CLA-2 RR:CR:GC 960316 RFA
Port Director
U.S. Customs Service
P.O. Box 2450
San Francisco, CA 94126
RE: Protest 2809-96-100723; Liquid Crystal Devices (LCDs); LCD
Displays; Signaling Apparatus; Legal Note 1(m) to Section
XVI; Headings 8531 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 959945
Dear Port Director:
The following is our decision regarding Protest 2809-96-100723, which concerns the classification of liquid crystal
device for signaling apparatus under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The subject merchandise is a Sharp passive dot matrix liquid
crystal display (LCD), model LM32P10. The LCD display screen
consists of a 320 x 240 pixel configuration, which is referred to
by the protestant as a Quarter VGA [video graphics array]
display. 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).
The merchandise was entered on December 26, 1995, under
subheading 8531.20.00, HTSUS, as a visual signaling apparatus.
The entry was liquidated on March 1, 1996, under subheading
9013.80.60, HTSUS, as liquid crystal displays not elsewhere
specified. The protest was timely filed on May 28, 1996.
The subheadings under consideration are as follows:
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. . . :
[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 2.4 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 8.1 percent ad valorem.
ISSUE:
Whether the subject LCDs are classifiable as signaling
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.
LCDs are prima facie classifiable in the following HTSUS
headings: 8471, which provides for ADP machines and units
thereof; 8531, which provides for electric sound or visual
signaling apparatus; and, 9013, which provides for liquid crystal
devices not constituting articles provided for in other headings.
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." Because of the wording of heading 9013, 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 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013
(September 2, 1997). See also HQ 959175, dated November 25, 1996.
Therefore, if an LCD does not meet the terms of either headings
8471 or 8531, then it is classifiable under heading 9013.
The port classified the subject merchandise under heading
9013. The protestant claims that the subject LCD is classifiable
under heading 8531. In the attached copy of HQ 959945, of this
date, Customs determined the classification of the Sharp LCD
model LM32P10. Based upon this ruling, we find that the subject
merchandise is classifiable under subheading 8531.20.00, HTSUS,
as signaling apparatus.
HOLDING:
The Sharp LCD display screen, model LM32P10, is classifiable
under subheading 8531.20.00, HTSUS, as visual signaling
apparatus.
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 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
Attachment: HQ 959945