Application for Further Review of Protest No. 3701-10-100045; classification of indicator panels

HQ H147996 August 9, 2016 CLA-2 OT:RR:CTF:TCM H147996 DSR CATEGORY: Classification TARIFF NO.: 8543.70.9650 Port Director, Port of Milwaukee 4915 S. Howell Avenue Suite 200 Milwaukee, WI 53207 Attn: Lisa Ashmus, Senior Import Specialist RE: Application for Further Review of Protest No. 3701-10-100045; classification of indicator panels Dear Port Director: This is in response to the Application for Further Review (“AFR”) of Protest No. 3701-10-100045, filed on behalf of Adaptive Micro Systems Inc. (Protestant). At issue is the tariff classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of two types of LED displays designated as “Indicator Panel AB-2706-P22RLF” and “Alpha Serial Clock.” FACTS: Between January 16, 2009, and February 12, 2009, Protestant made three entries containing, among other things, the Indicator Panel AB-2706-P22RLF (“indicator panel”) and Alpha Serial Clock (“clock”). From the sparse information submitted, the indicator panel appears to be a graphic display that can display alphanumeric characters in different sizes at different location on its screen, in addition to animations or graphics. Protestant asserts that the clock offers multiple lines of characters (up to 4) and are up to 40 characters in width. The entries were liquidated on June 18, 2010, and the indicator panel and clock were classified in subheading 8543.70.9650, HTSUSA, which covers “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other.” Protestant timely filed the protest on December 15, 2010, and asserts that the indicator panel and clock are classified under subheading 8531.20.00, HTSUS, which covers “Electrical sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof: indicator panels incorporating liquid crystal devices (LCD’s) or light emitting diodes (LED’s).” ISSUE: Are the indicator panel and clock classified under subheading 8531.20.00, HTSUS, as indicator panels incorporating liquid crystal devices (LCD’s) or light emitting diodes (LED’s), or under subheading 8543.70.9650, HTSUS, as other electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85, HTSUS? LAW AND ANALYSIS: Initially, we note that the matter is protestable under 19 U.S.C. § 1514(a). The protest was timely filed, within 180 days of liquidation for all involved entries (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2)(B) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further Review of Protest No. 3701-10-100045 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) and (b) because the decision which the Protest was filed is alleged to be inconsistent with matters ruled upon by the Commissioner of Customs or his designee with respect to the same or substantially similar merchandise, and Protestant alleges that denial of the protest would be inconsistent with previous rulings issued by CBP. Specifically, Protestant cites to HQ H049555 (April 13, 2009), HQ 952973 (August 5, 1993), and HQ 086032 (January 17, 1990), which are cases that discuss the application of what is known as the “80 character rule” to devices such as those at issue here. However, Protestant does not provide adequate product specific information that would allow this office to make a classification determination. To classify a display under subheading 8531.20.40, HTSUS, the item must be limited in design or function to that of signaling and, while Protestant states in the Customs Form 6445A that the devices perform “very limited signaling functions,” we cannot ascertain whether or not there are such limitations to these displays. For instance, a brochure submitted with the AFR that supposedly pertains to Indicator Panel AB-2706-P22RLF does not correspond to the item concerned. Additionally, the submitted brochure that pertains to the Alpha Serial Clock is not specific as to the type or quantity of information that can be displayed by the Alpha Serial Clock. As to both items, we cannot ascertain their types of display configurations or whether the displays have control electronics. We requested such information from counsel for Protestant in October of 2011, but have not received the requested information. Given the paucity of information that has been submitted by Protestant, the time that has transpired since the requests for information, and without labeled, exploded-view diagrams that identify all internal and external components of both devices as they appear at the time of importation, we do not have enough information with which to decide upon the AFR. Protestant has failed to meet its burden of proof to establish that the devices that were imported were articles of subheading 8531.20.00, HTSUS, and not articles of subheading 8543.70.9650, HTSUS. Accordingly, we find that CBP’s classification of the entries was proper. HOLDING: The subject devices were properly liquidated and classified under subheading 8543.70.9650, HTSUSA (2009) as “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other.” The column one, general rate of duty at the time of entry was 2.6 percent ad valorem. You are instructed to DENY the protest. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP 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 International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP website located at www.cbp.gov by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division