CLA-2-85:RR:NC:1:108 G86218
Ms. Lucy Richardson
Sony Electronics Inc.
123 Tice Boulevard
Woodcliff Lake, New Jersey 07675
RE: The tariff classification of incomplete televisions with cathode-ray tubes from various countries.
Dear Ms. Richardson:
In your letter dated January 4, 2001 you requested a tariff classification ruling.
The items in question are an unfinished projection television module (unfinished PJTV) and an unfinished direct view television module (unfinished CTV).
The unfinished PJTV contains all the parts of a complete, color, non-high definition projection television except for the rear board which covers the back of the television, the front board which completes the front of the set and protects the consumer from any accidental electrical shock, a harness assembly, a speaker grill assembly which is a fabric-covered plastic frame which permits the speaker to emit sound without distorting the audio and the brackets and clamps for attaching the forgoing parts. The unfinished PJTV contains three monochrome cathode-ray tubes each of a different color (blue, red and green) to project a full color image that are 17.78 cm wide.
The unfinished CTV will have all the parts of a complete direct view television except for the rear cover that essentially serves as the cabinet and covers the entire apparatus, and the AC cord hook. The unfinished CTV will contain a cathode-ray tube with a 90.2-cm viewable screen size.
The issue concerns both the classification of each module as an unfinished television and whether the incorporated cathode-ray tubes are to be separately classified. Headquarters Ruling 959073 and Additional U.S. Notes 5 and 6 to chapter 85 provide guidance on this matter.
Additional U.S. Note 5 to chapter 85, HTSUS, provides that:
Picture tubes imported in combination with, or incorporated into, other articles are to be classified in subheadings 8540.11 through 8540.12, inclusive, unless they are:
A. Incorporated into complete television receivers, as defined in Additional U.S. note 6 of chapter 85.
B. Incorporated into fully assembled units such as word processors, ADP terminals, or similar articles.
C. Put up in kits containing all the parts necessary for assembly into complete television receivers, as defined in Additional U.S. note 6 of chapter 85; or
D. Put up in kits containing all the parts necessary for assembly into fully assembled units such as word processors, ADP terminals, or similar articles.
Additional U.S. note 6 to chapter 85, HTSUS, states that: “for the purposes of additional U.S. note 5 above the term ‘complete television receivers’ means television receivers, fully assembled in their cabinets, whether or not packaged or tested for distribution to the ultimate purchaser(s)”.
Based upon the detailed descriptive information and photographs of the television modules, in their imported condition, and Additional U.S. note 6 to chapter 85, HTSUS, it is the opinion of this office that both television modules do not meet the terms of a “complete television receiver”. They will therefore be considered, for the purposes of classification, as incomplete television receivers.
For the purpose of classification of the cathode-ray tubes HQ Ruling 959073 provides the following:
“According to the legislative history for the above referenced Additional U.S. Notes 5 and 6, Congress intended to prevent importers from taking advantage of what the Committee believes to be a loophole in the TSUS [Tariff Schedules of the United States – the precursor to the HTSUS] … The Committee believes that the picture tube portion of the entry should receive the … duty rate applicable to color television picture tubes.” H.Rep No. 40, 100th Cong., 1st Sess. 217 (1987) at 218. It is clear from the legislative intent that the picture tubes in incomplete assemblies must be classified separately from the rest of the merchandise”. Therefore this office finds that the cathode-ray tubes for both television modules are to be classified in their respective headings.
The applicable subheading for the unfinished television modules will be 8528.12.0800, Harmonized Tariff Schedule of the United States (HTS), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: Incomplete or unfinished (including assemblies for television receivers consisting of all parts specified in additional U. S. note 10 to this chapter plus a power supply), not incorporating a cathode-ray tube, flat panel screen or similar display device: Other. The rate of duty will be free.
The applicable subheading for the cathode-ray tube for the CTV module will be 8540.11.1080, Harmonized Tariff Schedule of the United States (HTS), which provides for Thermionic, cold cathode or photocathode tubes (for example, vacuum or vapor or gas filled tubes, mercury arc rectifying tubes, cathode-ray tubes, television camera tubes); parts thereof: Cathode-ray television tubes, including video monitor cathode-ray tubes: Color; Non-high definition, non-projection, having a video display diagonal exceeding 35.56 cm … Exceeding 67 cm. The general rate of duty will be 15 percent ad valorem.
The applicable subheading for the cathode-ray tubes for the PJTV module will be 8540.12.5040, Harmonized Tariff Schedule of the United States (HTS), which provides for Thermionic, cold cathode or photocathode tubes (for example, vacuum or vapor or gas filled tubes, mercury arc rectifying tubes, cathode-ray tubes, television camera tubes); parts thereof: Black and white or other monochrome: Television picture tubes having a straight line dimension across the faceplate greater than 29 cm but having no straight line dimension across the faceplate that exceeds 42 cm: Non-high definition … Projection. The general rate of duty will be 3.3 percent ad valorem.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Michael Contino and Linda Hackett at 212-637-7039 and 7048.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division