CLA-2 RR:CR:GC 961194 RFA
Mr. Tim Butler
Golden View Display, Ltd.
408 11th Avenue
Longmont, CO 80501
RE: Liquid Crystal Display Glass Sandwiches; Sharp Micro-electronics Technology, Inc. v. United States, 932 F.Supp.
1499 (CIT 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013 (September 2, 1997); NY 841178, superseded in part
Dear Mr. Butler:
In a letter dated November 18, 1997, to Customs in New York,
you requested the tariff classification of liquid crystal display
(LCD) glass sandwiches under the Harmonized Tariff Schedule of
the United States (HTSUS). Your letter was referred to this
office for a response. We regret the delay
FACTS:
The subject merchandise consists of liquid crystal display
(LCD) "glass sandwiches" for signaling devices. In their
condition as imported, the "glass sandwich" consists of liquid
crystal filled between two layers of glass with no driver
electronics attached.
ISSUE:
What is the classification of LCD "glass sandwiches" 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.
The U.S. has consistently held that glass sandwiches are
classifiable under heading 9013, which provides for: "[l]iquid
crystal devices not constituting articles provided for more
specifically in other headings. . ." See HQ 951868 (October 31,
1992); HQ 951609 (October 20, 1992); HQ 952973 (August 5, 1993).
This position has been affirmed by the courts in Sharp Micro-electronics Technology, Inc. v. United States, 932 F.Supp. 1499
(CIT 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013
(September 2, 1997).
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the official interpretation of
the HTSUS. While not legally binding or dispositive, the ENs
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of
these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23,
1989). EN 90.13, states that heading 9013 includes:
Liquid crystal devices consisting of a liquid
crystal layer sandwiched between two sheets or plates
of glass or plastics, whether or not fitted with
electrical connections, presented in the piece or cut
to special shapes and not constituting articles
described more specifically in other headings of the
Nomenclature.
Based upon HQs 951868, 951609, and 952973, as well as the
holdings in Sharp Microelectronics Technology, Inc., and the
language of EN 90.13, we find that the subject LCD "glass
sandwiches" are classifiable under heading 9013, HTSUS. When the
Information Technology Agreement (ITA) went into effect on July
1, 1997 [see 62 FR 35909 (July 2, 1997)], the U.S. created the
following two new subheadings within heading 9013:
9013: Liquid crystal devices not constituting articles
provided for more specifically in other headings;.
. . :
9013.80: Other devices, appliances and instruments:
9013.80.70: Flat panel displays other than for articles
of heading 8528. . . .
Goods classifiable under this provision have a column
one, general rate of duty of 3.2 percent ad valorem.
9013.80.90: Other. . . .
Goods classifiable under this provision have a column
one, general rate of duty of 5.4 percent ad valorem.
Glass sandwiches do not meet the terms of subheading
9013.80.70, because in their condition as imported they are not
displays because they do not contain the electronics (row and
column drivers) that allow an LCD to display. Therefore, we find
that LCD glass sandwiches are classifiable under subheading
9013.80.90, HTSUS.
On May 25, 1989, Customs New York issued NY 841178 to you,
classifying your LCD "glass sandwiches" under subheading
8531.90.00, HTSUS, as parts of signalling apparatus. In your
submission, you asked whether this ruling was still valid in
light of the courts decisions in Sharp Microelectronics
Technology, Inc. v. United States. Pursuant to section 152.16 of
the Customs Regulations [19 CFR 152.16], unless the
Commissioner of Customs otherwise directs, the principles of any
court decision adverse to a Customs ruling shall supersede that
ruling. Therefore, we find that NY 841178 no longer reflects the
proper classification of LCD "glass sandwiches".
HOLDING:
The LCD glass sandwiches are classifiable under subheading
9013.80.90, 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 general, column one rate of duty is 5.4
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division