CLA-2 RR:TC:MM 957795 RFA

Mr. Paul C. Rosenthal
Collier, Shannon, Rill & Scott, PLLC
3050 K Street, NW
Suite 400
Washington, DC 20007

RE: Electroluminescent Flat-Panel Displays; Automatic Data Processing Machines; Principal Use; Signaling Apparatus; Electrical Machines and Apparatus, Having Individual Functions, Not Specified or Included Elsewhere; Headings 8471, 8531, and 8543; Legal Note 5(B) to Chapter 84; Additional U.S. Rule 1(a); HQ 952502

Dear Mr. Rosenthal:

This is in reference to your letter dated December 7, 1995, on behalf of Planar Systems, concerning the tariff classification of electroluminescent (EL) flat panel displays under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this ruling, we also considered arguments provided in our meetings on December 15, 1995, and March 28, 1996, as well as the information provided with your submissions of March 15, March 28, April 3, and May 15, 1996.

FACTS:

The merchandise under consideration consists of ten groups of thin profile electroluminescent (EL) flat-panel displays. In each group, the EL flat panel displays have printed circuit boards (PCBs) populated with row and column drivers (integrated circuits), and a metal bezel (frame). You state that all of the EL flat panel displays have a response time of a few milliseconds between signals.

Group 1 consists of the following displays with a 640 x 480 pixel configuration [also known as a Video Graphics Array (VGA) standard]:

Model Number Pixel Pitch Weight Input Voltage

EL 7768MS .32 x .32mm 25 oz. +5, +12 V

EL 640.480-A/AD EL 640.480-AF/AG no data available no data available no data available

EL 640.480-AM .33 x .33mm 21 oz. +5, +12 V

EL 640.480-AA .33 x .33mm no data available +5, +12 V

EL 640.480-A SB series .33 x .33mm 28 oz. +12 V

EL 640.480-AAI .33 x .33mm 28 oz. +12 V

The product literature submitted states that the 640 x 480 EL displays replace cathode ray tubes (CRTs) for virtually all microcomputer-based product designs and can display all images generated for the VGA graphic standard.

Group 2 consists of the following displays with a 640 x 400 pixel configuration [also known as a Enhanced Graphics Adapter ("EGA") standard]:

Model Number Pixel Pitch Weight Input Voltage

EL 8358HR .305 x .305mm 24 oz. +12 V

EL 640.400-C .30 x .30mm 14 oz. +5, +11. . . +30 V

EL 640.400-CB EL 640.400-CD .305 x .305mm 14 oz. +5, +12, +24 V

EL 640.400-CE .305 x .305mm no data available +5, +12 V

EL 640.400-C3/CD3 .305 x.305mm 14 oz. +5, +11. . . +30 V

The product literature submitted states that the 640 x 400 EL displays replace CRTs in control and instrument product designs and can display all images generated for the VGA graphic standard.

Group 3 consists of the following displays with a 640 x 350 pixel configuration [also known as a EGA standard]:

Model Number Pixel Pitch Weight Input Voltage

EL 640.350-D no data available no data available no data available

EL 640.350-DA series .35 x .28mm 22.6 oz. +5, +12 V

The product literature submitted states that the 640 x 350 EL displays replace CRTs in control and instrument product designs and can display all images generated for the EGA graphic standard.

Group 4 consists of the following displays with a 640 x 200 pixel configuration [also known as a Color Graphics Adapter ("CGA") standard]:

Model Number Pixel Pitch Weight Input Voltage

EL 8358 MS .61 x. 305mm 24 oz. +12 V

EL 640.200-U EL640.200-UD no data available no data available no data available

The product literature submitted states that the 640 x 200 EL displays replace CRTs for virtually all micro-computer based product designs and can display all images generated for the CGA graphic standard.

Group 5 consists of the following display with a 560 x 400 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 560.400N .254 x .254mm 14 oz. +5, +12 V

The product literature submitted states that this EL display replaces CRTs in instruments such as oscilloscopes, spectrum analyzers and logic analyzers.

Group 6 consists of the following displays with a 512 x 256 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 512.256H no data available no data available no data available

EL 6648MS .381 x .381mm 25 oz. +12 V

The product literature submitted states that these EL displays replace CRTs for microcomputer-based product designs.

Group 7 consists of the following displays with a 320 x 256 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 320.256-FD .30 x .30mm 10.9 oz +5, +11. . . +30 V

EL 320.256 F .30 x .30mm 9.2 oz +5, +11. . . +30 V

EL 320.256-F6/FD6 .30 x .30mm 9.2 oz. +5, +11. . . +30 V

The product literature submitted states that these EL displays replace CRTs for control and instrument product designs.

Group 8 consists of the following displays with a 320 x 128 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 4737 LP .528 x .528mm 13 oz +5, +12 V

The product literature submitted states that this EL display replaces CRTs for microcomputer-based product designs.

Group 9 consists of the following displays with a 276 x 128 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 4836 LP .53 x .53mm 12.5 oz +5, +12 V

The product literature submitted states that this EL display replaces CRTs for microcomputer-based product designs.

Group 10 consists of the following displays with a 240 x 64 pixel configuration:

Model Number Pixel Pitch Weight Input Voltage

EL 240.64 .528 x .528mm 6 oz +5, +12 V

EL 240.64-S no data available no data available no data available

The product literature submitted states that these EL displays replace CRTs for instrument product designs.

EL displays can be incorporated into automatic data processing (ADP) machines such as personal computers, laptop computers, and workstations, as well as portable patient medical monitors, telecommunications test equipment, point of sale terminals, avionics, transportation screens, etc. This ruling will cover only Groups 1 through 4. Customs will issue a separate ruling covering Groups 5 through 10 at a later date.

