CLA-2 R:C:M 957836 LTO
Port Director
U.S. Customs Service
300 S. Ferry Street
Room 1001
Los Angeles, California 90731
RE: Protest 2720-95-100233; Monitors for gaming machines; HQs 952716, 953896; Section XVI, Note 1(p); Chapter 95, Note 3; Additional U.S. Rule of Interpretation 1(c); heading 8528; EN 95.04
Dear Port Director:
The following is our reply to a request from the former District Director, Los Angeles, California, regarding Protest 2720-95-100233, which concerns the classification of monitors for gaming machines under the Harmonized Tariff Schedule of the United States (HTSUS). The subject merchandise was entered on October 5, November 14 and November 16, 1994, and the entries were liquidated on February 10, 1995. The protest was timely filed on February 27, 1995.
FACTS:
The article in question is a 14-inch VGA monitor for a "gaming machine" (i.e., electronic poker or blackjack machines). The monitor, which is not housed, has a series of mounting brackets--adjustable brackets on the top and sides, and a fixed bracket on the bottom--which permit attachment to the remainder of the gaming machine. A small border of the gaming machine fits around the monitor so that only the monitor's screen is visible. The protestant states that the monitor receives a non-composite signal, which is produced by the gaming machine's hardware and software. A non-composite signal is a single band signal used primarily to produce visuals, such as those found on
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an electronic poker or blackjack machine. The sound from the gaming machine is produced by the internal programming functions.
The monitors were entered under subheading 9504.30.00, HTSUS, which provides for parts and accessories for coin- or token-operated games. They were classified upon liquidation under subheading 8528.10.28, HTSUS, which provides for other non-high definition television receivers, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm.
ISSUE:
Whether the monitors are classifiable as other non-high definition television receivers, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm, under subheading 8528.10.28, HTSUS, or as parts for coin- or token-operated games under subheading 9504.30.00, 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 that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The headings under consideration are as follows:
8528 Television receivers (including video monitors and video
projectors), whether or not incorporating radiobroadcast
receivers or sound or video recording or reproducing
apparatus
9504 Articles for arcade, table or parlor games, including pinball
machines, bagatelle, billiards and special tables for casino
games; . . . parts and accessories thereof
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EN 95.04, pg. 1589, states that heading 9504, HTSUS, covers "[v]ideo games (used with a television receiver or having a self-contained screen) and other games of skill or chance with an electronic display," as well as, "[c]oin- or disc-operated machines of the kinds used in amusement arcades, cafes, funfairs, etc., for games of skill or chance (e.g., machines for revolver practice, pintables of various types.)." The monitor in question is used with electronic poker, blackjack, etc., machines. These machines are akin to video games, are coin-operated and are used in casinos for games of skill and/or chance. Accordingly, complete "gaming machines" of this type are classifiable under heading 9504, HTSUS.
With regard to the classification of the monitor itself, Additional U.S. Rule of Interpretation 1(c), HTSUS, provides that "[i]n the absence of special language or context which otherwise requires--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 [emphasis in original]." Note 3 to chapter 95, HTSUS, provides such special language or context. Note 3 provides that "[s]ubject to note 1 above, parts and accessories which are suitable for use solely or principally with articles of this chapter are to be classified with those articles." Thus, if the monitors are classifiable as parts or accessories for coin- or token-operated games, they cannot be classified under heading 8528, HTSUS. See also Section XVI, note 1(p), HTSUS (which excludes articles of chapter 95 from section XVI); HQ 952716, dated March 3, 1993 (swimming pool accessories); HQ 953896, dated February 2, 1994 (swimming pool accessories).
The 14-inch, unhoused VGA monitor in question has a series of mounting brackets--adjustable brackets on the top and sides, and a fixed bracket on the bottom--which permit attachment to the remainder of the gaming machine. A small border of the gaming machine fits around the monitor so that only the monitor's screen is visible. The protestant states that the monitor receives a non-composite signal, which is produced by the gaming machine's hardware and software. A non-composite signal is a single band signal used primarily to produce visuals, such as those found on
an electronic poker or blackjack machine. A television monitor, on the other hand, receives a composite signal, which is a signal that is broken up into two or more parts--one to produce a visual and one to produce sound.
It is our opinion that, due to its special design (the monitor is unhoused, fitted to a gaming machine with mounting brackets, one of which is fixed, and, most importantly, uses a non-composite signal to produce visuals), the monitor is "solely or principally" used with the gaming machines of heading 9504, HTSUS. The monitor is therefore classifiable as a part for coin- or token-operated games under subheading 9504.30.00, HTSUS, and cannot be classified under heading 8528, HTSUS.
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HOLDING:
The monitors for gaming machines are classifiable under subheading 9504.30.00, HTSUS.
The protest should be GRANTED. In accordance with section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to the mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available
to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification Appeals Division