CLA-2 RR:CR:GC 961727 DWS
Mr. Robert Swierupski, Director
National Commodity Specialist Division
U.S. Customs Service
6 World Trade Center, Room 423
New York, NY 10048
RE: Touch Screen Graphic LCD Module; Photocopy Machine; Kores
Manufacturing Inc. v. U.S.; Chapter 90, Note 2; HQs 958711,
958709, 083674, and 960873;
Explanatory Note 85.37; Principal Use; Additional U.S. Rule
of Interpretation 1(a); U.S. v. The Carborundum Company;
8531.20.00; 9009.90.10
Dear Mr. Swierupski:
This is in response to your office's memorandum (CLA-2-84:RR:NC:1-110) dated April 21, 1998, concerning the
classification of the Touch Screen graphic liquid crystal display
(LCD) module under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The merchandise consists of the Touch Screen graphic LCD
module (Model 123K3714) (Touch Screen), which is comprised of a
printed wiring board (PWB) with LCD row and column drivers, LCD
display, voltage generators, temperature compensation circuitry,
discrete touch switches, and fluorescent lamp back light. The
Touch Screen functions as a resistive touch display panel for a
Xerox photocopy machine (Model 5334).
In the literature provided, it states that "[t]his is the
first Touch Screen in convenience copying. Simply touch what you
want the 5334 to do. Your choices are presented automatically
and in sequence, without any effort on your part. On basic jobs,
the Touch Screen provides status messages and other helpful
information. Also, you can press the "I" button to access an
information center that explains each button on the Control
Panel, each of the 5334's features and each type of copy job that
can be done." Therefore, based upon the information provided, by
utilizing the Touch Screen, a user can control the operation of
the photocopy machine. On the photocopy machine itself, the
Touch Screen is referred to as the "Touch Control Screen."
ISSUE:
Whether the Touch Screen is classifiable under subheading
8531.20.00, as an indicator panel incorporating an LCD, under
subheading 8537.10.90, HTSUS, as an other panel for electric
control or the distribution of electricity, or under subheading
9009.90.10, HTSUS, as a part of photocopying apparatus of
subheading 9009.12, HTSUS, other than photoreceptors or
assemblies containing photoreceptors.
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 is determined according to the
terms of the headings and any relative section or chapter notes.
The HTSUS provisions under consideration are as follows:
8531 Electric sound or visual signaling apparatus (for example,
bells, sirens,
indicator panels, burglar or fire alarms), other than those
of heading
8512 or 8530; parts thereof:
8531.20.00 Indicator panels incorporating liquid crystal devices
(LCD's) or
light emitting diodes (LED's).
* * * * * * * * *
8537 Boards, panels, consoles, desks, cabinets and other bases,
equipped
with two or more apparatus of heading 8535 or 8536, for
electric control
or the distribution of electricity, including those
incorporating instruments
or apparatus of chapter 90, and numerical control apparatus,
other than
switching apparatus of heading 8517:
8537.10 For a voltage not exceeding 1,000 V:
8537.10.90 Other.
* * * * * * * * *
9009 Photocopying apparatus incorporating an optical system or of
the contact
type and thermocopying apparatus; parts and accessories
thereof:
Electrostatic photocopying apparatus:
9009.12.00 Operating by reproducing the original image via
an
intermediate onto the copy (indirect process).
9009.90 Parts and accessories thereof:
Parts of photocopying apparatus of subheading
9009.12
specified in additional U.S. note 5 to this
chapter:
9009.90.10 Parts other than photoreceptors or
assemblies
containing photoreceptors.
* * * * * * * * *
Whether an article is a part of another article depends on
the nature of the so-called "part" and its usefulness, function
and purpose in relation to the article in which it is designed to
serve. Kores Manufacturing Inc. v. U.S., 3 CIT 178, 179 (1982),
aff'd appeal No. 82-83 (C.A.F.C. 1983). As the Touch Screen is
integral to the operation of the photocopy machine, it is our
position that the module is a part of that photocopy machine,
which itself is a good of heading 9009, HTSUS.
Because the Touch Screen is a part of a good of chapter 90,
HTSUS, chapter 90, note 2, HTSUS, is applicable. It states that:
[s]ubject to note 1 above, parts and accessories for machines,
apparatus, instruments or articles of this chapter are to be classified
according to the following rules:
(a) 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;
(b) Other parts and accessories, if suitable for use solely or
principally with a particular kind of machine, instrument or
apparatus, or with a number of machines, instruments or apparatus
of the same heading (including a machine, instrument or apparatus
of heading 9010, 9013 or 9031) are to be classified with the
machines, instruments or apparatus of that kind;
(c) All other parts and accessories are to be classified in heading
9033.
