CLA-2 CO:R:C:M 088639 MBR

Mr. Alan Foster
Director of Purchasing
Fairtron Corporation
P.O. Box 1847
Des Moines, Iowa 50306

RE: Reconsideration of HQ 087547, dated October 10, 1990; Sunfire Video Display Screen; 8543

Dear Mr. Foster:

We have been asked to reconsider our ruling letter to you, HQ 087547, dated October 10, 1990, regarding classification of the Sunfire video display screen, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The article in question is the Sunfire video display screen. It is a transportable, full color, video display screen that is capable of displaying a variety of images from sources such as: CATV, television cameras, video tapes, and computer-generated data or images. The display occurs when the screen's numerous modules are illuminated in various ways.

The screen's overall size is 8.8' x 12', 1.6' thick, and it weighs 2860 lbs. At the appropriate viewing distance the picture quality is comparable to standard color television sets. The luminance of the Sunfire Screen may be fixed for either indoor or outdoor viewing. This video display screen is capable of operating outdoors, in any weather condition. A personal computer and digitizer are required to control the screen. The digitizer processes the received television, video or computer signal for display.

ISSUE:

Whether the Sunfire Screen is classified in subheading 8531.20.00, HTSUSA, which provides for "Electric sound or visual -2-

signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms)...: Indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's)," or in subheading 8543.80.90, HTSUSA, which provides for "Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other."

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..."

HQ 087547, dated October 10, 1990, held that the Sunfire Screen was classifiable under 8531.20.00, HTSUSA, which provides for: "Electrical sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms)...: Indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's)" In HQ 087547, we stated that:

No one heading exactly covers screens of this type used to display images. However, it is the opinion of this office that the Sunfire Screen is a type of indicator panel most specifically described by heading 8531, HTSUSA.

However, HQ 086032, dated January 17, 1990, held that a message display center which operated on a computer program to generate full color animation, graphics, and text, was properly classifiable under subheading 8543.80.90, HTSUSA, which provides for electrical apparatus having an individual function, not provided for elsewhere. In that decision, we stated that:

Nevertheless, the message display centers perform a function which is different than that of signalling equipment. Although the instant merchandise can flash graphics or animation to call attention to the display, its primary purpose is to convey a substantive message; this function is more than that of signalling equipment which is designed to provide a signal to a viewer who normally will instantaneously understand the meaning of the signal.

Additionally, HQ 077392, dated September 23, 1986, held that under the TSUS, moving message displays were not classifiable under the provision for "other sound or visual signalling apparatus," provided for in 685.70, TSUS. Here, Customs relied on the court in Oxford International Corporation v. United States, 75 Cust. Ct. 58, C.D. 4608 (1975), which stated that this provision encompasses only those devices whose function is to -3-

call attention to temporary or abnormal conditions. Therefore, the court concluded that the general provision "other sound or visual signalling apparatus" must exclude articles which operate continuously and which do not warn of the existence of emergencies or of special circumstances.

Therefore, it is now our position that the Sunfire video display screen is not properly classifiable under heading 8531, HTSUSA, which provides for "electrical sound or visual signalling apparatus," since it operates continuously and does not warn of the existence of emergencies or of special circumstances.

HOLDING:

The Sunfire video display screen is properly classifiable under subheading 8543.80.90, HTSUSA, which provides for: "Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other." The rate of duty is 1.5%, if the provisions of the United States - Canada Free Trade Agreement are met.

EFFECT ON OTHER RULINGS:

In order to insure uniformity in Customs classification of this merchandise and eliminate uncertainty, we are modifying HQ 087547 to reflect the above classification, effective with the date of this letter.

This notice to you should be considered a modification of HQ 087547, dated October 10, 1990, under authority of Section 19 CFR 177.9(d)(1). It is not to be applied retroactively to HQ 087547 (19 CFR 177.9(d)(2)), and will not affect past importations of your merchandise. However, HQ 087547 will not be valid precedent for future transactions.

We recognize that pending transactions may be adversely affected by this modification. If such a situation arises, you may notify this office and apply for relief from the binding effects of this decision, as may be warranted by the circumstances.

Sincerely,

John Durant, Director
Commercial Rulings Division