Liquid Crystal Displays (LCDs); Flat Panel Displays; Signaling Apparatus; Principal Use; Headings 8531 and 9013; Sharp Microelectronics Technology, Inc. v. United States; HQs 959945 and 952722

HQ 961045 February 22, 1999 CLA-2 RR:CR:GC 961045 RFA CATEGORY: Classification TARIFF NO.: 8531.20.00 Mr. George R. Tuttle, III Three Embarcadero Center Suite 1160 San Francisco, CA 94111 RE: Liquid Crystal Displays (LCDs); Flat Panel Displays; Signaling Apparatus; Principal Use; Headings 8531 and 9013; Sharp Microelectronics Technology, Inc. v. United States; HQs 959945 and 952722 Dear Mr. Tuttle: This is in response to your letter dated September 25, 1997, to the Customs National Commodity Specialist Division, New York, on behalf of Hyundai Electronic America (HEA), Inc., concerning the tariff classification of certain liquid crystal display (LCD) modules under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this ruling, we also considered the information provided with your letter of April 17, 1998. We regret the delay. FACTS: The merchandise consists of 5 groups of liquid crystal display (LCD) modules. The first group consists of LCD modules model numbers HG-32606F-HWJO and HG-326067U-G, which have a 320 x 240 pixel configuration. According to the information provided, these modules will be used as displays for medical monitors. The second group consists of LCD module model number HG-24504QG-EW-01, which has a 240 x 64 pixel configuration. According to the information provided, this module will be used as a display for bar code readers. The third group consists of LCD modules model numbers HB-16504NG-EW and HG-16502NG-DYO, which have a 160 x 128 pixel configuration. According to the information provided, these modules will be used as displays for global positioning system (GPS) devices. The fourth group consists of LCD modules model numbers HB-10601NG-EW, HB-10601NY-EW, and HB-10601NY-EWP, which have a 100 x 108 pixel configuration. According to the information provided, these modules will be used as displays for the Voyager Personal Messaging Unit (PMU) which allows 1-way and 2-way paging capabilities of pre-set messages. The fifth group consists of LCD module model number HB-12616QG-TSC which has a 128 x 64 pixel configuration. According to the information provided, this module will be used as a display for a digital message communicator which allows for limited messaging and location information. ISSUE: Are the subject LCDs classifiable 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 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 959945, dated November 19, 1997, Customs determined that the class of Quarter-VGA displays (LCD modules with a pixel configuration of 320 x 240) are not of the kind solely or principally used in an ADP system because of there wide usage in a variety of as displays for such things as portable data terminals, digital scale (weight/price indication), and global positioning (indicates location information). Classification is determined based upon the use of the class of goods and not the actual use of the specific imports. Group Italglass U.S.A., Inc. v. United States, 839 F.Supp. 866, 867, 17 CIT 1177, 1177 (1993). Customs determined that because the class of Quarter-VGA displays are providing certain limited indication information to the user, they are classifiable under heading 8531, as visual signaling apparatus. Based upon the application of HQ 959945, we find that the first group of LCD modules, model numbers HG-32606F-HWJO and HG-326067U-G, which have a 320 x 240 pixel configuration belong to the class or kind of LCDs that are classifiable under heading 8531, as signaling apparatus. In HQ 955294, dated March 18, 1994, Customs determined the classification of two types of LCD modules used as displays for bar code scanners and for GPS devices. Customs held that the LCDs for bar code scanning “provides only certain limited information to a user such as item designation or destination, an as such, is similar to those types of limited indication functions enumerated” in Explanatory Note 85.31. Customs also held that “the GPS LCDs are designed for and dedicated to provide certain limited information such as: coordinates, estimated time of arrival, distance to destination, direction of destination, and destination coordinates. Therefore, these LCDs are also classifiable under the provision for signaling apparatus.” Based upon the application of HQ 955294, we find that the LCD modules in Group 2 (model HG-24504QG-EW-01) and in Group 3 (models HB-16504NG-EW and HG-16502NG-DYO) are classifiable under heading 8531, as signaling apparatus. In HQ 952722, dated September 27, 1994, Customs determined that an LCD module used for a telecom console was principally used and/or limited by design to “signaling” because it provided limited indication information to a user. Like the LCD module in HQ 952722, the LCD modules in Group 4 (models HB-10601NG-EW, HB-10601NY-EW, and HB-10601NY-EWP) and in Group 5 (model HB-12616QG-TSC) display pre-set messages and limited messaging capabilities. Based upon this information, we find that they are classifiable under heading 8531, HTSUS, as signaling apparatus. HOLDING: The LCD modules in Group 1 (model HG-32606F-HWJO and HG-326067U-G), in Group 2 (model HG-24504QG-EW-01), in Group 3 (models HB-16504NG-EW and HG-16502NG-DYO), in Group 4 (models HB-10601NG-EW, HB-10601NY-EW, and HB-10601NY-EWP) and in Group 5 (model HB-12616QG-TSC), are classifiable under subheading 8531.20.00, 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 0.5 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division