CLA-2 CO:R:C:M 952360 MBR
Mr. Don C. Johnson
Sharp Manufacturing Company of America
Sharp Plaza Boulevard
Memphis, Tennessee 38193
RE: XXXXXXXX Active Matrix Liquid Crystal Display Screen For
Portable Television; LCD; Signaling; ADP
Dear Mr. Johnson:
This is in reply to your letter of June 15, 1992. requesting
classification of Sharp's Active Matrix Liquid Crystal Display
(LCD) screen for Sharp portable color televisions, under the
Harmonized Tariff Schedule of the United States (HTSUS). Your
letter was forwarded to this office for reply.
FACTS:
The instant merchandise consists of an active matrix liquid
crystal display screen with a XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXX, a printed circuit board, and a plastic
diffuser panel, all of which are encased in a metal frame. In the
condition in which it is imported, it does not contain a
television tuner and is not capable of receiving a television
broadcast signal or reproducing a video image.
You state that there are certain features which dedicate your
LCD for use as a television screen. For instance, the drive
electronics incorporated in the subassembly are specifically
designed to process a video signal. These electronics receive a
television broadcast signal from the tuner, which is incorporated
in the main chassis of the television, and pass that signal onto
the television screen. Secondly, you state that the active matrix
liquid crystal cell used in the subassembly is particularly
suitable for use as a color television screen due to its XXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXX.
Furthermore, the specially configured tape strip wiring at
the bottom of the assembly connects the drive electronics with he
television's main electronics. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX.
ISSUE:
Are active matrix liquid crystal displays for portable
televisions classified under heading 8529, HTSUS, which provides
for television apparatus, or under heading 8531, HTSUS, which
provides for electric sound or visual signaling apparatus, or
under heading 8471, HTSUS, which provides for ADP output devices,
or under heading 9013, HTSUS, which provides for liquid crystal
devices n.s.p.f., under the Harmonized Tariff Schedule of the
United States (HTSUS)?
LAW AND ANALYSIS:
The General rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
The Liquid Crystal Displays (LCDs) are prima facie
classifiable under the following subheadings:
8529 Parts suitable for use solely or principally with the
apparatus of headings 8525 to 8528:
8529.90.20 Other: Of television apparatus: Printed circuit
boards...: subassemblies containing one or more of
such boards...: Other.
* * * * * * * * * * * *
8531 Electric sound or visual signaling apparatus (for example,
bells, sirens, indicator panels...:
8531.20.00 Indicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's)
* * * * * * * * * * * *
9013 Liquid crystal devices not constituting articles provided
for more specifically in other headings
9013.80.60 Other devices, appliances and instruments: Other
* * * * * * * * * * * *
8471 Automatic data processing machines and units thereof
8471.92.80 Other: Input or output units...: Other: Other:
Units suitable for physical incorporation into
automatic data processing machines or units
thereof
* * * * * * * * * * * *
Heading 8531, HTSUS, provides for electric sound or visual
signaling apparatus. Therefor, to be classifiable in this
heading, the apparatus must be designed for "signaling," as that
term is contemplated by the HTSUS.
The harmonized Commodity Description and Coding System
Explanatory Notes (ENs) to heading 8531, HTSUS, page 1381, are
fairly restrictive as to the class of signaling indicator panels
and the types of functions that must be performed in order to be
classifiable in that provision. It states that: "[t]hese are
used (e.g., in offices, hotels and factories) for calling
personnel, indicating where a certain person or service is
required, indicating whether a room is free or not. They
include:
(1) Room indicators. These are large panels with numbers
corresponding to a number of rooms...
(2) Number indicators. The signals appear as illuminated
figures on the face of a small box: in some apparatus
of this kind the calling mechanism is operated by the
dial of a telephone. Also clock type indicators in
which the numbers are indicated by a hand moving round
a dial.
(3) Office indicators, for example, those used to indicate
whether the occupant of a particular office is free or
not...
(4) Lift indicators. These indicate, on an illuminated
board, where the lift is and whether it is going up or
down, etc.
Therefore, only those LCDs which are limited by design and
function to that of "signaling," are classifiable in heading
8531, HTSUS. It is Customs position that the instant active
matrix LCD is not restricted by its deign to that of signaling.
In fact, due to its advanced design a principal use of signaling
cannot be supported.
Furthermore, the instant LCD would not be utilized as an
automatic data processing machine output device. ADP LCD flat
panel displays are characteristically significantly larger and
contain numerous lines of characters and are typically configured
640 X 480 XXXXXX. This screen is too small to display text and
graphics for any ADP application.
Heading 8531, HTSUS, and heading 8471, HTSUS, are both use
provisions subject to Additional U.S. Rule of Interpretation
1.(a) which states that: "a tariff classification controlled by
use (other than actual use) is to be determined in accordance in
accordance with the use in the United States at, or immediately
prior to, the date of importation, of goods of that class or kind
to which the imported goods belong, and the controlling use is
the principal use." The instant sharp XXXXXX Active Matrix
Liquid Crystal screen is not used either for signaling or for ADP
applications.
E.M. Chemicals v. United States, Appeal No. 90-1141, Cust.
Bul. Vol. 24, No. 51, (1990), 728 F. Supp. (1989), held that
liquid crystals were classifiable under item 685.70, under the
TSUS, the predecessor provision to heading 8531, HTSUS. However,
there has been a significant change in the relevant tariff
provisions under the HTSUS, and LCDs have been technologically
developed for a myriad of uses, many of which cannot be said to
be for "signaling." See HQ 951288, dated July 7, 1992, for a
similar analysis of the LCD issue.
The instant active matrix LCDs are also prima facie
classifiable in both subheading 8529.90.20, HTSUS, which provides
for "[p]arts suitable for use solely or principally with the
apparatus of headings 8525 to 8528: [o]ther: [o]f television
apparatus: [p]rinted circuit boards...; subassemblies containing
one or more of such boards...: [o]ther." And subheading
9013.80.60, HTSUS, which provides for "[l]iquid crystal devices
not constituting articles provided for more specifically in other
headings: [o]ther devices, appliances and instrument: [o]ther."
However, Section XVI, Legal Note 1(m) states that: "[t]his
section does not cover: [a]rticles of chapter 90." Heading 9013,
HTSUS, provides for: "[l]iquid crystal devices not constituting
articles provided for more specifically in other headings."
Therefore, if the Sharp active matrix display is provide for more
specifically in another heading, it would not be classifiable in
heading 9013, HTSUS. It is Customs position that heading 8529,
HTSUS, which provides for "parts," is not a more specific heading
than heading 9013, HTSUS. Therefore, since the instant sharp
active matrix LCD is classifiable in heading 9013, HTSUS, it is
not classifiable in heading 8529, HTSUS, which falls in Section
XVI.
In your submission you mention a Depart of Commerce
antidumping duty order covering active matrix liquid crystal high
information content flat panel displays and display glass
therefore from Japan, citing 56 Fed. Reg. 43,741 (September 4,
1991). However, we suggest you contact the Department of
Commerce directly if you do in fact wish a scope determination
made in regard to your prospective importations.
HOLDING:
The Sharp XXXXXX diagonal active matrix liquid crystal
display screen for color portable televisions is classifiable in
subheading 9013.80.60, HTSUS, which provides for: "[l]iquid
crystal devices not constituting articles provided for more
specifically in other headings : [o]ther devices, appliances and
instruments: [o]ther." The rate of duty is 9% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division