CLA-2 RR:TC:MM 958953 RFA
Donald Alfred Weadon, Jr., Esq.
601 Pennsylvania Avenue, N.W.
Suite 700- North Building
Washington, D.C. 20004-2602
RE: Liquid Crystal Display (LCD) Indicator Panel for
Typewriters; Signaling Apparatus; Headings 8473, 8531, 9013;
Legal Note 1(m) to section XVI; EN 85.31; HQs 951868,
951609, 952360, 952973, 954788, 953115, 952502, 951288, and
957435; HQ 952722, modified
Dear Mr. Weadon:
This is in reference to HQ 952722, issued to you on
September 27, 1994, in which several liquid crystal display
modules (LCDs) were classified under the Harmonized Tariff
Schedule of the United States (HTSUS). In the course of ruling
on similar merchandise involving LCDS for typewriters, we have
determined that HQ 952722 needed to be modified. Pursuant to
section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as
amended by section 623 of Title VI (Customs Modernization) of the
North American Free Trade Agreement Implementation Act (Pub. L.
103-182, 107 Stat. 2057)(1993), notice of the proposed
modification of HQ 952722 was published on March 20, 1996, in the
Customs Bulletin, Volume 30, Number 12. One comment, which
disagrees with the proposal, was received in response to the
notice.
FACTS:
The subject merchandise is an liquid crystal display (LCD)
panel, part number TLX-1151-50BN, for electric typewriters. The
LCD panel is attached to a printed circuit board (PCB) with row
and column driver integrated circuits, controller chips, Read
Only Memory, Random Access Memory, and a mounting bezel. The LCD
is ready to be installed/"plug in" condition.
ISSUE:
Whether the LCD panel for electric typewriters is
classifiable as parts of typewriters, or as a visual signaling
indicator panel, or as LCDs not constituting articles provided
for more specifically in other headings, under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
In HQ 952722, dated September 27, 1994, Customs determined
that the subject LCD panel for electric typewriters along with
other LCDs were classifiable under subheading 8531.20.00, HTSUS,
which provides for: "[e]lectric sound or visual signaling
apparatus . . . [i]ndicator panels incorporating liquid crystal
devices (LCD's)...." 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. 89-80, 54 FR 35127, 35128 (August 23, 1989).
EN 85.31, page 1381, is fairly descriptive and restrictive as to
the types of "signaling" 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 HQ 954788, dated December 1,
1993; HQ 953115, dated May 10, 1993; HQ 952502; HQ 951868, dated
October 31, 1992; HQ 952360, dated October 15, 1992; and HQ
951288, dated July 7, 1992.
In HQ 957435, dated August 8, 1995, Customs determined that
LCDs which are designed and used for electric typewriter
displays, are not principally used or designed as
signaling/indicator panels. In that ruling, Customs stated that
for LCDs to be classifiable under subheading 8531.20.00, HTSUS,
they must display limited indication information to a user, i.e.,
measurement, coordinates, flow rate, etc. Because the LCDs for
electric typewriters displayed more information than typical
indicator panels, Customs found that they were not principally
used or designed for visual signaling. Customs then considered
classification of the LCDs as parts of electric typewriters under
heading 8473, HTSUS. However, Legal Note 1(m) to section XVI,
HTSUS, 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 subject
merchandise is provided for more specifically in another heading,
it would not be classifiable in heading 9013, HTSUS. Customs
further stated that it is Customs position that heading 8473,
HTSUS, which provides for "parts," is not a more specific heading
than heading 9013, HTSUS. Therefore, because the subject
merchandise was classifiable in heading 9013, HTSUS, it was not
classifiable in heading 8473, HTSUS, which falls in section XVI,
HTSUS. HQ 957435. See also HQ 952973, dated August 5, 1993; HQ
951609, dated October 20, 1992; HQ 952360; and HQ 951868.
One comment was received in response to the proposed
modification. While the comment agrees that the merchandise does
not meet the terms of heading 8531, HTSUS, they disagree as to
classifying the subject LCDs for typewriters under heading 9013,
HTSUS, as opposed to heading 8473, HTSUS. The comment cites to
HQ 957723, dated June 2, 1995, in support that an LCD which
contains everything necessary to function, was not classifiable
under heading 9013, HTSUS. However, HQ 957723 dealt only with
the issue of a fixed-LCD or icon-type LCD which did not need row
and column drivers to display an image or limited information,
because the image was already ingrained into the glass. In its
condition as imported, the fixed LCD met the terms of heading
8531, HTSUS, because it was designed solely for displaying
limited information. The proper interpretation of this ruling is
that the merchandise was not a typical glass sandwich of heading
9013, because it met the terms of signaling in heading 8531,
HTSUS.
The comment also argues that the LCDs are "more than" the
glass sandwiches of heading 9013, HTSUS, and that the merchandise
is properly classifiable under heading 8473, HTSUS, as parts of
typewriters. In support of this claim, the comment refers to EN
90.13, which describes LCDs. However, we note that the terms of
heading 9013, HTSUS, specifically provide for "Liquid crystal
devices not constituting articles provided for more specifically
in other headings". Absent a showing of meeting the terms of
headings 8471 or 8531, HTSUS, Customs has consistently held that
LCDs are classifiable under 9013, HTSUS. See HQs 954788,
953115, 952502; 951868, 952360, and 951288. Customs has
previously addressed the claim that heading 8473, HTSUS, is a
more specific provision than heading 9013, HTSUS, in HQ 957435.
See also Legal Note 2(a) to Section XVI and Legal Note 2 to
Chapter 90, HTSUS, for the treatment of "parts". As to the
application of GRI 3(a), we note that classification is resolved
through the application of GRI 1, the terms of the headings, and
the relevant section and chapter notes.
As stated previously, the LCD panel, part number TLX-1151-50BN, which is designed for use in electric typewriters, displays
more information than typical signaling/indicator panels.
Therefore, they cannot be classified under heading 8531, HTSUS.
Based upon HQ 957435, we find that HQ 952722 must be modified to
reflect that LCD panel, part number TLX-1151-50BN, for electric
typewriters is classifiable under heading 9013, HTSUS, as LCDs
not constituting articles provided for more specifically in
another heading.
HOLDING:
For the foregoing reasons, the LCD panel, part number TLX-1151-50BN, for electric typewriters is classifiable under
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 column one, general rate of duty is 7.2 percent ad
valorem.
EFFECT ON OTHER RULINGS:
HQ 952722, dated September 27, 1994, is hereby modified as
set forth in this ruling. In accordance with 19 U.S.C.
1625(c)(1), this ruling will become effective 60 days after
publication in the Customs Bulletin. Publication of rulings or
decisions pursuant to 19 U.S.C. 1625(c)(1) does not constitute a
change of practice or position in accordance with section
177.10(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division