ISSUE:

Whether EL displays, Groups 1 through 4, are classifiable as output units for ADP machines under heading 8471, or as electric sound or visual signaling apparatus under heading 8531, or as machines having electrical functions not specified or included in heading 8543, under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

EL displays are prima facie classifiable in the following headings: heading 8471, HTSUS, which provides for ADP machines and units thereof; heading 8531, HTSUS, which provides for electric sound or visual signaling apparatus; and, heading 8543, HTSUS, which provides for electrical apparatus having functions not elsewhere specified or included.

To be classified as an ADP unit, the subject display must meet the terms of Legal Note 5(B) to chapter 84, HTSUS, which provides that:

Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (E) below, a unit is to be regarded as being a part of a complete system if it meets all the following conditions:

(a) It is of a kind solely or principally used in an automatic data processing system;

(b) It is connectable to the central processing unit [CPU] either directly or through one or more other units; and

(c) It is able to accept or deliver data in a form (codes or signals) which can be used by the system.

Heading 8531, HTSUS provides for electric sound or visual signaling apparatus. Therefore, to be classifiable in this heading the apparatus must be limited by design and function to signaling. Customs has held that heading 8471, HTSUS, and heading 8531, HTSUS, are use provisions subject to Additional U.S. Rule 1(a), HTSUS. See HQ 956870 (July 27, 1995) and HQ 951288 (July 7, 1992). Additional U.S. Rule 1(a), HTSUS, states that: "[a] tariff classification controlled by use (other than actual use) is to be determined 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."

In your submissions, you stated that EL displays are of the same class or kind as liquid crystal displays (LCDs) and should receive the same tariff treatment. Both LCDs and EL displays are part of the broader class generally known in the trade industry as flat panel displays. Flat panel displays utilize one of several technologies such as LCDs (passive matrix and active matrix), ELs, gas plasma, and field emission displays. We recognize that as new methods are discovered, new types of flat panel display technologies may be added to this group. Flat panel displays can be found in a wide variety of products, such as computers, televisions, video games, indicator panels, watches, portable patient medical monitors, avionics, telecommunications test equipment, point of sale terminals, transportation screens, etc. Because of the wide variety of uses, there are numerous types and sizes of flat panel displays. Currently, we understand that the most commonly used display is LCD. Since the EL displays appear to belong to the class of goods known as flat panel displays, the issue for classification purposes is to define the applicable criteria for determining the principal use of these displays.

Therefore, unless a principal use for ADP output (heading 8471) or signaling (heading 8531) can be established satisfactorily either by design limitation or other reliable means, LCDs are classified as liquid crystal devices not elsewhere provided for (heading 9013). Applying the same reasoning to ELs this means that to be classifiable in heading 8471 as claimed, the ELs must be of a class or kind of goods principally used for ADP. If a principal use of this class can be established for signaling, then classification is in heading 8531. In the absence of information as to use, classification of the EL displays would devolve to heading 8543.

In HQ 952502, dated March 18, 1993, Customs determined the classification of certain LCD modules with a column configuration (Y axis) of 640 pixels and a row configuration (X axis) of 200 to 480 pixels which were connected to PCBs populated with row and column driver integrated circuits, output connectors, backlighting, and bezel. After holding that the dispositive issue was one of principal use, Customs found that these modules met specific computer industry standards [e.g., Video Graphics Array ("VGA"), Enhanced Graphics Adapter ("EGA"), or Color Graphics Adapter ("CGA")] and, therefore, were principally used as ADP output units, classifiable under heading 8471, HTSUS. These industry standards are consistent with our information from VESA (Video Electronics Standards Association), an organiztion of major personal computer (PC) graphics vendors devoted to improving graphics standards by setting and supporting industry-wide standards for the PC, workstation, and computing environments.

We find the criteria enunciated in HQ 952502 to be applicable to the determination of principal use in the instant case. Accordingly, for an EL flat-panel display to be an ADP output unit of heading 8471, it must generally meet the same criteria as that of an LCD flat panel display for an ADP machine. Applying the principles stated in HQ 952502, an EL display panel must be: connectable to the CPU; capable of receiving data from an ADP system; and, be of a type of display that is principally or solely used in an ADP system. We find that complete or finished EL flat panel displays, groups 1 through 4, which are connectable to a CPU, capable of receiving data from an ADP system, and meet the specific computer industry standards of CGA, EGA, and VGA are classifiable under heading 8471, HTSUS. Depending upon the size of the screen (visual display diagonal), EL flat-panel displays, groups 1 through 4, are classifiable under subheading 8471.60.30 or 8471.60.45, HTSUS, which provides for ADP output units. In NY 880138 (November 19, 1992) and NY 887698 (July 2, 1993), Customs held that EL displays meeting the VGA standard (a 640 x 480 pixel configuration) and were either contained in an ADP unit or were finished input/output units, are classifiable under heading 8471, HTSUS. Therefore, we find that NY 880138 and NY 887698 support the legal analysis stated above.

As Customs becomes aware of new definable industry standards, we will examine this issue further and, if necessary, update the criteria used in classifying ADP output units. This ruling neither modifies nor revokes prior rulings involving the classification of LCDs. Those rulings are still valid. This ruling merely expands the class of computer displays which Customs will accept as ADP output units classifiable under heading 8471, HTSUS.

HOLDING:

Finished EL flat-panel displays, groups 1 through 4, are classifiable under subheading 8471.60.30 or 8471.60.45, HTSUS [depending upon the screen diagonal], as ADP output units.

Classification of finished EL flat-panel displays, groups 5 through 10 will be the subject of a separate Headquarters ruling.

Sincerely,

John Durant, Director
Tariff Classification Appeals
Division