CLA-2 RR:CR:GC 965802 GOB
Layne R. Mostad
President
Captus International
112 Eighth Street W.
Brookings, SD 57006-1143
RE: Revocation of I82314; LED Display Modules
Dear Mr. Mostad:
This is in reply to your letter of August 6, 2002, in which you request that we reconsider NY I82314 dated June 19, 2002, issued to you by the Director, National Commodity Specialist Division, with respect to the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of certain LED (light emitting diode) display modules.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY I80344, as described below, was published in the Customs Bulletin on October 16, 2002. No comments were received in response to the notice.
FACTS:
The LED display modules were described in I82314 as follows:
. . . the LED modules consist of a circuit board populated with electronic components and light emitting diodes (LED’s). These modules are designed to be incorporated into electronic displays that are used for traffic management on highways and other roads. The displays provide information on traffic conditions.
In your letter of August 6, 2002, you state: “. . . the ‘LED module’ is a component (part) of the referenced traffic control signs . . . Our modules will be strictly used for the fabrication of electric signs used to control roadway traffic.”
In your letter of May 13, 2002 to Customs, you state: “The LED modules will be incorporated into both permanently-mounted and mobile (portable) electronic displays that are used for vehicular traffic management (highways, freeways, etc.) . . . Please note that we only intend to import the LED characters, which form the programmable text portion of the display. The balance of the displays (cabinet, trailer, solar panels, and power supply) are either manufactured within the US or provided to our customers by other suppliers.”
In response to our request for additional information, in your letter of September 26, 2002, you state:
The LED display boards to be imported by Captus International are to be used solely for the manufacture of road traffic control displays. Some of these displays are to be mobile, in which LED boards are mounted on trailers placed at roadside; such trailers are moved from one road construction site to another as needed. Other traffic control displays are permanently mounted on frames at roadside and may stay in place for 10 years or more. At this time, Captus International plans to sell its LED boards to ADDCO, Inc., of St. Paul, Minnesota. ADDCO manufactures complete traffic control display assemblies.
ADDCO sells its traffic control products to state departments of transportation (DOT’s) and to contractors that build roads for DOT’s. In all cases, the displays are used strictly for control of vehicular roadway traffic.
There are many types of LED displays produced in the U.S. – not by ADDCO, but by other companies. Such displays include full color LED video screens for sports facilities and multi-color or one-color displays for commercial applications like shopping malls, banks, and casinos. It is theoretically possible to install our LED boards in one of the non-traffic control displays mentioned above. However, differences in the LED required for various applications prevent such activity from being practical.
LED’s in our traffic control boards have very narrow 15- to 45-degree viewing angles that are used specifically to manage narrow roadway corridors; narrow cones of light save energy and minimize display cost, and they are all that is needed to deliver important messages to the motoring public. 15- to 45-degree angles are too narrow to use for the video screen or commercial sign applications mentioned herein; these most commonly employ viewing angles of 70 degrees and higher.
In I82314 Customs classified the LED display modules in subheading 8531.90.90, HTSUS, which provides for: “Electric sound or visual signalling apparatus . . . : . . . Parts: . . . Other: . . . Other.”
ISSUE:
What is the classification under the HTSUS of the LED display modules?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s 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.
The HTSUS provisions under consideration are as follows:
8530 Electrical signalling, safety or traffic control equipment for railways, streetcar lines, subways, roads, inland waterways, parking facilities, port installations or airfields (other than those of heading 8608); parts thereof:
8530.90.00 Parts
* * * * *
8531 Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof:
8531.90 Parts:
Other:
8531.90.90 Other
Note 2 to Section XVI, HTSUS, provides in pertinent part as follows:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in
heading 8409, 8431,8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate ...
EN 85.30 provides in pertinent part as follows:
This heading covers all electrical equipment used for controlling the traffic on railways, hovertrain systems, roads or inland waterways . . .
. . .
(B) Equipment for roads, inland waterways or parking facilities. This group includes:
(1) Automatic level crossing signals, e.g., winking lights, bells, illuminated stop signs.
Electrical equipment for operating gates or barriers is also covered by this heading.
(2) Traffic lights. These usually consist of a system of coloured lights installed at cross-roads, junctions, etc. They comprise the actual light installations, control equipment and means of operating the controls. The lights may be hand-operated (lights operated by a traffic policeman or, on certain pedestrian crossings, by the pedestrian) or automatic (lights operated on a time basis, and lights operated by the passage of vehicles, either by means of photoelectric cells or by contacts placed on the road).
(3) Electrical traffic control equipment for port installations or airfields.
[All emphasis in original.]
EN 85.31 provides in pertinent part as follows:
With the exception of signalling apparatus used on cycles or motor vehicles (heading 85.12) and that for traffic control on roads, railways, etc. (heading 85.30), this heading covers all electrical apparatus used for signalling purposes, whether using sound for the transmission of the signal (bells, buzzers, hooters, etc.) or using visual indication (lamps, flaps, illuminated numbers, etc.) and whether operated by hand (e.g., door bells) or automatically (e.g., burglar alarms).
. . .
This heading includes, inter alia:
(A) Electric bells, buzzers, door chimes, etc. . . .
(B) Electric sound signalling apparatus, horns, sirens, etc. . . .
(C) Other electrical signalling apparatus . . .
(D) Indicator panels and the like. These are used (e.g., in offices, hotels and factories) for calling personnel, indicating where a certain person or service is required, indicating whether a room is free or not . . .
(E) Burglar alarms . . .
(F) Fire alarms . . .
(G) Electric vapour or gas alarms . . .
(H) Flame alarms . . .
[All emphasis in original.]
The LED display modules are either provided for in heading 8530, HTSUS, or in heading 8531, HTSUS. The text of heading 8531, HTSUS, contains the language: “. . . other than those of heading . . . 8530 . . . “ Thus, if the LED display modules are described in heading 8530, HTSUS, they are classified therein and not in heading 8531, HTSUS. The text of heading 8530, HTSUS, includes: “. . . traffic control equipment for . . . roads.” EN 85.30 provides that heading 8530 covers all electrical equipment used for controlling equipment on roads. You describe the LED display modules as:
“. . . designed to be incorporated into electronic displays that are used for traffic management on highways and other roads.”
Additional U.S. Rule of Interpretation 1(a) provides that the principal use is the controlling use with respect to tariff classifications controlled by use. Heading 8530, HTSUS, is a principal use provision which includes traffic control equipment. Based upon the facts submitted, we find that the subject LED display modules are solely or principally used as parts for traffic control equipment. See note 2(b) to Section XVI, HTSUS. Accordingly, we find that the LED display modules are provided for in heading 8530, HTSUS, and are classified in subheading 8530.90.00, HTSUS, as: “Electrical signalling, safety or traffic control equipment for railways, streetcar lines, subways, roads, inland waterways, parking facilities, port installations or airfields (other than those of heading 8608); parts thereof: . . . Parts.”
HOLDING:
The LED display modules are classified in subheading 8530.90.00, HTSUS, as: “Electrical signalling, safety or traffic control equipment for railways, streetcar lines, subways, roads, inland waterways, parking facilities, port installations or airfields (other than those of heading 8608); parts thereof: . . . Parts”
EFFECT ON OTHER RULINGS:
NY I82314 is revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Acting Director
Commercial Rulings Division