CLA-2 RR:CR:GC 960110 RFA
Port Director
U.S. Customs Service
P.O. Box 2450
San Francisco, CA 94126
RE: Protest 2809-96-101627; Liquid Crystal Devices (LCDs); LCD
Displays; Reception Apparatus for Television; Color Video
Monitors; Legal Note 1(m) to Section XVI; Headings 8528 and
9013; Sharp Microelectronics Technology, Inc. v. United
States, 932 F.Supp. 1499 (CIT 1996), aff'd., 122 F.3d 1446,
CAFC Slip Op. 97-1013 (September 2, 1997); HQ 955062
Dear Port Director:
The following is our decision regarding Protest 2809-96-101627, which concerns the classification of liquid crystal
devices (LCDs) for color video monitors under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
The subject merchandise is a color TFT active matrix liquid
crystal display (LCD), model 5L-U4E, with a display diagonal of 5
inches. The LCD display screen consists of a 480 x 234 pixel
matrix, arranged in a triangular manner. Attached to the LCD is
a printed circuit board with driver integrated circuits and a
plastic diffuser panel, all of which are encased in a metal
housing (bezel). It is claimed that the subject merchandise is
to be used as a color video monitor.
The merchandise was entered on May 29, 1996, under
subheading 8528.21.65, HTSUS, as a video monitor with a flat
panel screen. The entry was liquidated on September 13, 1996,
under subheading 9013.80.60, HTSUS, as liquid crystal displays
not elsewhere specified. The protest was timely filed on
December 10, 1996.
The subheadings under consideration are as follows:
8528.21.65: Reception apparatus for television, whether
or not incorporating radiobroadcast receivers
or sound or video recording or reproducing
apparatus; video monitors and video
projectors: [v]ideo monitors: [c]olor: [w]ith
a flat panel screen: [o]ther: [w]ith a video
display diagonal not exceeding 33.02 cm....
Goods classifiable under this provision have a general,
column one rate of duty of 3 percent ad valorem.
8531.20.00 Electric sound or visual signaling apparatus
(for example, bells, sirens, indicator
panels, burglar or fire alarms). . . :
[i]ndicator panels incorporating liquid
crystal devices (LCD's) or light emitting
diodes (LED's). . . .
Goods classifiable under this provision have a general,
column one rate of duty of 2.1 percent ad valorem.
9013.80.60 Liquid crystal devices not constituting
articles provided for more specifically in
other headings. . . : [o]ther devices,
appliances and instruments: [o]ther. . . .
Goods classifiable under this provision have a general,
column one rate of duty of 7.2 percent ad valorem.
ISSUE:
Whether the subject LCDs are classifiable as video monitors,
or as signalling apparatus, or as LCDs not specified or included
elsewhere, 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.
The port classified the subject merchandise under heading
9013, HTSUS. This provision has been interpreted to mean that if
the subject merchandise is provided for more specifically in
another heading, it would not be classifiable in heading 9013,
HTSUS. See Sharp Microelectronics Technology, Inc. v. United
States, 932 F.Supp. 1499 (CIT 1996), aff'd., 122 F.3d 1446, CAFC
Slip Op. 97-1013 (September 2, 1997). See also HQ 959175, dated
November 25, 1996.
The protestant claims that the subject LCD is classifiable
under heading 8528, as a video monitor. The term "video monitor"
is defined in the Harmonized Commodity Description and Coding
System Explanatory Notes (ENs) which constitute the official
interpretation of the HTSUS. While not legally binding, the ENs
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of
these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23,
1989). EN 85.28, page 1492, states that video monitors are
receivers which are "connected directly to the video camera or
recorder by means of co-axial cables, so that all of the radio-frequency circuits are eliminated." We find that the subject
merchandise cannot be classified under heading 8528 because the
protestant did not supply any documentation to support this
claim. However, examination of the protestant's sales literature
and previous information submitted to Customs indicates that this
display is to be used in automobiles for use with global
positioning systems (GPS).
In HQ 955062, dated March 21, 1994, Customs determined that
LCD modules which have a principal use as global positioning,
lottery system, portable data collector, medical instrument, and
gasoline pump indicator meet the terms of heading 8531, as
signaling apparatus, because they provide certain limited
indication information to the user. Based upon HQ 955062, we
find that the subject LCD which is principally used for
indicating limited location information to the user, is
classifiable under heading 8531, as signaling apparatus.
HOLDING:
The Sharp LCD display screen for portable televisions, model
5L-U4E, are classifiable under subheading 8531.20.00, HTSUS,
which provides for: "[e]lectric sound or visual signaling
apparatus (for example, bells, sirens, indicator panels, burglar
or fire alarms) . . . : [i]ndicator panels incorporating liquid
crystal devices (LCD's) or light emitting diodes (LED's). . . ."
Goods classifiable under this provision have a general, column
one rate of duty of 2.1 percent ad valorem.
Because reclassification of the merchandise as indicated
above results in a lower rate of duty than claimed, you should
GRANT the protest in full. 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 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
Commercial Rulings Division