CLA-2 RR:TC:MM 959175 RFA
Mr. Ed Scott
Kintetsu World Express (U.S.A.), Inc.
1811 Adrian Road
Burlingame, CA 94010-9991
RE: Liquid Crystal Display (LCD) Panel Module; Automatic Data
Processing (ADP) Output Unit; Heading 8471, 9013; Legal Note
5(B) to Chapter 84; HQs 952502, 957163, 952973, and 953313
Dear Mr. Scott:
This is in reference to your letter dated April 4, 1996, to
the Area Director of Customs in New York, on behalf of Sotec
America Inc., concerning the tariff classification of a liquid
crystal display (LCD) module under the Harmonized Tariff Schedule
of the United States (HTSUS). Your letter was forwarded to this
office for a response.
FACTS:
The merchandise is a Hitachi 11.3 inch diagonal thin film
transistor (TFT) active matrix color liquid crystal display (LCD)
module, model number S3-M1001, which is claimed to be used in
laptop and notebook computers. The subject LCD module has the
following physical characteristics: an 800 x 600 pixel
configuration (format) for the screen; row and column drivers
(integrated circuits); a "glide point" pointing device; an
interface connector; 35 to 90 milliseconds response time between
signals; a thin profile; contains a back light; weighs 500 grams;
and needs a maximum of 3.6 V for power supply voltage. The LCD
module has a height of 29mm, a width of 280mm, and a depth of
217mm.
ISSUE:
Is a Super Video Graphics Array (SVGA) LCD module
classifiable as an automatic data processing (ADP) output unit
under heading 8471, HTSUS, or as an LCD not more specifically
provided for elsewhere under heading 9013, 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.
Legal Note 1(m) to Section XVI, HTSUS (which includes
chapter 84), 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. See Sharp
Microelectronics Technology, Inc. v. United States, 932 F.Supp.
1499, CIT Slip Op. 96-104 (July 1, 1996).
To be classified as an ADP unit under heading 8471, HTSUS,
an article must meet the terms of Legal Note 5(B) to chapter 84,
HTSUS, which provides that:
Automatic data processing machines may be in the
form of systems consisting of a variable number of
separate units. Subject to paragraph (E) below, a unit
is to be regarded as being a part of a complete system
if it meets all the following conditions:
(a) It is of a kind solely or principally used in
an automatic data processing system;
(b) It is connectable to the central processing
unit [CPU] either directly or through one or more other
units; and
(c) It is able to accept or deliver data in a
form (codes or signals) which can be used by the
system.
In HQ 952502, dated March 18, 1993, Customs determined the
classification of certain LCD modules with a column configuration
(Y axis) of 640 pixels and a row configuration (X axis) of 200 to
480 pixels which were connected to printed circuit boards (PCBs)
populated with row and column driver integrated circuits, output
connectors, backlighting, and bezel. In that ruling, Customs
found that these modules met specific computer industry standards
[e.g., Video Graphics Array ("VGA"), Enhanced Graphics Adapter
("EGA"), or Color Graphics Adapter ("CGA")] and, therefore, were
principally used as ADP output units, classifiable under heading
8471, HTSUS.
Since that ruling was prepared, Customs has issued several
rulings involving the classification of VGA LCD modules under
heading 8471, HTSUS. See HQ 957163 (February 14, 1995), HQ 952973
(August 5, 1993), and HQ 953313 (May 10, 1993). However, it has
come to our attention that advances in technology has resulted in
the computer industry adopting a new flat panel display standard
referred to as Super VGA or "SVGA" for laptop and notebook
computers. According to the information provided and our own on-going research in this industry, we find that the subject SVGA
LCD module meets the terms of Legal Note 5(B) to chapter 84,
HTSUS, because it is connectable to the CPU, capable of receiving
data from an ADP system, and it is a type of display that is
principally or solely used in an ADP system. Therefore, the SVGA
LCD module is classifiable under heading 8471, as an ADP output
unit.
As Customs becomes further aware of new definable industry
standards, we will examine the issue and, if necessary, update
the criteria used in classifying ADP output units. This ruling
neither modifies nor revokes prior rulings involving the
classification of LCDs. Those rulings are still valid. This
ruling merely expands the class of computer displays which
Customs will accept as ADP output units classifiable under
heading 8471, HTSUS.
HOLDING:
The Hitachi TFT active matrix color LCD module, model S3-M1001, is classifiable under subheading 8471.60.30, HTSUS, which
provides for: "[a]utomatic data processing machines and units
thereof . . . : [i]nput or output units, whether or not
containing storage units in the same housing: [o]ther: [d]isplay
units: [w]ithout cathode-ray tube (CRT), having a visual display
diagonal not exceeding 30.5 cm. . . ." The general, column one
rate of duty is free.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division