CLA-2 CO:R:C:M 955444 RFA

Ms. Sandra L. Haupt
Tower Group International, Inc.
128 Dearborn Street
Buffalo, NY 14207-3198

RE: Light-Emitting Diodes (LED); Diolux LED Lamps; parts of traffic signal lights; heading 8530; EN 85.41; Section XVI, note 2(a); HQs 952718 and 088495

Dear Ms. Haupt:

In a letter dated October 6, 1993, to the District Director of Customs in Buffalo, New York, on behalf of Ecolux Inc., you inquired as to the tariff classification of the Diolux LED (Light-Emitting Diode) Lamps under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response.

FACTS:

The subject merchandise, the Diolux 15 watt red light- emitting diode (LED) replacement lamp is comprised of conical cells (individual LEDs) placed in a honeycomb structure to provide a uniform brightness over the entire surface of the compound lens regardless of the viewer's position. This type of lamp is designed to replace the conventional incandescent red traffic signal lamps which will result in cutting energy consumption by the user. According to the information provided, only the LED conical honeycomb cell structure is to be imported. The balance of the traffic signal light will be added in the United States.

ISSUE:

Is the Diolux LED Lamps classifiable as a part of a traffic signal light or as an LED under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

The subject merchandise is designed to replace the conventional incandescent red traffic signal lamps. There is no dispute that it is a part of a traffic signal lamp. Parts of traffic signal lamps are provided for under heading 8530, HTSUS. However, parts which are classifiable under chapter 85, HTSUS, are subject to Section XVI, note 2, HTSUS, which provides as follows:

parts of machines (not being parts of the articles of heading No. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of Chapter 84 and 85 (other than headings No. 84.85 and 85.48) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading No. 84.79 or 85.43) are to be classified with the machines of that kind. However, parts which are equally suitable for use principally with the goods of headings No. 85.17 and 85.25 to 85.28 are to be classified in heading 85.17;

(c) All other parts are to be classified in heading No. 84.85 or 85.48.

If the Diolux LED Lamps are included in any of the headings in chapter 85, it must be classified there based upon Section XVI, note 2(a). According to the information provided, the merchandise consist of individual LEDs assembled together to make a light.

Van Nostrand's Scientific Encyclopedia, 7th Edition (1989), defines the operation of LEDs:

Recombination or injection electroluminescence was first observed in 1923 by Lossew, who found that when point electrodes were placed on certain silicon carbide crystals and current passed through them, light was often emitted. Explanation of this emission has been possible only with the development of semiconductor theory. If minority charge carriers are injected into a semiconductor, i.e., electrons are injected into p- type material or "positive holes" into n-type material, they recombine spontaneously with the majority carriers existing in the material. If some of these recombinations result in the emission of radiation, electroluminescence results.

Subheading 8541.40.20, HTSUS, provides for: "[d]iodes, transistors and similar semiconductor devices;. . .light-emitting diodes; . . . : . . . light-emitting diodes: Light-emitting diodes (LED's)."

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. EN 85.41, page 1399, states:

Light emitting diodes, or electroluminescent diodes, (based, inter alia, on gallium arsenide or gallium phosphide) are devices which convert electric energy into visible, infra-red or ultra-violet rays. They are used, e.g., for displaying or transmitting data in control systems. (emphasis in original)

In HQ 952718, dated February 3, 1993, Customs held that a Back Light, containing 4 LEDs in a white plastic housing with a diffuser panel was an LED because it was a device which converted electric energy into visible rays which are used for displaying. In that ruling, Customs further stated as follows:

In HQ 088495 (April 12, 1991), we held that the common and commercial meaning of an LED includes completed LED "devices" such as LEDs in plastic or metal housings. The Back Light is made up of four LEDs held together in a housing in order to evenly illuminate a display panel such as an LCD [liquid crystal display]. Based upon HQ 088495, we find that the Back Light is classifiable as an LED, and the presence or absence of a housing is not determinative of classification.

Based upon the holding in HQ 952718, we find that the Diolux LED Lamp is an LED because it is a device which converts electric energy into visible rays which are used for displaying a traffic signal. The fact that the merchandise consists of several LEDs which are contained within a honeycomb structure to provide illumination is not determinative of classification. The merchandise is classifiable under subheading 8541.40.20, HTSUS, which provides for LEDs. Classification of the Diolux LED Lamp under heading 8530, HTSUS, is therefore inapplicable by application of Section XVI, note 2(a).

HOLDING:

The Diolux LED Lamp is classifiable under subheading 8541.40.20, HTSUS, which provides for: "[d]iodes, transistors and similar semiconductor devices;. . . light-emitting diodes; . . .: . . . light-emitting diodes: Light-emitting diodes (LED's)". The column 1, general rate of duty is 2 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division