CLA-2 CO:R:C:M 955107 KCC

Charles Owen Verrill, Jr., Esq.
Wiley, Rein & Fielding
1776 K Street, N.W.
Washington, D.C. 20006

RE: EDU 766, EDU 776, DU 1000 and DU 7000; cathode-ray tube; Additional U.S. Rule 1(a); principal use; HRL 086929; high resolution data display cathode-ray tube; television cathode-ray tube; HRL 954354; Additional U.S. Note 5, Chapter 85; Note 2(a), Section XVI; Note 2(a), Chapter 90

Dear Mr. Verrill:

This is in response to your letter dated June 24, 1993, to Customs in Chicago, on behalf of Rockwell International Corporation, Collins Commercial Avionics, regarding the tariff classification of the EDU 766, EDU 776, DU 1000 and DU 7000 subassemblies under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter and descriptive information were forwarded to this office for a response.

FACTS:

The EDU 766 and EDU 776 ("EDU units") and the DU 1000 and DU 7000 ("DU units") are subassemblies used to make complete display units for the Electronic Flight Information System ("EFIS") which are installed in Boeing Commercial Aircraft. The EDU units are described as consisting of:

1) cathode-ray tube; 2) deflection yoke; 3) convergence coil unit; 4) specially potted anode lead and back end; and 5) a shield assembly which protects the unit from magnetic fields and provides the chassis.

The cathode-ray tube accounts for 54 percent of the value of the entire subassembly which is approximately $2,289.00.

The DU units are imported in the same general configuration and are described as consisting of:

1) cathode-ray tube; 2) deflection yoke; 3) convergence coil; 4) convergence and purity magnet assembly; and 5) associated wiring harness.

In the DU units, the cathode-ray tube accounts for 70 percent of the value of the entire subassembly which is approximately $1,1775.00.

You contend that the EDU and DU units are "more than" a cathode-ray tube and are properly classified under subheading 8529.90.35, HTSUS, as other parts suitable for use solely or principally with television apparatus, or alternatively under subheading 9014.90.60, HTSUS, as other parts and accessories of navigational instruments and appliances. Subheading 9014.90.60, HTSUS, is an eligible tariff provision for preferential treatment under the Agreement on Trade in Civil Aircraft. If the EDU and DU units are classifiable under subheading 9014.90.60, HTSUS, and meet the requirements of General Note 3(c)(iv), HTSUS, and any other applicable regulations, they will be eligible for preferential tariff treatment.

Additionally, you state that the EDU and DU units have been entered at various ports under the following provisions:

1) 8471.92.40 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included...Other...Input or output units, whether or not entered with the rest of a system and whether or not containing storage units in the same housing...Other..Other.... and 8540.30.00 Thermionic, cold cathode or photocathode tubes (for example, vacuum or vapor or gas filled tubes, mercury arc rectifying tubes, cathode-ray tubes, television camera tubes); parts thereof...Other cathode-ray tubes....

2) 8529.90.35 Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528...Other...Of television apparatus...Other...Other....

3) 8803.30.00 Parts of goods of heading 8801 or 8802...Other parts of airplanes or helicopters....

ISSUE:

What is the proper tariff classification of the EDU and DU units under the HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, 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...."

In general, a cathode-ray tube is defined as: "An electron beam tube in which the beam, or beams, can be focused to a desired cross section on a surface and varied in position and intensity to produce a visible or otherwise detectable pattern. Unless otherwise stated, the term cathode-ray tube is reserved for devices in which the screen is cathodoluminescent and in which the output information is presented in the form of a pattern of light." See, The Glossary of Cathode-Ray Tube Terms and Definitions, Electronic Industries Association ("EIA") Publication No. 192. Cathode luminescence is defined as: "Luminescence produced by the bombardment of high-velocity electrons on a material in a vacuum that emits luminous energy." Id.

The House and Senate have stated:

Cathode-ray tubes are used in a variety of products including television receivers, monitors for television studios, monitors for security systems, certain types of data display terminals for automatic data processing uses, video games, oscilloscopes and terminals for work processing applications. Television picture tubes are a type of cathode-ray tube (emphasis added).

H.Rep. No. 100-40, 100th Cong., 1st Sess. 218 (1987); S. Rep. No. 100-71, 100th Cong., 1st Sess. 156 (1987). The disparities between consumer television cathode-ray tubes and high resolution data display cathode-ray tubes are a result of the different uses and functions they are designed to achieve, which is manifested in the structural design differences. For instance, data display cathode-ray tubes are designed to display stationary text at a distance of 18 to 24 inches, which necessitates legibility, high contrast, and accuracy. Consumer television cathode-ray tubes (picture tubes) are designed to display moving images at a distance of 6 feet, and focus on low cost, brightness and clarity.

