CLA-2 R:C:M 956870 KCC
Mr. David C. Soto
Alexander & Co., Inc.
P.O. Box 291929
Nashville, Tennessee 37229-1929
RE: Liquid Crystal Diode Display Panels; LCDs; Additional U.S.
Note 1(a); principal use; signaling apparatus; units
suitable for physical incorporation into ADP machines or
units thereof; EN 85.31; HRLs 951288, 954788, 953115,
952502, 951868, 952360, and 952973; LCDs not constituting
articles provided for more specifically in other headings
Dear Mr. Soto:
This is in response to your letter dated August 10, 1994, on
behalf of Brother Industries (USA), Inc., concerning the tariff
classification of Liquid Crystal Diode Display Panels under the
Harmonized Tariff Schedule of the United States (HTSUS). Copies
of the design contracts and engineering blue prints were
submitted for our examination. We regret the delay in responding
to your request.
FACTS:
The models of Liquid Crystal Diode Display Panels (LCDs) at
issue are:
1. #UG-483-001BP: 480 (wide) x 36 (high) dots per viewing area
- part code US0148-001
2. #UG-48B-004BP: 480 (wide) x 64 (high) dots per viewing area
- part code US0149-001
3. #UG-48D-005BP: 480 (wide) x 128 (high) dots per viewing area
- part code US0150-001.
You state that the LCDs typically exhibit the following
characteristics: a pixel configuration of 36 to 640 x 480, a dot
pitch of from .27 to .50 mm, a thin profile, light weight, a
specific liquid crystal mix (150 to 200 milliseconds response
time signal to signal), and low power consumption (+5V). You
state that these models are specifically produced for the Brother
Industries' line of word processors as per the submitted design
contracts and engineering blue prints. They are custom designed
and dedicated to specific instrumental functions which limit
their operational capabilities. Therefore, due to the design
limitations dedicating their use specifically for automatic data
processing machines (word processors), you contend that the LCDs
are properly classified under subheading 8471.92.80, HTSUS, as
"...[u]nits suitable for physical incorporation into automatic
data processing machines or units thereof...."
ISSUE:
Are the LCDs classified under subheading 8531.20.00, HTSUS,
as "[e]lectric sound or visual signaling apparatus...[i]ndicator
panels incorporating liquid crystal devices (LCD's)...", or under
subheading 8471.92.80, HTSUS, as "...[u]nits suitable for
physical incorporation into automatic data processing machines or
units thereof....", or under subheading 9013.80.60, HTSUS, as
"[l]iquid crystal devices not constituting articles provided for
more specifically in other headings..."?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states, in part, that "for legal purposes, classification
shall be determined according to terms of the headings and any
relative section or chapter notes...." The subheadings at issue
are as follows:
8471.92.80 Automatic data processing machines and units
thereof; magnetic or optical readers, machines for
transcribing data onto data media in coded form
and machines for processing such data, not
elsewhere specified or included...Other...Input or
output units, whether or not entered with the rest
of a system and whether or not containing storage
units in the same housing...Other...Other...Units
suitable for physical incorporation into automatic
data processing machines or units thereof....
8531.20.00 Electric sound or visual signaling apparatus (for
example, bells, sirens, indicator panels, burglar
or fire alarms), other than those of heading 8512
or 8530; parts thereof...Indicator panels
incorporating liquid crystal devices (LCD's) or
light emitting diodes (LED's)....
9013.80.60 Liquid crystal devices not constituting articles
provided for more specifically in other headings;
lasers, other than laser diodes; other optical
appliances and instruments, not specified or
included elsewhere in this chapter; parts and
accessories thereof...Other devices, appliances
and instruments...Other.
Heading 8471, HTSUS, and heading 8531, HTSUS, have been held to
be use provisions subject to Additional U.S. Note 1(a), HTSUS.
See, Headquarters Ruling Letter (HRL) 951288 dated July 7, 1992.
