "signaling," are classifiable in heading 8531,
HTSUS. In HQ 951288, dated July 7, 1992, we held that the Epson
EA-D16125AR-S (2 lines of 16 characters) is restricted by its
limited operational capabilities to that of signaling functions,
and is classifiable under heading 8531, HTSUS.
E.M. Chemicals v. United States, Appeal No. 90-1141, Cust.
Bul. Vol. 24, No. 51, (1990), 13 CIT 849, 728 F. Supp. 723 (1989),
held that under the TSUS, liquid crystals were classifiable under
item 685.70 (the predecessor provision to heading 8531, HTSUS).
However, there has been a significant change in the relevant tariff
provisions under the HTSUS. In fact, heading 9013, HTSUS, which
provides for LCDs specifically, is a new provision under the HTSUS.
Furthermore, LCDs have been technologically developed for a myriad
of uses, many of which cannot be said to be for "signaling."
Due to the expansive character capabilities of the EG-2401S-
ER-1 (1 line with 64 characters) and EG-7500B-NS-1 (1 line with 200
characters) a principal use of signaling cannot be supported. See
HQ 951288, dated July 7, 1992, for a protest decision regarding
Epson LCDs.
Automatic Data Processing machine LCD flat panel displays
(laptop and notebook computer displays) typically exhibit the
following characteristics: pixel configuration (640 X 480), dot
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pitch (.27 to .30mm), thin profile, light weight, liquid crystal
material mix (150 to 200 milliseconds response time signal to
signal), and low power consumption (5V). The Epson EG7009N-NS
8834COS ADP display subassembly is a complete ADP Flat Panel
Display, missing only the exterior housing. Therefore, pursuant
to GRI 2(a), this model has the essential character of a finished
ADP display, classifiable under subheading 8471.92.80, HTSUS, which
provides for ADP output units suitable for physical incorporation
into ADP machines (notebook or laptop ADPs). See HQ 951609, dated
October 20, 1992, for a decision regarding ADP LCD glass
sandwiches, which were not classifiable as unfinished ADP output
units because they lacked the essential character of the finished
display. For other rulings regarding LCDs, see HQ 952360, and HQ
951288, dated July 7, 1992.
Section XVI, Legal Note 1(m) states that: "[t]his section does
not cover: [a]rticles of chapter 90." Heading 9013, HTSUS,
provides for: "[l]iquid crystal devices not constituting articles
provided for more specifically in other headings." Therefore, if
the Epson LCDs are provided for more specifically in another
heading, they would not be classifiable in heading 9013, HTSUS.
Therefore, unless a principal use for signalling (heading
8531, HTSUS) or as an ADP output unit (heading 8471, HTSUS) can be
established satisfactorily either by design limitation or other
reliable means, LCD displays are 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."
The Test and Control Module (TCM) and the Epson Custom Module
(ECM) contain row and column drivers and are utilized in numerous
applications, such as ADP displays, fish finders, point of sale
terminals, medical equipment, etc. Therefore, since there appears
to be no principal use and no design limitations, the TCM and ECM
are classifiable in subheading 9013.80.60, HTSUS.
HOLDING:
The Epson EA-D16125AR-S (2 lines of 16 characters) is
restricted by its limited operational capabilities to that of
signalling functions, therefore, it is classifiable in subheading
8531.20.00, HTSUS, which provides for: "[e]lectric sound or visual
signaling apparatus (for example, bells, sirens, indicator
panels...: [i]ndicator panels incorporating liquid crystal devices
(LCD's) or light emitting diodes (LED's)."
Due to the expansive character capabilities of the EG-2401S-
ER-1 (1 line with 64 characters) and EG-7500B-NS-1 (1 line with 200
characters) a principal use of signalling is not present.
Therefore, they are classifiable in subheading 9013.80.60, HTSUS,
which provides for: "[l]iquid crystal devices not constituting
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articles provided for more specifically in other headings: [o]ther
devices, appliances and instruments: [o]ther."
The Epson EG7009N-NS 8834COS ADP display subassembly is a
complete ADP Flat Panel Display, missing only the exterior housing.
Therefore, pursuant to GRI 2(a), this model has the essential
character of a finished ADP display, and is classifiable under
subheading 8471.92.80, HTSUS, which provides for ADP output units
suitable for physical incorporation into ADP machines (notebook or
laptop ADPs).
The Test and Control Module (TCM) and the Epson Custom Module
(ECM) contain row and column drivers and are utilized in numerous
applications, such as ADP displays, fish finders, point of sale
terminals, medical equipment, etc. Therefore, since there appears
to be no principal use and no design limitations, the TCM and ECM
are classifiable in subheading 9013.80.60, HTSUS.
Sincerely,
John Durant, Director