In Headquarters Ruling Letter (HRL) 086929 dated January 31, 1991, we delineated attributes which should be considered for classification under the provision encompassing high resolution data display cathode-ray tubes:

1) A monochrome tube having a phosphor other than white. However, white phosphor cathode-ray tube's may be either type of cathode-ray tube and a more in-depth analysis must be made. 2) Color tubes with extremely long persistence (LP) phosphors (produces smear, ghost, tail, etc., in television images, and thus would not be used in consumer television cathode-ray tubes). 3) Monochrome and color cathode-ray tubes having electron guns optimized for small spot size as compared to standard consumer television cathode-ray tubes of the same size. 4) Monochrome tubes with electron guns having an inherent beam current limitation such as 50 microamperes maximum, and color tubes with electron guns having an inherent beam current limitation such as 200 microamperes maximum. (although, smaller televisions may operate at this rate). 5) Monochrome tube gun elements which include electrostatic deflection plates not present in electromagnetically deflected systems. 6) A cathode-ray tube that cannot be used for viewing images, or having special components mounted or laminated to the faceplate so that standard television images are not viewable. 7) Cathode-ray tubes with a shadow mask aperture of .31 mm or smaller. 8) High price compared to similar sized screens used for consumer television cathode-ray tubes.

These attributes, either taken together or separately, should be used to determine whether a cathode-ray tube is intended to be a consumer television picture tube or a high resolution data display cathode-ray tube. It should be noted that the above attributes are based upon the best information available at this time, and will, in all probability, need to be revised again in the course of technological advancement.

Based on an examination of the above attributes, we are of the opinion that the cathode-ray tubes in the EDU and DU units meet the criteria for high resolution data display cathode-ray tubes.

However, you contend that the EDU and DU units are "more than" a cathode-ray tube. The "more than" doctrine was a concept applicable under the Tariff Schedules of the United States (TSUS), but is no longer a valid concept under the HTSUS. The EDU and DU units are cathode-ray tubes with a deflection yoke, convergence coil and some related electronics. The deflection yoke, convergence coil and the electronics are necessary for the operation of the cathode-ray tube. None of the components are related to the radio navigation function. Based on this information, we are of the opinion that the EDU and DU units are cathode-ray tubes which are classified under subheading 8540.30.00, HTSUS, as other cathode-ray tubes. See also, HRL 954354 dated October 1, 1993, which classified a character/graphic color display unit comprised of a cathode-ray tube, deflection yoke and a magnetic purity/conversion under subheading 8540.30.00, HTSUS.

You contend that Additional U.S. Note 5, Chapter 85, HTSUS, which directs that "picture tubes" be classified under subheading 8540.11 through 8540.12, HTSUS, does not apply to the tariff classification of the EDU and DU units. Specifically, Additional U.S. Note 5, Chapter 85, HTSUS, states:

Picture tubes imported in combination with, or incorporated into, other articles are to be classified in subheadings 8540.11 through 8540.12, inclusive, unless they are--

(a) incorporated into complete television receivers, as defined in additional U.S. note 6 below; (b) incorporated into fully assembled units such as word processors, ADP terminals, or similar articles; (c) put up in kits containing all the parts necessary for assembly into complete television receivers, as defined in additional U.S. note 6 below; or (d) put up in kits containing all the parts necessary for assembly into fully assembled units such as word processors, ADP terminals, or similar articles.

We agree that Additional U.S. Note 5, Chapter 85, HTSUS, does not apply in this case. However, we are of the opinion that other cathode-ray tubes, not television picture tubes, are classifiable under heading 8540, HTSUS, unless they are clearly assembled into other articles. As stated previously, the EDU and DU units are cathode-ray tubes with electronics, deflection yoke, and convergence coil which are necessary for the operation of the cathode-ray tube, and are not related to the radio navigation function.

Subheading 8529.90.35, HTSUS, provides for other parts suitable for use solely or principally with television apparatus. The EDU and DU units are excluded from classification under subheading 8529.90.35, HTSUS, pursuant to Note 2(a), Section XVI, HTSUS, which states that:

Parts which are goods included in any of the headings of chapters 84 and 85 (other than heading 8485 and 8548) are in all cases to be classified in their respective headings.

As stated previously, the EDU and DU units are classified under heading 8540, HTSUS, and, therefore, pursuant to Note 2(a), Section XVI, HTSUS, are classified therein. Subheading 9014.90.60, HTSUS, provides for other parts and accessories of navigational instruments and appliances. The EDU and DU units are excluded from classification under subheading 9014.90.60, HTSUS, pursuant to Note 2(a), Chapter 90, HTSUS, which states that:

Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8485, 8548 or 9033) are in all cases to be classified in their respective headings.

As stated previously, the EDU and DU units are classified under heading 8540, HTSUS, and, therefore, pursuant to Note 2(a), Chapter 90, HTSUS, are classified therein.

HOLDING:

The EDU 766, EDU 776, DU 1000 and DU 7000 units are classified under subheading 8540.30.00, HTSUS, as other cathode-ray tubes which is dutiable at the Column 1 rate of 6 percent ad valorem.

Sincerely,

John Durant, Director Commercial Rulings Division