It as been suggested that, because the module acts as the
control panel for a photocopy machine, it is a good of heading
8537, HTSUS, specifically described under subheading 8537.10.90,
HTSUS. Three rulings, each of which classified merchandise in
heading 8537, HTSUS, are cited as precedent. In HQ 958711, dated
February 6, 1996, we held an elastomer (a molded silicone rubber
pad with collapsible protrusions functioning as individual
switches), which was part of a telephone set of heading 8517,
HTSUS, to be classifiable under subheading 8537.10.90, HTSUS. In
HQ 958709, dated February 6, 1996, we held a keyboard/panel
switch for cellular telephones,
comprised of switches, connectors, and contacts, to be
classifiable under subheading 8537.10.90, HTSUS. In HQ 083674,
dated June 22, 1989 (holding affirmed in HQ 088238, dated April
23, 1991), we held a microwave control panel, incorporating a
clock and metal chassis, to be classifiable under subheading
8537.10.90, HTSUS.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive or
legally binding, 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 Fed. Reg.
35127, 35128 (August 23, 1989). In part, Explanatory Note 85.37
(p. 1506) states that:
[t]hese consist of an assembly of apparatus of the kind referred to in
the two preceding headings (e.g., switches and fuses) on a board, panel,
console, etc., or mounted in a cabinet, desk, etc. They usually also
incorporate meters, and sometimes also subsidiary apparatus such as
transformers, valves, voltage regulators, rheostats or luminous circuit
diagrams.
The goods of this heading vary from small switchboards with only a few
switches, fuses, etc. (e.g., for lighting installations) to complex control
panels for machine-tools, rolling mills, power stations, radio stations,
etc., including assemblies of several of the articles cited in the text of
this heading.
Based upon the description of the merchandise in the
provided literature, it is our position that the Touch Screen is
a good of heading 8537, HTSUS. It meets the terms of the heading
in that it is for the control of electricity and contains
multiple touch switches of heading 8536, HTSUS, and incorporates
voltage regulators (as referred to in Explanatory Note 85.37).
It is claimed that the presence of the LCD and temperature
compensation circuitry places the Touch Screen beyond the scope
of heading 8537, HTSUS, and into heading 9009, HTSUS, as a part
of a photocopying machine. We disagree. The LCD is an article
of chapter 90, HTSUS (9013, HTSUS), and the terms of heading
8537, HTSUS, allow for goods classifiable therein to incorporate
articles of chapter 90, HTSUS. Also, the LCD is integral to the
use of the Touch Screen's control features. To commence the
variety of operations offered on the Touch Screen, a user must
touch the LCD. Based upon the provided literature, the
temperature compensation circuitry compensates for any changes in
temperature, which could otherwise affect the contrast and
brightness of the LCD. The purpose of such circuitry is merely
to enhance the effective operation of the Touch Screen.
HQ 960873, dated November 12, 1997, is cited as precedent
for the proposition that the Touch Screen is beyond the scope of
heading 8537, HTSUS, and is classifiable as a part in heading
9009, HTSUS. In that ruling, we held an LCD indicator module for
a cellular telephone to be classifiable as a part in heading
8529, HTSUS. However, in that ruling, the LCD portion of the
module was merely used for display purposes. All of the control
features in the module were centered in the attached printed
circuit board (PCB). With regard to the Touch Screen, the LCD is
integral to the operation of the Touch Screen's control features
covered by heading 8537, HTSUS. Therefore, for classification
purposes, it is our position that the merchandise in HQ 960873 is
distinguishable from the Touch Screen.
Heading 8537, HTSUS, is a principal use provision.
Additional U.S. rule of interpretation 1(a), HTSUS, states that:
[i]n the absence of special language or context which otherwise
requires--
(a) 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.
Factors pertinent in determining whether merchandise falls
within a particular class or kind include general physical
characteristics, the expectation of the ultimate purchaser,
channels of trade, environment of sale (accompanying accessories,
manner of advertisement and display), use in the same manner as
merchandise which defines the class, economic practicality of so
using the import, recognition in the trade of this use.
Susceptibility, capability, adequacy, or adaptability of the
import to the common use of the class is not controlling. U.S.
v. The Carborundum Company, 63 CCPA 98, C.A.D. 1172, 536 F.2d 373
(1976).
Although it is our understanding that the Touch Screen is
capable of displaying status messages and other helpful
information unrelated to its control features, it is our position
that the Touch Screen is principally used for the control of
electricity, and is a good included in the class or kind of
merchandise described in heading 8537, HTSUS. The Touch Screen
is marketed for the convenience of its screen control features;
if a buyer of such machines does not want such features, then a
photocopying machine with a simple LCD for the display of status
messages could be purchased. Based upon the provided literature,
the Touch Screen is one of the major benefits in purchasing the
Model 5334 photocopy machine.
In accordance with chapter 90, note 2(a), HTSUS, because the
Touch Screen is a good of heading 8537, HTSUS, it is precluded
from classification as a part in heading 9009, HTSUS.
Consequently, the Touch Screen is classifiable under subheading
8537.10.90, HTSUS.
Classification of the merchandise in heading 8531, HTSUS,
was considered. However, the control features of the Touch
Screen place it beyond the scope of a mere signaling device
classifiable under subheading 8531.20.00, HTSUS.
HOLDING:
The Touch Screen graphic LCD module is classifiable under
subheading 8537.10.90, HTSUS, as an other panel for electric
control or the distribution of electricity.
Sincerely,
John Durant, Director
Commercial Rulings Division