CLA-2 CO:R:C:G 085541 AJS
TARIFF NO: 8471.92.40; 8528.10.80
Mr. E. Thomas Honey
Barnes, Richardson & Colburn
475 Park Avenue South
New York, New York 10016
RE: ECM 2700 Color Monitor
Dear Mr. Honey:
Your letter of August 11, 1989, requesting a tariff
classification ruling under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA), has been referred to this
office for reply.
FACTS:
The article in question is the ECM 2700 (ECM), which is a
large screen (27") high resolution monitor used to display
computer generated signals. The ECM incorporates an RS170
interface unit (RS) that allows the ECM to receive a composite
video signal from a video cassette recorder (VCR). This monitor
possesses a high resolution .76mm dot pitch resolution, no tuner,
and a 15.75 or 22KHz horizontal frequency response. Lastly, the
ECM is used primarily for information display purposes in
airports, classrooms, stock exchanges, etc., and is compatible
with various computers depending on which type of interface is
used.
ISSUE:
Whether the monitor in question is classifiable within
subheading 8471.92.40, HTSUSA, which provides for "[a]utomatic
data processing machines and units thereof . . . [i]nput or
output units . . . [o]ther. [d]isplay units. [o]ther."; or
within subheading 8528.10.80, HTSUSA, which provides for
"[t]elevision receivers (including video monitors and video
projection receivers) . . . [o]ther television receivers."
-2-
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's). GRI 1 provides
that classification is determined first in accordance with the
terms of the headings of the tariff and any relative section or
chapter notes.
Customs recently ruled that projection units which display
computer generated signals and video signals are classifiable as
display units within subheading 8471.92.40. (HQ 085392, November
22, 1989). The principle use of the articles subject to HQ
085392 was to display computer generated signals. The monitors
in question are also principally used to display computer
generated signals. Therefore, the ECM is also classifiable as an
display unit within subheading 8471.92.40.
Within the United States, goods classified by use are
classified according to their principal use, and the "controlling
use is the principal use." Additional U.S. Rule of
Interpretation 1(a). You claim that the monitor in question is
sold exclusively to industrial/commercial users for use as a
computer display unit. This claim is supported by the fact that
the costs of these units would appear to preclude their use as
television receivers based on either economic or efficiency
reasons.
Classification as a computer display unit is also supported
by additional factors. The ECM can only receive a composite
video signal when connected to the RS interface. When connected
to the other two interface models the ECM is not able to receive
composite video signals. According to submitted information, use
of the ECM with the RS will also be fairly limited. In addition,
the primary reason for using the RS is to increase the range of
computers with which the ECM can be used and not for video
reception. Based on the fact that the principle use of the ECM
is as a computer display unit, classification within heading
8471 is appropriate.
HOLDING:
The ECM 2700 color monitor is classifiable within subheading
8471.92.40, HTSUSA, which provides for display units dutiable at
3.7 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division