CLA-2 RR:CR:GC 960318 RFA
Port Director
U.S. Customs Service
P.O. Box 2450
San Francisco, CA 94126
RE: Protest 2809-96-101312; Liquid Crystal Displays (LCDs); Flat Panel Displays; Output units for Automatic Data Processing (ADP) Machines; Signaling Apparatus; Principal Use; Headings 8471, 8531, and 9013; HQs 959945, 955062, and 952973
Dear Port Director:
The following is our decision regarding Protest 2809-96-101312, which concerns the classification of liquid crystal devices for signaling apparatus under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of five types of Sharp Electronics Corporation liquid crystal displays (LCDs). Each of the LCDs consist of the display glass, printed circuit boards (PCBs), large-scale integrated circuits, and tab interconnections, all of which are housed in bezel. The following chart lists the various types of displays based upon certain characteristics, as well as specific model numbers for each type of display.
Display Model
Number of Pixels/ Pixel Configuration
Diagonal Size
Function/use
LF7722G1
4 characters x 1 line
2.6"
Hand-held digital test and measuring multimeter
LM24014H
240 x 64
5.4"
Hand-held terminals for inventory control and asset management
LM64K83
640 x 480
9.4"
Point of sales terminals, portable test measurement terminals, and data acquisition
LM64P839
640 x 480
9.4"
Point of sales terminals
LM32K102
320 x 480
4.7"
Personal Digital Assistants
The LCD models LF7722G1, LM24014H, and LM64K83 were entered on November 27, 1995, under subheading 8531.20.00, HTSUS, as a visual signaling apparatus. The LCD models LM64P839 and LM32K102 were entered on November 27, 1995, under subheading 8471.92.30, HTSUS, as display units for automatic data processing (ADP) machines. The entry was liquidated on July 5, 1996, classifying: LCD models LM24014H and LM32K102 under subheading 9013.80.60, HTSUS, as liquid crystal displays not elsewhere specified; LCD model LF7722G1 under subheading 8531.20.00, HTSUS, as signaling apparatus; and LCD models LM64K83 and LM64P839 under subheading 8471.92.30, HTSUS. The protest was timely filed on October 1, 1996.
The subheadings under consideration are as follows:
8471.92.30: Automatic data processing machines and units thereof . . .: [o]ther: [i]nput or output units, whether or not entered with the rest of a system and 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. . . .
Goods classifiable under this provision have a general, column one rate of duty of free.
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:
Are the subject LCDs classifiable as display units for automatic data processing (ADP) machines, or as signaling apparatus, or as liquid crystal devices not constituting articles provided for 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.
In HQ 952973, dated August 5, 1993, Customs determined that LCDs having 80 or less characters are restricted to signaling functions by virtue of their operational limitations. The LCD model LF7722G1 contains only 4 characters on 1 line. Based upon the application of HQ 952973, we find that the LCD model LF7722G1 meets the terms of heading 8531, because of its operational limitations.
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. In that ruling, we also stated that: “[o]nly those LCDs which are limited by design, function, or principal use to that of ‘signaling,’ are classifiable in heading 8531, HTSUS.” As stated earlier, the LCD model LM24014H is used in hand-held terminals for inventory control and asset management. These functions are of the type found with portable data collectors. Based upon HQ 955062, we find that the LCD model LM24014H is classifiable under heading 8531, HTSUS, as signaling apparatus.
In the attached copy of HQ 959945, dated November 19, 1997, Customs determined the classification of the Sharp LCD models LM64K83, LM64P839, and LM32K102. Based upon this ruling, we find that these models are classifiable under heading 8471, HTSUS, as output units for automatic data processing machines.
HOLDING:
The Sharp LCD display screens, models LF7722G1 and LM24014H, 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), 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.
The Sharp LCD display screens, models LM64K83, LM64P839, and LM32K102, are classifiable under subheading 8471.92.30, HTSUS, which provides for: “[a]utomatic data processing machines and units thereof . . .: [o]ther: [i]nput or output units, whether or not entered with the rest of a system and 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. . . .” Goods classifiable under this provision have a general, column one rate of duty of free.
The protest should be ALLOWED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division
Attachment: HQ 959945