CLA-2 CO:R:C:M 955447 MBR
Ms. Jacqueline Paez
Sonnenberg, Anderson & Rodriguez
200 South Wacker Drive, 33rd Floor
Chicago, Illinois 60606
RE: Hosiden America Corporation; Mobile Telephone Liquid Crystal
Display Indicator Panel Modules; LCD; Glass Sandwich; HQs
952973, 954788, 954638, 951069, 951868, 086929, 087362
Dear Ms. Paez:
This is in response to your letter of November 9, 1993, on
behalf of the Hosiden America Corporation, requesting the
classification of Liquid Crystal Display Indicator Panel Modules
and glass sandwiches for mobile telephones, under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
The subject merchandise consists of Liquid Crystal Display
Indicator Panel Modules ("LCDIPMs") with row and column drivers,
and glass sandwiches for LCDs, which are designed for and dedicated
to mobile telephones. These LCDs are designed and manufactured to
have character graphics. However, different color filters,
backlighting, or artwork fonts may be used depending on the
customer's needs. These LCDs display either one or two rows
containing seven or ten segment characters to display telephone
numbers, and symbol or letter characters to indicate other
information (i.e., "Pwr", "InUse", "NoSvc", and "Roam"). Some
models may include a series of bars to indicate volume, power
availability, and signal strength.
ISSUE:
Are LCDIPMs and glass sandwiches for LCDIPMs classified under
heading 8531, HTSUS, which provides for electric sound or visual
signaling apparatus, or under heading 9013, HTSUS, which provides
for liquid crystal devices n.s.p.f., under the 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...
The instant LCDIPMs and glass sandwiches 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).
8531.90.80 Parts: Other
* * * * * * * * * * * * * *
9013 Liquid crystal devices not constituting articles provided for
more specifically in other headings.
9013.80.60 Other devices, appliances and instruments: Other.
* * * * * * * * * * * * * *
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...
(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.
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(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. Customs concurs that the instant Hosiden LCDIPMs and glass
sandwiches are designed for and dedicated to signaling. The
complete LCDIPMs impart the essential character of the mobile
telephone indicator panels. See HQ 952973, dated August 5, 1993,
in which LCD with row and column drivers was found classifiable as
an unfinished ADP display.
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, further
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.
However, the LCDIPMs are more specifically described in
subheading 8531.20.00, HTSUS, which provides for: "[e]lectric sound
or visual signalling apparatus...: [i]ndicator panels incorporating
liquid crystal devices (LCD's)...." Customs has consistently held
that subheading 8531.20.00, HTSUS, is more specific than subheading
9013.80.60, HTSUS. See HQ 952973, dated August 5, 1993, HQ 954788,
dated December 1, 1993, and HQ 954638, dated December 2, 1993.
Therefore, these LCDIPMs are classifiable in subheading 8531.20.00,
HTSUS.
However, the glass sandwiches themselves do not impart the
essential character of finished "Indicator panels incorporating
liquid crystal devices ...." See HQ 951868, dated October 31,
1992, and HQ 951069, dated October 20, 1992, which held that glass
sandwiches for LCDs did not impart the essential character of ADP
displays. See also 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.
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Thus, the glass sandwiches remain prima facie classifiable in
subheading 8531.90.80, HTSUS, (which provides for parts of electric
sound or visual signalling apparatus), and subheading 9013.80.60,
HTSUS, (which provides for LCDs not provided for more specifically
in other headings). However, it is Customs position that
subheading 8531.90.80, HTSUS, a provision for parts, is not more
specific than subheading 9013.80.60, HTSUS, which provides for
LCDs. See the Additional U.S. Rules of Interpretation which state:
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"
Therefore, the glass sandwiches are classifiable in subheading
9013.80.90, HTSUS.
An issue has been raised regarding HQ 087362, dated February
19, 1991, in which keyboards for mobile telephones were found to
be classifiable in heading 8529, HTSUS, which provides for parts
of mobile telephones, instead of heading 8537, HTSUS, which would
appear to be a more specific provision. However, as HQ 087362
clearly stated on page 2 of the ruling: "This type of device is not
described by the terms of heading 8537, and thus is not
classifiable therein." (Emphasis added).
Similarly, both headings 8531, HTSUS, and 9013, HTSUS, are
more specific than heading 8529, HTSUS, which provides for parts
of mobile telephones.
HOLDING:
The Hosiden Liquid Crystal Display Indicator Panel Module 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)." The rate of duty is 2.7 percent ad valorem.
The Hosiden glass sandwich, designed for mobil telephone
indicator panels, is 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 rate of duty
is 9 percent ad valorem.
Sincerely,
John Durant, Director