Additional U.S. Note 1(a), HTSUS, states that:
[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, unless a principal use for ADP output (heading 8471,
HTSUS) or signaling (heading 8531), HTSUS) can be established
satisfactorily either by design limitation or other reliable
means, LCDs are classifiable under subheading 9013.80.60, HTSUS.
You contend that the LCDs are classified under subheading
8471.92.80, HTSUS, as "...[u]nits suitable for physical
incorporation into automatic data processing machines or units
thereof...." There is a class of LCDs that are principally used
for ADP display. Automatic Data Processing machine LCD flat
panel displays (laptop and notebook computer displays) typically
exhibit the following characteristics: pixel configuration (640 x
480), dot 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). See,
Headquarters Ruling Letter (HRL) 952973 dated August 5, 1993, and
HRL 952502 dated March 18, 1993. None of the LCDs at issue will
be utilized as automatic data processing machine output devices.
As stated above, ADP LCD flat panel displays are
characteristically significantly larger and contain numerous
lines of characters. See, HRL 951288 and HRL 952973. Therefore,
the LCDs at issue are not classifiable under subheading
8471.92.80, HTSUS.
Subheading 8531.20.00, HTSUS, provides for "[e]lectric sound
or visual signaling apparatus...[i]ndicator panels incorporating
liquid crystal devices (LCD's)...." Therefore, to be classified
in this subheading, the LCDs must be designed for "signaling."
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System (HCDCS) Explanatory Notes
(ENs) may be consulted. The ENs, although not dispositive,
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of the
HTSUS. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23,
1989). EN 85.31 (pg. 1381) is fairly descriptive and restrictive
as to the types of "signaling" indicator panels and the function
they must perform in order to be classifiable in heading 8531,
HTSUS. EN 85.31 states indicator panels and the like: "[a]re
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. There are large panels with numbers
corresponding to a number of rooms. When a button is
pressed in the room concerned the corresponding number
is either lit up or exposed by the falling away of a
shutter or flap.
(2) Number indicators. The signals appear to 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. Some types are merely a simple "come in" or
"engaged" sign illuminated at will by the occupant of
the office.
(4) Lift indicators. These indicate, on an illuminated
board, where the lift is and whether it is going up or
down.
(5) Engine room telegraph apparatus for ships.
(6) Station indicating panels for showing the times and
platforms of trains.
(7) Indicators for race course, football stadiums, bowling
alleys, etc.
Certain of these indicator panels, etc., also
incorporate bells or other sound signaling devices (emphasis
in original).
Therefore, only those LCD's which are principally used
and/or limited by design to "signaling" are classifiable under
subheading 8531.20.00, HTSUS. See, HRL 954788 dated December 1,
1993, HRL 953115 dated May 10, 1993, HRL 952502, HRL 951868 dated
October 31, 1992, HRL 952360 dated October 15, 1992, and HRL
951288. The LCDs at issue are designed and used for word
processor displays. They are not principally used or designed as
signaling indicator panels. The LCDs classifiable under
subheading 8531.20.00, HTSUS, display limited indication
information to a user, i.e., measurement, coordinates, flow rate,
etc. The LCDs display more information than typical indicator
panels. Therefore, the instant LCDs are not principally used or
designed for visual signaling.
Since the LCDs at issue are not principally used or designed
for signaling under subheading 8531.20.00, HTSUS, or as an ADP
output under subheading 8471.92.80, HTSUS, they are classified
under subheading 9013.80.60, HTSUS, which provides for "[l]iquid
crystal devices not constituting articles provided for more
specifically in other headings...."
HOLDING:
The LCDs, model #UG-483-001BP, model #UG-48B-004BP, and
model #UG-48D-005BP, are classified under subheading 9013.80.60,
HTSUS, as "[l]iquid crystal devices not constituting articles
provided for more specifically in other headings.... The
corresponding duty rate for articles of this subheading is 8.1
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division