CLA-2 RR:CR:GC 962677 gah
Sidney N. Weiss, Esq.
90 Park Avenue
New York, NY 10016
RE: Gas plasma displays
Dear Mr. Weiss:
This is in reply to your request, dated March 15, 1999, for a binding classification ruling on Toshiba America Consumer Products Inc. Model PD42W1 42 inch plasma wide-screen display monitor.
FACTS:
The merchandise has been described as a 42 inch color plasma display with an 852 x 480 dot configuration and a pixel pitch of 1.08 mm. The display area is 920 by 518 mm. There are 16,770,000 colors, and the contrast is 550:1 with brightness of 350 cd/sq. M (white peak). The product does not contain a video tuner or television receiver. The monitor is capable of displaying computer images through connection to a personal computer (PC), and can display video signals from various sources. The monitor has a depth of 3.5 inches or 89 mm and a weight of 72.8 pounds, or 33 kg. It is operated by an infrared remote controller. The technology allows viewing images on the screen in a breadth of 160 degrees without seeing any image distortion.
As a PC monitor, the plasma display monitor can be used to display automatic data processing (ADP) information in presentations to groups of people. It is compatible with all major ADP signal format standards and commensurate frequency bandwidths, and contains input terminals required to display those signals.
As a video monitor, the unit displays information from video equipment such as video cassette recorders (VCRs) and digital video discs. It is compatible with all major video signal format standards and frequencies, including high definition and video digital signals. It is equipped with a decoding device covering the separation of the R, G and B signals. It contains input terminals required to display those signals. It can disseminate information as an indoor advertising and bulletin board device. It is useable in multimedia conferencing and presentations.
ISSUE:
Is the plasma display monitor properly classified in heading 8471 as an ADP monitor or in heading 8528 as a video monitor?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.
Section XVI, legal note 3, HTSUS, requires in pertinent part that composite machines and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. The plasma monitors are such machines, as they perform ADP and video monitor functions. For the principal function of the monitors, we turn to the headings under consideration.
Heading 8471, HTSUS, covers in pertinent part units of automatic data processing machines. Chapter 84, note 5 (B)(a-c) sets forth the technical requirements that a unit must meet in order to fall within the scope of heading 8471. The Toshiba PD42W1 plasma display specifications indicate that it can be used in an ADP system. You assert that it is expected that the unit’s principal use will be as a display unit for computers, but no evidence is given that it is, in fact, solely or principally used as such. Factors tending to support a principal use are well established and include channels of trade, environment of sale such as advertisements, and recognition of use in the trade. See, e.g., HQ 960354, dated October 22, 1998. However, you provide no such evidence. Thus, the gas plasma monitor fails to meet the terms of note 5(B), and classification in heading 8471 is precluded. Further, section XVI, legal note 3 fails to resolve classification, because there is no defined principal function.
Chapter 84, note 5 (E) states that machines performing a specific function other than data processing and incorporating or working in conjunction with an ADP machine are classified in a heading appropriate to their respective functions or failing that, in residual headings. This note contemplates that there are machines that have dual functions but have no principal function and can be used in both ADP and another specified setting.
Heading 8528, HTSUS, covers in pertinent part reception apparatus for television and ... video monitors. You argue that the display is too expensive and has technical capabilities far superior to those necessary for viewing television. However, this assertion is not relevant as the monitor is not capable of receiving television signals as imported. Heading 8528 specifically covers video monitors as well as, and distinct from, television monitors. As noted above, the subject monitor is capable of displaying signals from any video source in any video standard. It allows for the viewing of images on the screen in a breadth of 160 degrees without seeing any image distortion. You claim that the monitor is used but not principally used as a video monitor. Principal use as a video monitor is not required for classification as such in heading 8528. See HQ 961466, dated April 6, 1999.
The goods meet the terms of heading 8528, are specified and included therein, and at GRI 1, are therefore properly classifiable in heading 8528 as video monitors. We find that the subject merchandise is specifically provided for in heading 8528 as a color video monitor with a flat panel screen, not incorporating video recording or reproducing apparatus, and with a video display diagonal exceeding 33.02 cm.
HOLDING:
The gas plasma display monitors are classifiable in subheading 8528.21.7000, which provides for video monitors, color, with a flat panel screen, other, other, and carries a 5 percent ad valorem duty rate.
Sincerely,
John Durant, Director
Commercial Rulings Division